US Ex-Im Bank approves $250 million insurance program for Trade Bank of Iraq
The Board of Directors of the Export-Import Bank of the United States (Ex-Im Bank) approved insurance for up to $250 million in Letters of Credit to be issued by, or on behalf of, the Trade Bank of Iraq (TBI).
The insurance will be used to support trade financing from JPMorgan Chase Bank, as lead of the TBI's "Operating Consortium," and should help many US companies seeking to export goods and services to Iraq, stated a press release.
The Board's action was taken under Ex-Im Bank's new $500 million short- term insurance program for TBI. This program provides for bank letter of credit and financial institution buyer credit insurance policies that, in turn, allow US companies to be assured of payment for goods exported to Iraqi buyers.
Ex-Im Bank approved its TBI program on November 25, and it became effective on December 5, when Ex-Im Bank joined 15 other nations' export credit agencies in signing framework agreements with the Trade Bank and Coalition Provisional Authority (CPA).
The CPA established the TBI in July as an independent entity created to facilitate the reconstruction of Iraq by providing trade-financing services that Iraqi financial institutions are currently unable to offer. — (menareport.com)
© 2003 Mena Report (www.menareport.com)