Wells Fargo and BBVA have been approved to join the Export-Import Bank of the United States’ (US Ex-Im) programme designed to increase transaction turnaround times.

The medium-term delegated authority programme effectively places the two banks onto a pre-approved list, meaning that  BBVA and Wells Fargo can increase use and speed up US Ex-Im medium-term guarantees.

Under the programme, the two banks have the authority to underwrite and authorise guarantees from US Ex-Im without the US bank’s approval.

The two banks have the authority to underwrite and authorise guarantees from US Ex-Im without the US bank’s approval.

In each transaction, the lender is required to retain 10% of the commercial risk.

Complex transactions, including highly structured products or those involving potential environmental problems, might be excluded from the programme and the lenders will have to present these deals to US Ex-Im on a case-by-case basis.

The stipulation of the commercial loans means that they must be both to finance foreign buyers of US items and medium term, which means that transactions involving capital goods such as machinery and equipment will benefit most from the alliance.

“Undoubtedly, this delegation marks another milestone in BBVA’s relationship with US Ex-Im.”

“Undoubtedly, this delegation marks another milestone in BBVA’s relationship with US Ex-Im,” says Nick Shaw, head of structured trade finance at the Spanish bank.

“We are confident that BBVA […] will make good use of this vote of confidence by US Ex-Im and will help achieve the exports of our American clients.”