Pursuant to a Bloomberg Business report that London-based Standard Chartered Bank was demanding additional loan protection from diamond clients, Israel Diamond Exchange (IDE) President Yoram Dvash called for an increase in credit lines to finance the diamond industry worldwide. In this he cited the cumulative effort of the diamond industry is essential.

Standard Chartered’s exposure to the diamond industry stands at about $2 billion and is now asking diamond manufacturing clients to secure payment insurance or provide 100 percent collateral, according to the Bloomberg report. The IDE President noted this exposure translates merely into less than 1 percent of the bank’s total business but it still seeks the additional security against possible problems in the future. “This shows how tough the situation is for the diamond industry worldwide,” Dvash said.

“Since we depend on a steady supply of credit, we need to work twice as hard to find solutions. 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.” Financing has been a leading issue for the World Federation of Diamond Bourses (WFDB) in recent years and will be the prime agenda at the World Diamond Congress in Dubai in May.

“I hold regular meetings with banks in Israel. I explain that the Israeli diamond sector is very prudent in business decisions. Our global approach to business diversifies risk and increases trading opportunities.” Dvash further stressed that, “We must secure more credit lines in order to expand the business. Let us remember that the diamond trade does not only employ tens of thousands in diamond centers, but millions of people around the world – in Africa, India, China and elsewhere – are dependent for the livelihood on the success of the diamond trade.”