(Deccan Chronicle, Secunderabad, 28 February 2022) The Export Credit Guarantee Corporation (ECGC) [of India] has decided to withdraw coverage for shipments to Russia with effect from February 25. ECGC in a communication had said: “based on the near-term commercial outlook, it has been decided to modify the country risk classification of Russia under the short-term and medium-and-long term with effect from February 25.” Indian exporters to Russia and CIS countries face uncertainty over goods worth $500 million due to the withdrawal of credit guarantee cover on items bound for the region, sanctions on Russian banks and feared disruptions at ports in the Baltic region.
Newsletter
AfreximBank Trade Centre Harare project to start soon
(Construction Review, Nairobi, 7 February 2022) AfreximBank Trade Centre will house the bank’s southern Africa regional office, that it is part of a bigger strategic plan to transform the bank’s regional offices and headquarters into a network of AATCs. The entire project cost is now estimated to be close to $100 million; however, precise figures are still being finalized. The Harare AATC will include 30 000 square meters of built space, including prime corporate office space, a four-star hotel, conferencing facilities, trade information services, a tech incubation lab, and other amenities. The African Export-Import Bank Africa Trade Centre (AATC), often known as Afreximbank, head office in Harare is taking form, with full drawings already sketched and building set to begin in the third quarter of this year. The project, which is anticipated to be completed by 2025, will make Harare a critical hub for delivering the African Continental Free Trade Agreement’s promise (ACfTA).
OECD Global Anti-Corruption & Integrity Forum: 30 March – 1 April
(OECD, Paris, 28 January 2022) The health, economic and social crisis triggered by the pandemic created new opportunities for integrity violations and corruption to thrive, prioritising integrity in governance like never before. How can we renew governance, business, development aid, anti-corruption efforts and taxation with integrity, and establish a renewed sense of social purpose? Anti-corruption NGO Our World in Data notes that: “Many firms from high-income countries engage in bribery across the world. Their official records show that US firms have paid bribes in 80 countries since 1977 – including in many OECD countries. See also Transparency International’s Corruption Perception Index.
China unveils guidelines to stabilize trade
(Global Times, Beijing, 12 January 2022) China’s cabinet, on Tuesday called for efforts to ensure domestic supplies of commodities, as part of guidelines to stabilize exports and imports as a countercyclical buffer against uncertainty clouding the trade landscape. Presently, the country’s exports and imports are facing increased uncertainty, instability and imbalance, and the fundamentals of its trade operations remain unsound, the State Council said in an announcement on Tuesday while releasing a slew of countercyclical measures to prop up micro, small and medium-sized trade businesses. Among the measures that are intended to secure orders, stabilize expectations and foster stable trade are efforts to coordinate and ensure stable commodity imports, revise and improve the list of retail imports via cross-border e-commerce, and broaden the import categories to better meet diversified consumption needs. On top of that, the guidelines proposed an acceleration of export tax rebates and the improvement of export credit insurance services to better protect smaller trade firms against the cancellation of orders before shipments.
EXIM Accused of Switch From Anti Chinese Communist Party To Beijing Ally
(Epoch Times, New York, 10 January 2022) Commentary: Thomas McArdle – While it’s bad enough that President Joe Biden has nominated in Reta Jo Lewis a longtime, committed appeaser of the oppressive, genocidal, and expansionist People’s Republic of China to chair the Export-Import Bank of the United States, it’s probably worse that prominent U.S. business entities continue to gulp the Kool-Aid about the long widely-accepted but now thoroughly discredited notion that capitalism is wooing China into democratic reform and lawfulness. EXIM’s China Program, mandated by Congress, was intended to make EXIM’s private loan guarantees and other products for U.S. exporters “fully competitive with rates, terms, and other conditions established by the People’s Republic of China” for its export business interests, utilizing 20 percent of EXIM’s total financing authority–some $27 billion out of $135 billion–and to advance competition with China in “innovation, employment, and technological standards” focused on 10 industries ranging from 5G to fintech to renewable energy to biotechnology. [The Epoch Times was started in 2000 as a Chinese language newspaper associated with the Fulan Gong, a Chinese religious order that opposes communism and is banned from practicing in China.]
