FORMER EX-IM BANK LOAN OFFICER PLEADS GUILTY TO TAKING OVER $78,000 IN BRIBES

FROM:  U.S. JUSTICE DEPARTMENT
Wednesday, April 22, 2015
Former Loan Officer at Export-Import Bank Pleads Guilty to Accepting Over $78,000 in Bribes

A former loan officer at the Export-Import Bank of the United States (Ex-Im Bank) pleaded guilty in federal court today for accepting more than $78,000 in bribes in return for recommending the approval of unqualified loan applications to the bank, among other misconduct.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Inspector General Michael T. McCarthy of the Export-Import Bank of the United States and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.      

Johnny Gutierrez, 50, of Stafford, Virginia, pleaded guilty before U.S. District Judge Gladys Kessler of the District of Columbia to one count of bribery of a public official.  A sentencing hearing is scheduled for July 20, 2015.

“Gutierrez risked both taxpayer dollars and the integrity of the Ex-Im Bank for his personal financial gain,” said Assistant Attorney General Caldwell.  “Those charged with serving the public will be held accountable when they seek personal enrichment at the public’s expense.”

“Gutierrez betrayed the trust and confidence of the hardworking Ex-Im Bank employees and the U.S. taxpayers,” said Acting Inspector General McCarthy.  “The Office of Inspector General will continue to aggressively and diligently investigate all allegations of waste, fraud, and abuse related to Ex-Im Bank programs.”

“In his role as a loan officer, Gutierrez betrayed the trust that was placed in him by fellow citizens and took bribes in exchange for providing favorable action on loan applicants,” said Assistant Director in Charge McCabe.  “The FBI, with our partners, will continue to investigate and expose fraudulent schemes that tarnish the good and ethical work of the U.S. government.”

According to his plea agreement, Gutierrez was a loan officer for the Ex-Im Bank based in Washington, D.C.  The Ex-Im Bank is the federal agency responsible for promoting the export of U.S. goods to foreign countries through the guarantee of domestic loans to foreign buyers.  As an Ex-Im Bank loan officer, Gutierrez was responsible for conducting credit underwriting reviews for companies and lenders submitting financing applications to the Ex-Im Bank.

As part of his guilty plea, Gutierrez admitted that on 19 separate occasions between June 2006 and December 2013, he accepted bribes totaling more than $78,000 in return for recommending the approval of unqualified loan applications and improperly expediting other applications.

Specifically, Gutierrez admitted that he intentionally ignored the fact that one company had previously defaulted in 10 previous transactions guaranteed by the bank, causing the Ex-Im Bank to lose almost $20 million.  Despite these defaults, Gutierrez accepted bribes to continue to recommend the approval of the company’s loan applications.  Additionally, Gutierrez admitted that he accepted bribes from a financing broker to expedite applications submitted by the broker, and that he privately assisted the broker to improve its applications before submission to the bank.  In exchange, Gutierrez was to receive half of the broker’s profit on the transactions financed by the bank.  Further, Gutierrez disclosed to the broker inside information about financing applications submitted to the Ex-Im Bank, so that the broker could solicit the applicants as clients.

The case was investigated by the Inspector General of the Export-Import Bank of the United States and the FBI, with significant assistance provided by the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington Field Office.  The case is being prosecuted by Senior Litigation Counsel Patrick M. Donley and Trial Attorney William H. Bowne of the Criminal Division’s Fraud Section.

SECRETARY KERRY'S REMARKS TOURING GE FACILITY IN LUANDA, ANGOLA

FROM:  THE STATE DEPARTMENT 

Remarks While Touring a GE Facility in Luanda

Remarks

John Kerry

Secretary of State

Luanda, Angola

May 4, 2014

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Well, Jay Ireland, thank you very much for a generous welcome here to General Electric in Luanda in the center of this extraordinary economic activity. I’m very excited to be here. I’m sorry that my wife is not here, because she was born in Mozambique and speaks – her first language is Portuguese. (Applause.) So I hear it around the house all the time – muito obrigadoand all that stuff. (Laughter.)

But it’s a privilege for me to be able to be here, and I want to thank Foreign Minister Chikoti for his welcome and for the opportunity to be able to meet the president tomorrow and have a good conversation about the bilateral relationship between the United States and Angola. I am particularly pleased to be here with other representatives of the oil and gas industry, a representative from Chevron, from ConocoPhilips, as well as from ExxonMobil – Esso, as you call it here. And I’m very grateful that the representative from the U.S.-Angola Chamber of Commerce is here, too.

As you’ve heard in the earlier introductions, I’m here with former United States Senator Russ Feingold, who is our – President Obama’s and my special envoy to the Great Lakes region and who is working to produce greater stability and peace in the region. President dos Santos and Angola have provided important leadership, and I want to thank you, Angola, for the leadership an the participation and the help to solve conflicts that have gone on for too long.

But as I mentioned a moment ago, we’re standing in a place of enormous economic activity with great promise for future economic growth and development. I am accompanied on this trip by the president and CEO of the EximBank^[1], Elizabeth Littlefield, because the EximBank^[2] is very much a partner with General Electric and very involved in helping to support economic development here in Angola and in other parts of Africa.

In fact, though EximBank^[2] we have just provided a $600 million, just about a $600 million loan guarantee that will assist in the purchase of a Boeing 777 for Angola. This will grow the opportunity of, obviously, more ability to have business and more ability to have trade, and also for people to simply come to be able to engage in some of the exciting things that are happening in Angola. In addition, Exim^[2] is providing another $300 million or so of additional economic investment here in Angola.

So let me just say quickly why being here is important today. Africa is changing. Eight of the ten fastest-growing economies in the world are here in Africa. There is enormous opportunity for the people of Africa, the people of Angola, to be able to gain in healthcare, in education, in jobs, in the quality of life. And I know the government is very focused on how to provide for increased standard of living for the people of the country. That comes from fair and reasonable trade agreements where everybody benefits, where there’s an ability to create jobs. When a Boeing airliner is bought from Boeing, it creates jobs in America, but it will also create jobs and opportunity here in Angola.

General Electric has recently sold four power turbines to Angola. This is for a project in Soyo. And this will help provide the power that then generates the ability for hospitals, for schools, for homes, for cities, for stores to be able to grow and prosper. So we believe there are great opportunities on which we can build where, most importantly, Angolans will benefit.
I just spoke with the representative for ConocoPhillips, who tells me and the representative for Chevron – who tell me about the several thousands of employees. ConocoPhilipps is newer here, but Chevron has about 3,500 workers employed. So more and more Angolans are being trained to take on more and more different kinds of important jobs.

The first lady of Angola was in Los Angeles a number of years ago, and she was talking with the executives there about a disease here in Angola. A lot of people thought you couldn’t do anything about it. But Chevron, which had been working here for many years, stepped up and they talked with the Texas Children’s Hospital and they got care to be able to come her to help cure this disease for children. More than 3,000 children’s lives have been saved

So this is not just about business. This is about building a relationship between two people, two countries, and building a future. And when I look out at the economic energy out here in the port in all these containers and these ships and the work that you’re doing, I am confident that Angola, working together as you are now, will be able to help contribute to an extraordinary journey in Africa as a whole, and we will provide greater opportunity to everybody.

Thank you for the privilege. Muito obrigado. (Applause.)

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[1] Elizabeth Littlefield is the president and CEO of OPIC.
[2] OPIC

SECRETARY KERRY'S REMARKS AT EXPORT-IMPORT BANK ANNUAL CONFERENCE

FROM:  U.S. STATE DEPARTMENT 

Remarks at the U.S. Export-Import Bank Annual Conference

Remarks

Omni Shoreham Hotel

Washington, DC

April 24, 2014

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Thank you very, very much.　 Thank you.　 (Applause.)　 Thanks a lot.　 Thank you very much.　 Thank you, Fred.　 Thank you all very much.　 Thank you very, very much.　 Thank you.　 Thank you for a standing ovation.　 Winston Churchill said the only reason that people stand and give a standing ovation is they desperately need an excuse to shift their underwear.　 (Laughter.)　 So I know you all had a much more noble thought in mind.　 (Laughter.)

 Anyway, I’m happy to be here.　 I’m very happy I didn’t nose out Susan Axelrod at any point in time, because if I had, I never would have become Secretary of State.　 (Laughter.)　 So congratulations to her for winning the small business entrepreneur.

