FOR IMMEDIATE RELEASE December 13, 2006
Phil Cogan (Export-Import Bank of the United States) (202) 565-3200
|In Beijing, the Export-Import Banks of the United States and China announced an agreement that will increase U.S.-financed exports to China. Pictured l. to r., U.S. Embassy Beijing Minister-Counselor for Commercial Affairs Barry Friedman; China Ex-Im Bank Chairman Li Ruogu; and Ex-Im Bank of the United States Chairman James H. Lambright.|
BEIJING --- Export-Import Bank of the United States Chairman and President James H. Lambright today announced an agreement with his Chinese counterpart that will lead to increased U.S. exports to China. Chairman Lambright was in China participating in the U.S.-China Dialogue led by U.S. Treasury Secretary Henry Paulson.
The completion of the negotiations between the Export-Import Bank of the United States and the Export-Import Bank of China will lead to increased sales of U.S. exports financed by loans for $20 million or less. These loans will be guaranteed by the Ministry of Finance of China and supported by an Export-Import Bank of the United States medium-term export credit guarantee. The negotiations occurred pursuant to the Framework Agreement dated as of January 24, 2005 between the Ministry of Finance of the People's Republic of China and the Export-Import Bank of United States. Both borrowers and lenders will conform to this standard Medium-Term Credit Agreement for each specific transaction.
China is the fourth largest economy in the world. By making it easier to finance U.S. exports to this huge market we are supporting high-quality jobs in the United States while improving the bilateral trade balance, said Chairman Lambright.
The cooperation in sovereign guarantee financing will help boost exports of advanced technology and equipment from the U.S. to China, strengthen economic and trade ties between the two countries, and will definitely breathe new life into the two economies, said Chairman and President Li Ruogu of the Export-Import Bank of China.
The pre-negotiated form of standard Medium-Term Credit Agreement will benefit businesses in both countries. U.S. exporters and Chinese buyers can expect a substantial reduction in the time it takes to document the financing for their export sale.
The chairmen of both Banks encouraged those looking to take advantage of export credit transactions under the new Medium-Term Credit Agreement to submit applications. Interested lenders are also encouraged to participate; information is available on the Internet at www.exim.gov, or by calling (800) 565-3946 (EXIM) and selecting option #2, or (202) 565-3946.
Ex-Im Bank of the United States is in its 72nd 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 2005, Ex-Im Bank authorized nearly $14 billion in transactions supporting almost $17.9 billion of U.S. exports. More than $2.6 billion of these authorizations, representing 2,617 transactions, directly supported U.S. small businesses as primary exporters.