Financing to Support U.S. Agricultural Exports to Iraq
WASHINGTON, July 21 /PRNewswire/ -- The Board of Directors of the Export-
Import Bank of the United States (Ex-Im Bank) has approved an insurance policy
for CoBank, ACB for up to $180 million in Letters of Credit to support U.S.
exports to Iraq.
The insurance will be used to support trade financing from CoBank, ACB, a
cooperative bank and part of the U.S. Farm Credit System. Under this policy,
Ex-Im Bank will support Letters of Credit issued by the Trade Bank of Iraq in
favor of U.S. exporters including Telwar International, Inc. of Brentwood,
Tennessee to purchase bulk agricultural commodities, including an estimated
$27 million a month in rice and wheat shipments.
"This financing will enable U.S. exporters to provide the Iraqi people
with large volumes of bulk agricultural commodities and other goods and
services on a timely basis", said Chairman Philip Merrill. "Ex-Im Bank remains
fully committed to supporting Iraq's reconstruction and is diligently working
to find new and creative financing solutions to meet Iraq's financing needs."
The Board's action was taken under Ex-Im Bank's $500 million short-term
insurance program for the Trade Bank of Iraq (TBI). This program provides for
bank letter of credit insurance policies, which provide assurance to U.S.
companies that they will receive payment for goods and services exported to
Iraqi buyers. On October 5, 2004, Ex-Im Bank, the Iraqi Ministry of Finance
and TBI signed an agreement that replaced a December 2003 agreement between
Ex-Im Bank, TBI and the Coalition Provisional Authority. This agreement
reflected the assumption last June of sovereignty by the Iraqi government and
enabled TBI to continue to access this $500 million facility.
Ex-Im Bank also can support U.S. exports to Iraq through its Working
Capital Guarantee Program under which it will consider applications to support
pre-export activities of subcontractors -- particularly small businesses --
operating under U.S. government-funded reconstruction projects. In addition,
Ex-Im Bank will consider applications for financing of U.S. exports to Iraq
under its loan guarantee, working capital, and credit insurance programs if
there is a creditworthy source of repayment in a third country.
Ex-Im Bank, the official export credit agency of the United States, is in
its 71st year of helping finance the sale of U.S. exports, primarily to
emerging markets throughout the world, by providing loan guarantees, export
credit insurance and direct loans. The bank has no minimum transaction size.
In fiscal year 2004, Ex-Im Bank authorized financing to support $17.8 billion
of U.S. exports worldwide. For more information on Ex-Im Bank's support for
Iraqi reconstruction, visit http://www.exim.gov/iraq.htm, or call
1-800-565-EXIM (3946) and press 2 for the Ex-Im Bank regional office nearest
you.
SOURCE Export-Import Bank of the United States
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Related links:
http://www.exim.gov
CONTACT:
Linda Formella of Export-Import Bank of the
United States, +1-202-565-3200
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