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Country Limitation Schedule

Current CLS (PDF) - Effective Date of this Endorsement: 12:01 A.M. E.T., May 14, 2015 CLS-05/15

View Past Country Limitation Schedules here.

Memorandum of Changes, May 14, 2015 (PDF)

Facts about Ex-Im Bank's limited operations in Burma

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Total Term* is from the date of authorization until final payment - Effective May 14, 2015.

"X" Indicates Support is NOT Available

COUNTRY SECTOR Up to 1 1 to 7 Over 7 Years
Afghanistan
Notes: 13
Public Sector X X X
Private Sector X X X
Albania
Notes: 1, 3, 4, 5, 10
Public Sector
Private Sector
Algeria
Notes: 1, 4
Public Sector
Private Sector
Andorra
Notes:
Public Sector
Private Sector
Angola
Notes: 1, 4, 5
Public Sector
Private Sector
Anguilla
Notes: 1
Public Sector
Private Sector
Antigua and Barbuda
Notes: 1, 4, 13
Public Sector X X X
Private Sector
Argentina
Notes: 13
Public Sector X X X
Private Sector X X X
Armenia
Notes: 1, 3, 4, 10
Public Sector
Private Sector
Aruba
Notes: 1, 9
Public Sector
Private Sector
Australia
Notes:
Public Sector
Private Sector
Austria
Notes:
Public Sector
Private Sector
Azerbaijan
Notes: 1, 3, 4, 5
Public Sector
Private Sector
Bahamas
Notes:
Public Sector
Private Sector
Bahrain
Notes:
Public Sector
Private Sector
Bangladesh
Notes: 1, 4, 5, 10
Public Sector
Private Sector
Barbados
Notes: 1
Public Sector
Private Sector
Belarus
Notes: 13
Public Sector X X X
Private Sector X X X
Belgium
Notes:
Public Sector
Private Sector
Belize
Notes: 5, 6a, 13, 14
Public Sector X
Private Sector X
Benin
Notes: 1, 4, 5, 13
Public Sector
Private Sector X
Bermuda
Notes:
Public Sector
Private Sector
Bhutan
Notes: 1, 4, 5
Public Sector
Private Sector
Bolivia
Notes: 1, 4, 5, 13
Public Sector X
Private Sector X
Bosnia-Herzegovina
Notes: 1, 4, 10, 13
Public Sector X
Private Sector X
Botswana
Notes:
Public Sector
Private Sector
Brazil
Notes:
Public Sector
Private Sector
Brunei
Notes:
Public Sector
Private Sector
Bulgaria
Notes: 3, 5, 6a
Public Sector
Private Sector
Burkina Faso
Notes: 1, 10, 13
Public Sector X
Private Sector
Burma
Notes: 1, 3, 13
Public Sector X
Private Sector X X X
Burundi
Notes: 1, 10, 11a, 11b, 13
Public Sector X X
Private Sector X X
Cambodia
Notes: 1, 4, 13
Public Sector X X X
Private Sector X
Cameroon
Notes: 4, 5, 6a
Public Sector
Private Sector
Canada
Notes:
Public Sector
Private Sector
Cape Verde
Notes:
Public Sector
Private Sector
Cayman Islands
Notes:
Public Sector
Private Sector
Central African Republic
Notes: 1,10, 11a, 11b, 13
Public Sector X X
Private Sector X X
Chad
Notes: 1, 11a, 11b, 13
Public Sector X X
Private Sector X X
Chile
Notes:
Public Sector
Private Sector
China
Notes: 1, 2
Public Sector
Private Sector
Colombia
Notes:
Public Sector
Private Sector
Comoros
Notes: 1, 11a, 11b, 13
Public Sector X X
Private Sector X X
Congo
Notes: 1, 4, 5, 13
Public Sector X
Private Sector X
