The Export-Import Bank (Ex-Im Bank) of the United States has approved a $500 million export insurance program to cover transactions with the new Trade Bank of Iraq, reported Washington File.
Ex-Im Bank's chairman Philip Merrill said that financing, pending congressional approval, would be available for US exporters selling the goods and services "necessary to help Iraq embark on the road to a secure, just and prosperous future."
Ex-Im Bank said the new program would provide coverage for transactions authorized by the Coalition Provisional Authority (CPA), Iraq's current administrative authority. The CPA established the Trade Bank of Iraq on July 17, 2003 to support Iraqi reconstruction.
Under the program, Ex-Im Bank will insure irrevocable letters of credit issued by the Trade Bank through Ex-Im Bank's letter of credit policies as well as repayment obligations of the Trade Bank in connection with short-term credits extended by an eligible bank through Ex-Im Bank's financial institution buyer credit policies.
Because Ex-Im Bank will treat transactions as sovereign, coverage will be available for 100 percent of the principal and interest.
As the official export credit agency of the United States, Ex-Im Bank helps finance the sales of US exports, primarily to developing markets, by providing guarantees, export credit insurance, and loans. In fiscal year 2002, Ex-Im Bank authorized financing to support nearly $13 billion of US exports. — (menareport.com)
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