AWDC and Antwerp diamond banks reach an agreement

The Antwerp World Diamond Centre (AWDC) has reached an agreement with the Antwerp diamond banks, through which, the Antwerp diamond sector would benefit with temporary additional financial. The initiative was announced during a working visit of the leader of the Flemish government Kris Peeters to Antwerp World Diamond Centre.

The agreement aims to improve the liquidity position of the Antwerp diamond dealers and boost the falling diamond trade. Import and export of polished diamonds has decreased by 32 percent and 28 percent, respectively during the first four months, as compared to January – April 2008. Import and export of rough diamonds has fallen by 45 percent and 30 percent, respectively in the said period. The diamond banks have agreed to provide new credit facilities up to a maximum of 1 billion euros, for two years, in exchange of stock collateral and under existing credit conditions, on condition of approval by the Belgian Banking, Finance and Insurance Commission.

Freddy J. Hanard, CEO of AWDC said, “This action confirms the leadership of the Antwerp diamond sector in these trying times and will allow Antwerp to reaffirm and strengthen its position as leading diamond centre, allowing the centre to maintain its current employment rate. Additional funds will benefit all stakeholders of the diamond sector – diamond dealers, banks and mining companies – and will restore the confidence in the diamond trade”.

On its part, AWDC will undertake valuation of the securities and the transparence of the operation, so as to secure the position of the banks. The diamond sector has also asked for a temporary additional guarantee of 200 million euros from the Flemish government, which would help restore confidence in the diamond sector.