FOR IMMEDIATE RELEASE October 17, 2000
Press — Linda Formella (202) 565-3200
Washington, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) today signed an export credit insurance policy with Residential Funding Corporation (GMAC-RFC) a wholly-owned subsidiary of General Motors Acceptance Corporation (GMAC), and its affiliate, GMAC Trade Finance, Inc. The insurance policy will support purchases of U.S. goods and services by qualified Mexican buyers under revolving three-year import lines of credit extended by GMAC Trade Finance. The maximum repayment term of these purchases is 180 days.
In contrast to traditional multi-buyer insurance policies that are issued to exporters to help facilitate their foreign sales, the GMAC-RFC policy will focus on Mexican buyers, encouraging them to increase their imports from the United States. The policy will enable U.S. exporters to be paid in cash for their sales without the need to obtain a bank letter of credit or an exporter insurance policy, or to assume the buyer's credit risk. GMAC Trade Finance will target small and medium-sized Mexican buyers that, although creditworthy, may not have adequate import financing. The policy also encourages purchases from small U.S. businesses through its premium rate structure.
This new policy is designed to encourage more small and medium-sized Mexican companies to purchase goods from their counterparts in the United States. With the resources of Ex-Im Bank and GMAC, the program will make it easier than ever for Mexican buyers to obtain credit. We are hopeful that the policy will generate U.S. small business exports to Mexico on a large scale, said Ex-Im Bank Vice Chair Jackie Clegg, who signed the agreement at Ex-Im Bank headquarters in Washington, D.C.
A Mexican affiliate of GMAC-RFC, Representaciones Auritec, S.A. de C.V., will handle marketing, documentation and servicing of the lines of credit for Mexican buyers. GMAC-RFC will fund the activity generated under the policy through internal resources and the capital markets. GMAC-RFC also will assume a portion of the credit risks under the policy.
GMAC-RFC is America's largest non-agency issuer of mortgage-backed securities. The company leverages its strengths in securitization, lending and investment to offer a broad portfolio of innovative capital solutions, both domestically and internationally.
Ex-Im Bank is an independent federal agency that provides export credit insurance, loans and loan guarantees to finance exports of U.S. goods and services, mainly to developing markets. In fiscal year 2000, Ex-Im Bank helped to support more than $15.5 billion of U.S. exports worldwide.