2015 was a rough ride for Ex-Im Bank, and ultimately it survived and continues to help U.S. exporters.
Fred Hochberg, Chairman of the Export-Bank of the United States (Ex-Im Bank), visited exporters and business leaders throughout the U.S. describing how the bank supports exports and jobs. This week his visits included General Rubber in Tucson, Arizona - with 80 employees - that relies on the bank's credit insurance. Chairman Hochberg also met up with leaders in Las Vegas, Tucson and Phoenix to share successes and challenges, and how we can further work together to advance exports.
Ex-Im Bank is the official export credit agency of the United States. Their mission is to assist in financing the export of U.S. goods and services to international markets. Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing).
Ex-Im Bank has supported more than $567 billion of U.S. exports in its 80 years, primarily to developing markets worldwide. In contrast, China has 4 primary export credit agencies, and one of them supplied the amount of money Ex-Im Bank has done in 80 years in the last 2 years.
Having the credibility of the government behind these capital guarantees carries weight across the world. U.S. exporters also know that if for some reason they are not paid by their customers, the Ex-Im Bank has more than the capability to pay them.
The default rate is extremely low... only 0.0175%.
Here are some key facts on Ex-Im Bank...
- Supported more than 164,000 jobs and US$27.5 billion in exports in fiscal year 2014.
- Generated a surplus ('negative subsidy') of $675 million that went back to U.S. taxpayers in 2014.
It's important to have checks and balances including oversight of the Ex-Im Bank to ensure continued success.
But there should be no question about the value the Ex-Im Bank has for U.S. exporting companies. It's an important tool in the tool chest that creates more trade and jobs.
The bank was up for reauthorization by the U.S. Congress in 2015. And at last it was!
Pictured... Fred Hochberg, Chairman of the Ex-Im Bank, and Mike Patterson, Shareholder at Polsineli.