EX-IM BANK RENEWS SHORT-TERM LETTER OF CREDIT PROGRAM TO SUPPORT U.S. EXPORTS TO PAKISTAN
The Export-Import Bank of the United States (Ex-Im Bank) today renewed a short-term, letter of credit program under which Ex-Im Bank will insure irrevocable letters of credit that are issued by three major Pakistani banks - National Bank of Pakistan, Muslim Commercial Bank and United Bank - and confirmed by U.S. banks. The program will support up to a total of $125 million of U.S. exports to Pakistan of consumer goods, spare parts, raw materials and bulk agricultural products on payment terms of up to 360 days.
This program can facilitate U.S. exports to Pakistan that otherwise could not go forward, said Ex-Im Bank Chairman Philip Merrill. We want to demonstrate our confidence in the strength of Pakistan's major banks and encourage U.S. exporters to seek out sales opportunities in this market.
Although Ex-Im Bank is closed for routine transactions in Pakistan, the short-term, letter of credit program will enable U.S. exporters to sell a wide range of goods on short terms of sale. The program renewal is effective as of March 31, 2003. Ex-Im Bank's Country Limitation Schedule (CLS) will be amended to reflect this change in mid-April. The CLS is available online at www.exim.gov.
Ex-Im Bank is the official export credit agency of the United States that helps to finance the sales of U.S. exports, primarily to developing markets, by providing export credit insurance, guarantees and loans. In fiscal year 2002, Ex-Im Bank authorized financing to support nearly $13 billion of U.S. exports.