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.
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