WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has signed a framework agreement with the Brazilian development bank, Banco Nacional de Desenvolvimento Econômico e Social (BNDES), to seek opportunities for jointly promoting investments and projects in Brazil that will benefit US exporters and Brazilian companies.
“Brazil is one of the world’s most promising markets for US exporters. We are excited about this framework agreement with BNDES, which will help companies in both of our countries to realize the great potential of US-Brazilian trade,” said Ex-Im Bank chairman and president Fred P. Hochberg.
BNDES is a federal public company linked to Brazil’s Ministry of Development, Industry and Foreign Trade. Its goal is to provide long-term financing aimed at enhancing Brazil’s development.
Ex-Im Bank, an independent, self-sustaining federal-government agency, helps to create and maintain US jobs by filling gaps in export financing and strengthening US export competitiveness. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized US businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of US goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21% of total authorizations.
Ex-Im Bank approved $285 million for US exports to Brazil in fiscal 2009, including financing for US-made commercial aircraft, diesel locomotives and telecommunications equipment.
In February 2010, Ex-Im Bank authorized a $308 million medium-term credit guarantee facility under its $2 billion preliminary commitment to Brazil’s national oil company, Petrόleo Brasileiro S.A. (Petrobras). Under the facility, Ex-Im Bank will guarantee medium-term loans made by JP Morgan Chase in New York, N.Y., that will finance exports of US equipment and services to Petrobras. The financing is anticipated to assist significant sales from major US exporters and small-business suppliers.
As of the end of May 2010 (first eight months of fiscal 2010), the Bank authorized nearly $16.3 billion in loans, guarantees and insurance – a 50% increase over same period in fiscal 2009 and a 150% increase over the same period in fiscal 2008.