Why Do We Need US Ex-Im Bank?

By Dr. Robert Brown, NADEC Chair Emeritus

US Exim Bank helps US companies export:

  • Provides financing for US exports
    • Export Credit Insurance: assigns foreign receivables to US lenders
    • Working Capital Guarantee: covers standby letters of credit
    • Term Financing for goods and related services
  • Financing may be too expensive in overseas markets. For instance, in Argentina local borrowing costs are about 60%. US Ex-Im Bank can provide financing at 8.5%.
  • Can finance up to 95% of export value for credit insurance
  • Gives US exporters longer period to repay – up to 18 years for term financing
  • Even the smallest companies can benefit from Ex-Im Bank support. No company or deal is too small.
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