The Export-Import Bank of the United States (Ex-Im) will open for business in Myanmar to help finance short-term and medium-term US export sales.
“The Export-Import Bank is sending a strong signal that we are committed to strengthening economic ties with Burma (Myanmar) as the nation continues its transition,” says Ex-Im Bank Board chairman and president Fred Hochberg. “After a diligent review, the Bank's Board reached this decision which will improve trade flows between our two countries and help reintegrate Burma (Myanmar) into the global economy. Furthermore, this decision will open an important new market for American exports and support American jobs.”
Ex-Im Bank can now provide export-credit insurance, loan guarantees and direct loans for creditworthy export sales to Myanmar starting February 6, 2014. Short-term insurance is available for sovereign transactions with repayment terms of 180 days or less, and up to 360 days for capital goods. Medium-term insurance, loan guarantees and loans are available for sovereign transactions with terms typically up to five years.
The bank’s working capital guarantees, which help US exporters or their suppliers to obtain funds to produce or buy goods or services for export, will be available to support exports to Myanmar as well.
The bank is also able to provide long-term support in Myanmar, provided there are financing arrangements that eliminate or externalize country risks, such as asset-backed financings and structures that earn revenues offshore in a third country.
Ex-Im Bank is an independent federal agency that creates and maintains US jobs by filling gaps in private export financing at no cost to American taxpayers. The bank provides a variety of financing mechanisms, including working-capital guarantees, export-credit insurance and financing to help foreign buyers purchase US goods and services.