FOR IMMEDIATE RELEASE January 24, 2005
Phil Cogan or Andrew Yarrow (202) 565-3200
BEIJING, CHINA: The Export-Import Bank of the United States (Ex-Im Bank) has signed a framework agreement that will make it easier for the Bank to help finance purchases of U.S. exports by Chinese government entities.
The agreement, signed by Ex-Im Bank Chairman Philip Merrill and Chinese Vice Minister of Finance Liao Xiaojun at the Ministry of Finance, provides an efficient procedure whereby the Ministry may guarantee payment of obligations of a Chinese buyer of Ex-Im Bank-financed U.S. exports.
As China's economy expands and its people increasingly prosper, it will have growing need for the top-quality goods and services that the United States can provide, Merrill said. This framework agreement will make Ex-Im Bank's support of Chinese purchases easier and more efficient, and will enable the Bank to help finance a wide range of exports to China, ranging from renewable energy, medical equipment, and environmental products to transportation, telecommunications, and other infrastructure equipment.
Ex-Im Bank's Chief Operating Officer and General Counsel, Peter Saba, who led Ex-Im Bank's negotiations, praised the negotiators on both sides, noting that In the final agreement, we were able to accommodate the Ministry of Finance's interests while preserving Ex-Im Bank's rights in sovereign credits. This is an important result for both governments.
Ex-Im Bank, which has more than $4.1 billion in exposure in China, has recently helped finance U.S. exports to China of railway track inspection equipment, air-quality monitoring equipment, high-tech hospital supplies, and components for an ethylene production plant.
Ex-Im Bank, the official export credit agency of the United States, helps finance U.S. exports by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2004, Ex-Im Bank assisted in financing $17.8 billion of U.S. exports to markets around the world.
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