ECA Watch Newsletter

What's New July 2019

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

£7.8bn of UK foreign aid and export credit spent on fossil fuel projects

 (Guardian, London, 23 July 2019) The British government has spent £680m of its foreign aid budget on fossil fuel projects since 2010, according to analysis that highlights the UK’s failure to align diplomatic, trade and aid policies with the goals of the Paris climate agreement. Britain allocated more overseas development cash to oil and gas in the two years after signing the 2015 agreement than it had in the previous five, according to the study commissioned by the Catholic development agency Cafod and carried out by the Overseas Development Institute. From 2010-17 the UK provided £7.8bn in financial support to foreign energy projects through a mixture of overseas development assistance, export credit guarantees and other official funding flows. The report says 60% of this total went on fossil fuels. Most of this came in the form of export credit guarantees by UK Export Finance. An earlier analysis by DeSmog UK, an investigative environmental journalism outlet, found an elevenfold increase in UK Export Finance support for overseas fossil fuel projects last year, including oil and gas operations in Oman, Kuwait and Brazil.

https://www.theguardian.com/environment/2019/jul/23/680m-of-uk-foreign-aid-spent...


Chinese ECA underwrites US$46 bln Chinese firms' businesses in Africa

(Xinhua, Beijing 2 JJuuly 2019) China Export & Credit Insurance Corporation has underwritten 46.08 billion U.S. dollars worth of insured businesses made by Chinese enterprises in Africa from 2018 to the end May of this year, China Securities Journal reported. Of the total, the insurer offered 26.27 billion U.S. dollars of short-term exports credit insurance and 10.11 billion U.S. dollars of medium-and long-term export credit insurance for exporters, said the paper quoting the latest data from the corporation. The company's insurance for overseas investment totaled 9.7 billion U.S. dollars in the period. During the period, the insurer paid compensation worth of 260 million U.S. dollars for companies in multiple sectors, including railways, roads, power, medicare and education.

http://www.xinhuanet.com/english/2019-07/02/c_138192475.htm


UAE ECA and Italy partner with Chinese financial institutions to boost trade

(Islamic Business and Finance, Dubai, 25 July 2019) UAE ECA Etihad Credit Insurance (ECI) has signed partnership agreements with China Export and Credit Insurance Corporation (SINOSURE), Industrial and Commercial Bank of China (ICBC) and Bank of China to boost trade, investments and bilateral exports between the UAE and China. Under the agreement between ECI and SINOSURE, both countries agreed to collaborate in the areas of insurance and co-insurance, commercial information and credit opinion sharing as well as Shari’ah-compliant solutions, trade promotions and SME programmes. According to the Ministry of Economy, China is the UAE’s main non-oil commodities trade partner accounting for 9.7 per cent of the non-oil bilateral trade in 2018, estimated at over $43 billion. China and Italy have also agreed to enhance financial market cooperation and promote two-way financial market access with support for a cooperation mechanism between their export credit agencies, leading enterprises and financial institutions to provide tailored financing-insurance solutions for cooperation.

https://www.islamicbusinessandfinance.net/en/home/articles/eci-partners-with-thr...


'Hidden debts’ reveal risks of China’s lending spree

(Asia Times, Hong Kong, 23 July 2019) China's US$1 trillion Belt and Road Initiative, along with other foreign funding, has become a magical mystery tour, baffling the World Bank and the International Monetary Fund. Or, according to critics, a diplomatic car crash waiting to happen. “Compared with China’s dominance in world trade, its expanding role in global finance is poorly documented and understood,” a report released last week by the Kiel Institute for the World Economy, noting that "Over the past decades, China has exported record amounts of capital to the rest of the world". Many of these financial flows are not reported to the IMF, the BIS [the Bank for International Settlements] or the World Bank.” China is now the world’s largest creditor. A breakdown of the numbers showed that lending soared to around US$5 trillion by 2018 from roughly $500 billion in 2000, which dwarfs World Bank and IMF credit lines. China is not part of the OECD Export Credit Group, which provides data on long- and short-term trade credit flows. In the past 18 months, the venture has been mired in controversy after being branded a “debt trap” by the US and its key Western allies. The ruling Communist Party has announced plans to expand its anti-corruption campaign to BRI projects. The Central Commission for Discipline Inspection (CCDI) had limited involvement in the program but that is starting to change and its Director General for international cooperation has stated “[We aim to] create a network of law enforcement of all these Belt and Road countries”. Asia Times askes "Will this long and winding road finally have flashing warning signs of “debt” and “corruption?” Or will this continue to be a highway to economic hell? BRI nations might want to buckle up for a bumpy ride."

https://www.asiatimes.com/2019/07/article/hidden-debts-reveal-risks-of-chinas-le...


Behind Russia’s growing influence in Africa

(The Independent, Kampala, 8 July 2019) Russia hosted the Annual General Meeting for the African Export Import Bank (Afreximbank) on June 20-22, the second AGM to be held out of Africa since 2012 in China. The Russian Export Center (REC), purchased shares in Afreximbank in 2017 at an undisclosed amount, becoming the bank’s third-largest non-African financial institution. As Russia’s President, Vladimir Putin, hosts more than 50 African presidents for the first-ever Russia-Africa Summit in Sochi on Oct. 24, top on the agenda will be how to sustain the economic and political ties between the two trading blocs in the wake of declining oil prices and increasing isolation of the transcontinental nation. Whereas Russia’s presence in Africa had weakened in the 1990s, the country had since then done a great deal of groundwork on joint projects in geology and mining, energy, industry, agriculture, fishing and telecommunications, with total investments now standing at US$20bn. Russia’s economy has been on a standstill for a while, with statistics showing that from 2014 to 2018, its GDP grew at an average of 0.4% per annum, with real disposable incomes declining by 10.7% leaving 19 million of the 145 million Russian population in poverty during the same period. On the other hand, Africa’s GDP has been growing at an average of more than 3%, making it one of the fastest growing regions in the world. Moscow, which had a strong influence in Africa alongside US and China, had frozen its relations with the continent following the collapse of the USSR in 1991. It however remains to be seen how far Russia’s reconnection with the continent will go given that China, India, and especially the United States have intensified their involvement in Africa over the last three decades. Russia’s export values to Africa have nearly doubled over the last five years from US$9.3bn in 2014 to US$17.5bn in 2018 while Russian imports from Africa have stagnated, increasing from merely US$2.8bn to US$2.9bn during the same period. Most of Russia's exports to Africa are medicine, food, forestry products, automotive and mixed fertilizer. Since 2015, according to the Swedish Defence Research Agency, Russia has signed over 20 bilateral military cooperation agreements with African states including; Rwanda, Tanzania, Burkina Faso, Burundi, Guinea. Between 2012 and 2016, Russia had become the largest supplier of arms to Africa, accounting for 35% of arms exports to the region, followed by China (17 %), the United States (9.6%), and France (6.9 %).  Some of Russia’s companies that have made inroads in Africa include; Gazprom, Lukoil, Rostec and Rosatom, with most of their operations in Uganda, Algeria, Angola, Egypt and Nigeria. Egypt has also finalised negotiations with Moscow to build the country’s first nuclear plant, while in Namibia, Moscow is developing one of the world’s largest deposits of platinum group metals.

https://www.independent.co.ug/behind-russias-growing-influence-in-africa/


Federal review of EDC finds inadequate disclosure practices

(Globe and Mail, Toronto, 2 July 2019) A federal review of Export Development Canada has exposed serious shortcomings at the Crown corporation, noting its disclosure practices fall far short of other financial institutions, and that the agency is not legally obligated to consider the environmental or human-rights impact of the financial support it provides to exporters. The findings underscore concerns uncovered in a recent Globe and Mail investigation. The Globe reported that the EDC’s client roster includes companies that have faced allegations concerning corruption, human-rights violations and environmental abuses; the federal agency has demonstrated a tendency to continue supporting such companies after other financial institutions have sanctioned them or cut them loose. Critics have also raised concerns about transparency and federal oversight of the Crown corporation. “Ottawa must impose rules on this Crown corporation to make it transparent and accountable,” Lori Waller, spokesperson for Ottawa-based human rights group Above Ground, said in a statement. “Without strong oversight of its export credit agency, the government risks profiting from harmful and illegal business activities. The law should prohibit EDC from supporting companies involved in corruption, human rights abuse or environmental harm.”

https://www.theglobeandmail.com/canada/article-federal-review-slams-export-devel...


EDC lifts "closed" status on Saudi Arabia-related business

(Reuters, Toronto, 3 July 2019) Canada's export credit agency has lifted a "closed" status on Saudi Arabia-related activity after almost a year of frosty relations between the two countries, citing improved business conditions in the Middle Eastern kingdom. The move by Export Development Canada (EDC) on Tuesday paves the way for the state-owned enterprise to resume support for exporters and investors in Saudi Arabia. Saudi Arabia in August suspended new trade and investment with Canada after it urged Riyadh to release arrested civil rights activists, leading to a trade freeze and expulsion of diplomats. "After monitoring for several months we made the decision that business conditions have improved," Amy Minsky, a senior advisor at EDC, said on Wednesday. She noted that risk remains and there was not necessarily more business in the Saudi Arabian market. The EDC said its position on a country is determined among other things, by the Canadian government's assessment of "political, human rights and corruption risks."

https://www.nasdaq.com/article/canada-export-agency-lifts-closed-status-on-saudi...


EDC claims review clears them of SNC-Lavelin transaction wrongdoing

(iPolitics, Ottawa 25 July 2019) Canada’s export credit agency says a third-party investigation has cleared the organization of any wrongdoing in providing a political risk insurance policy to SNC-Lavalin in 2011 for a dam project in Angola. EDC said Thursday a review by international law firm Fasken failed to find evidence to support allegations that the corporation turned a blind eye to illegal payments allegedly made by SNC-Lavalin to someone it had retained to help secure a $250-million project repairing the hydroelectric Matala Dam. The allegations were first reported by the CBC earlier this year, citing an unnamed SNC-Lavalin insider. They came as the engineering and construction firm faced intense scrutiny for lobbying the upper-echelons of the Trudeau government to broker a deal that would allow it to avoid a criminal trial for bribery charges relating to its work in Libya.

https://ipolitics.ca/2019/07/25/third-party-review-clears-edc-of-wrongdoing-in-s...


As Brexit Looms, UK Doubles ECA Credit To Nigeria

(Sahara Reporters, New York, 24 July 2019) With Boris Johnson, who promised to take the United Kingdom out of the European Union without a deal if necessary now the country's prime minister, the United Kingdom Export Finance (UKEF), has increased the export credit finance agreement it signed with Nigeria in February 2018 by £500 million. In a statement made available to SaharaReporters, UKEF said it had also signed a Memorandum of Understanding with the Nigeria Export-Import Bank (NEXIM) that will "foster greater cooperation in trade through co-financing in the form of guarantees and insurance". In the last ten years, UKEF has enabled companies in Britain to export goods worth £76.5 billion to emerging markets like Nigeria. In 2018 alone, the agency provided guarantees worth £6.8 billion to 181 companies in 72 countries— its best result in 28 years.

http://saharareporters.com/2019/07/24/brexit-looms-uk-doubles-export-finance-cre...


The Poseidon Princples: Will They Affect ECAs?

(Hellenic Shipping News, Cyprus, 2 July 2019) The Poseidon Principles launched on the 18 June 2019, with founding signatories including Citi, DNB, Societe Generale, ABN Amro, Amsterdam Trade Bank, Credit Agricole CIB, Danish Ship Finance, Danske Bank, DVB, ING and Nordea. Together they have a combined shipping loan portfolio of c. US$100bn – roughly 20% of the global total. Additional banks are expected to join them in the near future and it is hoped that ship lessors and financial guarantors including export credit agencies will also become signatories to the Poseidon Principles. The Poseidon Principles establish a global framework for assessing and disclosing whether ship finance portfolios align with the International Maritime Organisation‘s (“IMO”) goal of reducing shipping’s total annual greenhouse gas emissions by at least 50% by 2050.

https://www.hellenicshippingnews.com/the-poseidon-princples-will-they-affect-me/


U.S. Senate targets Ex-Im support for Saudi nuclear technology

(Foreign Policy, Washington, 30 July 2019) A bipartisan group of lawmakers is introducing new legislation aimed at restricting the transfer of nuclear technology to Saudi Arabia, the latest sign of growing congressional backlash to the Trump administration’s close relationship with the wealthy Gulf nation. The bill, put forward by Democratic Sen. Chris Van Hollen and Republican Sen. Lindsey Graham, would bar the U.S. Export-Import Bank from financing the transfer of nuclear technology and equipment to Saudi Arabia, absent nuclear cooperation agreements, and adopting restrictive international standards to safeguard against nuclear proliferation. The Export-Import Bank plays a key role in funding the export of U.S. nuclear energy equipment and technology abroad.

https://foreignpolicy.com/2019/07/30/us-senate-targets-saudi-nuclear-technology-...


Foreign beer lovers get tanked with EXIM assistance

(Craft Brewing Business, Akron, 10 July 2019) Craft breweries are promoting Maine beers in international markets via the world’s largest mobile kegerator a 40-foot refrigerated shipping container which packs in 78 on tap beer tanks and carries local Maine beers to far-away destinations. Its maiden voyage was a trip to Iceland 3 years ago and traveled to Leeds, England last fall. All 4 participating breweries ended up with significant orders for their beer overseas. Traveling as one of many breweries on the Beer Box is one thing, but exporting tens of thousands dollars of beer overseas as an individual brewer can be challenging and exposes the company to risk and financing challenges. EXIM insurance policies allowed peace of mind to these small Maine companies regarding their greatest fear – not getting paid."

https://www.craftbrewingbusiness.com/featured/how-maine-craft-breweries-grew-the...


What's New June 2019

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • MPs make unprecedented call for end to UKEF overseas fossil fuel support
  • Despite climate pledges, G20 coal subsidies rise
  • See no evil: How EDC is bankrolling companies accused of bid-rigging, graft and human-rights violation
  • Chinese Banks and ECAs Court African Governments
  • Europe’s German-speaking ECAs ink collaboration pact
  • Japanese, US & Australian ECAs begin own 'Belt and Road' in South Pacific
  • Waters backs down in Ex-Im fight after internal struggle
  • U.S. lags in export financing arms race fueled by China: EXIM report
  • Kenyan court blocks Chinese ECA backed power plant on environment grounds
  • Norwegan ECA blacklists shipbuilders over human rights abuses
  • Banks with a combined $100bn shipping portfolio stimulate green change
  • Public and targeted consultations on EU short-term ECA rules

MPs make unprecedented call for end to UKEF overseas fossil fuel support

(EU Today, London, 9 June 2019) For the first time, a Parliamentary committee has called for an end to taxpayer support for overseas fossil fuel projects. The Government must move immediately to end UKEF’s fossil fuel support, or all its talk of a ‘climate emergency’ will be seen as hollow words. The UK Government must act on today’s report by parliament’s Environmental Audit Committee about UK Export Finance, which calls for an end to UK taxpayer support for overseas fossil fuel projects by 2021. UK Export Finance (UKEF), the UK’s export credit agency, underwrites loans and insurance for export deals as part of efforts to help British business overseas. Global Witness was instrumental in calling for Parliament’s Environmental Audit Committee to set up the inquiry into UKEF. (26 June 2019, edie newsroom) Thousands of campaigners across the UK are marching today towards Parliament in a bid to urge MPs and the Government to strengthen commitments to tackling climate change, just days after the House of Commons approved draft recommendations for a national net-zero target.

https://eutoday.net/news/environment/2019/mps-make-unprecedented-call-for-end-to...


