Export-Import Bank of the United States’ Board of Directors Approves Clarified Policy for 5G Transactions
WASHINGTON – Yesterday, the Board of Directors for the Export-Import Bank of the United States (EXIM) approved clarifications to support EXIM’s 5G domestic export capability.
EXIM can play a key role in implementing the Congressionally mandated Secure 5G Strategy, and this policy clarifies EXIM loans, loan guarantees and insurance to be made available for the purchase of goods and services shipped or invoiced from any country to facilitate U.S. exports for 5G transactions. Yesterday’s move clarifies how the December 2020 Transformational Exports content policy applies to 5G transactions.
5G security leads to an open, reliable, interoperable, and secure information and communications technology infrastructure. Underlining the importance of 5G security and the role EXIM plays in supporting export solutions that support its successful global rollout, the Board meeting featured presentations from several high-level government officials, including Deputy National Security Advisor Anne Neuberger, U.S. Department of Commerce Deputy Secretary Don Graves, U.S. Department of State Under Secretary for Economic Growth, Energy and the Environment, Jose Fernandez, and the Principal Director in the Office of the Deputy Assistant Secretary of Defense for China, Taiwan, and Mongolia, Xanthi Carras. The meeting also featured a presentation from the Chair of EXIM’s Council on China Competition, Admiral Gary Roughead, U.S. Navy (ret.).
“EXIM is wholly dedicated to supporting Biden-Harris programs and policies, especially as they relate to sustaining the country’s economic and national security,” said EXIM President and Chair of the Board of Directors, Reta Jo Lewis. “The policy approved yesterday further highlights our commitment to building a more resilient domestic supply chain while continuing to enhance our competitiveness with China.”
Following the approval of the 5G clarifications, the Board approved an update to EXIM’s local cost policy that adopts the Arrangement on Officially Supported Export Credits (OECD Arrangement) maximum limits for local cost support, which permits local cost support for up to 40 percent for high-income markets and 50 percent for all other markets. This vote brings EXIM’s current local cost support policy into alignment with the OECD Arrangement’s guidelines which went into effect in April 2021.
The Board also approved a final commitment for $41 million to the National Bank of Uzbekistan which supports the acquisition of aircraft to be used by high-level Uzbekistani government officials. This transaction will support approximately 300 American jobs.
The Board also approved an additional transaction for Congressional notification. The transaction, which fell under EXIM’s Supply Chain Finance Guarantee Program, was a renewal of a loan guarantee in the amount of $200,000,000 to Huntington National Bank in Columbus, OH and LSQ Funding Group in Orlando, FL for a purchase facility to facilitate the purchase of accounts receivable from United States Steel Corporation located in Pittsburgh, PA. The facility supports the export sales of steel and iron ore primarily to Mexico, Saudi Arabia and Canada, with an estimated 700 American jobs sustained.
The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of overall U.S. debt. Learn more at www.exim.gov.