FOR IMMEDIATE RELEASE October 22, 2012
Steve Horning (202) 565-3200
WASHINGTON, D.C., Oct. 22, 2012 - The Export-Import Bank of the United States (Ex-Im Bank) announced today an agreement with trade credit insurer Coface North America Insurance Company to provide reinsurance. The Bank introduced its reinsurance product two years ago in order to help U.S. small business exporters obtain short-term export credit. Since then, participating private-sector insurers of export credit are eligible to apply for Ex-Im's reinsurance.
The Bank's reinsurance product is designed to increase overseas sales by American small- and mid-sized businesses. Participating insurers use reinsurance to originate and underwrite transactions that otherwise might be proscribed because of credit-limit caps on foreign countries or on buyers regarded as higher risk. Under terms of the agreement, Ex-Im Bank will provide reinsurance for export-credit insurance policies written by Coface North America Insurance Company to protect the accounts receivables and cash flow of American companies exporting goods and services overseas.
With Ex-Im Bank's trade finance insurance from Coface, American exporters now can access new markets for which insurance previously was unavailable or prohibitive in cost, said Ex-Im Bank Chairman and President Fred P. Hochberg. Our partnership with Coface will result in more U.S. export sales, and more export-related jobs for Americans.
Trade credit insurance from Coface, and reinsurance from Ex-Im Bank will enable American companies to increase the amount of credit they offer their overseas customers, who therefore can increase their purchases of American goods and services. Coface North America Insurance Company and the global Coface Group are active in trade receivables management, business intelligence and insurance services, with operations in 66 countries and 35,000 insurance clients. Ex-Im Bank is a self-sustaining federal agency that provides export financing to strengthen U.S. exporter competitiveness and to help create and maintain U.S. jobs.
International trade has been a bright spot for the U.S. economy and American jobs in the last few years. Our partnership with Ex-Im Bank is designed to support U.S. exports and competitiveness. Trade credit insurance protects one of the most valuable assets that a company has - its accounts receivable. The reinsurance program will enable more American companies to take advantage of the protection that credit insurance provides, said Michael Ferrante, CEO of Coface North America Insurance Company.
Trade finance insurance is a useful tool for exporting companies. In addition to protecting accounts receivable and ensuring cash flow, it enables companies to offer customers more favorable terms and accept larger orders. Without trade credit insurance, companies are vulnerable to economic, social and political threats that inhibit their ability to succeed in international markets. For more information about trade credit insurance, contact Walter Kosciow at (202) 565-3649, or visit www.exim.gov.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 - an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales - also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.