Congo, Democratic Rep.
Notes: 1, 11a, 11b, 13
Public Sector X X
Private Sector X X
Cook Islands
Notes: 1, 4
Public Sector
Private Sector
Costa Rica
Notes: 6b
Public Sector
Private Sector
Cote d`Ivoire
Notes: 1, 5, 10, 13, 14
Public Sector X
Private Sector X
Croatia
Notes: 3, 5, 6a
Public Sector
Private Sector
Cuba
Notes: 7
Public Sector X X X
Private Sector X X X
Curacao
Notes:
Public Sector
Private Sector
Cyprus
Notes: 10, 13
Public Sector X X X
Private Sector X X X
Czech Republic
Notes:
Public Sector
Private Sector
Denmark
Notes:
Public Sector
Private Sector
Djibouti
Notes: 1, 4, 11a, 13
Public Sector X X
Private Sector X
Dominica
Notes: 1
Public Sector
Private Sector
Dominican Republic
Notes: 3, 6a
Public Sector
Private Sector
Ecuador
Notes: 5, 13
Public Sector X
Private Sector X X X
Egypt
Notes: 1, 4, 5, 13
Public Sector X
Private Sector X
El Salvador
Notes:
Public Sector
Private Sector
Equatorial Guinea
Notes: 1, 4, 5, 13
Public Sector
Private Sector X
Eritrea
Notes: 1, 11a, 11b, 13
Public Sector X X
Private Sector X X
Estonia
Notes: 3, 5, 6b
Public Sector
Private Sector
Ethiopia
Notes: 1, 4, 5, 13
Public Sector X
Private Sector X
Fiji
Notes: 1, 4
Public Sector
Private Sector
Finland
Notes:
Public Sector
Private Sector
France
Notes:
Public Sector
Private Sector
French Polynesia
Notes: 3, 5
Public Sector
Private Sector
Gabon
Notes: 5, 6a
Public Sector
Private Sector
Gambia
Notes: 10, 11a, 13
Public Sector X X
Private Sector X
Georgia
Notes: 1, 3, 4, 5, 10
Public Sector
Private Sector
Germany
Notes:
Public Sector
Private Sector
Ghana
Notes: 1, 3, 4, 5
Public Sector
Private Sector
Greece
Notes: 10, 13
Public Sector X
Private Sector
Grenada
Notes: 1, 10, 13
Public Sector X X X
Private Sector X
Guatemala
Notes: 6b
Public Sector
Private Sector
Guinea
Notes: 10, 13
Public Sector X X X
Private Sector X X X
Guinea-Bissau
Notes: 13
Public Sector X X X
Private Sector X X X
Guyana
Notes: 1, 13
Public Sector X
Private Sector X
Haiti
Notes: 13
Public Sector X X X
Private Sector X X X
Honduras
Notes:
Public Sector
Private Sector
Hong Kong
Notes:
Public Sector
Private Sector
Hungary
Notes:
Public Sector
Private Sector
Iceland
Notes:
Public Sector
Private Sector
India
Notes:
Public Sector
Private Sector
Indonesia
Notes: 1, 4, 5
Public Sector
Private Sector
Iran
Notes: 7
Public Sector X X X
Private Sector X X X
Iraq
Notes: 1, 3, 5, 13, 14
Public Sector X
Private Sector X
Ireland
Notes:
Public Sector
Private Sector
Israel
Notes:
Public Sector
Private Sector
Isle of Man
Notes:
Public Sector
Private Sector
Italy
Notes:
Public Sector
Private Sector
Jamaica
Notes: 6a, 10, 13
Public Sector X
Private Sector X
Japan
Notes:
Public Sector
Private Sector
Jordan
Notes: 6a, 10
Public Sector
Private Sector
Kazakhstan
Notes: 1, 3, 5, 14
Public Sector
Private Sector
Kenya
Notes: 1, 5
Public Sector
Private Sector
Kiribati
Notes: 1
Public Sector
Private Sector
Kosovo
Notes: 1, 3, 4, 5, 13
Public Sector X
Private Sector X
Korea, North