I’m a little embarrassed, Fred.　 Thank you very much for a generous introduction.　 I appreciate it very much.　 I more appreciate our friendship, and I thank you for your support through my political life and now through my non-political life as Secretary.　 I’m greatly appreciative and I’m delighted to have an opportunity to share some thoughts with all of you here today.　

Fred’s ability to find out about my foray into the cookie business gives you some sense of Ex-Im’s deep expertise in matters of business and personal affairs.　 (Laughter.)　 I’ll have to make sure that’s as far as it goes.　 (Laughter.)　 Fred was actually very diplomatic in not telling you more about that escapade because he didn’t really mention that it was a triumph of hope and late-night wine that gave me this notion that I was going to open this business in Faneuil Hall Marketplace.　

I actually was having a wonderful dinner at one of the establishments in Faneuil Hall.　 I hope many of you have been there.　 And the friends I were with, and we did enjoy one bottle too many and we came out, and don’t know if you’ve ever had that late-night chocolate chip cookie craving – (laughter) – for the right reasons – (laughter) – but at any rate, I came out of there and I was somewhat bored as a private sector attorney for a few years, and I really did have this notion I wanted to do something in retail business.　 And there was this vacant space in Faneuil Hall, and I looked at it and I said, "God, it’d be really interesting to open this gourmet food store there."　

So literally, the next morning as a young lawyer, I found myself in Jim Rouse’s Baltimore’s office, the Rouse Company, who were the developers.　 And I negotiated this lease, and I wanted to have this sort of really great emporium of cookies that was then going to become a national effort and a flag store or whatever.　 And I was roundly brought to ground by the Rouse Company, who said, "Well, we don’t want any more fast food things here.　 We really just want a real gourmet food place."　 And I said, "Well, that’s exactly what I want to do."　 (Laughter.)　 And I gave him this explanation of what I was going to do, and then lo and behold, we have the lease and we started laying it out, and had these wonderful ovens that you can see the cookies progressing through them and dropping out on the other side.　

And everything was moving swimmingly – I had my Hobart mixer and my things.　 I’d never done anything like this before, and as you will all know in a moment when I tell you that we were one week from opening and I suddenly realized, "God, I need a cookie recipe."　 (Laughter.)　 So I went home and I took my – I had been a Toll House cookie baker since I was a kid.　 I love-love them; anybody who’s traveled with me will tell you.　 And so I started baking and baking and baking, and I learned the chemistry of food is the hardest thing in the world because as you get bigger, of course, it changes; it’s not an automatic progression.　 I learned that the hard way – many batches and hours later, days later.　

But we did it. 　We put together these incredible cookies with pure Lindt chocolate and honey and amazing, all natural ingredients.　 Everything was all natural.　 And within one year, I am proud to tell you, we won the Best of Boston for our cookies, for our macaroons, for our brownies, for our everything.　 And I only sold it when I had the idiotic notion of going into public life and running for lieutenant governor, and I didn’t want anybody accusing me of having sweetheart relationships, which I didn’t, or anything – but that doesn’t stop anybody in American politics from telling you you do.　 And so I sold it to my manager and I am proud to tell you that 20-whatever number of years later, it is still there and thriving in Faneuil Hall.　

And my dream had been to take it – I actually visited Harrods in London, and I had a place picked out, and I was going to put it there, and I was going to take it.　 And you know the old notion, you get 40 stores, 50 stores, and sell it for 10 times earnings, and that was the story.　 And of course, I didn’t, and here I am now a public servant and I’m not making anything, so – (laughter) – what can I tell you?　

But it’s a long way of telling you all – and this really helped me, I have to tell you – it really helped me in the United States Senate, where I did become chairman of the Small Business Committee.　 And I was on the Small Business Committee for 20-plus years.　 It taught me an enormous amount about the difficulties of being a small business, about having 35 or 40 part-time employees, getting your tax forms filled out, working on your withholding, dealing with the health department, getting your license, dealing with inspectors, getting – I mean it’s – you know it better than I do, but it really taught me about entrepreneurship and risk-taking.　 And if any of us need a reminder of how critical leadership and vision are to the success of any leadership effort, you can ask anybody at any one of these tables here.　

Every single one of you are living examples of that and you know how to do it, as does Fred Hochberg.　 And I’m delighted that Fred is leading the Ex-Im effort.　 He himself is a very skilled, capable businessperson.　 Not so long ago, Fred’s father gave him a tie bar – not a tie bar here, but a tie bar that – in your – where you hang all your ties.　 And he listed on it the following letters:　 Y-C-D-B-S-O-Y-A.　 And it was supposed to be an acronym.　 I don’t know how you say that – Ycdbsoya or something like that?　 But he lives by it, and here’s what it means:　 You can’t do business sitting on your ass.　 (Laughter.)　 It is a maxim that has driven him to take his family catalogue company global.　 It’s what made him an exceptional leader of the Small Business Administration, where I knew him and we were friendly, and at his own company.　 And today it is driving him to work to try to tie the world together with American exports.　

Now, I think every single one of you here would agree that this man has been anything but an idle executive.　 In five years on the job, he has helped to finance over $188 billion in U.S. exports and supported 1.2 million American jobs in the process.　 The Ex-Im Bank has been a driver of economic growth for much of the past century, especially during difficult times.　 And that’s been true, frankly, since Ex-Im’s beginning, when it was founded during the height of the Great Depression.　 It’s been true again in our recovery recently from our own great recession.　 The Ex-Im Bank has played an absolutely vital role in driving President Obama’s National Export Initiative forward.　

And I want you just to think about it:　 Only a few years ago, a few years removed from the greatest financial crisis in our lifetime – and believe me, I will never forget the Treasury Secretary, Hank Paulson, coming up and literally quaking in front of us in a Senate room, in the LBJ Room in the Capitol, pale and clearly vexed as he explained to us what was going to happen to Lehman Brothers and what was going to happen to the financial world if the United States Congress didn’t pass what was then called a bailout – not a bailout in the end, but a bailout – paid – paid the American taxpayer, I might add.　 And there was an irony in a member of one party coming to the members of another party to ask them to save them from themselves, and it happened.　

The reality is that since then, since that great recession which really put the financial system of this country and the world on the precipice, since then we have come back.　 People have forgotten what President Obama had to begin to do even before he was sworn in as we tried to navigate through that late fall of 2008.　 Since then, U.S. exports have hit an all-time high, a record $2.2 trillion.　 Today those exports support 11.3 million jobs and they account for 14 percent of the entire economy of the United States of America.　 Now, I’m happy to tell you that America is selling more goods and services abroad than at any time in our history.　 That’s a remarkable accomplishment.　 (Applause.)　

But let me make clear, that kind of recovery was by no means inevitable.　 It was the result of specific economic choices that we made at the federal level of our government.　 It was the result of strong partnerships between everyone at Ex-Im and with so many of you out there and others who aren’t here today.　 I want to thank the many business leaders in this room who have done so much to gain a bigger foothold for American companies overseas and to create opportunities for our workers here at home.　

And every American needs to understand none of this money is a giveaway.　 It’s not a gift program.　 It’s not a charity.　 It’s in our interest.　 We are not just promoting American businesses here at home; we’re promoting American values where they reach abroad.　 And we’re helping to strengthen countries that are on the brink, in some cases, of maybe being a failed or failing state.　

Now, I didn’t come here to talk about the road that we have traveled.　 It’s important, because you’ve got to know where you’ve been to know where you’re going.　 But I want to talk to you about something that’s more powerful than the past five years or even the past 80 years of Ex-Im’s existence.　 Everywhere I travel, everywhere I am privileged to travel as the Secretary of State of this great nation of ours, everywhere that I travel I see how the aspirations that make America great are moving global.　 I see how people around the world want the same kind of opportunities that have defined our country’s success, and the success, I might add, of many of our partners.　

When I was in Kyiv, walking the street down towards the Maidan recently, where the snipers had killed all of those protestors, I was struck by one man who came up to me, a Ukrainian, who said to me in pretty good English, said, "I just came back from Australia, and I was motivated by what I saw there.　 I want people here in Ukraine to be able to live the way they’re living in Australia."　 It was a personal witness to the possibilities of how life can be because of jobs and business and the ability to create a larger and larger middle class.

Wherever I go, whether it’s the Middle East or Asia or Africa, where I will be next week, I am engaged in efforts to ensure that the rise of the global middle class helps advance opportunity here at home.　 That’s what it’s about.

As I said at my confirmation hearing last year and as I tell our team at the State Department every single day:　 Economic policy is foreign policy, and foreign policy is economic policy.　 What we do to invest abroad, to build businesses, to help people be able to export and import – all of that is the way that you tap into the potential of people in the world.　 And that has never mattered more to our strength than it does right now.