Despite climate pledges, G20 coal subsidies rise

(Reuters, London, 24 June 2019) Despite promising a decade ago to phase out fossil fuel subsidies, the world’s leading economies more than doubled subsidies to coal-fired power plants over three years, putting climate goals at risk, energy researchers said Tuesday. Between 2014 and 2017, G20 governments more than halved direct support for coal mining, from $22 billion to about $10 billion on average each year, according to a report by the London-based Overseas Development Institute (ODI), a think tank. But over the same period they boosted backing for coal-fired power plants - particularly supporting construction of the plants in other, often poorer nations - from $17 billion to $47 billion a year. While spending from national budgets on coal fell, as did tax breaks for it, other forms of support - from development finance institutions, export-credit agencies and state-owned enterprises - soared. Four countries alone, the UK, France, Canada and Ireland have all formally recognised a climate crisis but analysis shows they give $27.5bn annually in support for coal, oil and gas, much of it via ECAs.

https://www.reuters.com/article/us-climate-change-coal-subsidies/despite-climate...


See no evil: How EDC is bankrolling companies accused of bid-rigging, graft and human-rights violation

(Globe and Mail, Toronto, 4 June 2019) Export Development Canada once described itself as the country’s ‘secret trade weapon.’ But The Globe’s review of thousands of transactions reveals a pattern of secrecy and lax supervision. In Latin America, billions of dollars in Canadian government-backed loans have been funnelled to two of the region’s most notorious oil companies: the state-owned petroleum corporations of Mexico and Brazil, each riddled with frequent reports of bribery, bid-rigging and inflated contracts. In Africa, hundreds of millions of dollars in financing has been channelled to companies at the heart of South Africa’s worst postapartheid corruption scandal: the state-owned freight rail monopoly and the business empire of the infamous Gupta brothers, whose relationship with ex-president Jacob Zuma triggered a public inquiry into state corruption. And in Canada, billions of dollars in federal export loans have gone to support transactions that benefit Bombardier Inc. and SNC-Lavalin Group Inc., two companies that have been cited in corruption investigations in Asia, Africa and Europe. SNC-Lavalin’s head of compliance says the firm is still hoping to reach an out-of-court settlement on bribery, fraud charges.  EDC has declared itself a leading defender of human rights, but workers groups and advocates say the Crown agency’s long-awaited new policy falls well short of what’s needed.

https://www.theglobeandmail.com/canada/article-export-development-canada-investi...


Chinese Banks and ECAs Court African Governments

(Peace FM Online, Accra, 25 June 2019) African Foreign Ministers attending the Forum for China-Africa Cooperation (FOCAC) Coordinators’ meeting in Beijing yesterday met Chinese financial institutions who introduced them to their array of financial products. This is in line with Chinese President Xi Jinping’s [2015 and then 2018] $60 billion pledge in financial support to African countries. The breakdown showed that $5 billion was free aid and interest-free loans, while $35 billion was for preferential loans and export credit on more favourable terms, and five billion dollars for additional capital for the China Africa development fund. Five billion dollars was also up for initial capital of special loans for the development of African small to medium enterprises each, and $10 billion for China-Africa production capacity cooperation fund.

http://www.peacefmonline.com/pages/business/economy/201906/385516.php


Europe’s German-speaking ECAs ink collaboration pact

(Global Trade Review, London, 19 June 2019) Hermes, OeKB and Serv – the export credit agencies (ECAs) of Germany, Austria and Switzerland respectively – have agreed to join forces to improve opportunities for their exporters in the face of increased competition from Asia. While the statement doesn’t call out China by name, Chinese export credits have long been seen as a competitive threat by Europe’s ECAs. China is not a member of the OECD and is therefore not obliged to comply with the OECD guidelines that stipulate the financial terms and conditions that its members may offer, leaving scope for an unfair advantage for Chinese exporters.

https://www.gtreview.com/news/europe/europes-german-speaking-ecas-ink-collaborat...


Japanese, US & Australian ECAs begin own 'Belt and Road' in South Pacific

(Kikkei Asian Review, Tokyo, 25 June 2019) Japan, the U.S. and Australia have picked a liquefied natural gas project in Papua New Guinea as their first case for joint financing in the Indo-Pacific region, planning to lend over $1 billion, Nikkei has learned. Three government-backed lenders -- Japan Bank for International Cooperation, the U.S. Overseas Private Investment Corp. and Australia's Export Finance and Insurance Corp. -- plan to issue a statement on Tuesday regarding their joint infrastructure efforts. The three countries agreed in November to join hands in financing infrastructure projects in the Indo-Pacific to offer an alternative to China's Belt and Road initiative. The LNG project in Papua New Guinea marks the first project in this three-way cooperation.

https://asia.nikkei.com/Politics/International-relations/Japan-US-and-Australia-...


Waters backs down in Ex-Im fight after internal struggle

(Politico, Washington, 26 June 2019) House Financial Services Chairwoman Maxine Waters (D-CA) on Wednesday shelved a bipartisan Export-Import Bank bill that sparked a fierce backlash from her own caucus. The original compromise she drafted with Patrick McHenry (R-N.C.) ignited criticism from a wide swath of the Democrats on the committee — centrists and progressives alike, from the most senior members to newly elected freshmen, including Rep. Alexandria Ocasio-Cortez (D-N.Y.), who objected to new restrictions that would be imposed on the bank and big manufacturers such as Boeing, that benefit from its loan guarantees, as well as the lack of tougher environmental safeguards for energy projects financed abroad. Reps. Ocasio-Cortez and Rashida Tlaib (D-Mich.) were preparing to offer amendments that would impose new limits on the agency's financing of fossil fuel power plants abroad with the political backing of dozens of environmental groups. Limits on sales to China were a must-have for McHenry, who argued that it was a way to curb what he saw as a subsidy for an economic competitor. The bank is only now returning to full operation after years of being hobbled by conservative Republican lawmakers who criticized the agency as engaging in "crony capitalism" and posing a risk to taxpayers, even though it returns money to the Treasury. McHenry had predicted a strong Republican vote in favor of the bill thanks to the compromises Waters agreed to, while disgruntled Democrats were frustrated that Waters negotiated the bill with the Republicans and expected Democrats to fall in line without more of their input.

https://www.politico.com/story/2019/06/26/maxine-waters-emport-import-bank-13837...


U.S. lags in export financing arms race fueled by China: EXIM report

(Reuters, Washington, 28 June 2019) China provided as much as $130 billion in government export financing support in 2018, dwarfing every other country and fueling a new export lending arms race, the U.S. Export-Import Bank said in a report on Friday. In the last full year that EXIM had complete lending powers, fiscal 2014, the agency provided $20.5 billion in financing support for $27.5 billion worth of U.S. exports. During the fiscal year ended Sept. 30, 2018, EXIM authorized only $3.3 billion in financing, supporting $6.8 billion worth of U.S. exports, according to EXIM’s most recent annual report. EXIM has been a popular target for conservatives, who have branded it as a provider of “corporate welfare” and “crony capitalism.” The reinstatement of its lending powers is a boon for large U.S. manufacturers such as Boeing Co (BA.N), General Electric (GE.N) and Caterpillar Inc (CAT.N), which can once again offer U.S.-government-backed financing for overseas customers.

https://www.reuters.com/article/us-usa-trade-china-finance/u-s-lags-in-export-fi...


Kenyan court blocks Chinese ECA backed power plant on environment grounds

(Financial Times, London, 27 June 2019) A Kenyan court has halted construction of the country’s first coal-fired power station on environmental grounds in a blow for the $2bn project’s Chinese backers and the green credentials of China’s Belt and Road Initiative. Owned by the Kenya-based Amu Power and funded with export credit from the Industrial and Commercial Bank of China, the contentious project has sparked a heated debate in Kenya about the potential impact of coal-based power on the country’s ecosystem. Located on Kenya’s Indian Ocean coast approximately 14 miles north of Lamu town, a tourist destination and Unesco World Heritage site, environmentalists say the plant will pollute the air and destroy mangroves and the breeding grounds of endangered species.

https://www.ft.com/content/9313068e-98dc-11e9-8cfb-30c211dcd229


Norwegan ECA blacklists shipbuilders over human rights abuses

(Asia Shipping Media, Singapore, 5 June 2019)  Norway is pushing to create a shipbuilding regulation akin to the ship recycling sector’s Hong Kong Convention whereby yards will be blacklisted for financing if they are found to have deficient labour and human rights standards. The initiative is being led by the Norwegian Export Credit Guarantee Agency (GIEK), the giant Norwegian state-run financing institution. Speaking at a human rights in shipping seminar yesterday on the sidelines of the Nor-Shipping exhibition just outside Oslo, Sigrid Brynestad, GIEK’s senior sustainability expert, revealed her organisation has already blacklisted two yards for their human rights abuses. GIEK will not help finance any Norwegian ships at the two yards.

https://splash247.com/norway-blacklists-shipbuilders-over-human-rights-abuses/


Banks with a combined $100bn shipping portfolio stimulate green change

(Asia Shipping Media, Singapore, 18 June 2019) Eleven major shipping banks have joined a global framework called the Poseidon Principles to integrate climate considerations into lending decisions in line with IMO’s greenhouse gas (GHG) strategy to slash the industry’s carbon footprint by 50% by 2050. The Poseidon Principles are applicable to lenders, relevant lessors, and financial guarantors including export credit agencies. Around 90% of global trade by volume is carried by ships - making the maritime industry a vital player in economic growth, but at a cost. If it were a country, shipping would equal Germany for greenhouse gas (GHG) emissions. Together they represent a bank loan portfolio to global shipping of approximately $100 billion – around 20% of the global ship finance portfolio.

https://splash247.com/eleven-shipping-banks-join-framework-to-promote-green-ship...


Public and targeted consultations on EU short-term ECA rules

(Lexology, Brussels, 24 June 2019) In January 2019, the European Commission announced its intention to extend, for a period of two years, 7 sets of State aid rules, which were due to expire in 2020, [including the Communication on Short-Term Export Credit Insurance]. In this respect, the European Commission launched public and targeted consultations to assess the relevance, effectiveness and coherence of these sets of rules and to check whether they are still appropriate for the objective pursued. The Commission, as the guardian of competition under the Treaty, has always strongly condemned export aid for intra-Union trade and for exports outside the Union... to prevent Member States’ support for export-credit insurance from distorting competition

https://www.lexology.com/library/detail.aspx?g=720453c5-17bb-4335-9914-678646b8c...


What's New May 2019

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Senate Confirmation of Export-Import Bank Directors Means Billions More Dollars in Federal Fossil Fuel Financing
  • Pity the Export-Import Bank, caught between warring Republican factions
  • Liberals caught again in SNC Lavalin EDC Scandal
  • Canada strikes alliance with U.S. counterweight to China’s Belt and Road Initiative
  • Aid and UKEF funding must be coherent & recognise climate change emergency, say MPs
  • China’s export insurance giant is taking a risk on coal
  • Legal challenge mounted against Kosovo coal project
  • China, Japan and South Korea, while vowing to go green at home, promote coal abroad
  • European ECAs may loose out to Russian and/or Chinese sales of fighter jets to Malaysia
  • EXIM Should Explore Using Available Data to Identify Applicants with Delinquent Federal Debt
  • New EDC human-rights policy lacks power, say workers and watchdogs

Senate Confirmation of Export-Import Bank Directors Means Billions More Dollars in Federal Fossil Fuel Financing

(Friends of the Earth, Washington, 8 May 2019) The U.S. Senate today voted to confirm 3 nominees to the Board of Directors of the U.S. Export-Import Bank. The confirmation allows Ex-Im to establish a board quorum, clearing the way for the bank to revive its financing of billions of dollars in fossil fuel projects abroad. After nearly four years without full authority to operate, today’s Senate vote paves the way for 12 fossil fuel projects in the agency’s queue to progress forward to a board vote — with many more applications for financing likely to come. These dirty projects will result in tens of millions of tons of carbon dioxide emitted into the atmosphere annually. “By approving these new directors, the Senate is letting the Export-Import Bank fuel the crisis of climate change,” said Doug Norlen, economic policy program director at Friends of the Earth. “The bank will return to its past practice of supporting projects that damage the global climate, harm community health, violate human rights and hasten corruption. Rather than addressing the threat of climate change proactively, this is a vote to make the Export-Import Bank Trump’s billion-dollar fossil fuel slush fund.” Two Presidential Candidates have now said they want Ex-Im Bank's fossil fuel financing halted.  Sen. Bernie Sanders voted against Trump's nominees and is quoted in this article saying Ex-Im “should not be providing low-interest loans and loan guarantees to big fossil fuel companies that are endangering the planet.”  And, Washington State Governor and Presidential Candidate Jay Inslee just released his Evergreen Economy for America Plan which pledges "to cease all support for new fossil energy projects" by Ex-Im Bank and OPIC. Ex-Im's Congressional authorization expires Sept. 30, so the fight is brewing again!

https://foe.org/news/senate-confirmation-export-import-bank-directors-means-bill...


Pity the Export-Import Bank, caught between warring Republican factions

(ctpost, Norwalk, 8 May 019) No federal agency has lived such a bizarre state of suspended animation as has the Export-Import Bank, a long-obscure bureau that provides loan guarantees to U.S. companies doing business abroad. Rather than heralding it as a force for job creation, free-market conservatives turned Ex-Im into an ideological rallying cry that led to some of the most bitter disputes in Republican circles this decade. GOP senators called each other liars. House conservatives threatened to oust the speaker. Rank-and-file Republicans rebelled against the rebellion to save the bank. That changed Wednesday, when Senate Majority Leader Mitch McConnell, R-Ky., allowed confirmation votes on three board members, each of whom passed with near-unanimous Democratic support and sizeable Republican opposition. Once again, Ex-Im is back in business, able to support loans larger than $10 million for some of the largest U.S. exporters. But the fight is far from over. Just as it is finally getting a board, the Ex-Im Bank faces another fight over its very existence, as the 2015 legislation reauthorizing the agency is set to expire in the fall, setting up a debate that never seems to end and has left the bank's supporters continually puzzled.

https://www.ctpost.com/news/article/Pity-the-Export-Import-Bank-caught-between-1...


