Export Import Banks of US: The Ex-Im 70 years Experience in Aiding American Exports

In the United States, the official credit agency for export and import is the Export - Import Bank of the United States or the Ex-Im Bank which is the government agency tasked to assist, in terms of financial assistance, the export of goods and services of the United States to various international markets. Unlike most export credit agencies, the Ex-Im is not a competitor for any other private lenders but rather a support agency that is created to fill in the gaps in the financial trade such as country and credit risks that most private lenders are afraid to venture into. Other than that, the Ex-Im provides companies in the United States, whether small-scale or large scale companies, the financing to avail the opportunities in export and maintain a stable business that is able to create jobs for the US economy. The company basically levels the playing field for all who are into export business in the United States and matches whatever financial assistances that other governments provide to its exporters. The Ex-Im Bank has over 70 years of financial assistance experience and has provided for more than 400 billion US dollars of financial export credit assistance to US business for which 85 percent are small businesses.

Essentially, the Ex-Im Bank facilitates financing in cooperation with other credit agencies for export businesses through a one-stop-shop scheme in order to allow the products as well as the services of different countries the advantage of a single export credit agency package. In the local arena, the Ex-Im bank can provide to around 15 percent of the total value of the US export goods and services and subject to export restrictions under the laws of the United States. This includes the restrictions on the financing of articles and services for defense particularly those that would be sold to a particular military organization or those items that are designed primarily for the military use. In terms of nuclear goods and services, the bank through its Board of directors is allowed to make their sound judgment on the benefits and the risks involved in a particular transaction. Judgment should take into consideration the need to maintain export competitiveness in the international market and at the same time the adverse environmental effects of a particular transaction. Likewise, the guidelines prohibit the export of goods supported by the Ex-Im to be transported by any vessel other than a US vessel to help maintain the US marine commerce as well.

The Bank strives to promote healthy and ethical export business such that recently, the Ex-Im in a Press Release dated 01 May 2008, showed how firm they are to combat fraud when it comes to the rules and regulations governing financing transaction. The report revealed that a Texas businessman and owner of the San Antonio Trade Group Incorporated was arrested and was indicted for charges of wire fraud, conspiracy, money laundering, tax charges and false statements filed by the Ex-Im Bank and many other private lenders. It was reported that Andrew Parker, owner, stole millions of loan proceeds of Mexican business proprietors from several US lenders which was insured and guaranteed by Ex-Im and which caused the bank multi million dollar losses. Towards this end, the Ex-Im announced that it will make necessary steps together with the US law enforcement agencies to combat any other future attempt to defraud the US government.

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