Against the backdrop of the complication of the situation and tougher credit conditions in the diamond industry, the Council for the Promotion of the Export of Precious Stones and Jewelry (GJEPC) organized the Banking Summit, held on June 28, 2014 in Mumbai.
Recently, the banks of Antwerp Diamond Bank (ADB) and ABN Amro have significantly reduced the crediting of diamond purchases by diamantaires. Similarly, Indian banks began to exercise excessive caution in securing financing for companies operating in the gem and jewelery sector.
In the provision of debt financing, creditor banks began to more closely check counterparties, including sightholders of DTC, ALROSA clients and Rio Tinto, which is associated with a growing number of defaults on loans in Surat, Mumbai and Antwerp. This had a negative impact on the entire sector, especially on small and medium-sized enterprises, which faced a severe shortage of funding.
The summit was organized to facilitate the situation in which participants in the gem and jewelry sector found themselves and ensure their interaction with bankers and the Indian government. The Bank Summit in 2014 was attended by senior officials of the banking sector, the precious stones and jewelry industry and the Ministry of Finance of India.