When more than half of the world’s population is under the age of 30, when hundreds of millions of young people all over the world will enter the job market in the next decade, we honestly don’t have a moment to waste.

From Sao Paolo to Sana’a, all across the world young people are more connected than ever before.　 All they need to do is flip on their mobile device and they’re in touch instantaneously with everybody everywhere all the time.　 They can see the kind of opportunities that are emerging across the world.　 They know the challenge of one country, and they share those challenges in another country.　 They understand, particularly, the disparities in wealth and the disparities in opportunity.　 And they see that they’re just as real, and they experience them, believe me, every single day.　 What’s worse, they fear that it’s those disparities and not the opportunities that are going to define their future.

Remember, folks, Tunisia’s revolution was not born out of religious extremism or ideology.　 It was a fruit vendor who was frustrated with corruption and the inability to be able to sell his wares and being slapped around by a policeman, out of total frustration, out of not being able to touch that sense of independence and possibility, went and self-immolated in front of a police station.　 And that is what ignited a revolution that saw a 30-year dictator disappear and the country begin to kick off what we came to know as the Arab Awakening.

In Tahrir Square in Egypt, it was not the Muslim Brotherhood.　 It was no religion.　 It wasn’t Salifis, it wasn’t Sunni or Shia.　 It was young people in touch with each other, texting each other, googling, working their phones, that brought millions of people out there to throw off the yoke of corruption and open up a sense of possibility for the future.　 And then it happened again.　 It took another one because the government wasn’t responsive to their aspirations and their needs.　 (Applause.)

In Syria, where people are so upset and desperate about what is happening, that didn’t begin – that wasn’t, again, not a revolution in terms of religious backing or sectarianism.　 It was young people.　 The same thing that happened elsewhere, they went out in the street and said, "We want jobs.　 We want an education.　 We want a future."　 And when their parents went out with them after they were arrested the first time around, they were met with bullets and explosions, and the rest is history.

I’m telling you, as sure as I’m standing here, that this connectedness is not capable of being put back in the bottle by any politician anywhere.　 And in the end, everybody is going to be affected by these hopes and aspirations.　 It’s both a challenge, but it’s a huge, huge opportunity for business.　

When you look at the different markets that are out there, half of the world’s population living on $2 a day or less, almost – a huge proportion living on $1 a day or less, these are people who need schools, they need jobs, they need opportunity.　 We want these people to be able to reach for the brass ring and to be able to have their opportunity to be able to tap into that possibility.　

Just consider the opportunities on one continent, just look at Africa – home to eight of the ten fastest growing economies in the world and home to 1.1 billion people.　 I think they have to educate something like 150 million kids in the next ten years just to keep up – unbelievable challenge.　 But think about the size of the opportunity.　 It’s more than twice as large as the European market, and that’s the largest market in the world.　 And you look at what Ex-Im and your companies have helped to do for Europe and in other developed places, but we now see these possibilities exponentially in various parts of the world.　 And whether it’s in agriculture or infrastructure or energy – particularly, I might say, in energy.

The marketplace that created the great wealth of the United States of America in the 1990s when – which, incidentally, was the greatest wealth creating period of American history.　 A lot of people aren’t aware of that.　 We created more wealth in America in the 1990s, and every single quintile of American income earner saw their income go up.　 Why?　 Because it was a period of extraordinary growth as a result of the technology boom.

The technology boom represented a marketplace of $1 trillion, and there were one billion users.　 The energy market that I just mentioned is a $6 trillion market with four to five billion users today, and it will reach perhaps nine billion users within the next few years.　 Just think about that.　 That’s the mother of all markets.　 And the opportunity to be able to move on alternative, renewable, and different kinds of transportation, energy-saving, efficiency, building materials – run the list.　 It’s gigantic.　 And I want to see American businesses being the leading innovators and the leading providers in order to be able to be able to capture that market.

So I’ll tell you something.　 Whether it is in Africa or the Americas or in Asia, I see this enormous hunger out there not just for American products but for ideas and ideals that are uniquely American.　 Young people I met – I was in Kuala Lumpur last year in Malaysia at this incredible Global Entrepreneurship Summit – 15,000 young people, and I heard them screaming and yelling and chanting, and I said, "What is it?　 I’m at a rock concert or something."　 Not a rock concert; this was their energy and enthusiasm for entrepreneurism.　 They were excited, and every single one of them – they weren’t interested in becoming pop stars; they were interested in becoming the next Bill Gates or the next Steve Jobs.　 Believe me, they were thirsty for opportunity.　 And they’re all – they know what everybody else is doing everywhere else in the world.　 They’re talking to them.

So we could help create the climate for these young people to take an idea and make it into a business by harnessing their energy and ingenuity, and this, frankly, matters to us deeply.　 Because I firmly believe that the places where citizens have the freedom to be able to develop an idea and take it out there and even to try and make it reality and perhaps even fail – but to be their own boss and have that option, these are the societies that are most successful, they are the most cohesive, the least conflicted, the most peaceful.

That’s why not one of the political problems that we are working so hard to resolve today is – and not one of the solutions that we’re working hard to achieve is going to endure without greater economic exchange and development.　 I think it’s something we’ve seen over and over again, world over.　 Prosperity is a vital foundation for any kind of lasting, durable peace to take root.　 That happens to be one of the principal lessons that we have learned from Asia’s incredible rise.　 It’s a story that America proudly helped to write with our enduring commitment to security and economic exchange across the Pacific.

Even as I speak right now, it’s a story that we’re building on.　 The President of the United States, President Obama, is hard at work in Asia right now – leaving Japan, heading to the next stop, strengthening these ties for the future.　 And he’s driving forward negotiations on a high-standard trade agreement that can be the foundation for greater economic opportunity for decades to come.　 The Trans-Pacific Partnership, TPP – it’s a trade pact between the United States and 12 of our Pacific partners, and it would be the largest free trade agreement of its kind in the world.　 And what would it do?　 It would set high standards for trade and competition for 40 percent of the global economy.　 That matters to us, my friends.　 It matters to us that there are rules of the road and that everybody is playing by them, particularly for a nation that lives by and is proud of something like the Foreign Corrupt Practices Act.　

We’re competing in a voracious world marketwise, competitive, and you know that.　 So the chance for an agreement like this, where we raise the standards for everybody, where we create transparency and accountability and rules by which everybody lives, evens out the competitive marketplace and provides opportunity, because I don’t need to remind you this kind of opportunity doesn’t come often.　

And I’ve been part of these debates, and it doesn’t come easily.　 Remember the battle for free trade in the Senate?　 I fought that for 29 years.　 I’m proud to say that almost every single trade agreement I voted for, and it’s clear that these voices are going to be determining where we go as we go forward.　 The voices of opposition are going to grow louder, obviously, but the clamor for those rules of the road is precisely what President Obama is determined to try to achieve.　 He wants to break down the barriers to trade, open up the possibilities of opportunity, and that’s what he has been setting out to do since the day he came into office.　

From the free trade agreements that the President sealed with the Republic of Korea, Colombia, and Panama during the first term, the President, I think, has been very clear about the need to tame the worst forces of globalization and harness the best possibilities of globalization.　 He is continuing to lead the charge on the Trans-Pacific Partnership as well as our negotiations with Europeans, where we are negotiating the Transatlantic Trade and Investment Partnership, a free trade agreement that would comprise another 40 percent of the global economy.

So as you gather here to think about Ex-Im and its future and the global marketplace, you don’t have to be a big company to do any of this.　 There are huge opportunities staring all of us in the face.　 And there is a lot at stake for us, both in these negotiations and in this moment of history.　

It really boils down to this:　 Will the global economy be defined by a race to the bottom – by the search for cheaper and cheaper labor, the lowest quality products, and the most lax, if any, regulations?　 Or will globalization be defined by a race to the top?　 Will the high standards that we set become the standard of the world?　 Today, as the largest market on earth, we have the power to determine what course the global economy is going to take.　

Because these agreements are so important for our economic future, I have made certain that we elevate the capacity of our economic team within the State Department.　 That’s why I have brought leaders with a proven track record of private sector experience, private sector accomplishment to the table.　 Leaders like Ambassador David Thorne, who’s here; like Ambassador Charlie Rivkin, who was our ambassador in France until a few months ago; our new Under Secretary for Economic Affairs, Cathy Novelli, who I stole from Apple; former fund manager Scott Nathan from Boston – they’ve all come to the table because they believe in helping to tame the worst forces in the marketplace and try to open up the best opportunities.　 It’s why I’ve challenged every Foreign Service officer – every one – to be an economic officer and make our prosperity agenda what I call an all-hands-on-deck job at the State Department.