Notes: 7
Public Sector X X X
Private Sector X X X
Korea, South
Notes:
Public Sector
Private Sector
Kuwait
Notes:
Public Sector
Private Sector
Kyrgyzstan
Notes: 1, 3, 4, 5, 13
Public Sector X
Private Sector X
Laos
Notes: 1, 5, 13
Public Sector X
Private Sector X X X
Latvia
Notes: 3, 5, 6a
Public Sector
Private Sector
Lebanon
Notes: 1, 4, 5
Public Sector
Private Sector
Lesotho
Notes: 6b
Public Sector
Private Sector
Liberia
Notes: 1, 10, 11a, 11b, 13
Public Sector X X
Private Sector X X
Libya
Notes: 13
Public Sector X X X
Private Sector X X X
Liechtenstein
Notes:
Public Sector
Private Sector
Lithuania
Notes: 3, 5, 6a
Public Sector
Private Sector
Luxembourg
Notes:
Public Sector
Private Sector
Macau
Notes: 1
Public Sector
Private Sector
Macedonia
Notes: 1, 3, 5
Public Sector
Private Sector
Madagascar
Notes: 1, 10, 11a, 11b, 13
Public Sector X X
Private Sector X X
Malawi
Notes: 1, 4, 5, 10, 13
Public Sector X
Private Sector X
Malaysia
Notes: 6b
Public Sector
Private Sector
Maldives
Notes: 1, 13
Public Sector X
Private Sector X
Mali
Notes: 10, 13
Public Sector X X X
Private Sector X X X
Malta
Notes:
Public Sector
Private Sector
Marshall Islands
Notes: 1
Public Sector
Private Sector
Mauritania
Notes: 1, 11a, 11b, 13
Public Sector X X
Private Sector X X
Mauritius
Notes:
Public Sector
Private Sector
Mexico
Notes:
Public Sector
Private Sector
Micronesia
Notes: 1
Public Sector
Private Sector
Moldova
Notes: 1, 3, 4, 5, 13
Public Sector X
Private Sector X
Monaco
Notes:
Public Sector
Private Sector
Mongolia
Notes: 1, 4
Public Sector
Private Sector
Montenegro
Notes: 1, 3, 5
Public Sector
Private Sector
Montserrat
Notes: 1
Public Sector
Private Sector
Morocco
Notes: 6b
Public Sector
Private Sector
Mozambique
Notes: 1, 4, 5
Public Sector
Private Sector
Namibia
Notes: 1
Public Sector
Private Sector
Nauru
Notes: 13
Public Sector X X X
Private Sector X X X
Nepal
Notes: 1, 13
Public Sector X
Private Sector X X X
Netherlands
Notes:
Public Sector
Private Sector
New Zealand
Notes:
Public Sector
Private Sector
Nicaragua
Notes: 1, 4, 5, 13
Public Sector X
Private Sector X
Niger
Notes: 1, 10, 11a, 13
Public Sector X X
Private Sector X
Nigeria
Notes: 1, 3, 4, 5
Public Sector
Private Sector
Norway
Notes:
Public Sector
Private Sector
Oman
Notes:
Public Sector
Private Sector
Pakistan
Notes: 1, 4, 5, 10, 13
Public Sector X
Private Sector X
Palau
Notes: 1, 4, 5
Public Sector
Private Sector
Panama
Notes:
Public Sector
Private Sector
Papua New Guinea
Notes: 1
Public Sector
Private Sector
Paraguay
Notes: 6b
Public Sector
Private Sector
Peru
Notes: 1
Public Sector
Private Sector
Philippines
Notes: 1, 4
Public Sector
Private Sector
Poland
Notes:
Public Sector
Private Sector
Portugal
Notes:
Public Sector
Private Sector
Qatar
Notes:
Public Sector
Private Sector
Romania
Notes: 3, 5, 6a, 10
Public Sector
Private Sector
Russia
Notes: 1, 12a, 12b
Public Sector
Private Sector
Rwanda
Notes: 1, 4, 5
Public Sector
Private Sector
St. Kitts and Nevis
