Arms trade

Lenders Cite Complex Factors in Arms Export Loans

Commercial banks weigh business, ethical and legal factors as they consider, with a clock racing, whether to lend money to fund an arms export deal, financial specialists said Tuesday at a conference organized by Thomas More Institute, a think tank.

The conference was held on the control of illegal trade in small arms, and was supported by the Defense Ministry’s office for international relations, Direction Générale des Relations Internationales et de la Stratégie.

Loans and financing for arms contracts are “fairly modest,” accounting for 2 to 5 percent of the world bank market, said Stéphane Audrand of consultancy Sylmaris. That is smaller than projects such as energy, raw materials and transport.