Liberals caught again in SNC Lavalin EDC Scandal

(Yorkton This Week, Yorkton SK, 15 May 2019) Export Development Canada (EDC), Canada's export credit agency, was created in 1944 to promote Canadian business overseas. It has 12 offices across Canada and 19 regional offices around the world. According to CBC reports SNC Lavelin have borrowed billions of dollars since the mid 1990’s from EDC. SNC Lavalin resulted from a merger of Surveyor, Nenniger, Chenevert and Lavalin all based in Quebec in 1991 instantly becoming one of the five largest engineering/construction companies in the world. They have been doing work in countries where bribery and corruption are common practice. They conform to the culture of the country and perform with their own questionable behavior. SNC Lavalin have been working on a slippery and shady slope. Even when applying for loans, they insert unsupported contingencies which seem to infer bribery money. Their worsening reputation worldwide was highlighted in 2011 and 2012 with high profile executives being arrested and jailed in Switzerland, the corporate head office of their construction division. Corruption had been uncovered for work being done in Mexico, Libya and Bangledesh. A result of this incident was the World Bank suspending a 1.2 billion dollar loan application for a proposed project in Bangledesh. In April, 2012 the World Bank suspended SNC Lavalin from bidding on any other bank projects. It would be interesting to see a complete list of their ongoing allegations!

https://www.yorktonthisweek.com/opinion/letters/liberals-caught-again-in-snc-lav...


Canada strikes alliance with U.S. counterweight to China’s Belt and Road Initiative

(Globe and Mail, Toronto, 14 May 2019) Canada’s overseas development finance arm is joining forces with a U.S. government agency that is being set up to act as a counterweight to China’s Belt and Road Initiative, a state-sponsored foreign-investment scheme by Beijing. The U.S. government’s Overseas Private Investment Corp. (OPIC) says in a statement the agreement it signed with both Canada’s FinDev and the European Union last month creates an alliance of development finance institutions that will enhance co-operation and underscore their collective commitment to "providing a robust alternative to unsustainable state-led models.” The Canadian government’s development finance arm is being funded with $300-million from the retained earnings of Export Development Canada, the federal government’s export credit agency.

https://www.theglobeandmail.com/politics/article-canada-strikes-alliance-with-us...


Aid and UKEF funding must be coherent & recognise climate change emergency, say MPs

(Guardian, London, 8 May 2019) The British government’s aid spending is failing to recognise the “scale and urgency” of the climate change challenge facing the world, MPs warn. Climate change must be placed at the centre of aid strategy and funding, if it is to address the seriousness of threats facing developing countries, the committee said. It urged a minimum spend of £1.76bn annually and a halt to funding fossil fuel projects in developing countries, unless they can demonstrate they support transition to zero emissions by 2050. The report highlighted “incoherent policy” by, showing the government spent £4.8bn on support for fossil fuel projects in 2010-16 via UK Export Finance, almost matching the £4.9bn spent on its International Climate Fund in a similar period, 2011-17. It has created a situation where “the UK government is providing climate aid with one hand and exporting the UK’s fossil fuel pollution with the other”, the report found. Ban Ki-moon, the former UN secretary general, urged Britain to stop funding fossil fuels overseas earlier this year.

https://www.theguardian.com/global-development/2019/may/08/aid-funding-must-reco...


China’s export insurance giant is taking a risk on coal

(Resource China, New York, 25 April 2019) Worldwide, a growing list of insurers now refuse to cover coal projects, citing risks from climate change and overcapacity. But Sinosure, the sole underwriter of coal-fired power plants along China’s Belt and Road Initiative (BRI), has yet to show any indicator of leaving coal behind. China’s foreign direct investment has more than doubled over the past three years, with much of it funneled into energy development. Coal has dominated these investments, combining coal-rich resources in many Belt and Road countries and China’s coal tech. Observers tend to focus on the role of financiers and power companies in overseas coal projects, but the importance of insurers should not be overlooked. Because insurance is a prerequisite for obtaining a loan on an overseas investment project, support from an insurer is needed for a project to move forward. State-owned China Export & Credit Insurance Corporation, known as Sinosure, acts as gatekeeper of energy investments along the BRI. Sinosure is China’s only policy insurer to cover overseas coal-fired power projects, meaning that overseas coal power projects require a green light from Sinosure to go ahead. By the end of 2018, Sinosure had underwritten 28 gigawatts of coal power capacity worldwide, exceeding the entire coal capacity of Australia.

https://medium.com/resource-china/chinas-export-insurance-giant-is-taking-a-risk...


Legal challenge mounted against Kosovo coal project

(Bank Watch, Prishtina 13 May 2019) Kosovar and international non-governmental organisations have today submitted an official complaint to the Energy Community dispute settlement mechanism challenging the legality of the power purchase agreement for the planned Kosova e Re coal power project, which is currently awaiting ratification by the Kosovo parliament. The complaint alleges that the 20-year power purchase agreement, signed by the Kosovar government with ContourGlobal in December 2017 fails to comply with the Energy Community Treaty rules on state  aid because it provides ContourGlobal a range of benefits that give it an unfair advantage over other energy producers. The contract would also put an unbearable strain on the state budget and Kosovar electricity consumers as it guarantees that a state-owned company will buy all the electricity generated by ContourGlobal at a “target price” of EUR 80/MWh – much higher than current electricity prices in the region. The World Bank and the European Bank for Reconstruction and Development (EBRD) have refused to provide support for the 500 MW New Kosovo coal power plant. Kosovo and London-listed power firm ContourGlobal said on Friday May 10 they had chosen a consortium of General Electric subsidiaries to build and equip a new 500 megawatt (MW) coal-fired power plant in the Balkan country. Kosovo has turned to the Trump administration for help to build a coal-fired power plant after losing the backing of the World Bank and the EBRD.

https://bankwatch.org/press_release/legal-challenge-mounted-against-kosovo-coal-...


China, Japan and South Korea, while vowing to go green at home, promote coal abroad

(Los Angeles Times, Suralaya, 13 May 2019) In the last-ditch global battle against climate change, China, Japan and South Korea have joined other industrialized nations in promising to reduce their use of fossil fuels. Yet even as they take steps to promote renewable energy at home, these three countries are facing growing scrutiny for financing dozens of new coal-fired power plants in foreign countries, primarily underwritten by their export credit agencies. Most of the plants are being built in Southeast Asia and Africa, in emerging economies where the growing demand for cheap, reliable electricity is most easily met by coal, the single largest source of the greenhouse gas emissions blamed for warming the planet. Environmental groups accuse the three Asian giants of climate hypocrisy.

https://www.latimes.com/world/asia/la-fg-indonesia-south-korea-coal-energy-finan...


European ECAs may loose out to Russian and/or Chinese sales of fighter jets to Malaysia

(Deutsche Welle, Bonn, 29 May 2019) Financial troubles may force Malaysia to drop its plans to buy highly capable multirole combat aircraft (MRCA) and settle for cheaper, less capable fighter jets to replace its current fleet of Russian MiG 29s that are mostly grounded. Europe's MRCA makers Eurofighter and Dassault Aviation have been wooing Malaysia for almost a decade for a deal. Kuala Lumpur has threatened to boycott EU goods, if the 28-nation bloc goes ahead with its plan to phase out palm oil from transport fuel after the European Commission concluded that palm oil cultivation, with some exceptions, caused deforestation and that its use in transport fuels could not be counted toward its renewable energy goals. Malaysia has said China, Russia and Pakistan have expressed their willingness to be partly paid in palm oil for their fighter jets. This is likely to complicate matters for the RMAF, which has traditionally preferred using Western equipment, including on its Russian Sukhoi jets. Malaysia's latest attempt at barter trade could be beneficial for Russia, which has seen China walk away with many defense deals in the region and undercut Moscow's arm supplies. Russia has a long track record of swapping weapons for commodities in the region, including as part of its fighter jet deals with Indonesia and Vietnam.

https://www.dw.com/en/setback-for-eu-fighter-jets-as-malaysia-bets-on-palm-oil-b...


EXIM Should Explore Using Available Data to Identify Applicants with Delinquent Federal Debt

(US General Accounting Office, Washington, 23 May 2019) The Export-Import Bank (EXIM) of the United States provides financing to support U.S. jobs and companies selling U.S. goods and services abroad. EXIM requires companies applying for certain financing to self-certify that they do not have delinquent federal debt. Financial pressures that stem from such debt can tempt companies to fraudulently apply for financing. However, after analyzing federal data, we identified billions of dollars in authorized EXIM transactions associated with dozens of companies that potentially had such debt. We recommended EXIM explore opportunities to use federal data when verifying companies' program eligibility.

https://www.gao.gov/products/GAO-19-337


New EDC human-rights policy lacks power, say workers and watchdogs

(National Post, Ottawa,  May 2019) OTTAWA — Export Development Canada is declaring itself a leading defender of human rights, but workers groups and advocates say the Crown agency’s long-awaited new policy falls well short of what’s needed. The United Steel Workers of Canada declared it a missed chance to show leadership in global finance, business and human rights. The arrival of the new policy comes as Canadian businesses and human-rights advocates await a legal review by International Trade Minister Jim Carr that will determine the powers of the government’s new “ombudsperson for responsible enterprise.” Karen Hamilton, the spokeswoman for Above Ground, a non-governmental agency that specializes in tracking human rights infractions involving businesses, said the group hopes Carr’s legal review leads to a change in EDC’s legislation to make stronger human rights obligations mandatory. “If we really want to see change, it has to be legislated,” Hamilton said.

https://nationalpost.com/pmn/news-pmn/canada-news-pmn/new-edc-human-rights-polic...


What's New April 2019

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • European Commission consultation on short-term export credit rules
  • SNC-Lavalin insider's bribery allegations spark EDC probe
  • German parliament approves ECA supported sale of 6 heavy frigates to Egypt
  • EFIC Reform Puts Pacific ‘Step-Up' at Risk
  • India's Jet Airways delays payments to global lenders guaranteed by ExIm
  • Riyadh aims to counter Tehran’s influence with Iraq ECA credits
  • Iran's ECA Reassures Foreign Trade Partners
  • China gives Naftogaz $1 billion ECA guarantee
  • Eskom’s black hole of debt keeps on getting bigger
  • How Gujarat fishermen won US top court ruling against global funding
  • UAE ECA ECI voted as observer member of Berne Union
  • Australian cattle exported to Sri Lanka under EFIC project dying and malnourished

European Commission consultation on short-term export credit rules

(UKIF, London, 30 Aprill 209) The European Commission is inviting relevant stakeholders to participate in a consultation on the short-term export-credit insurance Communication that is expiring at the end of 2020. The consultation is a backward-looking evaluation, to identify whether those rules should be prolonged in their current form or possibly updated. The deadline to submit contributions is 24 May 2019.

Respond to the survey.

Read the Commission communication to member states

https://www.gov.uk/government/news/european-commission-consultation-on-short-ter...


SNC-Lavalin insider's bribery allegations spark EDC probe

(CBC, Toronto, 3 April 2019) Export Development Canada has hired outside legal counsel to review some of its dealings with SNC-Lavalin. The review comes after a company insider told CBC News the engineering giant secured billions in loans from the Crown agency over the years, some of which he alleges was intended to pay bribes. EDC has denied knowledge of any improper payments, but last Friday said it is taking a closer look at a 2011 deal with SNC-Lavalin involving a $250-million project to refurbish the Matala hydroelectric dam in Angola. EDC has backed SNC-Lavalin projects in 19 countries since 1995. In 2012 the head of SNC-Lavalin's construction division was arrested in Switzerland for bribery in Libya. The sheer size of "technical fees" which could total as much as 10% of a project's overall budget should have raised flags. In 2013 the CBC and the Globe and Mail exposed secret payments for projects in Africa, India, Cambodia and Kazakhstan.

https://www.cbc.ca/news/canada/snc-lavalin-export-development-canada-loans-1.507...


German parliament approves ECA supported sale of 6 heavy frigates to Egypt

(Middle East Monitor, London , 5 April 2019) The German Parliament Budget Committee has approved export credit guarantees to secure the sale of six heavy frigates worth €2.3 billion (US$2 billion) to Egypt from ThyssenKrupp Marine Systems. The ships can be supplied with weapons including guided missiles and torpedoes. Green Party Budget expert, Tobias Lindner, criticised the deal and highlighted Egypt’s human rights record. “The government’s arms export policy is becoming increasingly contradictory,” Lindner told Bild, adding that “people have been fighting for weeks against weapons deliveries to Saudi Arabia, while at the same time wanting to deliver frigates to the military dictatorship in Egypt.”

https://www.middleeastmonitor.com/20190405-german-parliament-approves-sale-of-6-...


EFIC Reform Puts Pacific ‘Step-Up' at Risk

(Australian Council for International Development, Canberra, 14 Feb, 2019) ACFID has raised concerns about reform to Australia’s export credit agency - EFIC - as part of the Australian Government’s Pacific ‘step-up’ and is calling for the legislation to be referred to a parliamentary committee for scrutiny. The Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Bill 2019 introduced to the House of Representatives proposes reform to EFIC so it can administer $1.2bn in callable capital to finance Australian businesses to build infrastructure overseas. The increase for EFIC from $200m to $1.2bn in callable capital and the Minister’s statement that EFIC will assist in administering loans for the Australian Infrastructure Financing Facility (AIFFP) is cause for concern. ACFID stressed that it is untenable to have $1.2bn of taxpayers’ funding being used for Australian businesses without transparency in its delivery and reporting. A financial scale-up without the relevant capabilities and expertise within EFIC, and the lack of transparency over how EFIC will interact with other Government departments, raises very serious concerns in the aid sector over the suitability of EFIC in holding such a central role in administering new loan-finance. DFAT reassured the Senate that there was no need for any such requirement since Efic has signed up to various OECD export credit guidelines, and will “carefully assess” any number of things to ensure that only good projects are selected, in particular the country’s capacity to repay the loan. [ECA Watch note: The OECD Arrangement's "gentlemans' agreement" and peer review process has not proven much of a deterrent to bad practice, as show by the many flaws and concerns raised here on the ECA Watch web site.]

https://acfid.asn.au/media-releases/efic-reform-puts-pacific-%E2%80%98step-risk-...


India's Jet Airways delays payments to global lenders guaranteed by ExIm

(Money Control, Mumbai, 8 April 2019) India's' cash-strapped Jet Airways has delayed repayments to global lenders, including Citibank, that funded the purchase of its Boeing 777 planes the Economic Times reported. The repayments, worth over $18 billion, were due at the end of March. The banks loaned funds to the carrier based on guarantees from the Export-Import (EXIM) Bank of the US, which can be invoked in case of a default. If a default occurs, it would be bad news for Jet as the US ECA would deregister and take back the planes. Almost two-thirds of Jet's fleet have been grounded due to non-payment of its dues.

https://www.moneycontrol.com/news/business/jet-airways-delays-payments-to-global...


Riyadh aims to counter Tehran’s influence with Iraq ECA credits

(Financial Times, Riyadh, 4 April 2019) Saudi Arabia is intensifying diplomatic efforts to boost ties with Iraq, as the kingdom aims to strengthen its influence on regional rival Iran’s doorstep. The kingdom’s harsh treatment of Shia clerics sparked demonstrations in Iraq, and many Iraqis blamed Saudi Arabia for fuelling hardline Sunni Islamist ideology that gave rise to the Isis extremist group. However, since 2016, Riyadh has taken a more nuanced view of Iraqi politics that aims at chipping away at Iranian influence by denying Tehran the sectarian card. Saudi officials arrived in the Iraqi capital this week, wielding a $1bn grant for a sports stadium. Last year the Saudis pledged a $1bn loan for reconstruction in Iraq, plus $500m in export credit.

https://www.ft.com/content/4e2a8558-56ef-11e9-91f9-b6515a54c5b1


Iran's ECA Reassures Foreign Trade Partners

(Financial Tribune, Tehran, 30 April 2019) CEO of the Export Guarantee Fund of Iran says the fund has taken special measures to shield exports from the negative impact of US sanctions. “In light of the new US sanctions and the fact that foreign traders do not receive Iranian bank [export] guarantees, the fund is willing and able to cover the commercial risks for exporters,” she noted. The EGFI said earlier that it wants to expand risk cover for export insurance by $2.5 billion in the current fiscal (started March 21) and increase the penetration rate of export guarantees.

https://financialtribune.com/articles/business-and-markets/97660/irans-eca-reass...


