How is Financial Health of Diamond Industry?

Dubai: The 37th edition of the World Diamond Congress, the biennial meeting of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA), will take place in Dubai, United Arab Emirates, from May 16 to 19, 2016.

The Secretary-General of IDMA Mr. Ronnie VanderLinden has listed a few of the global diamond industry concerns in the 127th edition of IDMA’s weekly newsletter which he insists to be discussed in the forth-coming World Diamond Congress.

Mr. Ronnie says, “For manufacturers, the diamond industry’s financial health is a number one concern. It is obvious that we will need a wider choice of partners when seeking to finance rough diamond purchases, and therefore, it will be one of the most important issues on the agenda for both IDMA and the WFDB. To illustrate, Standard Chartered Bank announced it will be demanding more loan protection from clients in the Indian and Belgian diamond trade, as the bank seeks to tighten standards according to reports in the international business press. “After lending about $2 billion to the industry, the London-based bank reportedly is asking diamond-processing clients to get payment insurance or to provide 100 percent collateral” Bloomberg reported.”

In Dubai, IDMA and the WFDB, which were the two original founding organizations of the World Diamond Council, will also use their joint meetings as a platform to hammer out and update our policies on conflict diamonds – a most important challenge.

“Another challenge that is expected to be discussed once again is the demand by many manufacturers for a rough diamond trader / seller to reveal the results of a Sarine Galatea scanning analysis. Rough diamond dealers should be obliged to inform the potential buyer that a report does exist, and this should be confirmed by a laser inscription on the stone,” he adds.

“Among the other topics to be discussed will be our market conditions and the need to rekindle consumer desire for diamonds and diamond jewelry. We also invite all stakeholders to send their suggestions about other issues they wish to be discussed at the Congress,” Mr. Ronnie mentions.