WFDB to “Proactively Address” Issue of Declining Trade Financing

At its meeting in London last week, the World Federation of Diamond Bourses (WFDB) Executive Committee discussed the problems of finance for the diamond industry - particularly small and medium enterprises, Gem Konnect reports.

Diamond companies, especially the small and medium-sized firms who make up the bulk of our membership, cannot easily access financing", explained WFDB President Ernie Blom. "Diamond manufacturing and trading companies need to finance their operations, however with banks facing higher capital requirements, risk aversion and increased regulatory burden, the financing they make available to diamantaires has fallen significantly in recent years and that has meant reduced operational flexibility and increased vulnerability to market movements for diamond companies”.

Blom promised that the WFDB “aims to proactively address the issue of declining trade financing with a diamond financing seminar and roundtable discussion at the Presidents Meeting in Mumbai in January 2017”.

Blom added that a lengthy discussion was also held on the impact of undisclosed synthetic diamonds on natural, mined diamonds, saying that “ …] undisclosed synthetic diamonds could undermine consumer confidence in our product and industry as a result of this underhand activity".

The Executive Committee discussed the importance of The WFDB Charter on Disclosure of Synthetic, Treated Natural and Natural Diamonds, and the requirement of its 30 affiliated bourses to comply.