EX-IM BANK EXTENDS INSURANCE FOR INTERNATIONAL MOSCOW BANK FINANCING OF RUSSIAN PURCHASES OF U.S. EXPORTS
The Export-Import Bank of the United States (Ex-Im Bank) has renewed the special delegated authority granted to its Insurance Division to insure up to $20 million in short-term obligations of the International Moscow Bank for financing extended in support of Russian purchases of U.S. exports. Renewal of the special delegated authority through July 31, 2002, will enable Ex-Im Bank's Insurance Division to help U.S. exporters to mitigate risks and access export financing for short-term sales to Russia.
Ex-Im Bank has also extended the expiry date of a $2.5 million insurance policy that had been issued to Coretest Systems Inc. in San Jose, Calif. The short-term, single-buyer insurance policy covers the sale of analysis and laboratory test equipment to JSC Surgutneftagas, one of Russia's largest oil producers. The extension of the policy to March 1, 2002, will cover products awaiting shipment. International Moscow Bank issued letters of credit and is the primary source of repayment.
Russia offers tremendous potential for U.S. exporters to sell capital equipment, technology, services and many other kinds of products, and Ex-Im Bank can facilitate these sales. Through our export credit insurance, we mitigate the risks and open up this great market for U.S. companies, especially for small businesses, Ex-Im Bank Vice Chairman and First Vice President Eduardo Aguirre, Jr. said.
Ex-Im Bank is providing a greatly needed service to assist in leveling the competitive playing field for small and medium-sized U.S. manufacturers and exporters, said David Lynch, vice president of trade finance for Coretest Systems Inc.
International Moscow Bank is one of 15 Russian banks that was approved by Ex-Im Bank for short-term and medium-term financing on a case-by-case basis, following a study of the Russian banking sector that was presented to Ex-Im Bank's board in
December 2000. In addition to special short-term delegated authority for up to $20 million in obligations of International Moscow Bank, Ex-Im Bank board has also granted its Insurance Division special delegated authority to insure up to $2.3 million for Investment Banking Corporation.
Ex-Im Bank is an independent federal government agency that helps finance the sale of U.S. exports, primarily to emerging markets, by providing loans, guarantees and export credit insurance. In fiscal year 2001, Ex-Im Bank authorized financing to support approximately $184 million of U.S. exports to Russia and $12.5 billion of U.S. exports worldwide.