$180 million Ex-Im Bank insurance policy approved for Trade Bank of Iraq (21/07/05)

The Board of Directors of the Export-Import Bank of the United States (Ex-Im Bank) has approved an insurance policy for CoBank, ACB for up to $180 million in Letters of Credit to support US exports to Iraq.

The financing will enable exporters to provide Iraq with large volumes of goods

The insurance will be used to support trade financing from CoBank, ACB, a cooperative bank and part of the US Farm Credit System. Under this policy, Ex-Im Bank will support Letters of Credit issued by the Trade Bank of Iraq (TBI) in favor of US exporters including Telwar International, Inc. of Brentwood, Tennessee to purchase bulk agricultural commodities, including an estimated $27 million a month in rice and wheat shipments.

"This financing will enable US exporters to provide the Iraqi people with large volumes of bulk agricultural commodities and other goods and services on a timely basis," Chairman Philip Merrill said.

The Board's action was taken under Ex-Im Bank's $500 million short-term insurance program for the TBI. This program provides for bank letter of credit insurance policies, which provide assurance to US companies that they will receive payment for goods and services exported to Iraqi buyers.

Ex-Im Bank also can support US exports to Iraq through its Working Capital Guarantee Program under which it will consider applications to support pre-export activities of subcontractors, particularly small businesses operating under US government-funded reconstruction projects. In addition, Ex-Im Bank will consider applications for financing of US exports to Iraq under its loan guarantee, working capital, and credit insurance programs if there is a creditworthy source of repayment in a third country.

Source: Iraq Revenue Watch