Israel Diamond Exchange (IDE) president Yoram Dvash is calling on the world’s banks to increase credit lines to finance the diamond industry worldwide.
Referring to a Bloomberg Business report, Dvash said London-based Standard Chartered Bank was demanding additional loan protection from diamond clients, even though at $2 billion, its exposure is less than one per cent of its total business.
Dvash said the global diamond industry needs to work together to secure additional financing.
“Since we depend on a steady supply of credit, we need to work twice as hard to find solutions,” Dvash said. “I will be working with my colleagues from the World Federation of Diamond Bourses (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.
“I hold regular meetings with banks in Israel. I explain the Israeli diamond sector is very prudent in business decisions. Our global approach to business diversifies risk and increases trading opportunities.”
Financing has been a leading issue for WFDB in recent years and will be at the top of the agenda at the World Diamond Congress in Dubai next month.
“We must secure more credit lines in order to expand the business,” Dvash said. “Let us remember the diamond trade does not only employ tens of thousands in diamond centres, 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.”
