FOR IMMEDIATE RELEASE October 17, 2010
Linda Formella, (202) 565-3200
WASHINGTON, D.C. - Private-sector insurers that provide short-term export-credit insurance covering foreign receivables to U.S. exporters are now eligible for reinsurance from the Export-Import Bank of the United States (Ex-Im Bank). Atradius Trade Credit Insurance Inc. is the first insurer to sign a reinsurance contract with Ex-Im Bank.
The new product primarily will benefit U.S. small-business exporters that have had a more difficult time obtaining short-term export credit since the 2008-2009 financial crisis. Ex-Im Bank's reinsurance mitigates risks for private insurers and enables them to expand their underwriting capacity for these credits.
Small businesses are particularly dependent upon short-term insurance to export with confidence. Ex-Im Bank's new product will enable insurers to continue providing coverage and help more U.S. small and mid-sized companies export to more countries and create more jobs in America, Ex-Im Bank Chairman and President Fred P. Hochberg said.
Ex-Im Bank's reinsurance will enable participating insurers to originate and underwrite transactions that otherwise would be outside of their portfolios due to their credit-limit caps on foreign countries and/or buyers perceived to be of higher risk. For more information about Ex-Im Bank's reinsurance product, contact Walter Kosciow at (202) 565-3649.
Ex-Im Bank, an independent, self-sustaining federal-government agency, helps create and maintain U.S. jobs by filling gaps in export financing and strengthening U.S. export competitiveness. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal year 2010, Ex-Im Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance, including more than $5 billion in authorizations for small businesses. For more information, see Ex-Im Bank's Web site at www.exim.gov.