FROM: U.S. EXPORT-IMPORT BANK
Message from the Chairman,
Fred Hochberg
Let me begin by telling you how honored I am to have been reappointed by President Obama and confirmed by the Senate for another term as Chairman of the Export-Import Bank. After a strong, bipartisan vote, I look forward to working with the excellent team here at Ex-Im on behalf of American exporters, supporting jobs here at home through sales abroad. And I look forward to working with all of you.
As we continue our economic recovery, exports continue to play a key role. Over the past four years, Ex-Im Bank’s financing has supported nearly one million American jobs and helped thousands of small businesses expand their reach into international markets. The Bank also delivered more than $1 billion to the U.S. Treasury during this period at no cost to American taxpayers.
Moving forward, all of us at Ex-Im will continue to work with members of Congress, our Board and customers to ensure that America’s workers, small business owners, and exporters have access to the financing they need. We’ll work to ensure America’s exporters are able to compete on a level playing field and sell their products and services around the world.
Aside from the confirmation proceedings, it’s been an eventful three months here at Ex-Im. I would like to update you on our latest results.
Following fiscal year 2012’s record results, Ex-Im is on track for another productive year—thanks to America’s dynamic exporting community. Authorizations in our April-June quarter were $6 billion, for a total of $21.7billion for the year to date. More important, our financing supported 165,000 export-related American jobs so far this year in communities across the country. Our total exposure is nearly $110 billion.
The Bank’s year-to-date authorizations have declined relative to the same period last year from $23.8 billion to $21.7 billion, a promising trend that illustrates the renewed lending activity of commercial banks in the wake of the financial crisis. Our transportation authorizations, for instance, will be down overall as commercial banks re-enter commercial-aircraft financing, though our support for general aviation and helicopters has increased as we have diversified our portfolio. Mining, which has traditionally played a large role, will decrease as well due in large part to slower global demand for commodities. However, our authorizations for satellite and manufacturing deals are up this year. We’ve done more transactions this year than in FY 2012, but our ticket sizes are smaller. While commercial banks are stepping back into the breach, we’re still needed to do the tougher, more complicated deals.
And if you allow me to brag a little, we won three prestigious awards:
Trade Finance magazine named Ex-Im “Best Global Export Credit Agency” for the second time and, for the fourth consecutive time, “Best ECA in the Americas.” Besides that, Trade Finance recognized Ex-Im for our participation in six “Deals of the Year.”
Two weeks later, London’s Trade and Forfaiting Review named us “World’s Best Export Credit Agency” for our support for exports and innovative deals.
AirFinance Journal recognized Ex-Im for four 2012 aviation “Deal of the Year” awards – each of them financed by our innovative Bank-guaranteed bonds, one of our most successful innovations in recent years.
We’ve achieved these results without any significant increase in staff, instead creating new financial products to meet the unique needs of our exporters competing in today’s global economy. For example, our innovative Global Credit Express program for short-term working capital loans to small exporters continues to grow rapidly. We’re having great success with our capital markets initiative that issues large, long-term guaranteed bonds for export sales like commercial aircraft.
I was also pleased that President Obama recently nominated Ex-Im Bank Vice Chair Wanda Felton for a second term here. Among her accomplishments, she’s been a driving force behind our successful expansion of financing exports to Sub-Saharan Africa. We look forward to her timely confirmation by the Senate.
Sadly, Director Larry Walther left the Bank earlier this month after two years of outstanding service as a member of our Board of Directors. Larry is a seasoned pro in trade finance and promotion here and in his beloved Arkansas, where he returns for some well-earned relaxation.
None of these successes would have been possible without the creativity, hard work and dedication of Ex-Im staff – in support of our exporters who continue to sell world-class goods and services to buyers in over 150 countries. You are a great team, and I’m proud to work with you.
Sincerely,
Fred P. Hochberg