China gives Naftogaz $1 billion ECA guarantee

(Kyiv Post, Kyiv, 2 April 2019) China has been eyeing strategic investments and acquisitions across Ukraine for at least a year now – but a Chinese state-owned credit firm, Sinosure, appeared to up the stakes on April 2 as it inked a deal to provide $1 billion in insurance coverage to Ukrainian energy conglomerate Naftogaz. Naftogaz has said that the new Chinese insurance is essentially a financial guarantee on the company being able to attract debt financing and further direct investment from China. Naftogaz is the state-owned Ukrainian oil and gas monopoly that handles the extraction, refinement and transportation of natural gas and oil. Data shows that China might replace Russia as Ukraine’s largest single-nation trading partner if growth rates in bilateral commerce between the two countries remain steady or increase. Ukraine’s Western and NATO allies, especially Japan, the United States and the United Kingdom have expressed strong concerns about China’s interest in Ukraine – they warn that investments are largely driven by Chinese self-interest and could pose a security threat to the alliance and Ukraine.

https://www.kyivpost.com/business/china-gives-naftogaz-1-billion-guarantee-on-de...


Eskom’s black hole of debt keeps on getting bigger

(The Citizen, Johannesburg, 3 April 2019) Moody’s credit opinion issued yesterday on the heels of its recent decision to keep South Africa’s credit rating one level above junk, said elevated government debt and contingent liabilities risks from state-owned enterprises (SOEs), limited government’s ability to absorb shocks. The note came after Eskom’s announcement of a R2.5 billion loan from the New Development Bank in China on top of the R420 billion (US$29 billion) debt it’s already carrying, and there’s no say when the 670 MW of renewable energy it’s meant for, will come on line. Export credit agency finance is one of the sources Eskom is tapping as part of its R300 billion (US$21 billion) funding plan for the new build programme. More than three quarters of that funding has now been secured. On May 30, 2011, the Export Import Bank of the United States had loaned about R5.7 billion, adding at the time to “the R31 billion (US$2.2 billion) in export credit agency backed finance Eskom had already raised.

https://citizen.co.za/business/business-news/2110845/eskoms-black-hole-of-debt-k...


How Gujarat fishermen won US top court ruling against global funding

(Indian Express, Ahmedabad, 10 April 2019) On February 27, the US Supreme Court ruled in favour of a group of fishermen and a Gujarat village panchayat in a suit against the US-headquartered International Finance Corporation (IFC). The case, which now goes back to a US district court, relates to alleged pollution caused by a Gujarat-based power plant partly funded by IFC and Korean ECA KEXIM. Of the estimated project cost of $4.14 billion, $450 million was funded in 2008 by IFC, the Asian Development Bank advanced $450 million as loan, the Export Credit Agency of Korea extended another $800 million as loan, and CGPL raised around Rs 1.5 billion from Indian banks through debt. According to National Fish Worker’s Forum, a nationwide federation of fishermen organisations, the plant operates a cooling technology that requires much more water than the system it got clearance for. The water is eventually discharged into the sea, and the complainants have alleged that it has affected marine life. Budha Jam, leader of the fishermen community of Tragadi-Nal, says: “With marine life near the coast affected, we are forced to sail farther in search of fish. They also dredged the coast and seafloor for their outfall channel and deposited sand near a well, which was a source of drinking water. Water in the well has turned saline since.” Complainants add that coal dust and fly-ash from the plant are damaging date palms and chikoo trees in Navinal. [One wonders how KEXIM's adherence to the OECD's Common Approaches could have allowed this.]

https://indianexpress.com/article/explained/how-gujarat-fishermen-won-us-top-cou...


UAE ECA ECI voted as observer member of Berne Union

(Times of Oman, Muscat, 28 April 2019) Etihad Credit Insurance (ECI), the UAE Federal credit insurance company, was voted in as an observer member of the Berne Union, a renowned global association that represents the global export credit and investment insurance industry. In 2018,Berne Union members delivered US$2.5 trillion of payment risk protection to banking institutions, exporters and investors which is equivalent to 13 per cent of total cross-border merchandise trade.

https://timesofoman.com/article/1208694/Business/Economy/ECI-voted-as-observer-m...


Australian cattle exported to Sri Lanka under EFIC project dying and malnourished

(ABC, Sydney, 4 April 2019) Hundreds of Australian and New Zealand cattle have died in a Federal Government-backed export deal with Sri Lanka, which local farmers say has left them broke, and in some cases, suicidal. Farmers and animal rights groups, as well as Sri Lanka's own auditor-general, want the export project stopped because they say it is poorly planned and inhumane. Angry Sri Lankan farmers have told the ABC the "high-yielding, pregnant dairy cows" they were promised were overpriced, unhealthy and infertile. Sri Lankan business consultant Mohammed Mausook Riyal, adding that the cows were the wrong breed for the climate, making them susceptible to disease, and farmers could not make a profit because of poor milk yield and low conception rates. Under the terms of the $100 million project, underwritten by the Australian Government's export credit agency, EFIC, the exporter, Wellard, was required to provide Sri Lankan farmers with facilities, training and veterinary support.

https://www.abc.net.au/news/2019-04-04/australian-dairy-cattle-sent-to-sri-lanka...


What's New March 2019

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • The smart money is jumping the sinking coal ship
  • New OECD Bribery and Export Credits Recommendation
  • NAM Urges Senate to Get Ex-Im Bank Back Up and Running
  • Levelling the playing field: UK exporters want more
  • WTO says U.S. failed to halt state tax subsidy for Boeing
  • Canadian officials tried to warn EDC of ‘significant reputational risk’ in South African deal with Gupta brothers
  • Kenya 'inflated' SACE loans insurance cost by Sh10 billion
  • Foreign energy giant wants Australia's EFIC to foot bill for fossil fuel projects
  • EU exemption on export credits: is everyone a winner?
  • East Africa: China to Host Second Belt and Road Forum
  • EX-IM Hosts 2019 Annual Conference in Washington, D.C.

The smart money is jumping the sinking coal ship

(Thomson Reuters Foundation, London, 1 March 2019) A torrent of banks and other financiers are shifting their money out of coal as investment risks in it grow. We have only 12 years left to save the planet from devastating climate change, the Intergovernmental Panel on Climate Change warned last October. With important governments missing in action, financial institutions have now emerged as unlikely allies of climate activists. In recent months banks and other financiers have pulled out of the coal and other fossil fuel sectors. The World Bank was the first major financial institution to end lending for most coal projects in 2013. Six year later the trickle is turning into a torrent. According to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA), more than 100 banks, pension funds, insurance companies, asset managers, development banks and export credit agencies with assets of at least $10 billion each have by now adopted some kind of coal restrictions.

http://news.trust.org//item/20190301103215-pgnh7/


New OECD Bribery and Export Credits Recommendation

(OECD, Paris, 27 March 2019) With the adoption of the revised Recommendation of the Council on Bribery and Officially Supported Export Credits (OECD/LEGAL/0447) in 2019, ECG Members and other non-Members that have adhered to the Recommendation (hereafter, the “Adherents”) are demonstrating their continued commitment to take appropriate measures to deter bribery in the export transactions that they support. Implementation of the revised Recommendation will be monitored via surveys of the measures that Export Credit Agencies have put in place to combat bribery and will be supported by regular workshops to consider best practices, relevant international developments and evolving business practices. [The OECD Recommendations are not legally binding and rely only on moral force. OECD reporting on surveys and internal "monitoring" have fallen short of expectiations by international NGO corruption monitors.]

http://www.oecd.org/trade/topics/export-credits/bribery-and-export-credits/


NAM Urges Senate to Get Ex-Im Bank Back Up and Running

(National Association of Manufacturers, Washington, 8 March 2019) Securing a level playing field internationally [i.e. matching corporate subsidies] is vital to manufacturers in the United States, which already export about half their production, supporting millions of workers across the country. While there’s been a lot of focus on foreign barriers that impede U.S. exports, one of the most concerning problems is of our own making: the Senate’s failure to confirm nominees to the Board of Directors of the U.S. Export-Import Bank. Without these nominees, the Ex-Im Bank cannot even consider major deals over $10 million or even act on the reforms that Congress set out it when it last reauthorized the bank in 2015. With the Ex-Im Bank severely weakened, manufacturers in the United States are losing sales to foreign competitors who are backed up by nearly 100 other export credit agencies around the world. For example, China’s two Export Credit Agencies routinely help their companies out-muscle their U.S. rivals. Last year, China provided $45 billion in medium- and long-term investment support for projects around the world, more than the rest of the world combined. According to the National Association of Manufacturer’s estimates, manufacturers lost at least $119 billion in manufacturing output, translating into 80,000 fewer manufacturing jobs in 2016 and 2017 as a result of an inactive Bank.

https://www.shopfloor.org/2019/03/senate-ex-im-bank/


Levelling the playing field: UK exporters want more

(Global Trade Review, London, 13 March 2019) Excluded from many projects in countries under IMF bailout programmes, UK exporters are calling for a trade and aid link in African infrastructure and a rewrite of OECD guidelines that bind export credit agencies. The support is good but UK exporters want more. Some of the most lucrative public sector projects in Africa are out of their reach because of IMF rules on borrowing for Africa’s 30 heavily indebted, poor countries. If a country has reached its borrowing limit, it can’t borrow anymore unless 35% of that debt is concessional or has a grant element. Infrastructure groups say they could win much more business if the UK’s department for international development (DfID) was prepared to link some of its annual £13bn foreign aid budget with export credit. For UK exporters it is never enough. UKEF financing, albeit with long tenors and flexible terms, isn’t concessional. It’s never been part of the ECA’s remit to provide concessional export credit finance and the grant element of a loan can only come from the UK’s development agency. Unlike other OECD countries such as Japan, South Korea, Italy and France where their ECAs combine loans with a grant or aid element, DfID doesn’t want its budget or support linked to UK companies bidding for infrastructure projects.

https://www.gtreview.com/supplements/gtr-uk-2019/levelling-playing-field-uk-expo...


WTO says U.S. failed to halt state tax subsidy for Boeing

Reuters, Geneva/Paris, 28 March 2019) The World Trade Organization said on Thursday the United States had ignored its request to halt a subsidized tax break for Boeing Co in its main plane-making state of Washington as a 15-year-old transatlantic trade row edges towards tit-for-tat sanctions. The European Union said the WTO appeal ruling had vindicated its claims that Boeing continued to receive illegal subsidies, but the United States said only one measure, a Washington state tax break worth around $100 million annually, had been found still to violate the rules. A 2018 ruling by the WTO already found that the EU was also failing to stop its own illegal subsidies for Europe's Airbus. Washington has since claimed an unspecified amount in damages and a WTO mediator is still examining this claim. The "Bank of Boeing" is what critics sneeringly call the Export-Import Bank of the United States, a federal agency that provides low-cost loan guarantees that help companies, including Boeing, expand and compete internationally.

https://www.reuters.com/article/us-eu-usa-aircraft-wto/wto-says-u-s-failed-to-ha...


Canadian officials tried to warn EDC of ‘significant reputational risk’ in South African deal with Gupta brothers

(Globe & Mail, Toronto, 26 March 2019) Senior federal officials sought to warn Canada’s export agency that it had suffered “significant” risk to its reputation because of its US$41-million loan to the controversial Gupta brothers who were at the heart of a South African corruption scandal, internal documents show. The documents, obtained by The Globe and Mail under federal access laws, show that Global Affairs Canada wanted an explanation of the risky loan from the federal agency, Export Development Canada, during a planned meeting in March, 2018, where the Gupta deal was scheduled to be a top agenda item. Canada's export agency was aware of allegations against South Africa's controversial Gupta family for the past five years, yet it went ahead with a US$41-million loan to the Guptas anyway, a lawyer for the family says. After a year of legal battles, Canada’s export agency has won the right to sell a notorious Canadian-funded airplane that played a highly visible role in the corruption scandal that toppled South Africa’s former president, Jacob Zuma.

https://www.theglobeandmail.com/world/article-senior-federal-officials-tried-to-...


Kenya 'inflated' SACE loans insurance cost by Sh10 billion

(Standard Media, Nairobi, 7 March 2019) The Government of Kenya paid Sh10 billion to insure the loans taken for construction of the controversial Arror and Kimwarer dams, but industry experts argue the cost should not have exceeded Sh1 billion. Italian insurer SACE was paid Sh11.1 billion [94.2 million Euros] as premium for the loan, but a reputable firm that offers products on sovereign loans argues the much it would have charged was Sh750 million. In essence, going by arguments by local industry experts, Kenya paid 15 times over the fair rate to the Italian government-owned credit insurer for insuring the loans procured from a consortium of banks led by Intesa San Paolo. It would be a subject of interest for investigators to determine why SACE charged 17.5 per cent of the loan amount as premium, against industry rates averaging 1.5 per cent.

https://www.standardmedia.co.ke/article/2001315555/state-inflated-loan-insurance...


Foreign energy giant wants Australia's EFIC to foot bill for fossil fuel projects

(Sydney Morning Herald, Sydney, 5 March 2019) A major oil and gas company wants Australian taxpayer money spent on overseas energy projects, stoking fears that a Morrison government plan to boost development in the Pacific is a smokescreen for fossil fuel investment. A government amendment to the operation of its export credit agency, the Export Finance and Insurance Corporation, quietly passed Parliament's lower house with support from Labor last month. It is now being considered by a Senate committee. A submission to the Senate inquiry by Papua New Guinean oil and gas company Oil Search suggests fossil fuel projects may be lining up for funding under the proposed laws. The government bill would add $1 billion to the finance corporation's existing $200 million calling capital and broaden the national interest test for investment decisions. The Coalition and Labor combined to defeat an amendment to the bill proposed by Greens MP Adam Bandt that would have barred the corporation from facilitating thermal coal exports. Mr Bandt, the party’s climate change and energy spokesman, said the bill would “expand Australia’s fossil fuel exports at taxpayer expense”.

https://www.smh.com.au/politics/federal/foreign-energy-giant-wants-australia-to-...


EU exemption on export credits: is everyone a winner?

