06 October 2004
Export-Import Bank Renews Agreement Insuring Exports to Iraq
Agreement provides up to $500 million in export credit insurance
The Export-Import Bank of the United States (Ex-Im Bank) has updated its framework agreement with the Trade Bank of Iraq to reflect the transfer of sovereignty in Iraqi financial affairs from the Coalition Provisional Authority (CPA) to the Iraqi Ministry of Finance.
This agreement facilitates Iraqi access to U.S. export goods. "Ex-Im Bank is pleased to establish a formal working relationship with the government of Iraq, and we look forward to financing U.S. exports to help Iraq rebuild," Ex-Im Bank Chairman Philip Merrill said in an October 5 news release.
The agreement extends the trade facilities established under an earlier accord that provided up to $500 million in credit insurance for banks and companies financing exports through the Trade Bank of Iraq.
"This is an important step for Iraq in re-establishing its trade and financing relationships around the world as they rebuild their economy," said Merrill. He added that he hopes to see more countries join the United States in providing export credit facilities to the new Iraqi government.
Following is the text of the Ex-Im Bank news release:
(begin text)
OCTOBER 5, 2004
Contact: Andrew Yarrow (202) 565-3200
EX-IM BANK, IRAQIS SIGN TRADE FINANCING AGREEMENT
WASHINGTON, DC - The Export-Import Bank of the United States (Ex-Im Bank), the Iraqi Ministry of Finance, and the Trade Bank of Iraq signed a framework agreement today that enables Ex-Im Bank to continue to support U.S. exports for Iraqi reconstruction.
The agreement replaces an agreement concluded last December between Ex-Im Bank, the Trade Bank, and the Coalition Provisional Authority (CPA), and reflects the assumption last June of sovereignty by the Interim Government of Iraq.
"Ex-Im Bank is pleased to establish a formal working relationship with the government of Iraq, and we look forward to financing U.S. exports to help Iraq rebuild," Ex-Im Bank Chairman Philip Merrill said. "This is an important step for Iraq in re-establishing its trade and financing relationships around the world as they rebuild their economy. Just as the export credit agencies (ECAs) of 15 other nations joined us in signing framework agreements in December, we continue to see this as a multilateral effort and look forward to other ECAs developing similar agreements."
Iraqi Finance Minister Adil Abdel-Mahdi, Trade Bank Chairman and President Hussein Al-Uzri, and Merrill signed the agreement at Ex-Im Bank's Washington, D.C., headquarters.
The Trade Bank was established in July 2003 to provide trade-financing services to facilitate Iraqi reconstruction and benefit the economy of Iraq. In November 2003, Ex-Im Bank approved a $500 million short-term insurance facility to support the export of U.S. goods and services to Iraq financed by the Trade Bank. Renewal of the framework agreement will allow the Trade Bank to continue to access this $500 million facility.
Under today's agreement, Ex-Im Bank can support U.S. exports to Iraq using two of its short-term insurance products:
-- Bank Letter of Credit Insurance Policies: Ex-Im Bank 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: Ex-Im Bank will provide comprehensive coverage on short-term credits extended to the Trade Bank by an insured bank. U.S. exporters will receive payment under letters of credit issued by the insured bank. Certain provisions of the policy (reporting and claim filing periods) will be aligned to those of the Bank Letter of Credit policy.
Ex-Im Bank, the official U.S. export credit agency, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2003, the Bank authorized financing to support $14.3 billion of U.S. exports. For more information, visit www.exim.gov.
(end text)
(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
This page printed from: http://usinfo.state.gov/xarchives/display.html?p=washfile-english&y=2004&m=October&x=20041006173201ndyblehs0.6214411&t=livefeeds/wf-latest.html
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