Reports about Diamond Discount Baseless: GJEPC

Vipul Shah
Vipul Shah

Mumbai: The GJEPC issued a strong rebuttal of media reports that Indian diamond companies were offering discounts of between 5 % to 20% as a fall-out of the closure of the Antwerp Diamond Bank (ADB) saying that the reports were “not only false but also baseless with news being reported without substantial understanding of the functionary guidelines of bank’s trade with the diamond industry and without adequate and right feedback from the industry pertaining to the issue.”

The GJEPC note clarified that that the ADB closure does not have a direct impact on the diamond trade and neither has it created an overnight liquidity crunch as reports suggested.

“Any International Bank while closing down provides an adequate time period for their clients for repayment of loans and does not demand an overnight settlement,” the press release stated. “In case of ADB it provides a minimum period of one year to their clients in India and similar if not more period to the clients in Antwerp and other centres which is adequate for the trade, and gives no reason to emerge in a havoc scenario as wrongly stated.”

The mood in the diamond jewellery industry is upbeat, said the apex trade body, with the coming festive season and sales picking up as the season approaches.

“The long term fundamentals of the diamond industry remain strong and sales of polished diamond are growing in emerging markets of China and India,” said GJEPC chairman Vipul Shah.