(Global Trade Review, London, 13 March 2019) Europe to exempt export credits from banks’ leverage ratios have been received positively, but is this good news for all export finance banks? Last month, EU ambassadors endorsed the capital requirements regulation adjustment package, including an exemption for export credits from the leverage ratio. On the face of it, this should resolve a long-standing headache for export finance banks, who would suffer under Basel III due to a lack of an exemption from the leverage ratio calculation from the export credit agency (ECA)-backed portion of any transaction, despite the near-zero credit risk of an ECA. After years of advocacy by the European Banking Federation (EBF) export credit working group, the ICC global export finance committee and the ICC regulatory advocacy committee, along with support from the Berne Union, various European ECAs and national banking associations, the export finance community can now claim a victory. In practice, this will mean the traditionally low-risk business of export finance should become more attractive for banks, bringing much-needed liquidity to the market. Former EBF export credit working group chair, Henri d’Ambrières, tells GTR that a reluctance on the part of EU regulators to go further with this regulation could mean some exporters may be put at a disadvantage. This could lead to Spanish exporters losing competitiveness against their German counterparts in markets such as Latin America. The two countries jointly account for 40% of all EU exports to the region, and compete in areas such as capital goods for Latin America’s booming renewable power sector – usually purchased in dollars.

https://www.gtreview.com/news/europe/eu-exemption-on-export-credits-is-everyone-...


East Africa: China to Host Second Belt and Road Forum

(The East African, Nairobi, 6 March 2019) China will host its second Belt and Road Initiative (BRI) forum later this year, in its push to link the country by sea and land through an infrastructure network with Asia, the Middle East, Africa and Europe. The initiative launched by President Xi in 2013 seeks to strengthen Chinese global dominance through more than $1 trillion investment in infrastructure. In Africa, China invests majorly on transport and energy with Nigeria, Angola, Ethiopia, Kenya and Zambia among the largest partners in the BRI. In 2018, President Xi, during the Beijing Summit of the Forum on China Africa Cooperation (FOCAC), pledged $60 billion in financial support to Africa as part of the country's engagement with the continent in the next three years.

https://www.theeastafrican.co.ke/business/China-to-host-second-Belt-and-Road-for...


EX-IM Hosts 2019 Annual Conference in Washington, D.C.

Business Wire, Washington, 28 March 2019) Leaders of government, business, and academia will address the 2019 Annual Conference of the Export-Import Bank of the United States (EXIM) that held on Thursday and Friday, March 28-29, 2019, at the Omni Shoreham Hotel in Washington, D.C. The conference agenda as of March 27th is outlined here.

https://www.exim.gov/events/annual-conferences/2019/agenda


What's New February 2019

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • SNC-Lavalin case brings public scrutiny to hundreds of millions in EDC loans
  • Ban Ki-moon says UKEF must stop investing in fossil fuels in developing countries
  • Are ECAs liable for funding of slavery tainted enterprises?
  • With new limits on coal but none on oil and gas, EDC’s climate policy misses the mark
  • German banks & ECAs manoeuvre in Washington to temper US Russia sanction risk
  • EDC insured Suncor’s Middle East misadventures
  • Australia’s ECA eyes overseas investment with potential new mandate
  • Jaguar Land Rover seeking ECA funding after huge write-down
  • Japanese and French ECAs to finance Turkey's second nuclear plant
  • Kuwait Conference pledges billions for Iraqi reconstruction
  • Bahrain talking to U.S. oil companies about tight oil deal
  • Finnvera Group’s Board Report and Financial Statements for 2018

SNC-Lavalin case brings public scrutiny to hundreds of millions in EDC loans

(Above Ground, Ottawa, 22 February 2019) Following reports that engineering giant SNC-Lavalin lobbied federal officials intensively in the lead-up to its criminal prosecution on corruption charges, public attention has been brought to the hundreds of millions in government loans the company has received in recent years. The Globe and Mail reported last week that Export Development Canada (EDC) has provided at least $800-million and as much as $1.7-billion in loans to SNC-Lavalin since 2011, when news broke that the firm was under investigation by the RCMP. Some of those loans were approved after the World Bank announced in 2013 that SNC-Lavalin was barred from bidding on its projects until 2023 due to corruption, and after criminal charges were laid in Canada. As we noted in our recent submission to the government urging stricter oversight of Export Development Canada, SNC-Lavalin is just one of several EDC clients to face corruption investigations, charges or sanctions in recent years. (Others include Bombardier, Kinross Gold and Brookfield.)

https://aboveground.ngo/news-media/media-coverage/


Ban Ki-moon says UKEF must stop investing in fossil fuels in developing countries

(Guardian, London, 24 February 2019) Former UN Secretary General Ban Ki-moon has urged Britain to stop funding fossil fuel projects overseas, in what he said would mark a test of Theresa May’s commitment to act on climate change. The former UN secretary general said he was deeply concerned that the UK’s export credit agency had provided billions of pounds in recent years to support businesses involved in oil and gas schemes around the world. “These figures and policies are hard to reconcile with the UK’s commitments under the Paris agreement,” said Ban, referring to the international climate deal he forged in 2015 as UN Chief. “The time has come for the UK to change course, in the interests of the whole world,” he wrote in a comment for the Guardian. The UK Environmental Audit Committee is currently investigating the scale and impact of UK Export Finance’s financing of fossil fuels in developing countries.

https://www.theguardian.com/environment/2019/feb/24/ban-ki-moon-britain-stop-inv...


Are ECAs liable for funding of slavery tainted enterprises?

(20 Essex Street, London, 2 February 2019) A recent UN report with recommendations to advance efforts to eradicate modern slavery has mentioned, amongst other examples, the direct or indirect involvement of a state in the commission of offences via ECA funding of slavery-tainted enterprises. For example, the Guardian has reported that the US Export Import Bank provided $315m in taxpayer-supported financing over the past decade to a company that has supplied equipment to African mines accused of slave labor, human rights violations and environmental destruction. The Eritrean mine is being investigated by a Canadian court.

https://www.20essexst.com/news/dr-philippa-webb-releases-report-modern-slavery-u...


With new limits on coal but none on oil and gas, EDC’s climate policy misses the mark

(Above Ground, Ottawa, 12 February 2019) In January Export Development Canada (EDC) released a new climate change policy. The policy commits EDC to further limit its coal-related investments and increase its support for clean technologies. It does not, however, put in place a clear path to reducing – let alone phasing out – the billions of dollars of support that EDC provides to the oil and gas sector each year. EDC’s support for fossil fuel companies is fundamentally at odds with Canada’s international obligations on climate change. To address this contradiction, last year more than a dozen civil society groups including Above Ground recommended that EDC phase out its support for coal, oil and gas projects; companies significantly reliant on coal; and companies whose primary business is in coal, oil or gas. We also recommended that EDC commit to achieving a sharp reduction in GHG emissions across its business portfolio. Instead, EDC has renewed its commitment to support carbon-intense sectors, including the oil and gas industry.

https://aboveground.ngo/edc-new-climate-change-policy-falls-short/


German banks & ECAs manoeuvre in Washington to temper US Russia sanction risk

(Reuters, Frankfurt, 8 February 2019) German banks are seeking to blunt any fresh U.S. sanctions against Russia so they can continue existing business with Russian clients, according to an internal briefing paper prepared by a financial industry lobby group. The risk of new restrictions on doing business with Russia has risen since the Democratic Party won control of the U.S. House of Representatives. New anti-Moscow measures could jeopardise funding for a 9.5 billion euro gas pipeline which seeks to channel gas from Russia directly to Germany under the Baltic Sea. "Nord Stream is the elephant in the room," said one person with direct knowledge of the matter. Russian news agency TASS quoted Nord Stream 2’s finance chief Paul Corcoran saying it was in discussions with export credit agencies and wanted to raise around 6 billion euros. Last month, the U.S. Ambassador to Germany sent a letter to companies involved in Nord Stream warning that they could face sanctions if they stick with it.

https://www.euronews.com/2019/02/08/german-banks-manoeuvre-in-washington-to-temp...


EDC insured Suncor’s Middle East misadventures

(Globe & Mail, Toronto, 7 February 2019) The federal government paid Calgary-based Suncor Energy as much as $600-million to compensate for Middle East oil and gas assets and income lost since the Arab Spring in 2011. On Wednesday Suncor disclosed in its quarterly financial results that it had received $300-million in “risk mitigation” payments relating to its Libyan operations. This followed a separate $300-million payment linked to its Syrian enterprise in 2012. Although a handful of commercial insurers have offered the product, the Crown corporation is known for taking risks the private sector would never entertain. In the years leading up to 2011, EDC charged a premium of around 1 per cent or slightly less for this insurance. EDC has typically earned around $10-million to $20-million in premiums annually from selling political risk insurance; at that rate, it would take decades to cover Suncor’s claims. Canadians had little way of knowing about Suncor’s insurance policy. Although EDC disclosed most of its financing transactions since 2001, it reveals political risk insurance policies only when the beneficiaries were lenders such as banks. EDC declined to answer most of The Globe’s questions about the Suncor policy.

https://www.theglobeandmail.com/canada/article-federal-government-insured-suncor...


Australia’s ECA eyes overseas investment with potential new mandate

(Global Trade Review, London, 20 February 2019) Australia’s export credit agency, Export Finance and Insurance Corporation (Efic), could receive an A$1bn cash injection of callable capital, a mandate to finance larger overseas projects and a new name as part of a bill expected to pass in the house of representatives this week. The bill’s initial text highlights opportunities to invest in overseas infrastructure, such as telecommunications, energy, transport and water, throughout the Pacific region and further afield. The bill also includes a new name for the agency — Export Finance Australia. More specifically, the bill notes that the additional capital would allow the agency to continue to finance infrastructure projects in Papua New Guinea, which it described as “one of our most important neighbours”. Efic is currently involved in the PNG LNG project, a US$19bn investment scheme for the commercial development of the gas resources of Papua New Guinea. However, on its current budget, Efic is re-approaching its country lending limit for the southwestern Pacific island nation and it is only able to finance one additional project.

https://www.gtreview.com/news/asia/australias-eca-eyes-overseas-investment-with-...


Jaguar Land Rover seeking ECA funding after huge write-down

(Car Advice, Sydney, 11 February 2019) Jaguar Land Rover is seeking US$1 billion in funding after a disastrous fourth quarter of 2018, huge-write downs on the value of its investments, and continued sales struggles in China. According to a report from Automotive News Europe, the Indian-owned carmaker needs to raise US$1 billion ($1.4 billion) within the next 14 months to replace "maturing bonds" and fund the brand's expensive electric vehicle development program. Rather than borrowing from the bond market, the company is looking at bank financing, leasing its assets or tapping into export credit. Tata Motors announcing sales in China were down 35% in the final 3 quarters of 2018.

https://www.caradvice.com.au/725363/jaguar-land-rover-seeking-funding-after-huge...


Japanese and French ECAs to finance Turkey's second nuclear plant

(Daily Sabah, Istanbul, 25 February 2019) Turkey's second nuclear power plant to be built in Sinop under a Japanese-French partnership, will make a breakthrough by obtaining a ground license this year. The plant, which will have an installed capacity of 4,480 megawatts (MW) and consist of four reactors with a 1,120-MW capacity each, will cost $20 billion. The Japanese and Turkish governments agreed in 2013 on the project to be built with a Japanese-French consortium in the Black Sea province of Sinop. The bulk of the project would be financed by Nippon Export and Investment Insurance (NEXI), Japan's export credit agency, and French credit insurer Coface.

https://www.dailysabah.com/energy/2019/02/25/ground-license-to-be-granted-to-sin...


Kuwait Conference pledges billions for Iraqi reconstruction

(Daily Sabah, Istanbul, 4 February 2019) Turkey, the top contributor for Iraq's reconstruction with a $5 billion loan, has launched a coordination process to allocate the funds pledged for rebuilding Iraq. During the Kuwait International Conference for the Reconstruction of Iraq, the host country pledged $1 billion in loans and $1 billion in direct investments. Saudi Arabia said it would allocate $1 billion for investment projects in Iraq and $500 million to support Iraqi exports. Qatar said it would allocate $1 billion in loans and investments, while the United Arab Emirates pledged $500 million in investment. The European Union and Australia each promised $450 million and $100 million, respectively. While the U.S. - who invaded Iraq in 2003 - said it could provide more than $3 billion to help American firms invest in the war-torn country. Britain had said it would grant Iraq export credit of up to $1 billion per year for a decade. Iraqi government published a list of 157 projects, for which it sought private investments during the conference last year.

https://www.dailysabah.com/business/2019/02/04/turkey-initiates-coordination-act...


Bahrain talking to U.S. oil companies about tight oil deal

(Reuters, Manama, 26 February 2019) Bahrain is talking to U.S. oil companies with shale oil expertise about developing a huge oil and gas field discovered last year, and hopes to have an interested company by the end of the year. Oil Minister Al Khalifa also said state-run Bahrain Petroleum Company (Bapco) is “a few weeks away” from financial close on funding for the capacity expansion of its existing Sitra oil refinery. Five export credit agencies from Korea, Spain, Italy and Britain, alongside international and Bahraini banks will provide more than $4 billion in financing.

https://in.reuters.com/article/bahrain-oil/bahrain-talking-to-u-s-oil-companies-...


Finnvera Group’s Board Report and Financial Statements for 2018

(Global News Wire, Helsinki, 26 February 2019) Demand for export credits has increased in recent years. At the same time, our need for funding has increased and, in 2018, a total of EUR 2.4 billion was acquired from the capital market. To balance funding and asset management, Finnvera prepaid loans associated with the temporary export credit system of 2009–2012 to the State, amounting to EUR 1.5 billion. Finnvera’s total exposure at the end of 2018 was EUR 25.6 billion, of which drawn guarantees and credits accounted for EUR 12.2 billion. Approximately half of the exposure relates to binding financing offers or agreements that are related to future deliveries by export companies, and thus they do not create credit risks for Finnvera yet. These arrangements typically consist of buyer financing for cruise ships, the delivery times of which are long. In the long term, the drawn exposure will remain clearly below our total exposure. For potential future losses, we have so far accumulated EUR 1.8 billion reserves as the result of our operations.

https://globenewswire.com/news-release/2019/02/26/1742169/0/en/Finnvera-Group-s-...


What's New January 2019

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Parliamentary inquiry into UKEF Procedures and Submissions Available online    
  • Japan edges in on Belt and Road with $643m for Angolan port
  • Trans-Adriatic Pipeline completes successful €3.9 billion project financing
  • Afreximbank Lends $170 Million to Orascom for Pan-African Expansion
  • PNG leads wave of jumbo ECA project loans
  • Saudi Aramco Hiring Funding Advisers for a $5 Billion Project
  • Mozambique looks for LNG ECA financing despite market scepticism
  • Remember the Export-Import Bank
  • Extension of interest subsidy scheme to boost Indian export credits
  • NEXI insures UKEF credit for Boeing export to Colombia's Avianca
  • US Export-Import Bank reopens programs for Ukraine
  • Indonesia looks to ECA funding for aerial refuelling tanker-transports
  • Nord Stream 2 negotiating ECA loans worth 6 bln euros

Parliamentary inquiry into UKEF Procedures and Submissions Available online

(UK Parliament, London, January 2019) The Terms of Reference, membership, witness submissions, witness guidelines and the calendar of the UK Parliament's Environmental Audit Committee inquiry into UK Export Finance are now available online.

https://www.parliament.uk/business/committees/committees-a-z/commons-select/envi...


