Trade finance news

US Ex-Im improves access to medium-term guarantees

Last Updated June 26, 2008

The Export-Import Bank of the United States (US Ex-Im) has established a new programme to enable approved lenders to increase their use of the bank’s medium-term guarantees supporting commercial loans for foreign buyers of US capital goods such as machinery and equipment.

The programme aims to reduce transaction turnaround time and provide additional support for US small business exports.
Under the terms of the medium-term delegated authority programme, approved lenders will have delegated authority to underwrite and authorise US Ex-Im Bank-guaranteed medium-term transactions without having to first seek US Ex-Im bank approval.

In each transaction, the lender will have to share the credit risk by retaining 10% of the commercial risk, but will also retain 10% of the US Ex-Im Bank exposure fee.

Transactions for small business exports or suppliers are also eligible for the increased US Ex-Im bank risk coverage, and the lender’s commercial risk retention will be reduced to 8%.

"This new delegated authority programme will help US Ex-Im Bank expand medium-term financing for US exports and leverage our staff resources by working through approved lenders," comments US Ex-Im bank chairman and president, James Lambright.

"These lenders will have the thorough knowledge of our policies and credit standards to expedite approvals of Ex-Im Bank-guaranteed loans and help US exporters offer timely financing to their foreign customers."

US Ex-Im determines the level of delegated authority for each approved lender. Lenders can be approved for up to US$10mn per individual delegated-authority transaction, and up to US$100mn in aggregated delegated authority transactions.

Loans approved under the programme may have repayment terms of two to five years, and some transactions requiring higher levels of specialised knowledge or complex financing or environmental analysis might be excluded from the programme.



Share This

Share |

Reader Comments

Add your comment

 
Email Icon
Follow Us on Twitter
Follow GT Review on
Twitter for the latest updates

twitter.com/gtreview

The endless arguments about why Africa is not trading within Africa are wearing thin. It is time for a coherent action plan to be drawn up, says GTR editor, Rebecca Spong.

 

GTR’s annual search for the best trade institutions in Asia has begun. Voting closes May 17.

Click here to book your entry to the GTR Directory 2012/13

GTR Directory 2012/13

Latest Conference Highlights


Kenya
Nairobi - May 22, 2012 
Lebanon
Beirut - June 6, 2012 
United States
New York - June 12, 2012 
The Netherlands
Amsterdam - June 18-19, 2012 
Ghana
Accra - June 26-27, 2012 
Singapore
Singapore - September 3-5, 2012 
United States
San Francisco - September 18, 2012 
Egypt
Cairo - October 10, 2012 
Indonesia
Jakarta - October 24, 2012 
Qatar
Doha - w/c 4 November, 2012 

emeafinance, the complete information source for the finance industry in the EMEA region.

EMEA