U.S. EX-IM BANK TO CHANGE LENDING POLICIES
The president of the Export-Import
Bank said the Bank was changing its lending policies to reflect
changing conditions in export financing.
    President John Bohn told a House Appropriations
subcommittee hearing commercial banks have largely withdrawn
from financing exports and export projects were becoming
smaller.
    "Exporters now need financing in riskier markets and on
deals which are smaller, take longer to put together and
close," Bohn said in his testimony. "Lenders, however, want
less risk, higher profit, transaction-oriented and less
labor-intensive activities.
    "It became clear to us the EXimbank must assume a broader
range of explicitly defined country and transaction risks than
it has previously. Programs and procedures need to be
simplified, streamlined and internally consistent," he said.
    Bohn said the Bank would focus on the needs of the middle
market product or service exporter and would have essentially
one loan program and one guarantee program for both medium-term
and long-term export transactions.
    "Both programs will provide up to 85 pct financing, the
maximum permitted under the OECD consensus. Eximbank loans will
carry the minimum interest rate allowed by the OECD rate
schedule for the market and the term," he said.
    Bohn said the Bank was requesting a limitation of 1 billion
dlrs for regular loan obligations, of which up to 200 mln dlrs
may be available as tied aid credits, and a limitation of 10
billion dlrs for guarantee and insurance commitments.
    He said the Bank would have to come back to Congress later
this year to discuss its capitalization needs.
 Reuter