That’s why we’ve partnered now with the Department of Commerce to bring foreign investment and private sector experience to our shores through SelectUSA, to encourage people to come and invest in the United States.　 And that’s why we are using the Direct Line program to connect American companies with opportunities to expand overseas by connecting them to economic insights of more than 15,000 ambassadors and diplomats around the world.　 That’s what we’re doing.　 We need you to tap into that.

That’s why, together, we’re not only committed to leveling the playing field through the TTIP and the TPP; we’re fighting corruption by advancing the Anti-Bribery Convention.

That’s why we’re working with the Ex-Im Bank to expand the President’s NEI agenda into the NEI-NEXT phase, promoting American exports based on their quality and potential for innovation rather than basing it on just how much they cost.

That’s why we we’re using public-private partnerships like the Palestinian Economic Initiative and the Partnership for New Beginnings to try to open up new possibilities for changing life on the ground for people who have seen little improvement in those lives over decades.　

And that’s why the President started the Presidential Ambassadors for Global Entrepreneurship program, to bring the most – the insights of our most successful businesspeople to entrepreneurs across the world.

We’re doing all of this because in the world we live in today, there are far fewer borders to trade and talent and that means – and you know this better than anybody – our companies have much more competition.

In the Cold War, when I grew up, the United States could actually make a bad business decision or a bad policy decision.　 We were the sole economic power after World War II; everybody else was just crushed or undeveloped.　 And now today, it’s totally different.　 We’re not alone.　 There are other powerful economic entities on the planet, many of whom we helped make powerful through the Marshall Plan and other efforts of our values and ideals.　

But the result is there’s more competition.　 We welcome that.　 I know you welcome that, because American companies are the most innovative in the world, our workers are the most productive, and we can compete against anyone.　 We understand that.　 And particularly if we have a fair playing field, where there’s an absence of corruption and a plethora of opportunity.　 When American companies are the most innovative in the world and when our workers are the most productive, we can welcome competition.

But when other governments are out there aggressively backing their own business – aggressively under the table in some cases and above the table in others – we need to be out there too, pushing back.　 And we need to be partners with you and your businesses every step of the way in order to make sure that we are able to win in a battle that is fair and square.　 We need to be fighting for a rules-based system that levels the playing field.　 And when 95 percent of the world’s consumers – 95 percent of the world’s consumers – live outside of our market, that’s exactly what our companies and our people need us to do.

I have directed all ambassadors to promote American values but also be powerful advocates for our economic interests.　 We are going to make certain that each of our posts and missions around the world have both a political and an economic mission and they are joined at the hip.　 We need all the gears that drive economic growth driving in the same direction.

The first part of that effort is going to be to tell our economic story, our incredible economic story.　 And that’s a story that every one of you ought to be proud to go out and tell wherever we go.　 I know that wherever I touch down, whether it’s in Tunis or Tokyo or anywhere in the world, the words "Made in America" still mean something.　 They mean a lot.　 And that’s because our economy is envied as the most innovative economy in the world.　 It is also the most resilient economy in the world, as we have seen in the aftermath of the Great Recession.　 And that is because it continues to adapt and change to meet new challenges and because we have a greater free allocation of capital and movement of capital to ideas and more people willing to take a risk and possibly fail in order to find an idea that works.

So let’s make certain that we, going forward, improve on that formula.　 Let’s make certain that we build the partnerships that we need to create a shared prosperity in our country and around the world.　 The world, as you all know, keeps on turning, but if we refuse to stand still, which is in the American DNA, I am confident together with Ex-Im, with USAID, with World Bank, with IMF, with U.S. State Department, with all of the tools at our disposal, we are going to have an extraordinary impact and have extraordinary results here at home as a consequence of our economic engagement in this world, and most importantly as a consequence of American leadership with respect to the rules of the road.

Thank you, and keep on working.　 Thank you.　　 (Applause.)

U.S. EXPORT-IMPORT BANK TOUTS RECORD YEAR FOR SMALL BUSINESSES

FROM:  EXPORT-IMPORT BANK
Highlights from the last Six Months

Ex-Im Bank Annual Report Outlines Record Year for Small Businesses

Ex-Im Bank released its Fiscal Year 2013 Annual Report highlighting its approval of more than $27 billion in authorizations that supported an estimated 205,000 American jobs. The Bank also approved more than 3,400 small-business authorizations, a new record.

"I am proud to announce that nearly 90 percent of the Bank's transactions in FY 13 were for small businesses – an all-time high," said Chairman Hochberg. "Ex-Im Bank employees have done a remarkable job of ensuring that American entrepreneurs have the tools they need to succeed in international markets. Whether it's providing export-credit insurance to first-time exporters or working-capital guarantees to returning customers, Ex-Im Bank will continue to fulfill its mission of creating U.S. jobs."

Among the highlights from the 2013 Annual Report:

Ex-Im financing created or supported an estimated 205,000 export-related U.S. jobs.
In the last five years (FY 09 to FY 13), Ex-Im Bank has assisted in financing more than
$188 billion of U.S. exports and supported 1.2 million American jobs.
In FY 13, Ex-Im Bank authorized financing for a record high 3,842 export transactions,
which totaled an estimated export value of $37.4 billion.
In FY 13, Ex-Im Bank approved 3,413 small-business authorizations – an all-time high.
Non-aircraft manufacturing was the industry with the highest authorized amount at
$8.5 billion, surpassing aircraft for the first time since 1997.
Approximately one in five transactions involved women- or minority-owned small businesses.
Ex-Im Bank Announces More Than $1 Billion in Revenues Generated for Taxpayers in FY 2013

Ex-Im Bank transferred more than $1 billion in revenues to the U.S. Treasury's General Fund for fiscal year 2013. This revenue, generated for U.S. taxpayers from fees and services, is what the Bank earned above its operating costs and loan loss reserves.

“From supporting jobs to helping reduce our deficit, the Export-Import Bank is making a difference for our economy and working for the American taxpayer,” said Chairman Hochberg. “In addition to sustaining hundreds of thousands of American jobs, Ex-Im Bank also generated more than $1 billion dollars for the U.S. Treasury last year alone. These numbers are a testament to the dedication and hard work of Ex-Im Bank’s staff and I want to take this opportunity to thank them for their service."

EXPORT-IMPORT BANK REPORTS RECORD YEAR FOR SMALL BUSINESS EXPORT FINANCING

FROM:  EXPORT-IMPORT BANK
Ex-Im Bank Annual Report Outlines Record Year for Small Businesses 
$27 Billion in Export Financing Supported More than 200,000 U.S. Jobs

Washington D.C. – Today the Export-Import Bank of the United States (Ex-Im Bank) released its Fiscal Year 2013 Annual Report highlighting its approval of more than $27 billion in authorizations that supported an estimated 205,000 American jobs. The Bank also approved more than 3,400 small-business authorizations, a new record.

“I am proud to announce that nearly 90 percent of the Bank’s transactions in FY 13 were for small businesses – an all-time high,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Ex-Im Bank employees have done a remarkable job of ensuring that American entrepreneurs have the tools they need to succeed in international markets. Whether it’s providing export-credit insurance to first-time exporters or working-capital guarantees to returning customers, Ex-Im Bank will continue to fulfill its mission of creating U.S. jobs.”

Among the highlights from the 2013 Annual Report:

* Ex-Im financing created or supported an estimated 205,000 export-related U.S. jobs.

* In the last five years (FY 09 to FY 13), Ex-Im Bank has assisted in financing more than $188 billion of U.S. exports and supported 1.2 million American jobs.

* In FY 13, Ex-Im Bank authorized financing for a record high 3,842 export transactions, which totaled an estimated export value of $37.4 billion.

* In FY 13, Ex-Im Bank approved 3,413 small-business authorizations – an all-time high.

* Non-aircraft manufacturing was the industry with the highest authorized amount at $8.5 billion, surpassing aircraft for the first time since 1997.

* Approximately one in five transactions involved women- or minority-owned small businesses.

