FOR IMMEDIATE RELEASE June 24, 2008
Linda Formella (202) 565-3200
WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) has established a new program to enable approved lenders to increase use of Ex-Im Bank's medium-term guarantees supporting commercial loans for foreign buyers of U.S. capital goods such as machinery and equipment. The program is designed to reduce transaction turnaround time and provide additional support for U.S. small-business exports.
Under the Medium-Term Delegated Authority (MTDA) Program, approved lenders will have delegated authority to underwrite and authorize Ex-Im Bank-guaranteed medium-term transactions without prior Ex-Im Bank review and approval. In each transaction, the lender will be required to share the credit risk by retaining 10 percent of the commercial risk but will also retain 10 percent of the Ex-Im Bank exposure fee. Transactions involving small-business exporters or small-business suppliers will be eligible for increased Ex-Im Bank risk coverage, and the lender's commercial-risk retention will be reduced to 8 percent.
This new delegated authority program will help Ex-Im Bank expand medium-term financing for U.S. exports and leverage our staff resources by working through approved lenders, said Ex-Im Bank Chairman and President James H. Lambright. These lenders will have the thorough knowledge of our policies and credit standards to expedite approvals of Ex-Im Bank-guaranteed loans and help U.S. exporters offer timely financing to their foreign customers.
Ex-Im Bank will determine the level of delegated authority for each approved lender. Lenders may be approved for up to a maximum of $10 million per individual delegated-authority transaction and up to a maximum of $100 million in aggregated delegated-authority transactions.
The MTDA Program is intended to accommodate standard medium-term credits. Loans approved under the program may have repayment terms of two to five years. Transactions requiring a higher degree of specialized judgment, such as those involving complex financing, environmental or economic-impact analysis, may be excluded. Excluded transactions will be submitted for consideration under Ex-Im Bank's standard medium-term guarantee program.
In evaluating lenders for eligibility and determining appropriate levels of delegated authority, Ex-Im Bank will consider several performance criteria that include medium-term lending experience and capacities in underwriting, transaction due diligence and Ex-Im Bank policy compliance. Interested lenders may contact Tom Fitzpatrick, Trade Finance and Insurance senior relationship manager, at (202) 565-3642, or Charles Goohs, senior Strategic Initiatives officer, at (202) 565-3790. Detailed information on the MTDA program is available on the Internet at //www.exim.gov
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 74th year, helps create and maintain U.S. jobs by financing 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 2007, Ex-Im Bank authorized $12.6 billion in financing to support an estimated $16 billion of U.S. exports worldwide. For more information, visit www.exim.gov.