Announces Full Assessment in Advance of EXIM Board Consideration; Invites Public Comment on PEFCO Requests to Renew Partnership and Increase Amount of Long-Term General Guarantee on Interest of Secured Notes
FOR IMMEDIATE RELEASE July 27, 2020
Office of Communications (202) 565-3207
WASHINGTON – Export-Import Bank of the United States (EXIM) President and Chairman of the Board of Directors Kimberly A. Reed today announced the agency’s first-ever public review of the Private Export Funding Corporation (PEFCO). EXIM has had a 50-year public-private partnership with PEFCO and the EXIM Board of Directors soon will consider the partnership’s renewal.
As part of this review, EXIM invites public comment on two separate requests the agency has received from PEFCO. The first request relates to renewing PEFCO’s partnership with EXIM, which is set to expire on December 31, 2020. The second request relates to increasing the amount of the long-term general guarantee on the interest of Secured Notes issued by PEFCO. The two requests have been published in the Federal Register and comments must be received on or before August 21, 2020, to be assured consideration by the EXIM Board of Directors.
Additionally, the EXIM Board of Directors intends to hold a Board of Directors meeting that is open to the public in August to hear from stakeholders. More details on the public meeting will be provided in the future.
“Because of the EXIM-PEFCO public-private partnership over the past 50 years, PEFCO has been enabled to grow opportunities for America’s businesses and workers by providing more than $38 billion of funding for U.S. export transactions,” said EXIM President and Chairman Kimberly A. Reed. “With EXIM’s full reopening and historic long-term reauthorization in 2019, we are now able to fully focus on delivering on our mission and keeping America strong. As part of EXIM’s transformation over the past year, we also are committed to increasing transparency and protecting the U.S. taxpayer. As such, we are launching this first-ever public review of our partnership with PEFCO and look forward to a robust dialogue on how PEFCO can best serve U.S. exporters and support American jobs in today’s competitive global marketplace.”
PEFCO was created in 1970 with the assistance of EXIM to finance U.S. exports by complementing the financing available from commercial banks and other lenders. PEFCO provides a broad range of export finance programs as a direct lender and as a secondary market buyer of export loans originated by other lenders. To be eligible for financing by PEFCO, loans must be protected against nonpayment under an appropriate guarantee issued by EXIM. PEFCO entered into an official 25-year partnership with EXIM in 1971, which was renewed in 1994 through December 31, 2020. The partnership was created to ensure there always was a private alternative to EXIM direct loans and facilitate liquidity of EXIM-guaranteed and -insured transactions. PEFCO accomplishes these purposes by intermediating between the efficiency and immense scale of the U.S. capital markets and the day-to-day funding needs of export financing for cases ranging from several hundred thousand dollars to several million dollars.
To comment on the PEFCO’s request to renewing its partnership with EXIM, click HERE.
To comment on the PEFCO’s request related to Secured Notes, click HERE.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov