FOR IMMEDIATE RELEASE July 10, 2000
Ken Murphy (202) 656-3200
A new internal delegated authority program approved by the Export-Import Bank of the United States (Ex-Im Bank) Board of Directors will cut processing time by up to one week for qualifying medium-term export credit applications. Effective immediately under the Medium-Term Individual Delegated Authority Program, qualifying transactions of up to $5 million can be approved by Ex-Im Bank's Insurance or Trade Finance divisions. Ex-Im Bank currently processes these transactions in less than 20 business days on average. The new authority will result in even quicker decisions. Transactions involving special issues will continue to be referred to Ex-Im Bank's Credit Committee for consideration.
By strengthening credit standards and financial reporting requirements last fall, Ex-Im Bank positioned itself to offer customers the benefits of this new medium-term individual delegated authority program, Ex-Im Bank Chairman James A. Harmon said. Providing customers with even quicker turnaround on medium-term export credit applications is an important step in helping U.S. exporters compete for sales in the world market and demonstrates our commitment to constantly improving the service Ex-Im Bank provides.
The new program could affect more than $1 billion in medium-term transactions processed by Ex-Im Bank annually. Currently the bulk of medium-term transactions are handled under Credit Committee authority. Most applications for medium-term financing are for $1 million or less and represent private sector, non-financial institution risk. These smaller export sales, however, often face tight deadlines, which make the ability to obtain approval from Ex-Im Bank quickly critical to offering a successful bid or concluding a contract.
Transactions that could qualify for the individual delegated authority are:
- - $1 million or less where the primary source of repayment is classified as private sector, non-financial institution, or public non-sovereign risk.
- $5 million or less where the primary source of repayment is a financial institution.
- $5 million or less where the primary source of repayment has acceptable market credit indications.
Ex-Im Bank is the official export credit agency of the United States. It is an independent federal agency that supports the sale of U.S. goods and services to foreign markets. In fiscal year 1999, Ex-Im Bank supported nearly $17 billion in U.S. exports worldwide.