FOR IMMEDIATE RELEASE September 20, 2001
Niki Shepperd (202) 565-3200
As part of a joint trade and finance initiative to Indonesia, the Export-Import Bank of the United States (Ex-Im Bank), Overseas Private Investment Corporation (OPIC), and the U.S. Trade and Development Agency (TDA) will provide up to a combined $400 million in loans and guarantees to finance trade initiatives including U.S. exports.
The three U.S. trade agencies will provide financing to promote trade and investment opportunities in Indonesia. Ex-Im Bank will provide financing to support U.S. exports of goods and services for projects in the oil and gas sector. OPIC will provide loans, guarantees and insurance for projects in the oil and gas sector, and TDA funds will be used primarily to identify and develop projects for Ex-Im Bank and OPIC loans and guarantees in the oil and gas sector, but will also be available to support other industry sectors.
This is an important time for Ex-Im Bank, as the United States' official export credit agency, to step forward and provide export financing to Indonesia, said Ex-Im Bank Chairman John E. Robson. I commend Indonesia President Megawati on her economic reforms.
TDA Director Thelma Askey noted, This collaborative effort will help to advance and strengthen our already close business ties with Indonesia. OPIC President and CEO Peter S. Watson stated, OPIC is pleased to join with our sister agencies, Ex-Im and TDA, to support the President's policy of assisting Indonesia's economic development.
Financing from Ex-Im Bank, OPIC and TDA will be subject to the normal terms and conditions established by each agency's programs. Ex-Im Bank is open in Indonesia for short-and medium-term financing in the public sector, and hard currency project finance transactions. Repayment of Ex-Im Bank and OPIC's project finance transactions would be derived from and secured by the hard currency earnings generated by the project. Project preparation support provided by TDA would be on a grant basis.
The U.S. Trade and Development Agency promotes American private sector participation by helping U.S. companies pursue business opportunities in developing and middle income countries. Through the funding of feasibility studies, orientation visits, specialized training grants, business workshops, and various forms of technical assistance, TDA helps American businesses compete for infrastructure projects in emerging markets. In addition, the agency promotes capacity building initiatives and supports U.S. government trade, economic policy and development objectives around the world.
OPIC's political risk insurance and financing help U.S. businesses of all sizes invest in 140 emerging markets and developing nations worldwide. Over the agency's 30-year history, OPIC has supported $138 billion worth of investments that have helped developing countries to generate over $10 billion in host-government revenues and create nearly 668,000 host-country jobs. OPIC projects have also generated $63.6 billion in US exports and create nearly 250,000 American jobs.
Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports primarily to emerging markets throughout the world, by providing loans, guarantees, and insurance. Ex-Im Bank supported $15.5 billion in U.S. exports in fiscal year 2000.