Notes: 1
Public Sector
Private Sector
St. Lucia
Notes: 1
Public Sector
Private Sector
St. Vincent and Grenadines
Notes: 1
Public Sector
Private Sector
Samoa
Notes: 1
Public Sector
Private Sector
San Marino
Notes:
Public Sector
Private Sector
Sao Tome and Principe
Notes: 1, 10, 11a, 11b, 13
Public Sector X X
Private Sector X X
Saudi Arabia
Notes:
Public Sector
Private Sector
Senegal
Notes: 1, 3, 4, 5
Public Sector
Private Sector
Serbia
Notes: 1, 4
Public Sector
Private Sector
Seychelles
Notes: 1, 4, 5, 10, 13
Public Sector X
Private Sector X
Sierra Leone
Notes: 1, 10, 11a, 11b, 13
Public Sector X X
Private Sector X X
Singapore
Notes:
Public Sector
Private Sector
Sint Maarten
Notes:
Public Sector
Private Sector
Slovak Republic
Notes: 3, 5, 6a
Public Sector
Private Sector
Slovenia
Notes: 6a
Public Sector
Private Sector
Solomon Islands
Notes: 1, 10
Public Sector
Private Sector
Somalia
Notes: 13
Public Sector X X X
Private Sector X X X
South Africa
Notes:
Public Sector
Private Sector
South Sudan
Notes: 13
Public Sector X X X
Private Sector X X X
Spain
Notes:
Public Sector
Private Sector
Sri Lanka
Notes: 1, 5, 14
Public Sector
Private Sector
Sudan
Notes: 7
Public Sector X X X
Private Sector X X X
Suriname
Notes: 3, 5, 13
Public Sector      
Private Sector X
Swaziland
Notes:
Public Sector
Private Sector
Sweden
Notes:
Public Sector
Private Sector
Switzerland
Notes:
Public Sector
Private Sector
Syria
Notes: 7
Public Sector X X X
Private Sector X X X
Taiwan
Notes:
Public Sector
Private Sector
Tajikistan
Notes: 1, 4, 5, 13
Public Sector X
Private Sector X
Tanzania
Notes: 1, 4, 5
Public Sector
Private Sector
Thailand
Notes:
Public Sector
Private Sector
Timor Leste
Notes: 5, 13
Public Sector X
Private Sector X X X
Togo
Notes: 1, 3, 4, 5, 13
Public Sector X
Private Sector X
Tonga
Notes: 1
Public Sector
Private Sector
Trinidad and Tobago
Notes: 6a
Public Sector
Private Sector
Tunisia
Notes: 10
Public Sector
Private Sector
Turkey
Notes:
Public Sector
Private Sector
Turkmenistan
Notes: 1, 3, 5, 13, 14
Public Sector
Private Sector X
Turks and Caicos
Notes:
Public Sector
Private Sector
Tuvalu
Notes: 3
Public Sector
Private Sector
Uganda
Notes: 1, 4, 5
Public Sector
Private Sector
Ukraine
Notes: 1, 4, 5, 10, 12a, 12b, 13
Public Sector
Private Sector X
United Arab Emirates
Notes: 8
Public Sector
Private Sector
United Kingdom
Notes:
Public Sector
Private Sector
Uruguay
Notes: 6b
Public Sector
Private Sector
Uzbekistan
Notes: 1, 3, 4, 5, 13
Public Sector
Private Sector X
Vanuatu
Notes: 1
Public Sector
Private Sector
Vatican City
Notes:
Public Sector
Private Sector
Venezuela
Notes: 13
Public Sector X X X
Private Sector X X X
Vietnam
Notes: 1, 4, 5
Public Sector
Private Sector
Virgin Islands (British)
Notes:
Public Sector
Private Sector
Yemen
Notes: 10, 13
Public Sector X X X
Private Sector X X X
Zambia
Notes: 1, 5, 14
Public Sector
Private Sector
Zimbabwe
Notes: 13
Public Sector X X X
Private Sector X X X

