Export-Import Bank of the United States (EXIM)

The Export-Import Bank of the United States (EXIM) is the official export credit agency of the United States. EXIM is an independent Executive Branch agency with a mission of supporting American jobs by facilitating the export of US goods and services. When private sector lenders are unable or unwilling to provide financing, EXIM fills the gap by equipping US businesses with financing tools to compete for global sales.

Because it is backed by the full faith and credit of the United States, EXIM assumes credit and country risks that the private sector is unable or unwilling to accept. The agency's charter requires that all transactions it authorises demonstrate a reasonable assurance of repayment. EXIM is listed in the Berne Union member directory as US EXIMBANK.

Mandate and institutional posture

EXIM states that it does not compete with private lenders. It levels the playing field for US goods and services facing foreign competition in overseas markets. Official materials frame the institution as a complement to commercial finance rather than a first instance commercial bank. Reasonable assurance of repayment, country availability and content policy compliance are recurring underwriting screens.

EXIM participation takes several institutional forms: federal insurance payable to an exporter, a working capital guarantee payable to a lender on a US exporter facility, or a medium and long term loan guarantee or direct loan supporting a foreign buyer of US capital goods and services.

Products for exporters and lenders

Export credit insurance covers exporters against commercial and political nonpayment risk after shipment on agreed credit terms. Policies may cover a single buyer, selected buyers or an export portfolio. Working capital loan guarantees back lender facilities so exporters can borrow against export related assets to fulfil orders. EXIM positions the working capital product as a guarantee to lenders that backs the borrower's debt rather than as a direct working capital loan from EXIM to the exporter.

Medium and long term loan guarantees assist US companies by guaranteeing financing to creditworthy foreign buyers for purchases of US capital goods and services. US companies receive payment at the time of shipment. Buyers in private and public sectors can obtain competitive term financing from lenders when it is otherwise unavailable, with terms generally up to 10 years. Finance leases can also be supported. EXIM also publishes direct loan and project and structured finance solutions for larger international buyer transactions in areas such as energy, infrastructure and capital equipment.

Published loan guarantee features include coverage for 100 percent of commercial and political risks on the guaranteed amount, an unconditional and transferable guarantee to the lender, local cost cover up to 40 or 50 percent, and an 85 percent guarantee with a 15 percent down payment required from the buyer. Principal and accrued interest are included. Guaranteed loans can be denominated in US dollars or other currencies and may carry fixed or floating rates. That structure is the classic US buyer credit export credit guarantee.

Eligibility constraints

Eligibility requirements for medium and long term guarantees include financing only US content under EXIM's content policy, country availability subject to the Country Limitation Schedule, restrictions on military or defence products and military buyers with limited exceptions, and shipment from the United States to a foreign buyer. There is no maximum limit to the size of the export sale that may be financed with a loan guarantee. Economic impact and environmental reviews apply to certain transactions before approval.

Those screens are institutional features of EXIM's mandate rather than optional conditions, and they remain in force regardless of which product name a given transaction sits under.

Export-Import Bank of the United States and Arrangement rules

The United States is a Participant in the OECD Arrangement on Officially Supported Export Credits. The Arrangement applies to officially supported export credits with a repayment term of two years or more and places limitations on repayment terms, minimum premium rates and minimum interest rates. EXIM medium and long term official support is framed by those disciplines, including the familiar 15 percent down payment and 85 percent official support pattern on buyer financing.

Short term insurance and working capital guarantees follow EXIM product rules and market complementarity practice. They are distinct documentation sets from Arrangement medium and long term buyer finance even when they sit under the same institutional mandate.

Boundaries

EXIM is not a grant agency and is not a commercial bank of first instance for working capital. It guarantees lender debt or insures defined nonpayment risk. Military and certain restricted market transactions remain outside support. Private market insurance and unguaranteed bank appetite still set the baseline for short term marketable risks where official support is limited.

The Export-Import Bank of the United States is therefore federal insurance, guarantee and official financing capacity for eligible US exports, used by exporters and banks under EXIM policies and OECD Arrangement disciplines for medium and long term official support.