April Foley Presents Three Financing Options in Speech in Amman, Jordan
FOR IMMEDIATE RELEASE January 12, 2004
Andrew Yarrow (202) 565-3200
AMMAN, JORDAN- The Export-Import Bank of the United States (Ex-Im Bank) can provide three different types of financing to support Iraqi reconstruction efforts, Bank First Vice President and Vice Chair April Foley told a conference on Iraqi reconstruction today in Amman, Jordan.
Ex-Im Bank can provide short-term credit insurance under its new, $500 million facility for the Trade Bank of Iraq; guarantees or insurance if there is a creditworthy source of repayment in a third country where the Bank is open for business; and working capital guarantees for U.S. subcontractors to U.S. government-funded reconstruction contracts.
The Bush Administration is deeply committed to helping Iraq's people achieve democracy and a better life, Foley said in a speech at the Outreach 2004 workshop in Amman this morning. At Ex-Im Bank, we have put in place several initiatives to finance Iraqi reconstruction, and we are actively reaching out to anyone who can use our financing to help the Iraqi people build a new nation and a bright future for themselves. We believe that our programs have dual benefits: They can give Iraq access to high-quality U.S. goods and services and, at the same time, permit U.S. exporters to access new Iraqi customers.
Foley is in Amman as part of a three-nation trip to Jordan, Iraq, and Kuwait to advance Ex-Im Bank's efforts to support Iraqi reconstruction. During the trip, she is to meet with Iraqi, Middle Eastern, and Western business, financial, and government leaders.
Ex-Im Bank's Trade Bank facility, which became operational last month, utilizes two forms of short-term insurance:
- Bank Letter of Credit Insurance Policies:Ex-Im Bank will insure letters of credit issued by the Trade Bank and confirmed by a commercial bank.This provides comprehensive coverage to the confirming bank against the failure of the Trade Bank to pay the confirming bank under an irrevocable letter of credit.
- Financial Institution Buyer Credit Insurance Policies: Ex-Im Bank will provide comprehensive coverage on short-term credits extended to the Trade Bank by an insured bank. U.S. exporters will receive payment under letters of credit issued by the insured bank. Certain provisions of the policy (reporting and claim filing periods) will be aligned to those of the Bank Letter of Credit policy.
Under Ex-Im Bank's Working Capital Guarantee Program, it will consider applications to support pre-export activities of subcontractors- particularly small businesses -- operating under U.S. government-funded reconstruction projects.
Ex-Im Bank also will consider applications for financing of U.S. exports to Iraq under its loan guarantee, working capital, and credit insurance programs if there is a creditworthy source of repayment in a third country.
Ex-Im Bank this year marks its 70th year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2003, Ex-Im Bank, an independent federal agency, authorized financing to support $14.3 billion of U.S. exports worldwide. For more information on Ex-Im Bank and its initiatives to support Iraqi reconstruction, visit www.exim.gov.