Japan edges in on Belt and Road with $643m for Angolan port

(Nikkei Asia Review, Tokyo, 9 January 2019) Trading company Toyota Tsusho and the Japan Bank for International Cooperation are joining forces on a port project in Angola that will be the largest of its kind for Japanese businesses. The plan is to raise 70 billion yen ($643 million) from both public and private lenders in Japan to help the African country fund the endeavor. The move comes as China steps up infrastructure development in Africa amid concerns that it is saddling developing countries with excessive debt.  Toyota plans to use Japanese equipment and materials to construct the port facility through a contract with the Angolan government, which will receive loans from export credit agency JBIC and other entities. To encourage private lenders to participate, Nippon Export and Investment Insurance is to insure the amounts they offer. The Japanese move is being seen as an attempt to challenge China’s dominant position in Angola.

https://asia.nikkei.com/Economy/Japan-edges-in-on-Belt-and-Road-with-643m-for-An...


Trans-Adriatic Pipeline completes successful €3.9 billion project financing

(AzerNews, Baku, 11 January 2019) A consortium for the Trans-Adriatic Pipeline (TAP) construction has successfully completed the financial closure of the project in 2018, receiving 3.9 billion euros. “The European Investment Bank (EIB), recognizing the important contribution of TAP to improving the security of energy supply in Europe, allocated 700 million euros for the implementation of this project. Reportedly, 17 commercial banks provide financing along with the EBRD and the European Investment Bank (EIB). Part of the financing is covered by export credit agencies - Bpifrance (450M Euros), Euler Hermes (280M Euros) and Sace (700M Euros), merchant banks (635M Euros) and EBRD (1 billion Euros). Costs have previously been funded by TAP’s shareholders: BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%). There have been incidents of protests by both local citizens and government officials against the Trans Adriatic Pipeline.

https://www.azernews.az/oil_and_gas/143883.html


Afreximbank Lends $170 Million to Orascom for Pan-African Expansion

(Afreximbank, Cairo, 17 January 2019) The African Export-Import Bank (Afreximbank) has signed a facility agreement lending $170 million to Egypt-based conglomerate Orascom Investment Holding (OIH) to assist the company expand its pan-African activities in pursuit of its short and medium-term expansion strategy. the transaction was a significant opportunity for OIH’s targeted investments in companies across Africa to support their transformation, increase their production capacity and produce higher quality exports through better value addition, especially in the agro-processing sector. Afreximbank has approved more than $67 billion in credit facilities for African businesses since 1994. Orascom Investment will explore business and investment opportunities referred to it by Afreximbank in such countries as Rwanda, Togo, Eretria, Nigeria and Sao Tome.

https://afreximbank.com/afreximbank-lends-170-million-to-orascom-for-pan-african...


PNG leads wave of jumbo ECA project loans

(Reuters, Sydney, 18 January 2019) The expansion of Papua New Guinea’s giant gas project is turning up the heat in the Asia Pacific project finance arena, with a slew of jumbo financings set to emerge from Oceania in the next 18 months. Stakeholders in the Papua New Guinea Liquefied Natural Gas project are in discussions with export credit agencies and commercial banks for up to US$9.8bn of debt to fund the next phase of the project, in what will be the region’s biggest project financing since 2010. Another major deal is also in the works as Australia Pacific LNG prepares to refinance US$3bn of project debt. JP Morgan has been named financial adviser. The long-awaited expansion of the PNG LNG project is estimated to cost around US$12bn-$14bn and involves construction of three new gas processing units, called trains, at the Papua New Guinea LNG plant. It is the largest resources-related borrowing in Oceania since March 2010, when the PNG LNG project raised US$14bn in initial funding from ECAs, commercial banks and lead sponsor and operator ExxonMobil. The US$1.95bn commercial portion attracted 17 banks. PNG LNG is already operational.

https://af.reuters.com/article/commoditiesNews/idAFL3N1ZI2UD


Saudi Aramco Hiring Funding Advisers for a $5 Billion Project

(Bloomberg, London, 17 January 2019) Satorp, the joint venture between Saudi Aramco and Total SA, hired Sumitomo Mitsui Banking Corp. and Riyad Bank to help raise funds to develop a petrochemical facility in the kingdom. Financing for the $5 billion Amiral project is expected to be arranged from banks and export credit agencies. The facility will be in Jubail in the eastern province where the JV already operates a refinery and will convert fossil fuels into building blocks for plastics. Saudi Arabia is seeking to transform its oil-dependent economy by developing new industries, and is pushing into petrochemicals as a way to earn more from its energy deposits. The Amiral complex will be able to produce 2.7 million tons of chemicals annually and will be completed by late 2023 or early 2024. Aramco, as Saudi Arabian Oil Co. is known, owns 62.5 percent of Satorp, while Total holds the rest.

https://www.bloomberg.com/news/articles/2019-01-17/saudi-aramco-refinery-jv-said...


Mozambique looks for LNG ECA financing despite market scepticism

(Macauhub, Macau, 11 January 2019) The government of Mozambique has been involved in the last few weeks in intense negotiations with seven countries to secure funding for one of its largest natural gas projects and overcome scepticism about whether it will honour its debt commitments. The Rovuma Area 1, in the Rovuma Basin, involves an estimated investment of US$25 billion. The talks involve seven Export Credit Agencies (ECAs), including Japan (JBIC), China (China ExIm), South Korea, USA (US-Exim), Germany [sic] (Atradius) and Italy (Servizi Assicurativi del Commercio Estero – SACE). The ECAs are evaluating the possibility of funding the Rovuma Area 1 project, which is operated by Anadarko which has been the subject of multiple environmental cases. In discussing the risks of the LNG project, the government has ignored the threat posed by armed insurgent attacks in Cabo Delgado. Most international analysts believe that they will not threaten the projects; but the state’s inability to control the attacks affects the country’s image as a safe investment destination and a place for expatriates.

https://macauhub.com.mo/feature/mozambique-looks-for-lng-financing-despite-marke...


Remember the Export-Import Bank

(Eakinomics, Washington, 17 January 2019) The Export-Import Bank is due to be re-authorized in September 2019. The re-authorization of Ex-Im in 2015 became a pitched battle over whether it was an appropriate role for the government. While the arguments against market intervention make sense, until other countries scale back their use of ECAs, the Ex-Im Bank is a necessary evil to level the playing field. The decline in Ex-Im activity is clear in the graph (below)... there are about $30 billion in ECA activity in the G-7 and $50 billion among the BRIC countries. The bank is unable to approve any transactions greater than $10 million in value because it has not had a quorum of 3 voting board members since 2015. Given the lack of a quorum, as of Summer 2018, there are $43 billion in transactions awaiting approval. The administration resubmitted the nomination of Kimberly Reed to be president of the Ex-Im Bank and for Spencer Bachus III, Judith DelZoppo Pryor and Claudia Slacik to serve on its board of directors. All had been previously nominated by the administration, and the Senate Banking Committee had favorably reported them, but the full Senate did not take up their nominations.

https://www.americanactionforum.org/daily-dish/remember-the-export-import-bank


Extension of interest subsidy scheme to boost Indian export credits

(News Today, Chennai, 4 January 2019) The Indian government has to provide three per cent [export credit] interest subsidy to merchant exporters, entailing an expenditure of Rs600 crore (US$84 million), to enhance liquidity with a view to boosting outbound shipments. Sectors that will be benefited from the decision include agriculture, textiles, leather, handicraft and machinery. The interest equalisation or subsidy scheme for pre- and post-shipment rupee export credit started on 1 April, 2015 and will end in March 2020. Other news sources indicated that interest subsidies had dropped from Rs434 crore in 2017 to Rs197 crore in 2018 (US$60m to US$28M). The Union Cabinet in mid-Janurary committed to infusing US$840 million into the Exim Bank over 2 years and doubling its authorized capital from US$1.4 billion to US$2.8 billion (Rs10,000 crore to Rs20,000 crore)

https://newstodaynet.com/index.php/2019/01/04/extension-of-interest-subsidy-sche...


NEXI insures UKEF credit for Boeing export to Colombia's Avianca

(NEXI, Tokyo, 18 January 2019) Nippon Export and Investment Insurance (NEXI) has decided to provide reinsurance on export credit provided by UK Export Finance (UKEF), the export credit agency of the United Kingdom of Great Britain and Northern Ireland (UK), for export of one Rolls Royce-powered Boeing 787-8 aircraft to Avianca S.A.. The provision of this reinsurance is based on the reinsurance agreement concluded between NEXI and UKEF on August 30, 2017.

https://www.nexi.go.jp/en/topics/newsrelease/2018121902.html


US Export-Import Bank reopens programs for Ukraine

(Kyiv Post, Kyiv, 8 January 2019) The Export-Import Bank of the United States has reopened its programs for Ukraine after a five year pause, the Washington-based U.S.-Ukraine Business Council stated. Through ten months of 2018 bilateral trade between Ukraine and the U.S grew slightly to $3.1 billion, in comparison to 2017’s $2.84 billion yearly total, according to official statistics. Leading U.S. exports to Ukraine in 2018 were coal ($655 million), motor vehicles ($260 million) and civilian aircraft ($217 million). In the same 10-month period, Ukraine’s top exports to the United States were iron products ($707 million) and sunflower products ($27.3 million).

https://www.kyivpost.com/ukraine-politics/us-export-import-bank-reopens-programs...


Indonesia looks to ECA funding for aerial refuelling tanker-transports

(Jane's Defence Weekly, Singapore, 25 January 2019) The Indonesian Air Force (TNI-AU) has completed a study on the country's aerial refuelling requirements and has proposed the acquisition of two new airframes for the service, outlining a budget requirement of about USD500 million, proposing that the funds be drawn down from foreign defence export credit loans. Jane's first reported in January 2018 that the TNI-AU had begun a preliminary study to compare the A330 multirole tanker-transport (MRTT) from Airbus and the KC-46A Pegasus from Boeing. Russia's four-engine Ilyushin Il-78 was also later included in the study.

https://www.janes.com/article/85954/indonesia-completes-technical-evaluation-for...


Nord Stream 2 negotiating ECA loans worth 6 bln euros

(TASS, Vienna, 29 January 2019) Nord Stream 2 AG, the operator of the Nord Stream 2 gas pipeline construction project, is conducting negotiations to attract project financing worth 6 bln euros. Chief Financial Officer Paul Corcoran told reporters "We are still in discussions with export credit agencies." The Nord Stream 2 pipeline is expected to come into service at the end of 2019. The pipeline is set to run from the Russian coast along the Baltic Sea bed to the German shore. It will go through the exclusive economic zones and territorial waters of five countries - Russia, Finland, Sweden, Denmark, and Germany, thus bypassing transit countries of Ukraine, Belarus, Poland and other Eastern European and Baltic states. Each of the pipeline’s two stretches will have a capacity of 27.5 bln cubic meters. The total cost of the project has been estimated at 9.5 bln euro. Nord Stream 2 AG, with Gazprom being the only shareholder, is the operator of the Nord Stream 2 pipeline construction project. Gazprom's European partners in the project are Germany’s Wintershall and Uniper, Austria’s OMV, France’s Engie and Royal Dutch Shell.

http://tass.com/economy/1042221


What's New December 2018

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Industry group lobbies Ottawa for EDC insurance against First Nation rights consultations
  • Ottawa offers $1.6B EDC backstop for energy sector as political tensions with Alberta fester
  • MPs to examine environmental impact of UKEF
  • China and US DFIs/ECAs to battle for influence in African infrastructure lending
  • Right problem – wrong solution: The Chinese ECA threat to the multilateral official finance system
  • China's unbridled export of coal power imperils climate goals
  • TDB rolls out SME programme for women-led businesses in six African countries
  • Australia's secret arms deals with nations fighting Yemen's bloody war
  • Philippines edges towards procurement of Turkish combat helicoper
  • Mexico’s Pemex Targets Bank, ECA-Backed Financing in 2019
  • Boeing Sees More Growth in Aircraft Financing Demand
  • Brazil Freezes ECA Credit After Defaults From Cuba & Venezuela
  • BBVA signs first green-certified credit with cover from Spanish ECA
  • Saudi ECA supports Pakistan economy
  • Peru closes largest-ever ECA financing for state energy company
  • Developing countries biggest installers of renewables

Industry group lobbies Ottawa for EDC insurance against First Nation rights consultations

(Globe and Mail, Toronto, 25 December 2018) Canada’s largest industry and trade association has asked the federal government to insure foreign investors against the risk their projects might be derailed by [mandatory] consultations with First Nations. The suggestion from Canadian Manufacturers & Exporters, which represents 1,200 companies, was among the farthest-reaching in hundreds made to a once-a-decade federal review of the Export Development Act, which governs the activities of Canada’s export credit agency. Successive court decisions have affirmed the federal government’s duty to consult Indigenous peoples when its actions may adversely affect their rights, and accommodate them if necessary. This still-evolving body of law has imposed significant responsibilities on governments across Canada relating to Crown-sponsored mining, energy, infrastructure and other projects, as well as private-sector projects that require government regulatory approvals. Disputes over the adequacy of consultations can lead to litigation and projects can grind to a halt. “To a foreign investor who does not understand these complex consultative processes, and has no real way of participating in them, it presents a high risk that dissuades their investment in projects,” Canadian Manufacturers & Exporters wrote in its submission. “EDC, who could be better positioned to understand such situations, could provide assurances to the foreign investor through some sort of guarantee.”  Canada's Assembly of First Nations said in a statement. “If Export Development Canada considers providing guarantees and other assurances to foreign investors to secure investment in projects, Canadian taxpayers may be left on the hook for paying compensation for projects that do not proceed due to faulty consultation processes.” [ECA-Watch commentary: It would appear that Canadian business wants EDC, an official public corporation, to guarantee private foreign investors' profits from potential violations of First Nations' rights.]

https://www.theglobeandmail.com/canada/article-business-group-lobbies-ottawa-for...


Ottawa offers $1.6B EDC backstop for energy sector as political tensions with Alberta fester

(CBC News, Ottawa, 18 December 2018) The federal government is promising more than $1.6 billion — most of it in loans —  to support the ailing energy sector, but it's unlikely to ease the heightened political tension between Ottawa and Alberta. Natural Resources Minister Amarjeet Sohi and International Trade Diversification Minister Jim Carr made the announcement in Edmonton this morning. The bulk of the money — $1 billion in commercial support — comes from Export Development Canada, the national export credit agency. It's meant for oil and gas exporters who want to invest in new technologies and diversify their markets.

https://www.cbc.ca/news/politics/energy-sector-package-sohi-1.4950619


MPs to examine environmental impact of UKEF

(EDIE, West Sussex, 3 December 2018) The [Parliamentary] Environmental Audit Committee (EAC) has launched an inquiry into the sustainability efforts being made by UK Export Finance (UKEF), following claims that the body's financing of fossil fuels overseas is at odds with the aims set out in the UK's Clean Growth Strategy. The Department has come under fire in recent years, with WWF arguing that the greenhouse gases (GHGs) emitted by the projects it supports in developing nations are inconsistent with wider UK policies on decarbonisation. Indeed, UKEF is estimated to have provided an average of £551m in support of fossil fuel production overseas each year between 2014 and 2016 – accounting for 99.4% of all financial support offered for energy projects over the three-year period.

https://www.edie.net/news/6/MPs-to-examine-environmental-impact-of-UK-s-export-c...


