FOR IMMEDIATE RELEASE May 31, 2000
Marsha Berry (202) 565-3200
For the first time in its 65 year history, the Export-Import Bank of the United States (Ex-Im Bank ) approved today a proposal for a private sector risk sharing arrangement in its future export guarantee portfolio. As a result of an earlier Invitation to Submit Proposals (ISP), the Ex-Im Bank's Board of Directors selected a proposal from Citigroup that represented the best opportunity for establishing a cost-efficient public-private partnership.
In announcing this arrangement, Ex-Im Bank chairman James A. Harmon said, This is a proud day for Ex-Im Bank. The action today by the Bank's Board of Directors marks a significant milestone in the way Bank does business. For the first time ever, Ex-Im Bank will share the risk and benefits of its future activities with a private sector partner. In selecting Citigroup, the Bank is looking to the future and expanding its capacity for supporting US exporters.
The timeline for today's announcement began on February 16, 2000, when Ex-Im Bank issued an ISP to determine whether a private sector partner could be established in order to share in the benefits and risks connected to future Bank transactions. On March 7, over 50 interested parties participated in a pre-proposal conference held by the Bank. As a result, 8 responses from major international investment and commercial banks, as well as insurance companies, were received by the ISP due date of April 4.
With today's action by the Board, Ex-Im Bank and Citigroup will immediately initiate the detailed negotiations to close the transaction by October 1, 2000.