FOR IMMEDIATE RELEASE March 2, 2008
Linda Formella (202) 565-3200
WASHINGTON, D.C. - To make it easier and faster for African buyers to obtain Ex-Im Bank support for their purchases of U.S. goods and services, the Export-Import Bank of the United States (Ex-Im Bank) has approved special delegated authority for the African Export-Import Bank (Afreximbank) to provide up to $40 million in Ex-Im Bank short-term and medium-term financing. The delegated authority is for one year from the date of board approval.
With this authorization, Afreximbank will have the credit capacity to finance multiple Ex-Im Bank-backed short-term and medium-term transactions with less administrative involvement by Ex-Im Bank staff and reduced processing time. The primary source of repayment will be Afreximbank. In addition, the facility will serve as a new marketing tool for both Ex-Im Bank and Afreximbank to promote the purchase of U.S. goods and services in Africa.
Ex-Im Bank welcomes this opportunity to leverage our resources through Afreximbank on behalf of U.S. - African trade, said Ex-Im Bank Chairman and President James H. Lambright. With the help of Afreximbank, our products will be more accessible in Africa, which we believe will benefit both African buyers and U.S. companies by expanding U.S. exports to sub-Saharan Africa.
This facility provides tremendous opportunity for Afreximbank to support our numerous clients in oil services, aviation, manufacturing, telecommunications and power. The doors are now open to our clients to consider the U.S. market as they source raw materials and equipment for export manufacturing, infrastructure and related projects. We thank Ex-Im Bank for this support and look forward to expanding this relationship to our mutual benefit, said Afreximbank President Jean-Louis Ekra.
Afreximbank is a multinational financial institution that was established in 1993 by African governments and private and institutional investors to promote and finance African trade. It currently includes more than 30 African states among its 120 shareholders. Afreximbank's objectives include extending short-term credit and medium-term loans to African exporters and importers and financing imports needed for trade development, such as equipment, spare parts and raw materials.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 74th year, helps create and maintain U.S. jobs by financing 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 2007, Ex-Im Bank authorized $12.6 billion in financing to support an estimated $16 billion of U.S. exports worldwide. The Bank authorized more than $386 million in export-credit insurance and guarantees, as well as $47.5 million in working capital guarantees, to support U.S. exports to sub-Saharan Africa in FY 2007. For more information, visit www.exim.gov.