The Export-Import Bank of the United States approved a $500 million short-term insurance facility to support the export of US goods and services to Iraq financed by the Trade Bank of Iraq (TBI), according to a bank press release.
As a result of the Ex-Im Bank action, the US has joined 15 other nations in signing framework agreements to provide more than two billion dollars in support for the Trade Bank's work in facilitating Iraqi reconstruction.
Ex-Im Bank's facility will utilize two of Ex-Im Bank's short term insurance products. Bank Letter of Credit Insurance Policies will insure letters of credit issued by the Trade Bank and confirmed by a commercial bank. This product provides comprehensive coverage to the confirming bank against the failure of the Trade Bank to pay the confirming bank under an irrevocable letter of credit.
Financial Institution Buyer Credit Insurance Policies will provide comprehensive coverage on short term credits extended to TBI by an insured bank. US exporters will receive payment under letters of credit issued by the insured bank. Certain provisions of the policywill be aligned to those of the Bank Letter of Credit policy.
Ex-Im Bank is an independent federal government agency that helps finance the sale of US exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2003, Ex-Im authorized financing to support approximately $14.3 billion of US exports worldwide. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
