The U.S. Export-Import Bank said it’s now open for business in Burma to help finance short-term and medium-term U.S. export sales.
"After a diligent review, the bank's board reached this decision — which will improve trade flows between our two countries and help reintegrate Burma into the global economy,” said Ex-Im Bank Board Chairman and President Fred Hochberg, in a statement.
Starting Feb. 6, Ex-Im Bank will provide export-credit insurance, loan guarantees and direct loans for creditworthy export sales to Burma. Short-term insurance is available for sovereign transactions with repayment terms of 180 days or less — up to 360 days for capital goods. Medium-term insurance, loan guarantees and loans are available for sovereign transactions with terms typically up to five years, the bank said.
Ex-Im Bank said its working capital guarantees, which help U.S. exporters or their suppliers to obtain funds to produce or buy goods or services for export, will be available to support exports to Burma as well.
In addition, the bank said it’s able to “provide long-term support in Burma, provided there are financing arrangements that eliminate or externalize country risks, such as asset-backed financings and structures that earn revenues offshore in a third country.”