Texas Small Business Benefits
FOR IMMEDIATE RELEASE November 12, 1996
Angela M. Phifer (202) 565-3200
Insurance provided by the Export-Import Bank of the United States (Ex-Im Bank) is enabling a small Dallas, TX, company to provide a $1.2 million drinking water treatment system for the city of Kedainia in Lithuania. The insurance is Ex-Im Bank's first medium-term policy in Lithuania.
J. Bailey Company of Dallas, TX is the exporter. A division of the company, FM International (FMI), provides drinking water, wastewater treatment plants, and engineering services to small and mid-size municipalities overseas. Until this sale, the residents of Kedainia were drinking well water without a disinfectant system. The new facility which is being built from the ground up will provide clean and safe drinking water to Kedainia's citizens.
Thanks to the cooperation and support of U.S. agencies, such as Ex-Im Bank, FMI has been able to compete successfully with the Scandinavian and European companies in their traditional markets, providing U.S. products and services that are competitive on price, technology and financing, said Udo Scharfenberg, Vice President, International Marketing. Ex-Im Bank's support of this project shows a serious effort to assist small business and also a commitment to environmental projects.
Ex-Im Bank will support the deal over a seven-year repayment term with a guarantee from the Ministry of Finance. The bank providing financing for the sale is Bank One in Dallas, TX. Penn International Insurance of Houston and San Antonio, TX is the broker who coordinated the transaction between J. Bailey Company and Ex-Im Bank.
Ex-Im Bank's medium-term export insurance program enables U.S. exporters to offer credit directly to their customers. It provides 100 percent comprehensive coverage (political and commercial risks) of the financed portion of the contract for sales on terms up to seven years. Policies cover both principal and interest. The program benefits exporters and buyers alike: Exporters receive payment at the time of the sale and buyers have a longer term to make payments to the financial institution that holds the debt.
Ex-Im Bank is an independent U.S. government agency that helps finance and promote the sale of U.S. goods and services around the world.