FOR IMMEDIATE RELEASE May 1, 2000
Linda Formella (202) 565-3200
Hoffman International Inc., a small business distributor of wholesale heavy equipment in Piscataway, N.J., has completed a $650,000 sale of used Mack trucks, flatbed trailers, and new Terex cranes to a private sector buyer in Gabon by using export credit insurance from the Export-Import Bank of the United States (Ex-Im Bank). The buyer, SEMTS, is a contractor in Gabon involved in maritime, petrochemical and road construction projects. A $150,000 Small Business Policy from Ex-Im Bank enabled Hoffman International Inc. to offer longer terms of repayment to cover the last portion of its contract. The broker on this transaction is SBEA Services Inc. of McLean, Va.
Ex-Im Bank is committed to providing financing to assist buyers in sub-Saharan Africa in purchasing U.S. goods and services. Export credit insurance enables U.S. companies to offer more attractive terms to their African customers, said Ex-Im Bank Chairman James A. Harmon.
With Ex-Im Bank's insurance, we can extend terms of credit beyond the typical 30 days, and with the possibility of stretching out payments, we are able to negotiate with our customers and see immediate results, said Mrs. Musya Tumanyan, vice president of Hoffman International Inc., an 80-year old company that currently has 55 employees. Tumanyan anticipates that future use Ex-Im Bank's export credit insurance will expand exports by at least 30 percent.
Ex-Im Bank's short-term export credit insurance supports U.S. exports of raw materials, spare parts, consumer goods and commodities. Medium-term insurance is available to assist in financing U.S. exports of capital equipment and services.
Ex-Im Bank is an independent federal government agency that provides export credit insurance, working capital guarantees, loans and loan guarantees to help finance exports of U.S. goods and services around the world, particularly to developing markets. In fiscal year 1999, Ex-Im Bank supported nearly $17 billion of U.S. exports worldwide and more than $600 million to sub-Saharan Africa.More than 86 percent of Ex-Im Bank's transactions in fiscal year 1999 involved U.S. small businesses.