Israel Diamond Exchange president Yoram Dvash has called for banks and other financial institutions to increase credit lines to help finance the global diamond industry.
Dvash made his plea following a recent Bloomberg Business report regarding the decision by London-based Standard Chartered to demand additional loan protection from diamond clients, particularly in India and Belgium. In some cases it is now requesting that diamond manufacturing clients secure payment insurance or provide 100 percent collateral.
Standard Chartered’s diamond industry exposure is around $2 billion and constitutes less than 1 percent of its total business, but it is seeking security against possible future problems.
Industry financing will be one of the key issues at the upcoming World Diamond Congress in Dubai in May.
“Since we depend on a steady supply of credit, we need to work twice as hard to find solutions,” said Dvash. “I will be working with my colleagues from the WFDB at the World Diamond Congress to meet with various stakeholders in the industry, especially banking officials. My aim is to persuade them that backing the diamond industry makes good business sense.”
Dvash reiterated that the diamond industry does not only employ tens of thousands of people in diamond centers, but millions of others in Africa, India and China are also reliant on a flourishing and successful trade.