EX-IM BANK ANNOUNCES U.S. EXPORTS TOTAL $2.2 TRILLION OVER LAST 12 MONTHS

FROM:  U.S. EXPORT-IMPORT BANK
U.S. Exports of Goods and Services in August Exceed $189 Billion;
Last 12 Month’s Exports Total $2.2 Trillion, 42 Percent Above 2009

 WASHINGTON, DC --- In August 2013 the United States exported $189.2 billion of goods and services, slightly lower than July’s exports of $189.3 billion. August’s exports are marginally lower than June’s all-time record high of $190.5 billion, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

Exports of goods and services over the last twelve months totaled $2.2 trillion, which is 42.2 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 10.1 percent when compared to 2009.

“Our exporters continue to drive the U.S. economy and employ more American workers in high-paying, skilled export-related jobs, especially in the manufacturing sector,” said Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank). “Every month brings us closer toward achieving President Obama’s ambitious goal of doubling U.S. exports by 2015."

 Over the last twelve months, among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, occurred in Panama (28.8 percent), Russia (22.0 percent), United Arab Emirates (21.2 percent), Peru (20.9 percent), Hong Kong (20.4 percent), Chile (20.3 percent), Columbia (19.3 percent), Argentina (17.8 percent), Ecuador (17.6 percent), and South Africa (17.5 percent).

U.S. EXPORTS UP 41.7% SINCE 2009 ACCORDING TO EX-IM BANK

FROM:  EXPORT-IMPORT BANK 
U.S. Exports Reach $189.4 Billion in July
Exports Up 41.7 percent since 2009

WASHINGTON, D.C. — The United States exported $189.4 billion in goods and services in July 2013, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department. July’s exports came in just shy of June’s all-time record high of $190.5 billion.

“These numbers demonstrate that President Obama’s National Export Initiative continues to help American businesses thrive in international markets,” said Export-Import Bank Chairman Fred P. Hochberg. “Exports are a critical component of our nation’s economic success, and I look forward to seeing more ‘Made in the USA’ labels on shelves around the world.”

Exports of goods and services over the last twelve months totaled $2.2 trillion, which is 41.7 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 10.2 percent when compared to 2009.

Over the last twelve months, among the major export markets, the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, occurred in Panama (28.6 percent), Russia (22.1 percent), United Arab Emirates (21.9 percent), Peru (21.3 percent), Chile (20.9 percent), Colombia (19.7 percent), Hong Kong (19.5 percent), Argentina (18.3 percent), Ecuador (18.0 percent), and South Africa (17.7 percent).

U.S. EX-IM BANK APPROVES LOAN TO FIANCE SPACEX LAUNCH

FROM:  EXPORT-IMPORT BANK 
Ex-Im Bank Approves $105.4 Million Loan to Finance SpaceX Launch

Washington, D.C. – Continuing its support of the space industry in America, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a $105.4 million loan to Space Communication Ltd. of Ramat Gan, Israel, to finance the Space Exploration Technologies (SpaceX) launch of the Amos-6 communications satellite, the purchase of American made-solar arrays, and insurance brokered by Marsh USA (Marsh)

The transaction is Ex-Im Bank’s third in support of a SpaceX launch, and it will support approximately 600 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology. In June of 2013, Ex-Im Bank announced that it had approved financing for the launches of two satellites manufactured by Space Systems/Loral LLC, and in November of 2012 the Bank announced that it had approved financing for the launches of two Boeing-manufactured satellites.

“Ex-Im Bank is always ready to help the American space industry boost its international sales and export its products to important markets,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Our support of American launches and exports levels the playing field for U.S. companies and keeps highly-skilled, well-paying jobs on American soil.”

Satellite financing represents Ex-Im Bank’s most prominent stand-out sector in the Bank's newly transformed portfolio. Just three years ago, satellites accounted for only $50 million in authorizations per year. This year numbers as the third consecutive year in which Ex-Im Bank's satellite sector authorizations will have topped $1 billion.

Amos-6, a geosynchronous satellite, will replace Space Communication’s Amos-2 and cover markets in Central and Eastern Europe and the Middle East. The satellite will also provide pan-European coverage and broadband services in Europe and Africa.

The launch is scheduled for 2015.

Founded in 2002 and headquartered in Hawthorne, Calif., SpaceX designs, manufactures and launches rockets and spacecraft. It is the first private company to build, launch, and dock spacecraft at the International Space Station, a mission previously accomplished only by government space entities.

“We appreciate Ex-Im Bank’s support of both SpaceX and the U.S. space industry,” said Gwynne Shotwell, SpaceX president and chief operating officer. “With export financing for contracts like the AMOS-6 mission, Ex-Im Bank helps SpaceX compete successfully with international launch service providers, bringing overseas satellite launch business and high-tech jobs back to American soil.”

ATK Space Systems Inc., a participant in the transaction and a manufacturer of the solar arrays for the satellite, is a member of the ATK Aerospace Group. The company provides a broad portfolio of products and services that include integrated satellite bus systems, world-class multidisciplinary engineering services, and market-leading integrated thermal-control systems.

Founded in 1871, Marsh is a global leader in insurance brokering and risk management. The company has approximately 26,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries.

EXPORT-IMPORT BANK CHAIRMAN SAYS NEW AUTHROIZATIONS UP 75 PERCENT IN FIRST QUARTER

FROM:  EXPORT-IMPORT BANK
Fred Hochberg, Chairman Export-Import Bank
Message from the Chairman
What a quarter!
New authorizations here at the Export Import Bank were up by 75 percent over last year’s first quarter. They reached $7.45 billion in the first quarter (October-December) of fiscal year 2013 – supporting approximately 57,000 U.S. jobs – compared to $4.3 billion a year earlier.

The top industry sector was infrastructure with concentrations in manufacturing, aircraft, information and communications service providers, and power projects. The top destination markets for this quarter were India, Germany, Russia, and Poland.

Also during the first quarter, we hit a new record of 43 percent growth of authorizations for working capital and credit insurance for minority- and women- owned exporters, coming on the heels of a record breaking 2012. The amount authorized for small business was almost $1.2 million. This is a 49 percent increase from the first quarter in 2012, putting Ex-Im Bank on track for another strong year for small business.

The results show that our record-breaking levels of authorizations are gathering momentum. We did this the old-fashioned way – superior customer service and sharp focus on emerging opportunities. But the real credit belongs to American exporters with their innovative, high-quality U.S. products and services that carry the label, "Made in USA."

Comments from several of these exporters square with these numbers.

For example, Charlie Szews of the Oshkosh Corp. shared with me that he expects his company’s exports to increase by double digits in 2013. The reason, he notes, is "our competitive advantage largely related to our advanced technologies." Randy Zwirn of Siemens, he tells me, saw his exports shifting toward emerging markets like Nigeria, Vietnam and Chile making new investments in needed infrastructure projects. I heard similar upbeat reports from Caterpillar and Dow Chemical.

Besides redoubling current efforts, we’re aiming for new record results with a stronger focus on these priorities:

Infrastructure Financing offers tremendous opportunities in emerging countries from southern Africa and South Asia to Latin America. India alone expects to spend a trillion dollars in the next five years for highways, seaports, electricity, and satellites. These require long-term financing, which Ex-Im is positioned to provide. I’m on my way to India at the end of January to explore financing opportunities there.

Small Business financing has grown strongly, but we intend to do much better. By adding four new regional offices last year, we now have 11 around the country – to recruit and train small businesses and financers. Our goal is that at least 20 percent of new authorizations will go to small businesses each year.

Sub-Saharan Africa is one of the most promising markets for U.S. exports, and we will do our part to expand here. We approved a record $1.5 billion of authorizations last year for this region, financing about seven percent of all U.S. exports there. Transactions there ranged from the sale of Boeing 787s to Ethiopian Airlines and Darley fire-fighting equipment in Nigeria. With strong growth continuing in most countries there, the possibilities are dazzling.

Customer Service will get even more attention as we continue to expand financing and numbers of new customers, with no increase in Ex-Im Bank staff. With help from our Total Enterprise Modernization project, we are streamlining even more our application, approval and disbursement systems, and empowering staff to make even more key decisions using their professional judgment. Already, we processed 90 percent of all transaction in 300 days or less – and 98 percent in less than 100 days.

U.S. EXPORT-IMPORT BANK AND JAPAN BANK FOR INTERNATIONAL COOPERATION SIGN CO-FINANCING AGREEMENT



Laughing Budda, Narita, Japan. Photo Credit: CIA World Factbook.