China and US DFIs/ECAs to battle for influence in African infrastructure lending

(Infrastructure News, Johannesburg, 3 December 2018) The battle for influence on the continent between Development Finance Institutions (DFIs) and Export Credit Agencies (ECAs) from China and the United States is set to heat up over the next decade in a fierce competition that could help Africa bridge its vast infrastructure gap faster than expected. This is according to new research from global law firm Baker McKenzie. Together with data provider IJGlobal the report, titled A Changing World: New trends in emerging market infrastructure, shows that development finance lending from state-backed institutions is the most important component of infrastructure funding in sub-Saharan Africa. The report further  notes that China put US$8.7 billion in sub-Saharan Africa infrastructure projects in 2017 alone, while the US recently set up a new US$60 billion agency [USIDFC] to invest in developing countries. African Law and Business notes that competition between the US and China has been heating up within Africa. The US recently announced the establishment of a new development finance institution which will combine with the existing Overseas Private Investment Corporation (OPIC) and bring a USD 60 billion budget with the explicit intention of competing with China. The new institution will be able to invest in equity, whereas OPIC has been limited to debt only. TFX News has even speculated that the US IDFC "could eventually incorporate US Exim".

http://www.infrastructurene.ws/2018/12/03/china-and-us-to-battle-for-influence-i...


Right problem – wrong solution: The Chinese ECA threat to the multilateral official finance system

(TFX News, London, 10 December 2018) Often priced at well below accepted market rates, Chinese official finance is a major hurdle to fair competition in the global export market. A growing number of governments are attempting to compete by circumventing OECD rules and blurring trade with aid. But adding more unfair trade practices risks the global official finance system self-combusting and ending any real chance of a lasting and fair resolution to the problem. While delegates dressed in matching stilettos and pinstripe suits would probably spice up your average OECD meeting, real ECA and DFI cross-dressing – the increasingly blurred lines between tied ECA support and untied multilateral/DFI support – is a serious and growing problem, and one that governments need to address. ECA/DFI cross-dressing is a reaction to a common issue for non-Chinese ECAs – how to compete with opaque official finance offerings from China, which has long been providing cheap debt, arguably at unrealistic market rates. During the past 10 years China has transformed itself from an aid recipient into the largest official financier of developing countries. But many OECD companies are rightly concerned about the completely unregulated official finance practices of China.

https://www.txfnews.com/News/Article/6618/Right-problem-wrong-solution-The-threa...


China's unbridled export of coal power imperils climate goals

(Science X, Isle of Man, 5 December 2018) Even as China struggles to curb domestic coal-fired power and the deadly pollution it produces, the world's top carbon emitter is aggressively exporting the same troubled technology to Asia, Africa and the Middle East, an investigation by AFP has shown. The carbon dioxide (CO2) emissions from these Chinese-backed plants could cripple global efforts to rein in global warming caused by the burning of fossil fuels—especially coal, analysts warn. "China is a world leader in terms of embracing the policy and investment needs to progressively decarbonise its economy," said Tim Buckley, director of energy finance studies at the Institute for Energy Economics and Financial Analysis (IEEFA). "But internationally, China continues to invest in a range of coal project in direct contradiction to its domestic energy strategy." China is not alone in peddling the most carbon-intensive of fossil fuels beyond its borders. As of last month, South Korea and its export credit agencies were positioned to back 12 GW of coal-fired power abroad, and Japan was behind another 10, according to a research note from Han Chen, international energy policy manager at the Natural Resources Defense Council.

https://phys.org/news/2018-12-china-unbridled-export-coal-power.html


TDB rolls out SME programme for women-led businesses in six African countries

(ZDK-Solutions, Luxembourg, 11 December 2018) The Eastern and Southern African Trade and Development Bank (TDB) is rolling out a credit programme in six African countries to support women-led export-oriented SMEs. Among the first to benefit are Ethiopian businesses, following an agreement between TDB and Ethiopia’s Enat Bank. Under a memorandum of understanding, the two have agreed to set up a credit enhancement facility and work together to build a pipeline of SMEs which qualify for export credit support. Focusing on women-owned and managed businesses, the parties will run the programme in partnership with the Ethiopian Women Exporters Association.

http://zdk-solutions.com/zdk/tdb-rolls-out-sme-programme-for-women-led-businesse...


Australia's secret arms deals with nations fighting Yemen's bloody war

(ABC News, Sydney, 13 December 2018) The Australian Government has approved the export of dozens of shipments of military items to Middle Eastern countries embroiled in the bloody Yemen war, a conflict dogged by accusations of war crimes and indiscriminate civilian killings. Australia is exporting to the United Arab Emirates and Saudi Arabia. FOI documents reveal Canberra is attempting to ramp up Australia's arms exports as part of a new defence strategy. Internal Defence Department documents obtained under Freedom of Information (FOI) and from parliamentary hearings reveal since the beginning of 2016, Canberra has granted at least 37 export permits for military-related items to the United Arab Emirates, and 20 to Saudi Arabia. They are the two countries leading a coalition fighting a war against Houthi rebels in the Middle East's poorest nation, Yemen. Janes defence news service notes "The Australian government announced on 17 December that it will provide state credit to support two local companies' efforts to export radars systems and patrol boats... this being the first time that the export credit system - officially termed the 'Defence Export Facility' - has been utilised after being established earlier this year. A major milestone has been reached on Australia's journey to become a top 10 global defence exporter, said a government statement." Australian Defense News notes that "There has been a 48% increase in defence export applications received in the first quarter of FY 2018/19 over the whole of the last financial year."

https://www.abc.net.au/news/2018-12-13/australias-secret-backing-for-nations-fig...


Philippines edges towards procurement of Turkish combat helicoper

(Janes Defence News, London, 29 November 2018) The Philippines Department of National Defense (DND) has edged closer to a decision to procure the Turkish Aerospace Industries (TAI) T129 ATAK multirole combat helicopter to meet a long-standing requirement in the Philippine Air Force (PAF). The acquisition is expected to be facilitated through a government-to-government deal between the Philippines and Turkey, possibly involving credit provided by Turk Eximbank, Turkey's official export credit agency.

https://www.janes.com/article/84896/philippines-edges-towards-t129-procurement


Mexico’s Pemex Targets Bank, ECA-Backed Financing in 2019

(US News, New York, 18 December 2018) Mexican energy producer Petróleos Mexicanos (Pemex) will look to banks and export credit agencies (ECAs) to finance part of its deficit next year, as the company enters 2019 under a new government and uncertain conditions in the international capital markets. State-owned Pemex, which is expected to raise approximately $8 billion in external debt next year, is also facing a bearish investor base concerned that Mexico’s new administration will hinder the company’s fiscal situation. Pemex has a $1.5 billion bank-led revolving credit facility maturing in the second half of 2019 and is on course to raise between $1 billion and $1.5 billion in ECA-backed finance next year, according to three sources familiar with the company’s plans. The company has conducted talks with trade agencies such as Export Development Canada and the Netherlands’ Atradius over ECA-backed loans and in November Pemex received a $250 million 10-year facility from BNP Paribas and HSBC that was 80 percent guaranteed by Italy's SACE.

https://money.usnews.com/investing/news/articles/2018-12-18/mexicos-pemex-target...


Boeing Sees More Growth in Aircraft Financing Demand

(American Machinist, Cleveland, 9 December 2018) Boeing is forecasting strong demand for new commercial airplanes will continue in 2019, with deliveries by major OEMs totaling about $143 billion, and growing to $180 billion by 2023. The commercial-aircraft market’s strong fundamentals also are drawing new participants and investment in used aircraft. The figures and projections are presented in Boeing’s yearly Current Aircraft Finance Market Outlook report, a five-year forecast of the commercial aircraft sector’s financing trends. Boeing predicts that new-aircraft deliveries will be funded by commercial bank debt, capital markets, and cash. Aircraft leasing agents, which represent over 40% of commercial aircraft ownership now, will be supported by historically low financing costs. Export credit also will remain a critical funding source, particularly in the U.S., Boeing added. The JD SUPRA news service has pointed to three new developments in aircraft financing and leasing, AFIC, Balthazar and GATS, which have grown out of the recent drying up of export credit support for Boeing and Airbus financings.

https://www.americanmachinist.com/news/boeing-sees-more-growth-aircraft-financin...


Brazil Freezes ECA Credit After Defaults From Cuba & Venezuela

(Folha de Sao Paulo, Brasilia, 26 December 2018) After Mozambique, Venezuela, and Cuba defaulting, the Brazilian government froze credit lines for new exports, a measure that will affect mostly small and medium-sized businesses. The Brazilian Treasury Department will spend US$ 6 million (R$ 23,4 million) to reimburse BNDES (National Bank For Economic and Social Development) for Cuba's default. Following Venezuela and Mozambique, the Cuban government defaulted on its payments to BNDES, in a credit line insured by the Treasury in the case of nonpayment. The amount is from an installment due in July, which Cuba paid partially. The Cubans paid US$ 4 million (RS 15.6 million) from the US$ 10 million (R$ 39 million) that were due. During the Lula and Rousseff administrations, the countries mentioned above hired large Brazilian contractors for infrastructure works such as the modernization of the Mariel Port in Cuba, performed by Odebrecht. The foreign governments also bought buses, industrial goods and foodstuffs using the credit line.

https://www1.folha.uol.com.br/internacional/en/business/2018/12/government-freez...


BBVA signs first green-certified credit with cover from Spanish ECA

(Global Trade Review, London, 30 November 2018) BBVA has granted a five-year €16.5mn loan to a hydroelectric project in Colombia with backing from Cesce, Spain’s export credit agency (ECA). The operation has been certified as “green” by consulting firm Aecom in line with the Green Loan Principles and the UN Sustainable Development Goals. According to the bank, this is the first credit with Cesce to receive this certification.

https://www.gtreview.com/news/sustainability/bbva-signs-first-green-certified-cr...


Saudi ECA supports Pakistan economy

(Dunya News, Islamabad, 29 November 2018) Finance Minister Asad Umar on Thursday said the government is committed to improving the fundamentals of economy and achieving sustainable and balanced economic growth. The secretary also briefed the meeting about the economic reforms which the Economic Advisory Council has approved. The meeting also discussed the export credit facility offered by Saudi Arabia envisaging the purchase of crude oil and or other petroleum product (s) of up to USD 3.24 billion per annum on a 12 month deferred payment basis.

https://dunyanews.tv/en/Business/468372-Govt-committed-to-achieving-sustainable-...


Peru closes largest-ever ECA financing for state energy company

(Southern Heald, 12 December 2018) State-owned petroleum company Petroperú has closed a US$1.3bn export credit agency-backed financing as part of its US$5bn Talara refinery modernisation project. Deutsche Bank acted as facility agent for the syndicate, which also involves BBVA, BNP Paribas, Citi, HSBC, JP Morgan and Santander as initial mandated lead arrangers, underwriters and bookrunners. It is the largest-ever financing covered by the Spanish export credit agency, Cesce, and is the largest ECA financing arranged in Peru.

http://thesouthernherald.com/peru-closes-largest-ever-eca-financing-for-state-en...


Developing countries biggest installers of renewables

(PV Magazine, Berlin, 27 November 2018) In a new report, BloombergNEF notes a significant uptake in renewable energy in developing countries, which are clearly outperforming OECD countries. The trend is due to reductions in equipment costs and new business models that enable access to capital. Still, many emerging markets are also the biggest installers of new coal capacity. India and China alone, are said to account for 81% of newly added coal-fired power stations.

https://www.pv-magazine.com/2018/11/27/developing-countries-biggest-installers-o...


What's New November 2018

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Bringing Accountability and Transparency to Export Development Canada’s Practice
  • Report highlights EDC’s multibillion dollar support for oil and gas industries
  • Trading away EU principles in the name of national export interests
  • ECA Support for Coal in the Face of OECD Financing Restrictions
  • The World Needs to Quit Coal. Why Is It So Hard?
  • UK Government considering UKEF deal with Saudi Aramco
  • EXIM Bank's fate tied to the outcome of Senate midterms
  • Uganda expects ECA pipeline financing deal by June 2019
  • Middle East Politics and Export Credits
  • Australia splashes ECA cash in the Pacific as China fears loom

Bringing Accountability and Transparency to Export Development Canada’s Practice

(Above Ground, Ottawa, 12 November 2018) Canada’s Export Development Act is under review. In our submission (pdf) to the government, Above Ground and other Canadian civil society groups call for legal reforms to bolster the accountability and transparency of Export Development Canada (EDC). EDC’s policies state that it screens and monitors the business it supports for associated social, environmental and business ethics risks. Yet over the years we have identified multiple companies that receive support from EDC despite credible or proven allegations involving environmental damage, corruption and human rights violations. In this submission we urge Parliament to adopt legislative reforms that include prohibiting EDC from supporting firms involved in wrongdoing, subjecting it to judicial oversight and expanding the Auditor General’s mandate regarding EDC. We have also made a second submission (pdf) calling for reforms to address the climate impacts of business supported by EDC. In addition, Both ENDS and other CSOs working from a number of countries made a joint submission as formal input to the EDC legislative review regarding EDC support for fossil fuels. The submission emphasized the Canadian governments' ambition to show leadership on climate change and to prioritise climate change action and clean economic growth.

https://aboveground.ngo/accountability-transparency-export-development-canada/


Report highlights EDC’s multibillion dollar support for oil and gas industries

(Windsor Star, Ottawa, 22 November 2018) A new report shows Canada’s export credit agency provides far greater backing to oil and gas companies than to makers of clean technology, a trend the authors contend undermines the country’s commitment to fight climate change under the Paris Agreement. Released Thursday and sponsored by a host of environmental groups, the report from the research and advocacy organization Oil Change International casts light on how Export Development Canada facilitated $62 billion in financial support for Canadian oil and gas companies from 2012 to 2017. That’s 12 times more support than the $5 billion the agency facilitated for clean technologies during that time, the report says, citing the agency’s own data.

https://www.ourwindsor.ca/news-story/9046135-report-highlights-crown-corporation...


Trading away EU principles in the name of national export interests

(Euractiv,  Brussels, 20 November 2018) MEPs need to follow the lead of the European Ombudsman and force the European Commission to shine light on the opaque role of national Export Credit Agencies. An important milestone in this direction was set by recent decisions of the Ombudsman Emily O’Reilly, which she spoke of at a public hearing of the International Trade Committee of the European Parliament. Following an appeal filed by the ECA-watch network – the Ombudsman detected severe shortcomings in the European Commission’s monitoring of national Export Credit Agencies (ECAs), including “maladministration”, failure to acquire adequate information to formulate its judgement, failure to include environmental and human rights standards when it comes to supporting coal projects and the necessity to keep a written record of its analysis and assessment. ECA’s activities have so far been exempt from human rights-related considerations to the point that arms export for cross-border conflicts could have well fit among their activities. There is a long way to go to ensure that European Export Credit Agencies respond to the much needed demand for accountability and transparency, and the European Parliament has a big role to play. It will have to take a firm stand and make sure the Commission does its homework and complies with the Ombudsman’s recommendations. It is a matter of democratic control and the credibility of the European institutions.

https://www.euractiv.com/section/economy-jobs/opinion/trading-away-the-eu-princi...


