The Antwerp World Diamond Centre (AWDC) has signed a deal with the Antwerp diamond banks to provide temporary extra financial support for Antwerp diamond dealers. The initiative was announced during a visit of the leader of the Flemish government, Minister-President Kris Peeters. Future cooperation and initiatives by the Flemish government in support of the diamond trade were also discussed.
 
The purpose of the agreement is to improve the liquidity of diamond dealers and to give a new stimulus to the diamond trade. As a result of the worldwide financial and economic crisis, the import and export of polished diamonds has decreased by 32 percent and 28 percent, respectively during the first four months of this year compared to January–April 2008.
 
Rough diamonds imports and exports have fallen by 45 percent and 30 percent, respectively.
 
The diamond banks have agreed to provide new credit facilities of up to 1 billion euros for a period of two years in exchange for stock collateral, on condition of approval by the Belgian Banking, Finance and Insurance Commission. AWDC will be responsible for the valuation of the securities and the transparency of the operation so as to secure the position of the banks.
 
In addition, the diamond sector has asked for a temporary additional guarantee of 200 million euros from the Flemish government in order to restore confidence in the diamond sector.
 
“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," said Freddy J. Hanard, CEO of AWDC. "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."