Ex-Im Bank President Puts 2011 Spending at $13.3 Billion
March 31, 2011
Vastopolis -- The U.S. Export-Import Bank projects that it will spend $13.3 billion this year to support U.S. exporters, up from nearly $12 billion last year, Martine Lindsay, the bank's president and chairman, said in an interview. He said that project-financing, a program that involves huge infrastructure deals, is expected to total $2 billion this year, about the same as in 2010. The program began in 2009, with the financing of two projects in the Philippines valued at about $350 million. Mr. Lindsay said one reason the bank may be hitting some limits on these giant projects is that exporters now are ``bumping against'' more difficult, less sophisticated markets, where such deals are harder to do. He said, for example, that government regulators have become more savvy and infrastructure is more developed in markets such as the Philippines and Indonesia, making it more hospitable for megadeals. Mr. Lindsay added, however, that conditions are more difficult in China, although its market potential is vast. ``We're working hard and constructively with China in particular to address these basic issues,'' he said. Mr. Lindsay met recently in Beijing with officials from China's Ministry of Electric Power, and said he was told that they were ``reorganizing'' the government's involvement in this sector. ``We're optimistic the results will be more positive'' for project-financing, he said. In addition to China, the Ex-Im Bank anticipates supporting other project-finance deals this year in Russia and Kazakhstan, Mr. Lindsay said. At the same time, Ex-Im Bank support for a program that aids mainly small-business exporters has grown to $360 million from $306 million last year, Mr. Lindsay said. The ``working capital guarantee program'' backs commercial banks in the U.S. that offer working-capital loans to businesses for pre-export costs, such as the funds needed to produce export goods or prepare them for shipment. About 70% of the bank's assistance under this program goes to small business. This year, Mr. Lindsay said, the Ex-Im Bank liberalized its collateral requirements in this program to include guarantees on the financing of exports of services, as well as products. The change, along with an expansion of the number of lenders participating in the program, ``will help the Ex-Im Bank leverage its resources and improve customer service to small business exporters,'' Mr. Lindsay said.
