Attachment_J.2_Background.pdf

RFQ No. EXIM-14-Q-0052 J.2 Background Information

A. Management and Organization

The Export-Import Bank of the U.S. (Ex-Im Bank) is an independent executive agency and a wholly-owned U.S. government corporation that was first organized as a District of Columbia banking corporation in 1934. Ex-Im Bank's operations subsequent to September 30, 1991, are subject to the provisions of the Federal Credit Reform Act (FCRA) of 1990 (P.L. 101-508).

Congress periodically reauthorizes Ex-Im Bank. The Ex-Im Bank Reauthorization Act of 2006 (the Charter) extended the Bank’s authority until September 30, 2011.

Ex-Im Bank is an organization with a nationwide presence. Ex-Im Bank’s headquarters is located in Washington, D.C., with business development efforts supported through eight regional offices across the country.

Ex-Im Bank’s mission statement is as follows: The Export-Import Bank of the United States is the official export-credit agency of the United States. Ex-Im Bank supports the financing of U.S.

goods and services in international markets, turning export opportunities into actual sales that help U.S. companies of all sizes to create and maintain jobs in the United States.

Ex-Im Bank assumes the credit and country risks that the private sector is unable or unwilling to accept. Ex-Im Bank also helps U.S. exporters remain competitive by countering the export financing provided by foreign governments on behalf of foreign companies. More than 80 percent of Ex-Im Bank’s transactions in recent years have been made available for the direct benefit of U.S. small businesses.

Ex-Im Bank is divided into the following key functional areas:

Board of Directors. The Board of Directors consists of the president of the Bank, who also serves as the chairman, the first vice president of the Bank, who serves as vice chairman, and three additional directors. All are appointed by the president of the United States with the advice and consent of the Senate. The Board authorizes the Bank’s major transactions and includes an Audit Committee.

Office of the President/Chairman. The president serves as the chief executive officer of the Bank and chairman of the Board of Directors. The president represents the Board generally in its relations with other officers of the Bank, with agencies and departments of the government, and with others having business with the Bank. The president has general charge over the business of the Bank.

Credit Management Group. The Credit Management Group is responsible for reviewing the creditworthiness of proposed transactions, evaluating the engineering aspects and environmental impact of proposed projects, and for developing and maintaining the Bank’s credit policies including conducting post approval reviews of transactions.

Export Finance Group. The Export Finance Group is responsible for the origination of proposed transactions for all products, services and for operations.

Small Business Group. The Small Business Group leads the Bank’s outreach to small business exporters and includes Ex-Im Bank’s eight regional offices, which exclusively focus on small-business outreach.

Office of the General Counsel. The Office of the General Counsel provides legal counsel to the Bank’s management and the Board of Directors and negotiates and documents the Bank’s major transactions. The Office of the General Counsel also ensures that the Bank complies with all applicable laws and regulations.

Office of the Chief Financial Officer. The Office of the Chief Financial Officer is responsible for all financial operations of the Bank, including budget formulation and execution, treasury, internal audit, credit accounting and servicing, asset monitoring and management, claims and recoveries, and portfolio review.

Office of Policy and Planning. The Office of Policy and Planning is responsible for policy development and analysis as well as liaison with the Organization for Economic Cooperation and Development (OECD) and Berne Union.

Office of Resource Management. The Office of Resource Management directs human resources, contracting, technology management, agency administration, and operating services.

Office of Communications. The Office of Communications is responsible for marketing, public affairs, and external affairs.

Office of Congressional Affairs. The Office of Congressional Affairs is responsible for the Bank’s relations with Congress.

Office of Inspector General. The Office of Inspector General (OIG) is an independent office within the Bank created by law to conduct and supervise audits, inspections, and investigations relating to the Bank’s programs and supporting operations; to detect and prevent waste, fraud, and abuse; and to promote economy, efficiency, and effectiveness in the administration and management of the Bank’s programs.

B. Ex-Im Bank Programs

Ex-Im Bank’s mission is to support U.S. exports by providing export financing through its loan, guarantee, and insurance programs in cases where the private sector is unable or unwilling to provide financing or where such support is necessary to level the playing field due to financing provided by foreign governments to their exporters that are in competition for export sales with U.S. exporters. In pursuit of its mission of supporting U.S. exports, Ex-Im Bank offers four financial products: direct loans, loan guarantees, working capital guarantees, and export credit insurance.

Direct Loans. Ex-Im Bank offers fixed-rate loans directly to foreign buyers of U.S. goods and services. Ex-Im Bank extends to a company’s foreign customer a fixed-rate loan covering up to 85 percent of the U.S. contract value. Ex-Im Bank's direct loans carry the lowest fixed-interest rate permitted for the importing country and term under the Arrangement on Guidelines for Officially Supported Export Credits negotiated among members of the Organization for Economic Cooperation and Development.

Loan Guarantees. Ex-Im Bank loan guarantees cover the repayment risks on the foreign buyer’s debt obligations incurred to purchase U.S exports. Ex-Im Bank guarantees to a lender that, in the event of a payment default by the borrower, it will pay to the lender the outstanding principal and interest on the loan. Ex-Im Bank’s comprehensive guarantee covers commercial and political risks for up to 85 percent of the U.S. contract value.

Loans and guarantees extended under the medium-term loan program typically have repayment terms of one to seven years, while loans and guarantees extended under the long-term loan program usually have repayment terms in excess of seven years.

Working Capital Guarantees. Under the Working Capital Guarantee Program, Ex-Im Bank provides repayment guarantees to lenders on secured, short-term working capital loans made to qualified exporters. The working capital guarantee may be approved for a single loan or a revolving line of credit. Ex-Im Bank’s working capital guarantee protects the lender from default by the exporter for 90 percent of the loan principal and interest.

Credit Insurance Program. Ex-Im Bank’s Export-Credit Insurance Program helps U.S. exporters sell their goods overseas by protecting them against the risk of foreign-buyer or other foreign-debtor default for political or commercial reasons, allowing them to extend credit to their international customers. Insurance policies may apply to shipments to one buyer or many buyers, insure comprehensive (commercial and political) credit risks or only political risks, and cover short-term or medium-term sales.

For further information on Ex-Im Bank Bank’s mission and products, refer to http://www.exim.gov/

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http://www.exim.gov/