* Total Term is from the date of authorization until final repayment - Effective May 14, 2015.

It is agreed that pursuant to the provisions of Ex-Im Bank loans and guarantees and Ex-Im Bank export credit insurance policies, the country limitation schedule has been amended effective May 14, 2015. This revision supersedes the January 22, 2015 Country Limitation Schedule and any amendments thereto.

Please note that Ex-Im Bank only sends updates to the Country Limitation Schedule via e-mail. Policyholders must register at https://public.govdelivery.com/accounts/USEXIM/subscriber/new, or use the link from Ex-Im Bank's homepage (www.exim.gov) under "E-Mail Updates" to receive updates to the CLS via e-mail along with other Ex-Im Bank publications such as the Exporter and Africa newsletters.

GENERAL CONDITIONS

Exceptions to any condition or limitation contained herein must be obtained in writing from Ex-Im Bank.

Ex-Im Bank reserves the right to set additional conditions for any particular buyer or issuing bank including the right to set a different percentage of coverage. Ex-Im Bank also reserves the right to reject any particular application.

The sector where the risk lies (public or private) and the country of the obligor, or guarantor if there is one, will generally be used for determining appropriate country limitations and fees.


The following insurance policies are affected by this country limitation schedule. Please note that Short-Term Insurance Policies are governed by the columns titled "Up to one year":

Short-Term Insurance Policies: EBD, ELC, ENB, ENV, ESC, ESM(ST), ESS, ETM(ST), EUS, FB, FB-E, FV, ESP, ESSP, FP, MCP(ST).

Medium-Term: All medium-term and lease-policy types, ESM, ETM, MCP, MRP, MSC, MSC-E, MTR, MTR-E.


Notes:

#1. Discretionary Credit Limits under Short Term Insurance Policies are withdrawn. Cover not available unless specified in a Special Buyer Credit Limit endorsement, an Issuing Bank Credit Limit endorsement, or a Country Limit of Liability endorsement.

#2. For sovereign transactions in the People's Republic of China ("China"), Ex-Im Bank will typically require an indication of Chinese government support in the form of a "Notice of MOF Guarantee" as defined in the Framework Agreement, dated January 24, 2005 between the Ministry of Finance of China and Ex-Im Bank.

For public sector non-sovereign and private sector transactions under short-, medium-, and long-term programs, Ex-Im Bank will consider transactions with financial institutions or other entities that are able to provide detailed financial/credit information sufficient to enable Ex-Im Bank to reach a credit conclusion.

Coverage under the Working Capital Guarantee Program (WCGP) requires that the transaction be supported by an irrevocable Letter of Credit issued by a bank with an "acceptable" market rating as defined in the Short Term Credit Standards, or by a bank pre-approved by Ex-Im Bank. Exceptions may be made for private sector transactions that are insured for comprehensive political and commercial risk.

#3. Prior to accepting an application for a preliminary or final commitment for a public sector transaction, or for any insurance or WCGP coverage for a public sector transaction, Ex-Im Bank will require an indication of host government support for the application. Contact Ex-Im Bank for more detailed information on specific markets.

#4. Ex-Im Bank cover/support for private sector transactions is typically limited to transactions with a commercial bank as obligor or guarantor. Ex-Im Bank will consider transactions without a bank undertaking on a case-by-case basis. Regarding the latter, Ex-Im Bank may consider corporate entities that are able to provide detailed financial information sufficient to enable Ex-Im Bank to reach a credit conclusion. Such information should include financial statements audited by an affiliate of an international accounting firm and prepared in accordance with International Financial Reporting Standards (IFRS), and the statements should reflect material bank borrowings. As conditions pursuant to which we may consider non-bank transactions vary in markets subject to this note, please contact the Credit Policy Division for further information.
 
Coverage under the WCGP for private sector transactions requires that the transaction be supported by an irrevocable Letter of Credit. Exceptions may be made for private sector transactions that are insured for comprehensive political and commercial risk.