ECA Support for Coal in the Face of OECD Financing Restrictions

(Friends of the Earth USA, Washington, 13 November 2018) In order to avoid the worst impacts of climate change, no new fossil fuel power plants should have been built after 2017. Despite this, little-known government agencies called export credit agencies (ECAs) are still providing many billions in financing to fossil fuel projects all over the globe. From 2013 to 2015, the world’s largest ECAs provided an annual average of USD 38 billion in support of fossil fuels. Eighty-eight percent of ECA support for energy projects went toward fossil fuels, compared to seven percent for clean energy projects. A new report available here (pdf) analyzes potential and current support for coal plants by ECAs in the Organization for Economic Cooperation and Development (OECD), which includes most of the world’s largest ECAs (though, notably, not China).

https://foe.org/resources/eca-support-coal-face-oecd-financing-restrictions/


The World Needs to Quit Coal. Why Is It So Hard?

(New York Times, Hanoi, 24 November 2018) Coal, the fuel that powered the industrial age, has led the planet to the brink of catastrophic climate change. Scientists have repeatedly warned of its looming dangers, most recently on Friday, when a major scientific report issued by 13 United States government agencies warned that the damage from climate change could knock as much as 10 % off the size of the American economy by century’s end if significant steps aren’t taken to rein in warming. An October report from the United Nations’ scientific panel on global warming found that avoiding the worst devastation would require a radical transformation of the world economy in just a few years. Central to that transformation: Getting out of coal, and fast. According to the latest assessment by the International Energy Agency, it is not on track to happen anywhere fast enough to avert the worst effects of climate change. Last year, in fact, global production and consumption increased after two years of decline. Home to half the world’s population, Asia accounts for 3/4 of global coal consumption today. More important, it accounts for more than 3/4 of coal plants that are either under construction or in the planning stages — a whopping 1,200 of them, according to ECA Watch member Urgewald, a German advocacy group that tracks coal development. Heffa Schücking, who heads Urgewald, called those plants “an assault on the Paris goals.” [OECD coal support abroad is mainly provided by national export credit agencies.]

https://www.nytimes.com/2018/11/24/climate/coal-global-warming.html


UK Government considering UKEF deal with Saudi Aramco

(Ekklesia, London, 16 November 2018) In the wake of the alleged murder of Jamal Khashoggi and international warnings on climate change, the UK Government is discreetly considering supporting a Saudi Arabian oil company with a petrochemical project. UK Export Finance (UKEF), the controversial export credit agency which underwrites risky export deals to boost the UK’s international trade, recently announced that it could use public funds to help develop a large petrochemical refinery in Malaysia. The project, PRefChem, is a joint venture between Petronas, the Malaysian state oil company, and Saudi Aramco, the Saudi Arabian oil giant.

http://www.ekklesia.co.uk/node/27190


EXIM Bank's fate tied to the outcome of Senate midterms

(The Hill, Washington, 30 October 2018) Pollsters are predicting that Kavanaugh’s US Senate confirmation has galvanized Republicans and enhanced Senate Majority Leader Mitch McConnell's (R-Ky.) chances of retaining Senate control. For the last three years, and with little notice, McConnell has deployed tactics to contravene the support of the president and bipartisan congressional majorities to cripple the U.S. Export-Import Bank (EXIM). Because of McConnell’s block of board nominees, EXIM lacks the quorum needed to support deals over $10 million, which historically comprise 80 percent of bank lending. Ten years ago, EXIM responded to the Great Recession by tripling export support, financing $30 billion annually of U.S. exports over a five-year period, creating over a million jobs. Because big deals make money, EXIM made a $3.8 billion profit under Obama. But without a quorum, authorizations fell to $3.4 billion last year. Limited to small, less-profitable deals, EXIM now costs taxpayers money.

https://thehill.com/opinion/finance/413910-exim-banks-fate-is-tied-to-outcome-of...


Uganda expects ECA pipeline financing deal by June 2019

(The East African, Nairobi, 26 November 2018) Uganda and Tanzania signed an agreement in May 2017 to jointly develop the $3.5 billion pipeline that has been described as the longest electrically heated crude oil pipeline in the world. The balance of $1 billion is expected to come from shareholders in equity. Stanbic Uganda secured the role of joint arranger and adviser with Japan’s Sumitomo Mitsui Banking Corp. The two banks had previously planned to raise $3 billion by June this year from export credit agencies.

https://www.theeastafrican.co.ke/business/Uganda-expects-pipeline-financing-deal...


Middle East Politics and Export Credits

(Washington Post, Berlin, 31 October 2018) At the end of last year, the Danish Export Credit Agency had approved eight Iranian banks for credit lines or guarantees and vowed to resist U.S. pressure to dismantle those ties. However, Denmark is now leading a push for new E.U. sanctions against Iran, after its intelligence agencies blamed Tehran for a foiled plot to assassinate an Iranian dissident on Danish soil. In a darkly ironic twist, Iran has condemned the Saudi killing of dissident Khashoggi even as it has a long track record of pursuing operations against opponents living abroad itself. The Jerusalem Post on 6 November noted that the German government defied US sanctions on Iran’s clerical regime on Monday 5 November, by continuing to insure its companies with export credit – 911 million euro for 58 companies.

https://www.washingtonpost.com/world/2018/10/31/foiled-assassination-plot-denmar...


Australia splashes ECA cash in the Pacific as China fears loom

(Sydney Morning Herald, Sydney, 8 November 2018) Australia has announced that at least A$2 billion has been earmarked for grants and long-term projects in the Pacific and Timor Leste, to be administered by a new Australian Infrastructure Financing Facility. An extra A$1 billion will be made available for Australia’s export credit agency EFIC which helps Australian companies invest and expand overseas by giving them loans and guarantees. The announcements in a speech to soldiers in Townsville will be widely read as aiming to edge out growing Chinese infrastructure-building in Pacific nations. Prime Minister Scott Morrison noted that "Australia has an abiding interest in a south-west Pacific that is secure strategically, stable economically and sovereign politically." Raising questions about sovereignty have in the past been a way for Western leaders to express concern that China is loading developing countries up with infrastructure-related debt they cannot handle, making them politically beholden to Beijing, though Mr Morrison stresses Australia will co-operate with other countries including China.

https://www.smh.com.au/politics/federal/scott-morrison-splashes-cash-in-the-paci...


What's New October 2018

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • UK Government climate targets branded ‘laughable’ as UK Export Finance supports new oil refineries abroad
  • NGOs release list of world’s top coal plant developers
  • Boeing says Exim Bank vital for the US amid competition from China
  • Denmark provides world’s largest export credit agency wind financing
  • Longest Gas Pipeline in Nigeria Gets Green Light With Sinosure cover
  • Vinfast, set to be Vietnam's first domestic carmaker, gains $950M ECA credit line
  • Global Export Credit Agencies Support Iran Trade Coverage
  • Tonga starts repaying US$4.7m a year to Chinese ECA for reconstruction
  • Botched Chinese ECA project in Africa is a warning to belt and road investors
  • Africa-India trade to double by 2021 with ECA help

UK Government climate targets branded ‘laughable’ as UK Export Finance supports new oil refineries abroad

(Global Witness, London, 10 October 208) On the week that the Intergovernmental Panel on Climate Change has released its report on the scale of the challenge to limit the dangers of climate change, the near-simulanteous announcement of new UK Government support for oil and gas abroad has been labelled “staggering.” UK Export Finance (UKEF), the UK’s export credit agency which underwrites loans and insurance for risky export deals as part of efforts to boost international trade, announced on Tuesday that it is considering finance for an expansion of an oil refinery in Bahrain which would allow its total output to increase up to a maximum of 380,000 barrels per day. Adam McGibbon, Climate Change Campaigner at Global Witness, said: “As the world reels from the news that we have twelve years to prevent catastrophic climate breakdown, today’s announcement by the government is staggering. The UK claims to be a climate leader, but it continues to spend billions pumping fossil fuels out of the ground abroad." Articles in The Times, The Indpendent, BBC and Ekklesia highlight this contradictory approach.

https://www.globalwitness.org/en/press-releases/uk-government-climate-targets-br...


NGOs release list of world’s top coal plant developers

(Urgewald, Berlin, 4 October 2018) Four days before the International Panel on Climate Change (IPCC) puts forward its special report on 1.5°C, NGOs have released a new list of the world’s top 120 coal plant developers.  “Building new coal plants is an assault on the Paris climate goals,” said Heffa Schuecking, director of the German environment NGO Urgewald. “Our list names the top companies investors and banks need to shun if they are committed to limiting our planet’s temperature rise.” While 2017 was another record-busting year for renewables, coal power is still growing in many parts of the world. Currently, 1,380 new coal plants or units are planned or under development in 59 countries. The world’s largest coal plant developer is China’s National Energy Investment Group (NEI), which aims to build 37,837 MW of new coal plants.

https://mailchi.mp/banktrack/over-600000-mw-of-new-coal-threaten-15c-climate-tar...


Boeing says Exim Bank vital for the US amid competition from China

(The National, Abu Dhabi, 3 October 2018) Planemaker Boeing said the US Export-Import Bank (Exim), the country's export credit agency, [sic - return?] to its full lending powers is vital to the country's economy and the company's ability to compete with global rivals. The US is locked in an escalating trade war with economic rival China in a tit-for-tat round of tariffs. The long-hobbled US export credit agency, which facilitates export deals between American manufacturers and overseas buyers, has been in limbo for three years due to congressional inaction. In 2018, export credit is expected to remain a "marginal" share of aircraft financing but export credit agency volumes will increase to stable levels from historical lows this year, Boeing said. [Export credit agencies are major funders of aircraft - in 2010 about 50% of all Airbus deliveries were covered by export credit agencies. ECAs allocate about a third of their long-term financing to aircraft sales, the largest representation of any sector.]

https://www.thenational.ae/business/aviation/boeing-says-exim-bank-vital-for-the...


Denmark provides world’s largest export credit agency wind financing

(Global Trade Review, London, 28 September 2018) Denmark’s EKF has signed an £800mn guarantee for Hornsea 1 in what it says is the largest wind financing that any public export credit agency has ever provided. Located off the coast of Yorkshire, UK, Hornsea 1 is currently being constructed by Danish wind farm developer Orsted, formerly Dong Energy. According to EKF, it will finance suppliers such as Siemens Gamesa Renewable Energy, but also a “vast number of sub-suppliers” from Denmark. EKF has also guaranteed about EUR 100 million of the EUR 210 million European Investment Bank (EIB) facility for the Euro 700 million Northwester 2 offshore wind farm in Belgian waters.

https://www.gtreview.com/news/europe/denmark-provides-worlds-largest-export-cred...


Longest Gas Pipeline in Nigeria Gets Green Light With Sinosure cover

(Pipeline Technology Journal, Hannover, 27 September 2018) The 614-km, 40 inch Ajaokuta - Kano Gas Pipeline (AKK), the single biggest gas pipeline in the history of oil and gas operations in Nigeria, will now go forward with $ 2.38 bn financing secured by the China National Petroleum Corporation. While 85 per cent of the money is expected to be provided by the financiers, which include Industrial and Commercial Bank of China, Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency providing insurance cover, the remaining 15 per cent will be provided by the contractors, which include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline Bureau consortium.

https://www.pipeline-journal.net/news/longest-gas-pipeline-nigeria-gets-green-li...


Vinfast, set to be Vietnam's first domestic carmaker, gains $950M ECA credit line

(Reuters, Hanoi, 10 October 2018) VinFast, which aims to become Vietnam's first domestic car manufacturer, said it has secured a 12-year credit facility for as much as $950 million to help buy machinery and equipment from German suppliers. Vingroup has earmarked about $3.5 billion for the project. Credit Suisse and HSBC were the lead arrangers and the financing agreement was guaranteed by German export credit agency Euler Hermes.

https://www.euronews.com/2018/10/10/vinfast-set-to-be-vietnams-first-domestic-ca...


Global Export Credit Agencies Support Iran Trade Coverage

(Financial Tribune, Tehran, 20 October 2018) Global Export Credit Unions participating in a meeting of the Berne Union Credit and Investment Insurers this week backed sustained cooperation with Iran despite the US move earlier this year to pull out of the historic nuclear agreement. According to a press release by the Export Guarantee Fund of Iran, whose representative attended the event, the countries present declared that insuring trade with Iran is possible under the existing circumstances. Arash Shahraini, a member of board of directors and technical deputy of EGFI told the Financial Tribune on Sunday that while there was a positive mood of support for Iran coverage at the meeting, members were cognizant of the fact that lack of a proper banking channels for payments to Iran continues to be a main hurdle to promoting Iranian trade with the outside world.
 

https://financialtribune.com/articles/economy-business-and-markets/94595/global-...


Tonga starts repaying US$4.7m a year to Chinese ECA for reconstruction

(Matangi, Tonga, 22 October 2018) The Tonga Government will start paying US$4.7m a year during the next ten years, (principal only) of its US$52m loan from the Exim Bank of China that was used to fund reconstruction projects after the 2006 riots in Nuku'alofa. The start of the principal repayments has already contributed to a $22.8m decline in Tonga’s foreign reserves in September. Now Tonga is confronting the real cost of the riots and still recovering from the impact of Tropical Cyclone Gita which struck the main island of Tongatapu in February 2018 and caused about US$148m worth of damage, equivalent to nearly a third of the country's gross domestic product.

https://matangitonga.to/2018/10/22/tonga-starts-repaying-108m-year-china-reconst...


Botched Chinese ECA project in Africa is a warning to belt and road investors

(South China Morning Post, Hong Kong, 29 October 2018) The planning behind many of China’s major infrastructure projects abroad has been “downright inadequate”, leading to huge financial losses, according to the head of the country’s state export credit insurer. Wang Wen, of China Export and Credit Insurance Corporation, known as Sinosure, said Chinese developers and financiers of projects in developing nations supported by Beijing’s “Belt and Road Initiative” need to step up their risk management to avoid disaster. He cited the mistakes of a major railway project in Africa that has cost Sinosure close to US$1 billion in losses. “Ethiopia’s planning capabilities are lacking, but even with the help of Sinosure and the lending Chinese bank it was still insufficient.” He said other China-backed projects plagued by poor preparation have included sugar refineries that have lacked a supply of sugar beet, and underused railways in Latin America.

https://www.scmp.com/business/banking-finance/article/2170549/botched-chinese-ra...


Africa-India trade to double by 2021 with ECA help

(Southern Times, Windhoek, 29 October 2018) Trade between Africa and India has risen over the past 10 years and is highly likely to double its total of US$60 billion in 2017 to US$120 billion in 2021, according to a report released by the African Export-Import Bank (Afreximbank) and the Export-Import Bank of India (Exim India). The impressive growth in trade between Africa and India stems from a mix of factors... Against the backdrop of increasing uncertainty in the global economy, reliance on innovative and non-traditional financing solutions developed by export credit agencies, including the Export-Import Bank of India (Exim India) and the African Export-Import Bank (Afreximbank), not only helps in mitigating risks in international trade but also contributes to promoting regional trade and investment.

https://southerntimesafrica.com/site/news/africa-india-trade-to-double-by-2021


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