Several Pixstory Partners have asked us about the role the Ex-Im Bank, the official U.S. export credit agency (ECA), plays in providing assistance in the U.S. export market.  The focus of this Pixstory is to provide a quick view of how the Ex-Im bank operates, and the amount of their authorizations.  Briefly, the Ex-Im Bank, “provides financing and insurance to facilitate the export of U.S. goods and services to support U.S. jobs…It aims to provide support for U.S. exports when the private sector is unwilling or unable to do so and/or to counter foreign ECA financing. The Bank is demand-driven, fee-based, and backed by the U.S. government’s full faith and credit.

The following are key products offered by the Ex-Im Bank:
- “direct loans to foreign buyers of U.S. exports (interest rates are based on spreads set in international rules above U.S. Treasury rates);
- loan guarantees to lenders against default on loans to foreign buyers of U.S. exports (lender usually sets rate);insurance to protect U.S. exporters or financial institutions against export-related risks; and
- working capital guarantees of short-term loans.”
Over the next several months, the US Government will address policy issues related to the Ex-Im bank.  Some of these issues will include where are the gaps in private sector financing for exports, as well as options U.S. firms have to compete against foreign ECA-backed firms.