 

FROM: EXPORT-IMPORT BANK
Ex-Im Bank, Japan Bank for International Cooperation
Sign Co-financing Agreement to Facilitate U.S., Japanese Export Sales
 
WASHINGTON, D.C. --- Officials from the Export-Import Bank of the United States (Ex-Im Bank) and the Japan Bank for International Cooperation (JBIC) today signed a co-financing agreement that will facilitate future export transactions involving companies in both the United States and Japan.

The agreement enables Ex-Im and JBIC to provide "one-stop-shop" export finance services to buyers in third countries purchasing both U.S. and Japanese goods and services. The two nations’ export credit agencies (ECAs) will provide a one-stop-shop financing package, creating administrative efficiencies for foreign buyers. The agreement complements one signed in 2004 between Ex-Im Bank and Japan’s Nippon Export and Investment Insurance (NEXI).

JBIC Chief Operating Officer and Senior Managing Director Fumio Hoshi, representing JBIC Governor Hiroshi Okuda and Ex-Im Senior Vice President for Policy James C. Cruse , representing Ex-Im Bank Chairman and President Fred P. Hochberg, signed the agreement at Ex-Im’s headquarters in Washington, D.C..

"This arrangement paves the way for Ex-Im Bank and JBIC to co-finance projects, enabling exporters in both the U.S. and Japan to select the best mix of price and technology to strengthen their overseas bids and support jobs," said Hochberg. "At the same time, exporters will be able to provide their buyers with only one set of terms and conditions covering both countries’ exports."

This is the first "One-Stop Shop" co-financing agreement signed by JBIC with another ECA.

JBIC is a policy-based financial institution of Japan, and conducts lending, investment and guarantee operations while complementing the private sector financial institutions.

In addition to the JBIC and NEXI co-financing agreements, Ex-Im Bank currently has signed bilateral one-stop-shop agreements with ASHR’A (Israel), Atradius (The Netherlands), Coface (France), ECGD (U.K.), EDC (Canada), EFIC (Australia), EKF (Denmark), Euler Hermes (Germany), and SACE (Italy) and is in discussions with other ECAs to sign additional bilateral agreements. Ex-Im Bank will consider co-financing transactions without a formal bilateral agreement on a case-by-case basis. In fact, Ex-Im Bank has concluded a number of one off co-financing arrangements with GIEK (Norway), H-EXIM (Hungary) and ONDD (Belgium).

EX-IM BANK GUARANTEES $32.1 MILLION FOR EXPORTING WIND TURBIN BLADES TO BRAZIL

Photo Credit:  Wikimedia.

FROM: EXPORT-IMPORT BANK

Ex-Im Approves $32.1 Million in Financing
For Export of U.S. Wind Blades to Brazil
Washington, D.C. – In line with its congressional mandate to increase support for renewable-energy exports, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a $32.1 million loan guarantee to Wind Power Energia S.A. of Sao Paulo, Brazil, for the purchase of wind turbine blades manufactured by LM Wind Power Blades Inc. of Little Rock, Ark.

Ex-Im Bank’s financing, which guarantees a Bank of America loan, will support approximately 250 permanent American jobs at the company’s Little Rock, Ark., and Grand Forks, N.D., manufacturing facilities.

"The Bank’s loan guarantee will facilitate the export of American-made products to one of our nine key markets at a critical time," said Ex-Im Bank Chairman and President Fred P. Hochberg. "By doing so, it will simultaneously support American jobs in a valuable industry and boost Brazil’s clean-energy prospects."

The wind blades will be used to complete a 180-megawatt wind farm in the Brazilian state of Bahia and another 211-megawatt farm in the Brazilian state of Ceara.

"We welcome the vision and assistance of Ex-Im Bank, which has enabled us to develop a new and growing market opportunity for wind-turbine blades in Brazil," said Richard Pettifor, LM Wind Power’s commercial director for the Americas. "As well as developing the Brazilian renewable-energy market and overall production capacity, it will also support the prospect of long-term growth in LM Wind Power’s America business with approximately 250 permanent green-energy jobs in Arkansas and North Dakota."

Headquartered in Little Rock, Ark., LM Wind Power Blades is a manufacturer of wind blades and operates facilities in Arkansas and North Dakota. The company is a subsidiary of LM Wind Power, the largest manufacturer of wind-turbine blades in the world.

Wind Power Energia, a subsidiary of Industrias Metalurgicas Pescarmona S.A. of Argentina, designs and manufactures wind turbines for power projects in Brazil and South America. It favors turnkey solutions and currently ranks as the market leader in Brazil. The transaction is the company’s first with Ex-Im Bank.

As of the end of FY 2011, Brazil accounted for $2.7 billion of the Bank’s worldwide credit exposure. In FY 2012 to date, the Bank has authorized approximately $415 million for renewable-energy exports of all types worldwide.

U.S. EXPORT-IMPORT BANK APPROVES NEARLY $65 MILLION FOR SRI LANKA WATER SUPPLY SYSTEMS

FROM: EXPORT-IMPORT BANK
Ex-Im Approves $64.9 Million in Financing for Water-Supply System in Sri Lanka
Washington, D.C. – For the first time since 2008, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a sovereign transaction – a $64.9 million, 12-year direct loan – to the Democratic Socialist Republic of Sri Lanka to finance the design and construction of the Badulla, Haliela and Ella Integrated Water Supply System by Tetra Tech of Pasadena, Calif.

The transaction will support approximately 400 American jobs, according to U.S. government estimates, including those at Tetra Tech’s design centers across the United States, particularly in Denver and Longmont, Colo.; Morris Plains, N. J.; Langhorne, Pa.; and Fairfax, Va.

The water-supply project will integrate new and rehabilitated treatment plants, storage tanks, pumping stations, a new dam and impoundment reservoir, new and existing water intake structures, nearly 50 kilometers of transmission pipeline, and more than 100 kilometers of distribution pipeline. Once in place, the water-supply system will help the government of Sri Lanka to realize its objective of providing safe drinking water to 85 percent of the population, in line with the United Nations Millennium Development goals.

"Not only does this transaction stimulate U.S. job creation, but it also contributes directly to the quality of life in Sri Lanka," said Ex-Im Bank Chairman and President Fred P. Hochberg. "This project will bring potable water to thousands of those who need it, and that is a success."

According to Sri Lankan government estimates in 2009, 79.5 percent of the population had access to water supplies, but only 37.5 percent of the population, or 8.06 million people, could access potable water through pipe-borne systems. In some regions, it was estimated that more than 80 percent of the water supply was contaminated. Much of the contamination was attributed to agrichemical runoff and saltwater intrusion, the latter of which resulted from the 2004 tsunami when four tidal waves inundated part of the island’s freshwater aquifer and well network with seawater.

"This is the first full-scale, design-build water-supply project that Ex-Im Bank has financed for an international client," said Dan Batrack, Tetra Tech’s chairman and CEO. "Tetra Tech is proud to support the government of Sri Lanka in this important effort to bring safe drinking water to its people. This transaction supports high-end technical jobs in the United States and allows us to bring our best water services where they are needed most."

Founded in 1966, Tetra Tech provides consulting, engineering, and construction services related to waterways, harbors, and coastal areas. Over the past 40 years, the company has substantially increased the size and scope of its business and expanded its service offerings through a series of acquisitions and internal growth. The company employs approximately 13,000 people around the globe.

Sri Lanka accounted for approximately $20 million of the Bank’s worldwide credit exposure as of the end of FY 2011.

The Bank’s Environmental Export Program includes support for U.S. goods and services to international water projects, and its enhanced financing includes repayment terms up to 18 years.

Ex-Im Bank’s financing has supported the sale of approximately $270 million in water-related exports since FY 2009.

U.S. EXPORT IMPORT BANK APPROVES $1.2 BILLION FOR TELECOM SATELLITE EXPORTS

FROM:  U.S. EXPORT-IMPORT BANK
WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) approved two separate transactions totaling more than $1.2 billion to finance the export of American-made telecommunications satellites to Mexico and Australia.

Approximately 750 U.S. aerospace jobs will be directly supported in Washington State, California, Pennsylvania and Virginia. In addition, the exports will indirectly support more than 1,000 additional jobs at suppliers throughout the United States.

Ex-Im Bank is providing a $922 million loan guarantee to support the export of three satellites and related equipment to the Mexican government for the MEXSAT regional mobile satellite system. Mexico’s Secretariat of Communications and Transportation will purchase the satellites from Boeing Space and Intelligence Systems in El Segundo, Calif. Boeing will produce two satellites with mobile service satellite (MSS) capacity and will subcontract a third satellite with fixed service satellite (FSS) capacity from Orbital Sciences Corporation in Dulles, Va.

