The Export-Import Bank of the United States (US Ex-Im) authorised a record US$9.9bn in loans, guarantees and insurance during the first quarter of fiscal year 2010. This is more than three times the US$3.28bn authorised in the same period (October, 1 – December, 31) of fiscal 2009.
The financing supported approximately US$12.4bn in US exports, which in turn supports an estimated 91,760 US jobs.
Long-term authorisations for the fiscal 2010 first quarter totalled US$5.97bn, up from US$2.27bn for the same period of fiscal 2009. Short-term insurance for the quarter climbed to US$3.6bn from US$776.3mn a year earlier, a 368% increase. Direct small business authorisations totalled US$1bn for the period, a 93% jump from the fiscal 2009 first quarter.
In December 2009 alone, US Ex-Im authorised US$5.66bn in financing, the largest monthly authorisation level in its 75-year history.
“US Ex-Im has been called upon more urgently than ever to fill the void during the current global financial upheaval, to provide capital to ensure American businesses can sell their top-quality goods and services beyond our borders, and in the process create and maintain US jobs,” says the bank’s chairman and president Fred Hochberg.
“We are adding resources to promote export financing in those countries where we see even greater opportunities for US exporters,” Hochberg adds, “countries with growing economies and infrastructure projects, such as Colombia, Brazil, India, Nigeria, South Africa, Turkey, Indonesia, and Vietnam.” Hochberg says the bank will continue to support export sales to long-standing partners Mexico and Canada as well.
During December, US Ex-Im also approved a US$220mn limit for a US bank to cover Korean bank letters of credit, increasing the total amount of US Ex-Im-backed short-term bank-held letters of credit to more than US$3bn.
The 2010 first quarter figures are the latest in a series of records set by US Ex-Im while addressing tightened liquidity in the current financial crisis. In fiscal 2009, total US Ex-Im authorisations came to US$21bn, while authorisations for small business exporters totalled US$4.36bn, both historic highs.
Last Updated January 28, 2010
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