ExIm Bank: Trade finance solutions in a global crisis

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Ex-Im Bank Trade finance solutions in a global
crisis
Joe Grandmaison, Board of Directors
BAFT Africa Bank-to-Bank Forum1 July 2009
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Our Priorities in a New Environment

• Focus should be on NEW exports
• Preserve the Trade Finance infrastructure, which
  we rely on for new business
• Maintain our focus on Small Business
• Maintain our credit standards for reasonable
  assurance of repayment

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Enhancements to Address the Crisis

• Direct Lending
• increasingly attractive option given long term
  tenors available and a low CIRR rate
• US Govt. seen as stable and reliable source
  w/interest expected to increase
• As of April 2009, we have approved 15 direct
  loans compared to 2 last year

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Enhancements to Address the Crisis

• Short-Term Support
• 2.9 billion facility w/Korean banks
• Short-term insurance policies (exporter health)
  increased 15 for first 8 months of fiscal year
  2009 compared to first 8 months of fiscal year
  2008.
• Working Capital
• Modifications made to allow indirect exports to
  be financed
• Modified certain conditions to allow increased
  amounts and lower collateral position resulting
  in increased liquidity
• Working Capital has seen a 34 increase.

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Other Potential Support

• Encourage banks to use Ex-Im Banks balance sheet
• Lenders using capital markets to finance major
  export transactions
• Offering of a transfer or put option
• If the cost of funds for the Guaranteed Lender
  has increased significantly
• If there are persistent dislocations in the
  interbank of money markets