New Jersey Company to Export Insect-Abatement Equipment to Iraqi Health Ministry
FOR IMMEDIATE RELEASE April 27, 2004
Andrew Yarrow (202) 565-3200
WASHINGTON, D.C.- The Export-Import Bank of the United States (Ex-Im Bank) is pleased to announce that the first transaction has been approved under its short-term insurance program for Iraq. Ex-Im Bank is insuring the $15 million export sale of fogging machines and accessories for insect abatement manufactured by Tifa Ltd. of Millington, N.J., for the Iraqi Ministry of Health, State Company for Marketing Drugs and Medical Appliances. This insurance will support a letter of credit issued by the Trade Bank of Iraq and confirmed by JPMorgan Chase Bank.
Ex-Im Bank has been working since the liberation of Iraq to help the Iraqi people address their country's immediate reconstruction needs as well as medium- and longer-term needs of rebuilding a sustainable, diversified economy, Ex-Im Bank Chairman Philip Merrill said. As U.S. exports support U.S. jobs, I hope that this historic transaction will be the first of many Ex-Im Bank-supported exports to the new Iraq.
Ex-Im Bank approved a $500 million insurance facility for the Trade Bank of Iraq on Nov. 25, 2003, and it became effective on Dec. 5, 2003, 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 Trade Bank in July 2003 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.
Ex-Im Bank also can support U.S. exports to Iraq in two other ways: Under its Working Capital Guarantee Program, it will consider applications to support pre-export activities of subcontractors- particularly small businesses -- operating under U.S. government-funded reconstruction projects. In addition, Ex-Im Bank will consider applications for financing of U.S. exports to Iraq under its loan guarantee, working capital, and credit insurance programs if there is a creditworthy source of repayment in a third country.
Ex-Im Bank this year 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 $14.3 billion of U.S. exports worldwide. For more information on Ex-Im Bank and its initiatives to support Iraqi reconstruction, visit www.exim.gov.