The Bank is also providing a $281 million direct loan to Jabiru Satellite Ltd. (a subsidiary of NewSat Ltd.) in Southbank, Australia, for the purchase of satellite and ground equipment from Lockheed Martin Space Systems Co. in Bethesda, Md.

In FY 2012 to date, Ex-Im Bank has authorized a total of almost $1.3 billion to support U.S. satellite exports, matching its financing for this industry in all of FY 2011.

"American workers produce the best technology in the world, and that is why our satellites are being used from Mexico to Australia," said Fred P. Hochberg, the chairman and president of Ex-Im Bank. "These transactions help sustain and grow high-quality jobs across the country and put us one step closer to meeting President Obama’s National Export Initiative goal of doubling U.S. exports by 2015."

Map Credit:  U.S. State Department Boeing Exports Satellites to Mexican Government
Ex-Im Bank is guaranteeing a $922 million loan from Morgan Chase & Co. of New York to Mexico’s Secretariat of Communications and Transportation for the purchase of two MSS satellites made by Boeing and one FSS satellite made by Orbital Sciences Corporation, and related equipment and services.

The three satellites will be used to deploy the MEXSAT system, a next-generation, space-based communications platform that will help support social and economic development within Mexico. Various sectors will benefit from MEXSAT, including programs focusing on education, health care, disaster relief and rural telephonic service.

Boeing will design and deliver an end-to-end L-band MSS system consisting of two Boeing 702HP geomobile satellites, a spacecraft operations center and related ground infrastructure. Boeing will subcontract with Orbital Sciences Corporation for a FSS satellite for C-band and Ku-band communications and a spacecraft operations center.

Approximately 400 Boeing employees will work directly on the MEXSAT program. The transaction also will support an estimated 80 jobs at Orbital Sciences Corporation. Hundreds of additional jobs will be indirectly supported at related vendors throughout the United States.

"Boeing’s Geo-Mobile (GEM) product line is the most capable mobile satellite available in the global market. Ex-Im’s support for this transaction makes it possible to provide this capability to a valued international customer that shares our border, and, in the process, support U.S. high-technology jobs and American technology excellence in this arena," said Craig Cooning, vice president and general manager of Boeing Space and Intelligence Systems.

Mexico is one of Ex-Im Bank’s nine key markets and accounted for $8.3 billion of the Bank’s worldwide credit exposure at the end of FY 2011. In FY 2012 to date, the Bank has authorized approximately $1.8 billion in financing for U.S. exports to Mexico.


Map Credit:  U.S. State Department.
Lockheed Martin Satellite Export to Jabiru Satellite Ltd. in AustraliaEx-Im Bank’s $281 million direct loan to Jabiru Satellite Ltd. is the Bank’s first satellite transaction in Australia and its first satellite transaction involving Lockheed Martin as the exporter. The transaction will directly support 250 aerospace-based jobs at Lockheed’s manufacturing facilities in Sunnyvale, Calif., and Newtown, Pa. It will indirectly support more than 650 jobs at related suppliers across the country.

"The Ex-Im Bank loan is critical in solidifying a U.S-based satellite procurement that will protect and secure U.S. jobs in the aerospace industry," said Linda Reiners, vice president of Lockheed Martin Space Systems Commercial Ventures. "We congratulate NewSat and look forward to this exciting opportunity to deliver the high-quality Jabiru-1 satellite."

Jabiru Satellite Ltd. will contract the operation of the satellite to MEASAT Satellite Systems Sdn. Bhd. of Malaysia, which operates a fleet of five satellites reaching 145 countries in Asia, Africa and Europe.

Jabiru-1 will be Australia’s first privately-owned commercial satellite. It will rely upon 8.1 gigahertz of capacity to provide Ka-band and Ku-band coverage to government, corporate and industrial sectors in the high-growth regions of the Middle East and Africa during its 15 years of useful life. The satellite’s launch date is scheduled for 2014.

In FY 2011, Ex-Im Bank’s credit exposure in Australia represented $1.7 billion of the Bank’s portfolio. In FY 2012 to date, the Bank has authorized more than $3.1 billion in financing for U.S. exports to Australia.

Ex-Im Bank Chairman Hochberg will meet with government and business leaders in Australia from August 13-17.


　

EX-IM BANK APPROVES $1.2 BILLION FINANCING TO PEMEX

FROM:  U.S. EXPORT-IMPORT BANK
Ex-Im Approves $1.2 Billion in Export Financing to Pemex, Supporting 8,500 jobs in Texas, California. Louisiana and Elsewhere
Pemex To Offer Ex-Im Guaranteed Bond Issuances to Capital Markets
Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has authorized $1.2 billion in export financing in four separate transactions to support the export of U.S. goods and services to Petroleos Mexicanos (Pemex), Mexico’s national oil and gas company. The amount includes a $200 million small-business facility, which will support exports from U.S. small businesses.

For the first time, Pemex will offer Ex-Im-guaranteed bond issuances to capital markets to fund the transactions. Pemex anticipates four-to-seven bond offerings that will occur from June to September 2012. In the event the funding cost is prohibitive, Pemex may exercise the option to seek Ex-Im direct loans.

The Bank’s approval will enable the American exporters involved, most of which are headquartered in Texas, California, and Louisiana, to supply their products, equipment and services to Pemex oil and gas projects. The transactions will support an estimated 8,500 jobs.

“Ex-Im Bank is pleased to partner with Pemex yet again to finance the purchase of U.S. goods and services to Mexico,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “The financing support will directly benefit U.S. small businesses in the oil and gas industry, an industry that is absolutely vital to the growth of our nation’s economy.”

The Mexican projects involved in these latest financing transactions are the Cantarell Complex, Mexico’s largest oil field; the Strategic Gas Program, one of Mexico’s largest gas programs; and the New Projects of Pemex Exploration and Production (PEP), a program devoted to onshore and offshore oil and gas exploration ventures.

Ex-Im Bank’s financing was necessary to enable U.S. exporters to compete for Pemex contracts against foreign companies backed by their governments’ export credit agencies (ECAs). Each of the four transactions has a 10-year repayment term that matches terms offered by other ECAs.

Pemex ranks as Ex-Im Bank’s top borrower. Since 1998, the Bank has approved approximately $10.6 billion in financing to support Pemex’s activities in the oil and gas sector.

The Bank’s four transactions will increase its total credit exposure in Mexico, one of the Bank’s nine key markets, to $6.3 billion.

About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.

EXPORT-IMPORT BANK APPROVES LOAN GUARANTEE FOR 200,000 FORD VEHICLES

Photo:  Detroit, Hart Plaza.  Credit:  U.S. Army Corps of Engineers
FROM:  U.S. EXPORT-IMPORT BANK
Ex-Im Bank Approves Increased Loan Guarantee For Over 200,000 Ford Motor Company Vehicles, Export Sales Top $8.5 Billion
WASHINGTON, DC – Ford Motor Company of Dearborn, Michigan was recently approved by the Export-Import Bank of the United States (Ex-Im Bank) board of directors for a working capital loan guarantee of $300 million. This represents a $50 million increase compared to an existing $250 million guarantee which was approved by the board in 2010 and will expire later this year. Given its success, the new increased Loan Facility will support the Company’s growing sales in existing markets, as well as developing ones.

The new guarantee will support growing sales to buyers in Canada and Mexico (markets covered by the existing guarantee), as well as global markets in Asia and South America. This will support U.S. automobile manufacturing jobs and indirectly jobs at Ford’s suppliers for the export of over 200,000 vehicles valued at $8.5 billion.

“Ford Motor Company experienced what we hope for all U.S. companies – success overseas by expanding into new markets and increasing sales in existing ones,” said Fred P. Hochberg, chairman and president of Ex-Im Bank. “This additional export financing will not only support American jobs, but also the development of emerging markets with high-quality, new automobiles.”

“We are pleased to continue working with Ex-Im Bank,” said Neil Schloss, vice president and treasurer, Ford Motor Company. “This guarantee supports low-cost financing for our exports from the U.S., which in turn supports jobs in the U.S.”

Models to be exported using the Ex-Im Bank loan guarantee include the E-Series van, the Escape, Expedition, Explorer, and Navigator SUVs, the F-150 pickup, and the Taurus car. These exports will be manufactured in plants located in Avon Lake, Ohio; Chicago, Illinois; Dearborn, Michigan; Kansas City, Missouri; and Louisville, Kentucky. The Private Export Funding Corporation (PEFCO) will provide the funding for the revolving $300 million Loan Facility which will be backed by Ex-Im Bank's guarantee.

