FOR IMMEDIATE RELEASE October 4, 2004
Andrew Yarrow (202) 565-3200
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WASHINGTON, DC- The Export-Import Bank of the United States (Ex-Im Bank), the Iraqi Ministry of Finance, and the Trade Bank of Iraq signed a framework agreement today that enables Ex-Im Bank to continue to support U.S. exports for Iraqi reconstruction.
The agreement replaces an agreement concluded last December between Ex-Im Bank, the Trade Bank, and the Coalition Provisional Authority (CPA), and reflects the assumption last June of sovereignty by the Interim Government of Iraq.
From left: On October 5, 2004, Mr. Hussein Al-Uzri, President of the Trade Bank of Iraq, Mr. Adil Abdul-Mahdi, Iraqi Minister of Finance, and Mr. Philip Merrill, Chairman of Ex-Im Bank, signed an agreement allowing for future exports of U.S. goods and services to Iraq.
Ex-Im Bank is pleased to establish a formal working relationship with the government of Iraq, and we look forward to financing U.S. exports to help Iraq rebuild, Ex-Im Bank Chairman Philip Merrill said. This is an important step for Iraq in re-establishing its trade and financing relationships around the world as they rebuild their economy. Just as the export credit agencies (ECAs) of 15 other nations joined us in signing framework agreements in December, we continue to see this is a multilateral effort and look forward to other ECAs developing similar agreements.
Iraqi Finance Minister Adil Abdel-Mahdi, Trade Bank Chairman and President Hussein Al-Uzri, and Merrill signed the agreement at Ex-Im Bank's Washington, D.C., headquarters.
Under today's agreement, Ex-Im Bank can support U.S. exports to Iraq using two of its short-term insurance products:
- Bank Letter of Credit Insurance Policies: Ex-Im Bank will insure letters of credit issued by the Trade Bank and confirmed by a commercial bank. This product provides comprehensive coverage to the confirming bank against the failure of the Trade Bank to pay the confirming bank under an irrevocable letter of credit.
- Financial Institution Buyer Credit Insurance Policies: Ex-Im Bank will provide comprehensive coverage on short-term credits extended to the Trade Bank by an insured bank. U.S. exporters will receive payment under letters of credit issued by the insured bank. Certain provisions of the policy (reporting and claim filing periods) will be aligned to those of the Bank Letter of Credit policy.
Ex-Im Bank, the official U.S. export credit agency, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2003, the Bank authorized financing to support $14.3 billion of U.S. exports. For more information, visit www.exim.gov.