Export-Import Bank (EXIM Bank) of the United State intends to expand its operations in Pakistan to boost the bilateral trade between the two countries. Talking to a select group of journalists at the residence of US Consul General here Thursday, Raymond Ellis, Vice President EXIM Bank Global Business Development said the EXIM Bank supports the financing of US goods and services purchased by creditworthy international buyers that faced difficulty in obtaining credit through traditional financing sources.
"The bank offered term financing for international buyers of US capital goods or services and exists in Pakistan for last many years. It also provided funds for several projects particularly upgradation of PIA fleet," he added. He said the EXIM Bank's exposure in Pakistan has reached $650 million of which some $450 million have been provided to PIA, while the remaining has been funded for power plants and other projects.
Talking about his visit to Pakistan, Ellis said during the official visit, he met public and private sector representatives in Islamabad, Lahore and Karachi to explore new business opportunities and received very encouraging response from the Pakistani business community. The EXIM Bank has offered financing facilities to Pakistani public and private sector for different projects, he added. "We are here to market the bank's services and find new and potential business opportunities. During the visit, we discussed several new projects including further financing for PIA air fleet and new power plants," he added.
He said the EXIM Bank provides trade financing solutions including export credit insurance, working capital guarantees, and guarantees of commercial loans to foreign buyers to empower exporters of US goods and services. "Our flexible financing options are backed by the full faith and credit of the US government. With more than 80 years of experience, the EXIM Bank has supported the purchase of $717.9 billion in US exports world-wide," Ellis added.
Under medium-term financing, the EXIM Bank offers up to seven years repayment on sales under $10 million. Working capital guarantees enable small and medium-sized US exporters to obtain credit lines for the production of goods or services. Replying to a question on interest rate, he said the bank provides financing at lower cost with negotiated interest rates. "It is difficult to give a specific quote as interest rate is negotiable between lender and borrower and we used all modules such as floating and fixed rate for financing, but everything is always decided in a very transparent manner," he maintained.
He said the EXIM Bank provide US companies with export credit insurance that extends credit and protects against buyer non-payment. It also enables US companies to offer US-dollar credit directly to international customers. Cheryl Dukelow, Senior Commercial Officer was also present.