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EDC follows the money

01 November 2002

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EDC's name changed at the end of 2001, from Export Development Corporation to Export Development Canada, the main impetus being that the initials in the French version are the same as the English. Otherwise, EDC's mission and mandate remains intact ? a mixture of political risk coverage and direct lending/ arranging in support of Canadian exports and investments.
EDC's two main markets ? telecoms and power ? have been the most conspicuously weak prospects in recent months. Both have been largely export driven, telecoms lending by supplier Nortel's order book, and power lending by that of Siemens Westinghouse. In telecoms, EDC's appearance as an arranger rather than bondholder has isolated it, like most of the banks, from the defaults on European telecoms and cable projects.

Derek Layne, EDC's vice president, project finance, concedes that it has been hit by the current difficulties in US power markets. ?Like most other lenders we have a few...


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