Lack of Loans Could Cause Problems for Antwerp Diamond Dealers

Bloomberg reported that the Antwerp Diamond Bank, which services Antwerp’s diamond dealers, will stop lending due to the collapse of a sale by KBC Groep NV to Yinren Group. That could cause problems for dealers that rely on debt to buy rough diamonds.

As quoted in the market news:

‘It cannot be good news for the diamond industry,’ said Charles Wyndham, a former sales director at diamond miner De Beers and founder of WWW International Diamond Consultants Ltd. ‘This was the only bank solely dedicated to the diamond industry and it’s pulling out. Liquidity is a major issue.’

Antwerp Diamond Bank, or ADB, accounted for more than 10 percent of the $15 billion diamond-finance market, removing funds from a market that was tightening lending terms. The institution’s demise may weaken Antwerp’s pre-eminent position in the global diamond industry as it competes with traders in lower-cost cities like Mumbai and Dubai.

Click here to read the full Bloomberg report.