#5. Ex-Im Bank cover/support for public sector transactions is typically limited to transactions which commit the full faith and credit of the government.

#6. Under Short-Term Insurance Policies, coverage under Discretionary Credit Limits and a Country Limits of Liability shall be the lesser of the limits authorized in the policy or:

      a. $50,000

      b. $100,000

Higher limits will be considered upon application for a Special Buyer Credit Limit endorsement, an Issuing Bank Credit Limit endorsement, or Country Limits of Liability endorsement.

#7. Support legally prohibited.

#8. Public sector transactions in Sharjah, Fujairah, Ras Al-Khaimah, Umm Al-Qaywayn, and Ajman require the guarantee of the federal government of the United Arab Emirates. Coverage under the WCGP for public sector transactions for the above may be considered if supported by an irrevocable Letter of Credit. 

#9. Sovereign transactions with total term in excess of one (1) year require the Government of Aruba as the borrower. For the WCGP, a transaction may also be considered eligible if it is supported by an irrevocable Letter of Credit.

#10. When open for cover, medium- and long-term public sector transactions are subject to Ministry of Finance notification to Ex-Im Bank that the transaction is of the highest priority and would conform with IMF program limits on non-concessional debt.

#11a. Public sector risk cover is available under Ex-Im Bank`s Short Term Africa Initiative. Discretionary Credit Limits are withdrawn. Transaction structure and additional information requirements will be determined on a case-by-case basis. Public sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.

     b. Private sector risk cover is available under Ex-Im Bank`s Short Term Africa Initiative. Discretionary Credit Limits are withdrawn. Transaction structure and additional information requirements will be determined on a case-by-case basis. Private sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.

#12a. As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the public sector. Coverage under the WCGP for public sector transactions is currently not available.

     b. As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the private sector. Coverage under the WCGP for private sector transactions is currently not available.

#13.Where the CLS indicates support is not available, Ex-Im Bank can still consider financing arrangements that eliminate or externalize country risks. Potentially acceptable transactions include structured transactions that earn revenues offshore in a country with no CLS restrictions and are held in a bank or trust account acceptable to Ex-Im Bank; third-party support from creditworthy entities in countries with no CLS restriction; and asset-backed lease and financing structures involving equipment such as aircraft.

In addition, coverage under the WCGP may be available for a transaction that is supported by an irrevocable Letter of Credit issued by a bank, and/or due from a Buyer, located in a country where Ex-Im Bank is open without restrictions for short-term transactions.

#14. For private sector transactions, Ex-Im Bank will consider transactions with financial institutions or other entities that 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).

Coverage under the WCGP requires that the transaction be supported by an irrevocable Letter of Credit issued by a bank acceptable to Ex-Im Bank. Exceptions may be made for private sector transactions that are insured for comprehensive political and commercial risk.

INFORMATION SUPPLEMENT ON
MEDIUM- AND LONG-TERM PROGRAMS

"Open for Cover" versus "Off-Cover." The attached Country Limitation Schedule indicates where Ex-Im Bank is "open for cover" and where Ex-Im Bank is "off-cover." The Schedule is organized along three dimensions: the country where the risk lies, sector (public sector or private sector), and term of total exposure (including both disbursement period and repayment term). Ex-Im Bank defines "public sector" as including those obligors or guarantors which are at least 50% owned, directly or indirectly, by the government. Where the CLS presents an X mark, Ex-Im Bank is "off-cover," and is therefore not willing to consider approval of routine transactions. These "off-cover" determinations are due to economic and/or political risks associated with the country.

Where Ex-Im Bank is Open for Cover. The "open for cover" designation refers to the possibility, rather than the certainty, of Ex-Im Bank support in particular cases. Proposed obligors, guarantors, and transaction structures under medium- and long-term programs are all subject to case-by-case Ex-Im Bank approval. Approval depends on the case-by-case application of Ex-Im Bank policies, particularly the Ex-Im Bank`s determination of reasonable assurance of repayment. The following paragraphs provide very general guidance to the application of policies in markets where Ex-Im Bank is on-cover.

