Export-Import Bank Support for U.S. Exports to Iraq

“Our recent policy changes in Iraq will allow us to support more U.S. export opportunities and mirrors our commitment to assist wherever our support is needed in promoting quality American goods and services around the world” – Fred Hochberg, Chairman, Export-Import Bank of the U.S.

The increasing signs of stability and security in Iraq have opened new opportunities for financing into the market.  Ex-Im Bank is open to transactions in both the public and private sectors for tenors typically up to 5 years (7 years on an exceptional basis). Financing options available include:

Insurance
Reduces nonpayment risk on transactions involving U.S. goods & service exports.
Transactions can be short-term (less than one year) and typically support raw materials, spare parts, agricultural exports, ranges, refrigerators, et. Al. or medium-term (2-5 years), generally in support of capital goods exports.  

Loan Guarantees
Guarantees 100% of commercial and political risks on commercial bank loans to Iraqi public or private sector borrowers or financial institutions. Available on medium-term transactions involving U.S. manufactured capital goods or services.

Direct Loans
Provides direct funding to Iraqi public or private sector borrowers or financial institutions. Available on medium-term transactions involving U.S. manufactured capital goods or services.
Note that for direct loans, any items exported via ship must be sent on vessels of U.S. registry (this requirement does not apply to exports shipped by air, nor does it apply to short-term transactions).
 
Third Party Support
Where the buyer and end-user are Iraq entities, Ex-Im Bank can consider transactions where the borrower or guarantor is a creditworthy entity in a country where Ex-Im Bank is fully open (e.g. Bahrain, Jordan, Kuwait, etc.)

Requirements
In keeping with Ex-Im Bank’s credit standards, information criteria and requirement to find that a “reasonable assurance of repayment” is present in each transaction it supports, Ex-Im Bank will likely consider transactions that conform to the following (please see the Bank's Country Limitation Schedule)

1. Public sector transactions that convey the full faith and credit of the Government of Iraq, are identified as being of the highest priority to the Government and conform with any limits on non-concessional borrowing
2. Private sector transactions Ex-Im Bank with financial institutions or other entities which are able to provide detailed financial information sufficient to enable Ex-Im to reach a credit conclusion. Financial statements provided in support of the transaction should be audited by an affiliate of an international accounting firm and prepared in accordance with International Financial Reporting Standards (IFRS).

Pricing
Ex-Im Bank charges risk-based fees in order to provide its support.  Indicative fees may be found via the Bank’s Exposure Fee Calculator and Exposure Fee Advice Tables at http://www.exim.gov.

 

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News from Other Federal Agencies

Application Period Open for Trade Mission to Baghdad, Iraq - (from International Trade Administration, April 29, 2010)

Iraq Investment & Reconstruction Task Force, U.S. Department of Commerce

MARKET OPPORTUNITIES from the U.S. Department of Commerce

Baghdad International Trade Fair - Baghdad, Iraq, November 1-10, 2010
Event information from Iraq Investment and Reconstruction Task Force: website / official website

Tender Alert - Iraq Investment and Reconstruction Task Force, U.S. Department of Commerce http://trade.gov/iraq/

Tender: S--Electrical Support Services for the Middle East
Contracting Agency: U.S. Army
Solicitation Number: W912BU-10-R-0022
Posted Date: July 18th, 2010
Closing Date: August 16th, 2010
For More Information: https://www.fbo.gov/index?s=opportunity&mode=form&id=876873eb2e9b8bd0bf597e4aef4cab60&tab=core&_cview=1
Point of Contact: Karyn D Price karyn.d.price@usace.army.mil Phone: 215-656-6924

Tender: Provision of comprehensive purpose-based training in management of unaccounted for (UFW)
Contracting Agency: UNOPS
Solicitation Number: 80521000
Posted Date: July 19th, 2010
Closing Date: August 18th, 2010
For More Information: http://www.dgmarket.com/tenders/SearchResult.do~~iq~~~keywords=~noticeType=

Tender: Spare Parts for 400 volt (MCC)
Contracting Agency: Ministry of Electricity
Solicitation Number: 5/2/23/990 s
Posted Date: July 19th, 2010
Closing Date: August 22nd, 2010
For More Information: http://www.moelc.gov.iq/tender_en_details.aspx?id=4907&page

Tender: Excitation System for Unit No.1&4
Contracting Agency: Ministry of Electricity
Solicitation Number: 5/2/24/988 S
Posted Date: July 1st, 2010
Closing Date: September 1st, 2010
For More Information: http://www.moelc.gov.iq/tender_en_details.aspx?id=4857&page=3

Tender: Supply hydraulic system for tipper semi trailer
Contracting Agency: Ministry of Industry and Minerals
Solicitation Number: 16/T/VEH-2/2010
Posted Date: July 19th, 2010
Closing Date: August 16th, 2010
For More Information: http://industry.gov.iq/media/news_item/ff8d8630-597b-4cbf-b0d6-21b8014fb74a.JPG

Tender: Supply axles with accessories
Contracting Agency: Ministry of Industry and Minerals
Solicitation Number: 17/T/VEH-2/2010
Posted Date: July 19th, 2010
Closing Date: August 17th, 2010
For More Information: http://industry.gov.iq/media/news_item/9ec4edb6-2483-40bf-ba6d-a25e71631f4c.JPG

Tender: Three way valve
Contracting Agency: Ministry of Oil
Solicitation Number: NO:1962/2010
Posted Date: July 19th, 2010
Closing Date: August 18th, 2010
For More Information: http://www.oil.gov.iq/tender.php

Tender: Engineering design and supply, civil works
Contracting Agency: Ministry of Oil
Solicitation Number: NO:5334/2010
Posted Date: July 12th, 2010
Closing Date: August 16th, 2010
For More Information: http://www.oil.gov.iq/tender.php

Tender: Hot Rolled steel shapes (Equal angle bars)
Contracting Agency: Diala State Company for Electrical Industries
Solicitation Number: 42/2010
Posted Date:
Closing Date: August 16th, 2010
For More Information: http://www.dialacompany.com/tender.htm

Tender: Supplying sigle rectangular paper insulated copper wire
Contracting Agency: Diala State Company for Electrical Industries
Solicitation Number: 49/2010
Posted Date:
Closing Date: August 17th, 2010
For More Information: http://www.dialacompany.com/tender.htm

Tender: Supplying tool steel for manufacturing spare part for work shops
Contracting Agency: Diala State Company for Electrical Industries
Solicitation Number: 50/2010
Posted Date:
Closing Date: August 18th, 2010
For More Information: http://www.dialacompany.com/tender.htm

In order to provide U.S. exporters with timely information about opportunities for exporting U.S. goods and services to Iraq, the Export-Import Bank of the United States is listing websites that contain a wealth of regulatory, contracting, financing, and other information pertaining to business opportunities in Iraq.

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Updated: 20100819