EXPORT-IMPORT BANK OF THE UNITED STATES

New Opportunities for U.S. Companies Exporting to Pakistan:
Ex-Im Bank Open up to Five Years for Private Sector Transactions

 

The Export-Import Bank of the United States (Ex-Im Bank) now offers financing support in the short-and medium-term to the private sector in Pakistan, in addition to being fully available for short-, medium- and long-term transactions in the public sector.

This broadened Ex-Im Bank cover policy means U.S. exporters and Pakistan’s private-sector buyers can receive financing support from Ex-Im Bank for transactions with up to five year repayment terms – in the form of loan guarantees, export credit insurance, and direct loans.

Short-Term Support: Up to one-year repayment terms; political risk coverage equivalent to 100 percent of contract value; and 90 to 95 percent coverage for commercial risk.

Export credit insurance enables U.S. exporters to extend trade credit directly to Pakistani buyers by covering exporters against both political and commercial risk. Applications to Ex-Im Bank for credit insurance must come from a U.S. exporter. Export credit insurance supports the importation of U.S. goods and services, including raw materials, semi-manufactured, and finished goods.

Primary benefits include “open account” credit, an attractive substitute to letters of credit; lower costs through reduced interest charges and fees; and available coverage for purchases of bulk commodities, consumer goods, spare parts, and other products.

Medium-Term Support: Up to five-years repayment terms for transactions less than $10 million, providing coverage up to 85 percent of the U.S. contract value.

Ex-Im Bank medium-term credit insurance works much like short-term credit insurance and enables U.S. exporters to extend trade credit for up to five years. Ex-Im Bank guarantees the repayment of medium-term loans extended by commercial lenders to Pakistani buyers of U.S. exports. Loan guarantees help both the private- and public-sector buyers in Pakistan obtain competitive financing for the purchase of U.S. goods and services.

Primary benefits include quick turnaround; coverage for purchases of both capital goods and services; attractive interest rates; and flexible repayment schedules.

Export-Import Bank

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. In fiscal year 2004, Ex-Im Bank authorized financing to support $17.8 billion of U.S. exports worldwide. For more information, visit www.exim.gov.

Contact Information

U.S. firms interested in further information on Ex-Im Bank financing should contact an Ex-Im Bank regional office or Charles Barnett in International Business Development at 202.565.3928, fax: 202.565.3961, or Charles.Barnett@exim.gov. Please visit the Ex-Im Bank website for more information and a listing of Ex-Im Bank regional offices: www.exim.gov.