Export-Import Bank Explainer Published: July 1, 2015 National Journal Presentation Credits Producer: Afzal Bari

Export-Import Bank Charter Expires What happens now? The bank helps foreign companies buy U.S. exports by making loans and guaranteeing other bank’s loans; it also provides trade receivables financing, allowing a U.S. company to get cash for money that foreign customers owe them What does ExIm do? The bank doesn’t actually close, but cannot take on new commitments (such as new loans or loan guarantees.) All existing loans, guarantees, and insurance policies remain valid. The bank is fully appropriated through fiscal year Because most countries have an “export credit agency”, EXIM’s closure puts U.S. exporters (and American jobs) at a competitive disadvantage The bank does not cost the taxpayer money; it self-finances from interest payments and often returns money to the Treasury Supporters say… Critics say… The bank distorts international markets and represents a form of corporate welfare with most of the funding helping large multinational corporations The bank hurts U.S. buyers even as it helps U.S. exporters, for example by lowering borrowing costs for foreign airlines that compete with U.S. airlines

Sources: Export-Import Bank of the United States, “About Us,” June 2015 U.S. Exporters Foreign Importers Of U.S. Goods Exports of U.S. Goods Direct loans An overview of two popular EXIM products Payment Loan payments (including fees and interest) Loan Loan guarantees (more common) U.S. Exporters Foreign Importers Of U.S. Goods Exports of U.S. Goods Payment U.S. Based Lender Loan payments Loan Guarantee / insurance against nonpayment