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On Thursday, June 27, 2024, at 10:00 a.m. (ET) Subcommittee on National Security, Illicit Finance, and International Financial Institutions Chair Congressman Luetkemeyer and Ranking Member Congresswoman Joyce Beatty will host a hearing entitled, “The Role of the Export-Import (Ex-Im) Bank of the United States Amid Intensifying Economic Competition with China."
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Witnesses for this one-panel hearing will be:
• The Honorable Reta Jo Lewis, President and Chair of the Board of Directors, ExportImport Bank of the United States
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Background
Founded in 1934, the Export-Import Bank (Ex-Im) was organized by Franklin D. Roosevelt under the name Export-Import Bank of Washington. The stated goal was "to aid in financing and to facilitate exports and imports and the exchange of commodities between the United States and other Nations or the agencies or nationals thereof." The Bank's first transaction was a $3.8 million loan to Cuba in 1935 for the purchase of U.S. silver ingots. Ex-Im became an independent agency in 1945. The Bank’s name was changed to "Export-Import Bank of the United States" (Ex-Im Bank or the Bank) in 1968. Over the years, Ex-Im helped finance several historic projects including the Pan-American Highway, the Burma Road, and post-WWII reconstruction.
Today, Ex-Im is the official U.S. government export credit agency (ECA), with a mission to support U.S. jobs by financing and facilitating U.S. goods and services exports. Operating under a renewable, general statutory charter (Export-Import Bank Act of 1945, as amended; 12 U.S.C. §§635 et seq.), it aims to support the export of U.S. goods and services when the private sector is unwilling or unable to provide financing, and/or when U.S. exports compete overseas against exports from other countries backed by foreign ECAs. Ex-Im is backed by the full faith and credit of the U.S. government and strives to bolster and support American jobs.
In 2019, Congress extended the Bank’s general statutory authority for seven years, through December 31, 2026 (P.L. 116-94, Div. I, Title IV). Absent reauthorization, the Bank generally would be unable to approve new transactions, but it would be able to continue managing its existing financial obligations, and perform certain other functions for “an orderly liquidation.”
Ex-Im’s key authorities include, (1) direct loans to foreign buyers of U.S. exports (interest rates are based on parameters set in international rules); (2) loan guarantees to lenders against default on loans to foreign buyers of U.S. exports (lender usually sets rate); (3) insurance to protect U.S. exporters or financial institutions against export-related risks; and (4) working capital loans and guarantees, which are short-term, secured types of financing.
Ex-Im’s exposure tied to outstanding loans, guarantees, and insurance totaled $34.1 billion in FY 2023. According to its 2023 annual report, Ex-Im authorized a total of $8.8 billion (see Figure 1) in loan guarantees and insurance that supported an estimated $10.6 billion in U.S. export sales and an estimated 40,000 U.S. jobs. As a share of total authorizations, small business comprised 23 percent by dollar amount and 87.2 percent by number; and renewable energy comprised 10.4 percent and CTEP comprised 27.8 percent. (A transaction can support multiple mandates.) A Board quorum lapse (July 2015 to May 2019) previously constrained Bank financing.
Leadership
A five-member Board of Directors leads the Bank, with members Presidentially appointed and Senate confirmed, and no more than three from any one political party. The Bank’s President and First Vice President serve, respectively, as the Board’s Chair and Vice Chair. The Board requires a quorum of at least three members to conduct business, such as to approve transactions above a certain threshold, make policies, and delegate authority. The 2019 reauthorization provided alternative Board procedures in the event of a quorum lapse. The Board currently has four filled positions, including the President/Chair and First Vice President/Vice Chair; three terms expire in January 2025 and one in January 2027. By statute, an Advisory Committee and a SubSaharan Africa Advisory Committee support the Board. The Bank also has created advisory subcommittees on issues such as competition with China.
Council on China Competition & the China and Transformational Exports Program (CTEP)
The ten-member Advisory Subcommittee on Strategic Competition with the People’s Republic of China - or...
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Hearing page: democrats-financialservices.h...
26 июн 2024