Efforts Aim to Boost Arab Exports to Russia
(Asharq Al-Awsat, London, 27 January 2022) The Arab Investment and Export Credit Guarantee Corporation (Dhaman) said it is ready to boost trade and investment cooperation between Arab states and Russia through its diverse insurance, information and research services. This came in a worksheet presented by Head of Research and Publishing Unit Ahmed Eldabaa on behalf of Dhaman’s Director-General Abdullah Ahmad al-Sabeeh in the opening session of the Russian-Arab Business Council, which kicked off on Tuesday at the Dubai EXPO Exhibition Center. The sheet revealed that the value of Russian-Arab trade ties stood at $14.7 billion, according to UNCTAD data, during the period between 2011 and 2020. This represents 2.1% of Russia’s foreign trade volume and 0.8% of the Arab countries’ foreign trade volume in the Mediterranean.
UK and Italy kick off talks on new trade partnership
(Jersey Evening Post, St Helier, 12 January 2022) The UK and Italy have started discussions on a new export and investment partnership aimed at boosting trade between the two countries, the International Trade Secretary announced. Italy is the world’s eighth-largest economy and trade between Rome and London was worth £38 billion last year. Italy is the UK’s ninth-largest trading partner, while the UK is Italy’s fifth-largest export market. London and Rome will also try to boost collaboration and sharing of best practice between the two countries’ export credit organisations – UK Export Finance and the Italian Export Credit Agency [SACE] – helping SMEs and companies looking to grow. At the meeting of G20 trade ministers on Tuesday, the International Trade Secretary made the case that British businesses that “play by the rules” should not be “damaged and undercut by market-distorting practices from other countries”. The announcement comes after Ms Trevelyan, UK International Trade Secretary called for greater transparency at the World Trade Organisation and reform of its rules around state subsidies.
EDPR and DEK ink debt funding for 149-MW Polish wind portfolio
(Renewables Now, Fresno, 18 January 2022) Renewable energy producer EDP Renewables (ELI:EDPR) said today it has sealed a deal to obtain debt funding for a 149.4-MW portfolio of wind projects in Poland. The project financing was arranged by the European Investment Bank (EIB), Spain’s Banco Santander and Caixabank SA. Denmark’s EKF acted as export credit agency (ECA) coverage provider. The obtained funds will be directed towards the development, construction and operation of six wind parks in southeastern, northwestern and northern parts of Poland.
Genting Hong Kong confirms insolvency filing in Germany based on Euler Hermes block
(Bharat Express News, Punjab, 11 January 2022) MV Werften, the German cruise ship builder controlled by Malaysian billionaire Lim Kok Thay’s Genting Hong Kong, has filed for bankruptcy after failing to strike a deal with the German government to support additional funding for a mega cruise ship that the company built for Genting Hong Kong. As the travel industry grapples with the lingering impact of the Covid-19 pandemic, Genting Hong Kong requested additional funding to complete construction of the 342-meter-long cruise ship, dubbed the Global Dream, which could accommodate up to 9,500 passengers. While agreements were reached with creditors in June 2021, Euler Hermes, the German government’s export credit insurance agency, refused to confirm insurance coverage for the finance facility, preventing creditors to disburse the loan in December, the operator of Star Cruises said in a regulatory statement. deposit Monday. “The company understands that Euler Hermes’ rejection is based on a review of the group’s five-year outlook prepared at the request of Euler Hermes, which took into account various stress scenarios affecting the group, in particular a persistent and sustained reduction in activities as a result of Covid-19, ”said Genting Hong Kong.
Export credit agencies provide billions to fossil fuel projects each year
(Fossil Free ECAs, Amsterdam, 30 January 2022) We can’t solve the climate crisis if export credit agencies (ECAs) continue to bankroll fossil fuels. This campaign is designed to inform the public and tell the governments behind these agencies to immediately end all export credit and other public financial support for oil, gas and coal. In recent years, banks and other private lenders have been backing out of fossil fuel projects as they recognise the huge financial risks posed by climate change. Governments with an interest in seeing these projects succeed are turning to ECAs to bankroll and encourage further investment in the projects. Fossil fuel support from ECAs disproportionately benefits corporations based in the Global North and impedes a just energy transition in the Global South.
