FOR IMMEDIATE RELEASE December 13, 1998
Marianna Ohe (202) 565-3206
The Export-Import Bank of the United States (Ex-Im Bank) is reopening for business in India and Pakistan following President Clinton's waiver premitting resumption of financing for these markets for one year. Ex-Im Bank's Board of Directors approved the action.
Ex-Im Bank will be open for short-, medium- and long-term export financing in India's public and private sectors. Ex-Im Bank is closed for routine transactions in Pakistan. However, Ex-Im Bank will consider exceptionally structured transactions in Pakistan.
Because Ex-Im Bank availability in these markets is pursuant to a Presidential waiver of sanctions, Ex-Im Bank`s approval must be issued prior to the expiration of the waiver on October 21, 1999.
Ex-Im Bank ceased issuing new approvals of financing for U.S. exports to India on May 13, 1998 in response to a presidential determination that sanctions be imposed by all relevant government agencies following India`s detonation of nuclear explosive devices on May 11, 1998. The Board took similar action regarding U.S. exports to Pakistan June 1 after sanctions were imposed due to Pakistan`s detonation of nuclear explosive devices in late May.
Under the sanctions, required by the Arms Export Control Act and section 2(b)(4) of the Export-Import Bank Act of 1945, Ex-Im Bank could not give approval to loans, loan guarantees, or credit insurance in support of U.S. exports to India and Pakistan. At the time sanctions were imposed, Ex-Im Bank's exposure in India totaled $1.5 billion and its exposure in Pakistan totaled $429 million.
Ex-Im Bank is an independent U.S. government agency that assists in financing the export of U.S. goods and services to industrializing and developing markets all over the world by providing loans, loan guarantees, and export credit insurance. In fiscal year 1998, Ex-Im Bank supported $12.8 billion of U.S. exports.