What are the major programs of the U.S. Ex-Im Bank?

Question

What will be an ideal response?

Answer 1

The majority of Ex-Im Bank's resources are devoted to long-term financing. Its two major programs involve direct loans and financial guarantees. These programs facilitate the export of construction projects, such as power plants, and the production of other long-term capital goods, such as commercial aircraft and locomotives. Ex-Im Bank's medium-term programs primarily benefit the exporters of agriculture, construction, general aviation, mining, and refining equipment; its short-term programs primarily benefit producers of small manufactured goods, such as consumer goods and replacement parts.
Ex-Im Bank operates under a number of political and economic constraints. Its long-term loans are made directly to foreign borrowers wanting to purchase long-lived U.S. exports. The maturity of the credit cannot be longer than the economic life of the export good. The loans are denominated in dollars, and principal and interest must be repaid in dollars. Repayment typically occurs semi-annually, with the first payment due after delivery of the goods or start-up of the project.
Ex-Im Bank typically deals in amounts of $5 million or more, and all Ex-Im Bank loans are required to have "reasonable assurance of repayment." Ex-Im Bank consequently may require a foreign borrower to obtain an unconditional guarantee from its government or an internationally respected bank. Ex-Im Bank also requires a borrower to demonstrate that its project is technically feasible.