Export-Import Bank: Key Factors in Considering Eximbank Reauthorization
by U. S. Government Accountability Office
The Export-Import Bank of the United States, commonly called Eximbank and is an independent Federal agency of the government of the United States. The purpose of this bank is to encourage export of U.S. products and services, making domestic exporters more competitive in foreign markets and through the financial services it provides.
Eximbank lends money, in some cases to those who purchase U.S. export products. The repayment of loans are guaranteed by Eximbank to those commercial banks that have financed such export activities. It provides long-term loans to foreign borrowers who want to purchase U.S. products such as industrial equipment and guarantees export credits give by U.S. exporters to foreign purchasers against potential defaulted loans. It also provides insurance on credit that exporters have extended on foreign purchase. Credit transactions that involve the bank require that there is reasonable belief the repayment will be made in U.S. dollars.
Originally it was authorized to have outstandings loans not exceeding $700,000,000, but the Export-Import Bank Act of 1945 increased this amount to $3,500,000,000 as a means to promote trade after the war.The 1960's American People's Encyclopedia states, "Capital stock in the amount of $1 billion and outstanding loans, guaranties, and insurance in an aggregate amount not to exceed $5 billion were authorized. Management of the bank is vested in a five-man board of directors appointed by the President with advise and consent of Senate. The board is bipartisan; no more than three directors may belong to the same political party." According to 1991 Grolier Encyclopedia, Vol. 7, pp. 181, the Export-Import Bank was authorized to have up to forty billion outstanding loans at any given time in form of loans, guarantees and insurance for which purpose it employs a capital stock of one billion and may borrow up to six billion from the U.S. Treasury.
Congress provided that the policy of the bank should be to supplement and not compete with private capital and that generally, loans be for specific purposes and offer reasonable assurance of repayment.
This bank was organized as a District of Columbia banking corporation and founded in 1934 as a temporary measure, to facilitate U.S. exports and to aid in their financing, and has authorized billions in assistance for exports. It was formally established as a permanent independent agency of the United States in 1945 by an act of Congress. Its headquarters are located in Washington, DC and operated by a board of five directors, one of which is the Secretary of State and four full time directors who are appointed by the President and subject to Senate approval.
( ik-spuŋj′ )
v.t. [EXPUNGED (-spunjd′) EXPUNGING, EXPUNGES]
[L. expungere strike out; ex-out + pungere to prick, strike].
- Wipe away; blot, strike out, erase, delete, cancel, efface.
- Complete obliteration, annihilate.
( iks-presh′ən-lis )
- The lack of expression.
( iks-pres′ə-bʼl )
- That can be expressed.
( ik-spound′ )
v.t. [EXPOUNDED, EXPOUNDING, EXPOUNDS].
[ME expounden, expounen < AN espoundre < OFr. expondre < L. exponere to put forth, expose, expound; ex-, out + ponere, to place].
- To provide a detailed statement of; set forth point by point.
- Presenting indepth detail to explain. To make clear; plain, to interpret, clarify.
- Construction of a detailed statement. Such as was expounding on the topic of her final paper.