  • Identification of Obligor or Guarantor. Ex-Im Bank will approve a final commitment, a preliminary commitment (PC), or a medium-term insurance policy or commitment (MTIP or MTIC), only if a specific obligor or guarantor has been identified. Ex-Im Bank may approve an indicative letter of interest (LI) for a proposed transaction, subject to the condition that an obligor or guarantor is identified at the time the LI is converted to a final commitment, PC, MTIP, or MTIC; and Ex-Im Bank can accept the credit risk of the proposed obligor or guarantor.
  • Information Requirements regarding Obligors or Guarantors. Ex-Im Bank requires that obligors or guarantors offer "reasonable assurance of repayment." To process applications for final commitments, PCs, MTIPs, and MTICs, Ex-Im Bank will first require information on proposed obligors and guarantors. Such information includes financial statements and credit references. Engineering data is required for long-term transactions. Generally, Ex-Im Bank will require more detailed information regarding obligors or guarantors when processing relatively large transactions, or transactions with obligors or guarantors with which Ex-Im Bank has had no favorable direct credit experience. Ex-Im Bank`s application form and program literature specify the Bank`s standard information requirements.
  • Sovereign Guarantees for Public Sector Buyers or Obligors. For cases involving proposed public sector buyers or obligors which do not have significant independent sources of revenue outside the central government budget and which do not have independently audited financial statements, Ex-Im Bank will routinely require a sovereign guarantee.
  • Prior Evidence of Host Government Willingness to Provide Sovereign Guarantee in Some Countries. In some countries, Ex-Im Bank requires applications for a final commitment for a medium- or long-term loan or guarantee, or for medium-term insurance, to be accompanied by prior evidence of the host government`s willingness to provide a sovereign guarantee.
  • Temporary Suspension of Cover. In countries where the CLS indicates that Ex-Im Bank is "open for cover," Ex-Im Bank may, under certain circumstances, temporarily suspend cover. This is most likely to be the case for public sector obligors and guarantors only, but may involve all obligors and guarantors. In such an event, Ex-Im Bank will advise applicants as quickly as possible.
  • Large Transactions in Smaller Markets. Relatively large transactions in smaller economies, even when sovereign guaranteed, will be subject to special Ex-Im Bank review. Ex-Im Bank will review the potential macroeconomic impacts of the transaction, in terms of higher debt burden and debt repayment capacity.
  • Private Companies. Ex-Im Bank will accept the direct credit risks of private buyers, if available information suggests that these buyers offer a "reasonable assurance of repayment." For closely held companies, Ex-Im Bank may require financial information from owners. For holding companies, Ex-Im Bank may require financial information on operating components, and may require their counter-guarantee.
  • Commercial Bank Guarantees. Ex-Im Bank may require the guarantees of acceptable commercial banks in the event that information available to Ex-Im Bank on proposed private buyers suggests that these buyers by themselves do not offer a "reasonable assurance of repayment."
  • Limited-Recourse Projects. Ex-Im Bank will consider limited-recourse project finance structures (those without full recourse to an acceptable, established obligor or guarantor), but only after a comprehensive review of project features. These features shall include the financial commitment of the project`s equity shareholders over the life of the proposed Ex-Im Bank commitment; the experience and capacity of project participants, including suppliers and offtakers; project cash flow coverage of foreign currency debt service; and security structures, including hard currency external payments arrangements. Ex-Im Bank will review only well-developed proposals, and will require project sponsors to fund review of project proposals by consultants retained by the Bank. Significant changes to proposed structures may be required.
  • Political-Only Cover. Ex-Im Bank`s standard guarantee and insurance cover is "comprehensive," under which Ex-Im Bank will pay claims resulting from both commercial and political perils. For private borrowers, Ex-Im Bank also offers a narrower form of coverage, under "political-only" cover. Ex-Im Bank`s guarantee agreements and insurance policies describe in detail and/or define the specific risks which are subject to this form of coverage.