TEXAS RESIDENT GOES TO PRISON FOR SCHEME TO DEFRAUD THE EXPORT-IMPORT BANK

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, June 5, 2012
Texas Resident Sentenced to 15 Months in Prison for Scheme to Defraud the U.S. Export-import Bank
WASHINGTON – A Fabens, Texas, resident was sentenced today to 15 months in prison for his role in a scheme to defraud the Export-Import Bank of the United States (Ex-Im Bank) of more than $690,624.

The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Robert Pitman of the Western District of Texas; Osvaldo L. Gratacos, Inspector General of the Ex-Im Bank; and Acting Special Agent in Charge Dennis A. Ulrich of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in El Paso, Texas.
Hector Cuevas, 42, was also sentenced by Judge Kathleen Cardone in U.S. District Court in El Paso to three years of supervised release and was ordered to pay $553,148 in restitution and $690,624 in forfeiture.  Cuevas pleaded guilty on Oct. 13, 2011, to conspiracy to commit wire fraud, wire fraud and money laundering conspiracy.  Cuevas admitted that he participated in a scheme to defraud the Ex-Im Bank of more than $690,624.

According to court documents, Cuevas was the owner of CT Implement Inc., a farm equipment sales company in Fabens that purported to be in the business of exporting U.S. agricultural equipment to Mexico.  During his plea hearing, Cuevas admitted that he helped others prepare and submit false applications, financial records and export documents to two lending banks to assist co-conspirators in Mexico in obtaining two Ex-Im insured loans purportedly for the purchase of equipment from Cuevas’ company.  Once the loans were approved, Cuevas admitted that he acted as a money launderer by illegally transferring Ex-Im Bank insured proceeds to both borrowers and others in Mexico.  Both loans defaulted and caused Ex-Im Bank to pay claims totaling $583,430 to the lending banks.

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing.  Ex-Im Bank provides a variety of financing mechanisms to help foreign buyers purchase U.S. goods and services.

The case is being prosecuted by Trial Attorneys Patrick Donley and William Bowne of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Spitzer of the Western District of Texas, El Paso Office.  The case was investigated by the Ex-Im Bank Office of Inspector General and ICE-HSI El Paso.  The Financial Crimes Enforcement Network (FinCEN) also provided valuable assistance and financial analysis in this investigation.

EXPORT-IMPORT BANK REAUTHORIZATION IS SIGNED INTO LAW

Photo:  President Obama During A Weekly Address.  Credit:  White House.
FROM:  EXPORT-IMPORT BANK
Wednesday, May 30, 2012
President Obama Signs Export-Import Bank Reauthorization Act into Law
Washington, D.C. – Surrounded by more than 150 small and medium-sized business owners and other invited guests from across the country, President Obama today signed the Export-Import Bank Reauthorization Act of 2012 into law. Ex-Im Bank Chairman Fred P. Hochberg joined the President at the White House for the signing ceremony.

“Today is a great day for U.S. businesses – both large and small,” said Chairman Hochberg. “By signing this bipartisan bill into law, President Obama has once again demonstrated his strong commitment to America’s business owners, workers, and exporters. The President has been a strong champion of Ex-Im Bank, and thanks to his leadership more U.S. companies are exporting to more countries. With our reauthorization now achieved, the Bank will continue to do what it does best – help our nation’s workers compete globally and support U.S. jobs at no cost to American taxpayers.”

The Export-Import Bank Reauthorization Act of 2012 extends the Bank's authority through 2014 and ultimately increases its portfolio cap to $140 billion. This provides much-needed certainty and predictability to U.S. exporters and their workers.

About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country.

EXPORT-IMPORT BANK SAYS NEW POLICY WILL INCREASE AVIATION-INDUSTRY EXPORTS

Photo:  Cargo Ship.  Credit:  Wikimedia. 
FROM:  EXPORT-IMPORT BANK 
Ex-Im Bank Announces New Policy to Increase
U.S. Aviation-Industry Exports
WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) today announced a new policy to increase U.S. aviation-industry exports. Ex-Im will now finance transactions of U.S.-produced goods and services for aftermarket (post-manufacturing) use on foreign-manufactured aircraft.

The new policy will expand Ex-Im financing to benefit suppliers of many different products and services, including escape slides, flight simulators, entertainment systems and maintenance services.
Ex-Im Bank also may now consider support for exports by a U.S. small business to a foreign aircraft manufacturer.

Ex-Im policy will continue to prohibit the Bank from financing non-small-business sales of capital goods, services and major component sales to large-foreign-aircraft manufacturers.

“Upon careful consideration and review, we have determined that it is in the best interest of U.S. exporters, and small businesses in particular, for Ex-Im Bank to be able to finance aftermarket sales to airlines to outfit or service their foreign aircraft,” said Fred P. Hochberg, chairman and president of the Ex-Im Bank. “Airlines need to purchase parts and services for their aircraft, and we want them to buy American. This new policy will strengthen our support for the U.S. aviation industry, particularly for small businesses seeking to grow through exporting.”

Chairman Hochberg added that the Bank will continue its strong support for U.S aircraft export sales to meet tough global competition.

In fiscal year 2011, Ex-Im Bank authorized more than $12.6 billion in financing to support the export of U.S.-made aircraft of all types, including $10.8 billion in support of commercial aircraft sales to a total of 21 countries.

About Ex-Im Bank:

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 – an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country.

EX-IM BANK SIGNS AGREEMENT WITH BANCÓLDEX TO INCREASE U.S.-COLOMBIAN TRADE

Photo Credit:  Wikipedia 

FROM:  U.S. EXPORT-IMPORT BANK 

WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) and Bancóldex have signed a memorandum of understanding (MOU) to work together to facilitate trade between the United States and Colombia.

Ex-Im Bank and Bancóldex have agreed to exchange information on trade and business prospects that may present opportunities for cooperation, including expanding use of Ex-Im Bank financing by Colombian buyers for their purchases of U.S. goods and services.

Bancóldex is Colombia’s government-owned development and foreign trade bank. It functions as a secondary lender and focuses on entrepreneurship and foreign trade.

The MOU is a statement of general intent between Ex-Im Bank and Bancóldex to promote the availability of Ex-Im Bank financing to Colombian companies, particularly small and mid-sized businesses. Ex-Im Bank and Bancóldex will work together to share information and develop export-financing opportunities in key sectors, including infrastructure, environmental projects, medical equipment and transportation.

Ex-Im Bank Chairman and President Fred P. Hochberg and Bancóldex CEO Santiago Rojas signed the agreement today at Ex-Im Bank headquarters in Washington, D.C. Colombia’s deputy chief of mission to the United States, Nicholas Lloreda, attended the signing ceremony. Also attending was Bancóldex Risk Vice President Mauro Sartori.

“Colombia is one of the fastest-growing markets for U.S. goods and services in Ex-Im Bank’s portfolio, and it was our single-largest country market last fiscal year. We join Bancóldex in celebrating the entry into force of the historic U.S.-Colombia free trade agreement on May 15. Ex-Im Bank’s agreement with Bancóldex will further encourage opportunities for both countries. It will also strengthen our ability to reach more Colombian buyers and assist more U.S. exporters in tapping the potential of this emerging market,” said Ex-Im Bank Chairman Fred Hochberg.

Bancóldex CEO Santiago Rojas noted, “The free trade agreement will be an opportunity for both countries to increase their bilateral trade, which will have a positive effect on the competitiveness of each country as well as on the ability to generate employment in some sectors. The cooperation between Ex-Im Bank and Bancóldex will support the opportunities that the free trade agreement could bring to entrepreneurs.”

Colombia’s National Investment Plan for 2011-2014 calls for an investment of over $300 billion in infrastructure projects, a key focus area for Ex-Im Bank financing.

Chairman Hochberg conducted a business-development mission in Bogotá in August 2011, where he met with Colombia’s President Juan Manuel Santos and other government and business leaders. In December 2011, Ex-Im Bank hosted an event in Washington, D.C., “Infrastructure Opportunities in Colombia for U.S. Companies,” which was attended by representatives of more than 100 U.S. companies interested in doing business in Colombia.

Colombia is one of nine key markets (others are Brazil, Mexico, Turkey, South Africa, Nigeria, India, Indonesia and Vietnam) where Ex-Im Bank is focusing its business-development efforts. The Bank authorized more than $3.7 billion in support of U.S. exports to Colombia in FY 2011.