FOR IMMEDIATE RELEASE October 18, 2009
Stephanie M. O'Keefe, Senior Vice President, Communications, Phil Cogan, Vice President, Public Affairs, (202) 565-3200
WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) announced today that it is open to provide financing for purchases of U.S. exports by private-sector buyers in Cambodia on repayment terms of up to seven years.
The announcement follows the determination by President Barack Obama in June 2009 that Cambodia and Laos are no longer considered Marxist-Leninist countries as defined under section 2(b)(2B)(i) of the Export-Import Bank Act of 1945, as amended (Ex-Im Bank charter). Prior to the presidential determination, Ex-Im Bank had been prohibited from providing financing in Cambodia because of this designation.
President Obama has opened the door wider for U.S. exporters in Cambodia, and Ex-Im Bank stands ready to assist them. We are pleased to announce that the Bank will consider financing for short-term and medium-term U.S. sales to private-sector buyers in this growing Asian market, said Ex-Im Bank Chairman and President Fred P. Hochberg.
U.S. government agencies, including Ex-Im Bank, have participated in an interagency process to review the country risks of Cambodia and Laos and have assigned a country-risk rating for the private-sector in Cambodia. Laos is still under review, and Ex-Im Bank remains closed in Laos except for certain structured-finance transactions (described below) until the process is completed.
Ex-Im Bank is opening in Cambodia in the private sector only for financing of short-term (repayment up to one year) and medium-term (repayment from one to seven years) export sales. Ex-Im Bank's support in this market typically will be limited to transactions with a commercial bank functioning as an obligor or guarantor. However, Ex-Im Bank will consider transactions without a bank undertaking on a case-by-case basis.
The Bank also can consider financing arrangements for U.S. exports to Cambodian private-sector buyers on longer repayment terms under certain conditions. Examples of potentially acceptable transactions include structured-finance transactions that earn revenues off-shore and are held in a bank or trust account acceptable to Ex-Im Bank and asset-backed lease and financing structures for equipment exports such as U.S.-manufactured commercial aircraft. For fiscal year 2009, which ended September 30, Ex-Im Bank's authorizations totaled more than $21 billion in support of U.S. exports worldwide.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 75th year, helps to create and maintain U.S. jobs by financing the sales of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans. For more information, visit www.exim.gov.