The following is intended as a summary: For long-term transactions, Ex-Im Bank covers default arising from four "core" perils: transfer risk, expropriation, U.S. export license risk and political violence. Transfer risk involves borrowers` inability to acquire foreign exchange through legal foreign exchange markets. Expropriation involves the government`s confiscation of assets or ownership, or arbitrary or discriminatory intervention in business operations. U.S. export license risk involves the cancellation or non-renewal of a U.S. export license or imposition of certain restrictions on such license after shipment. Political violence involves war, revolution, insurrection, and other such acts. Under medium-term insurance policies, Ex-Im Bank also covers defaults arising from other defined risks.

Suppliers and/or lenders choosing political-only cover must be prepared to assume broad commercial risks associated with the borrower`s capacity. Ex-Im Bank`s political-only cover does not cover defaults arising from the borrower`s capacity to withstand domestic or international commercial market disruptions, or currency devaluation or depreciation. If suppliers and/or lenders are unable to assume these and other commercial risks, then Ex-Im Bank comprehensive cover would be a more appropriate form of coverage.

Political-only cover is offered only for private buyers or borrowers, those which are not subject to the administration of government authorities, and for which it is possible to distinguish between commercial perils and political risk perils. Political-only cover is not available for guaranteed lenders that are majority-owned or controlled by the host country government. Political-only cover is the only form of coverage available from Ex-Im Bank for borrowers which are effectively controlled by suppliers and/or lenders participating in transactions. Political-only cover is available only in those countries where Ex-Im Bank is "open for cover" for private sector risk.

Where Ex-Im Bank is Off Cover for Country Credit Reasons. Ex-Im Bank will not consider routine transactions in countries and sectors (public or private) where the country limitation schedule indicates that the Bank is off-cover (where there is an X). However, four special categories of transactions may be eligible for Ex-Im Bank support, under restrictive conditions, subject to additional special review:

  • Borrowers on International Capital Markets. Individual borrowers (either public sector or private sector) with a strong record of independent access or those borrowers which in Ex-Im Bank`s opinion could have access to private international capital markets or other international sources of funds, absent external (including sovereign) guarantees. The fee grade assigned, and the extent of Ex-Im Bank support, will take into account information related to the borrower`s financings and ratings. For Ex-Im Bank to consider such borrowers, information on the borrower`s international borrowings for at least the last six months must accompany the application. For each traded debt security, the required information includes the maturity and coupon, credit ratings (if any), and recent yield data. For syndicated loans, the required information includes interest rates, arranging fees, maturity profile, amounts borrowed, and names of arranging and key participating banks.
  • Insulated Project Finance Structures. Ex-Im Bank`s approval in "off-cover" markets/sectors of limited-recourse structures depends on the establishment of structures which do not require the financial or operating commitments of host government agencies and which are effectively insulated from government involvement. Furthermore, these structures must involve the channeling of project foreign exchange earnings through offshore payments and escrow mechanisms. In some country environments, the only acceptable limited-recourse structures may be "enclave" projects which are almost completely insulated from the broader country environment. The fee grade assigned, and the extent of Ex-Im Bank support, will take into account project structure and other conditions.
  • Secured Long-Range Aircraft Leases. Ex-Im Bank approval of asset-secured long-range aircraft lease transactions requires that the airline`s country of registry become a signatory to international conventions protecting aircraft property rights. Ex-Im Bank approval for aircraft transactions in off-cover markets is more likely for privately owned airlines with established operating records. Depending on the nature of transaction participants and structures, Ex-Im Bank may also require offshore payments and escrow mechanisms, or may provide a reduced percentage of cover. Aircraft transactions are subject to special fees and covenants.
  • Acceptable Borrower Outside the Country. Support may be available if an acceptable financial institution (e.g., commercial or multinational bank) outside of the country acts as the obligor.

It should be noted that these exceptions do not apply in countries where Ex-Im Bank is legally prohibited from operating.