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$250 MILLION EX-IM BANK INSURANCE WILL FACILITATE U.S. EXPORTS TO IRAQ

U.S. Companies Will Receive Support to Facilitate U.S. Exports to Iraq

FOR IMMEDIATE RELEASE December 28, 2003

Media Contact Name/Phone: 

Phil Cogan, (202) 565-3200

WASHINGTON, D.C. - The Board of Directors of the Export-Import Bank of the United States (Ex-Im Bank) approved insurance for up to $250 million in Letters of Credit to be issued by, or on behalf of, the Trade Bank of Iraq (TBI). This insurance will be used to support trade financing from JPMorgan Chase Bank, as lead of the TBI's Operating Consortium, and should help many U.S. companies seeking to export goods and services to Iraq.

The Board's action was taken under Ex-Im Bank's new $500 million short-term insurance program for the Trade Bank of Iraq. This program provides for bank letter of credit and financial institution buyer credit insurance policies that, in turn, allow U.S. companies to be assured of payment for goods exported to Iraqi buyers.

This financing can play a key role in helping U.S. exporters provide the goods and services needed to revitalize the Iraqi economy, Ex-Im Bank Chairman Philip Merrill said. Ex-Im Bank is committed to assisting the Iraqi people in the crucial task of rebuilding their country.

Ex-Im Bank approved its Trade Bank of Iraq program on November 25, and it became effective on December 5, when Ex-Im Bank joined 15 other nations' export credit agencies in signing framework agreements with the Trade Bank and Coalition Provisional Authority (CPA). The CPA established the TBI in July as an independent entity created to facilitate the reconstruction of Iraq by providing trade-financing services that Iraqi financial institutions are currently unable to offer.

Companies and individuals wishing to stay informed about Ex-Im Bank activities in connection with U.S. exports to Iraq may subscribe to a special email list at (page expired).

Next year, Ex-Im Bank marks its 70th year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2003, Ex-Im Bank, an independent federal agency, authorized financing to support approximately $14.3 billion of U.S. exports worldwide. For more information on Ex-Im Bank visit //www.exim.gov/.