FOR IMMEDIATE RELEASE May 20, 2007
Marianna Ohe (202) 565-3200
WASHINGTON, D.C. - The Export-Import Bank of China and the Export-Import Bank of the United States today signed agreements designed to expedite financing for transactions that will help support U.S. export jobs and promote China's sustainable development.
These agreements deliver results, said Export-Import Bank of the United States Chairman and President James H. Lambright. They also establish a strong foundation for working together to support America's exporters and China's development. The cooperation between our two banks embodies the essence of the Strategic Economic Dialogue.
Specifically, the two institutions signed a memorandum of understanding on a form of standard Long-Term Credit Agreement that will provide financing for most U.S. export transactions to China that exceed $20 million. The first transaction to use this product is already underway. The Export-Import Bank of the United States also announced its willingness to consider financing the sale of $164 million in heavy-duty railway maintenance equipment by the Harsco Corporation of Camp Hill, Penn., to the Ministry of Railways of the People's Republic of China.
We are grateful that the Export-Import Bank is willing to consider financing which would play a pivotal role in enabling us to further expand Harsco's support of the China market, said Harsco Chairman and Chief Executive Officer Derek C. Hathaway. As part of a larger order that represents more than $350 million in new revenues to Harsco, it will support the creation of new jobs as well as the strengthening of existing jobs, and thereby provide meaningful benefit to our families, communities, and the economy.
The two banks also signed an agreement indicating their intent to expedite financing support for multiple transactions involving the sale of medical equipment from U.S. exporters to hospitals in China. This agreement follows upon the completion of December 2006 negotiations on a form of standard Medium-Term Credit Agreement between borrowers and lenders pursuant to the Framework Agreement dated January 24, 2005 between the Ministry of Finance of the People's Republic of China and the Export-Import Bank of the United States.
The Export-Import Bank of the United States provides a range of financial products to support American exports to China. Environmental Dynamics Inc., a small business based in Columbia, Missouri, is using short-term insurance to facilitate its export of equipment used to construct wastewater treatment systems.
This is just one example of how U.S. jobs are being created in the small-business sector through exports that support China's environmental priorities, said Lambright.
The Strategic Economic Dialogue is a forum to manage the economic relationship between the U.S. and China on a long-term strategic basis. The first meeting was held in Beijing in December 2006. This week's meeting is the second round of discussions.
Ex-Im Bank is an independent U.S. government agency that assists in financing the export of U.S. goods and services to markets around the world, through export credit insurance, loan guarantees, and direct loans, and in the process creates and sustains U.S. jobs. In fiscal year 2006, Ex-Im Bank authorized over $12.1 billion in transactions supporting an estimated $16.1 billion in U.S. exports.