The recent decision of the Government of Flanders to support the Belgian diamond industry was already the third similar action on the world market after Russia and Angola. For those subjects of the market in which the diamond business is a very serious sector of the economy and who at one time delegated some of their opportunities to regulate the market to a global monopolist - De Beers, objectively there is no other choice. Even absolutely loyal De Beers countries, such as Botswana, have expressed a desire to increase the cost of their participation in implementing anti-crisis solutions from the national budget through increasing their share in the share capital of the diamond corporation.
State guarantees are a tool to support the industry with a relatively high production cost in the countries of extraction of rough diamonds and to preserve the role of the traditional diamond center of Antwerp. That is, in fact, participants in the market of rough diamonds, located on different sides of the pipeline, came up with similar initiatives in the interests of preserving the market and freeing it from speculative ballast.
How can this affect the prospects for the development of the market?
It is obvious that state guarantees require banks themselves to understand the creditworthiness and stability of their clients' business for a long enough perspective. This, in turn, stimulates non-speculative market participants to secure bank guarantees of their future that are sufficiently firm for banks, and such long-term contracts with extractive companies are such guarantees. No abilities and talents of working on the open market of raw materials are sufficient grounds for the bank's credit committee. The legal obligations of the raw material producer are guaranteed by the potential borrower.
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