FROM: EXPORT-IMPORT BANK
Ex-Im Bank Opens for Short-Term and Medium-Term Financing in Burma
Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) announced today that it will open for business in Burma to help finance short-term and medium-term U.S. export sales.
“Today the Export-Import Bank is sending a strong signal that we are committed to strengthening economic ties with Burma as the nation continues its transition,” said Ex-Im Bank Board Chairman and President Fred Hochberg. “After a diligent review, the Bank's Board reached this decision--which will improve trade flows between our two countries and help reintegrate Burma into the global economy. Furthermore, this decision will open an important new market for American exports and support American jobs.”
Ex-Im Bank can now provide export-credit insurance, loan guarantees and direct loans for creditworthy export sales to Burma starting February 6, 2014. Short-term insurance is available for sovereign transactions with repayment terms of 180 days or less, and up to 360 days for capital goods. Medium-term insurance, loan guarantees and loans are available for sovereign transactions with terms typically up to five years.
The Bank's working capital guarantees, which help U.S. exporters or their suppliers to obtain funds to produce or buy goods or services for export, will be available to support exports to Burma as well.
The Bank is also able to provide long-term support in Burma, provided there are financing arrangements that eliminate or externalize country risks, such as asset-backed financings and structures that earn revenues offshore in a third country.
