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Ex-Im Bank and NEXI Sign Co-Financing Agreement to Facilitate Global Trade

Strategic Insights

— 2 min read

The Export-Import Bank of the United States (Ex-Im Bank) and its Japanese counterpart, Nippon Export and Investment Insurance (NEXI), have signed a co-financing agreement to facilitate export transactions between companies in the United States and Japan. The agreement will enable Ex-Im Bank and NEXI to provide "one-stop" trade-finance services to buyers in third countries purchasing both U.S. and Japanese goods and services. This partnership aims to benefit businesses and workers in both countries by enabling them to compete more effectively in high-value, multi-source transactions.

Key Takeaways:

  • The Ex-Im Bank and NEXI have signed a co-financing agreement, which is the fourth such agreement concluded by the Ex-Im Bank.
  • The agreement will facilitate export transactions involving companies in the United States and Japan by providing "one-stop" trade-finance services to buyers in third countries.
  • The two nations' export credit agencies (ECAs) will share risk under one financing package, creating administrative efficiencies for foreign buyers.
  • This partnership aims to benefit businesses and workers in both countries by enabling them to compete more effectively in high-value, multi-source transactions.
  • The Ex-Im Bank has concluded co-financing agreements with three other ECAs, including the Export Credits Guarantee Department (ECGD) of the United Kingdom, the Export Development Corporation (EDC) of Canada, and Servizi Assicurativi del Commercio Estero (SACE) of Italy.
  • NEXI has concluded co-financing agreements with seven other ECAs, including SACE, Office National du Ducroire/ Nationale Delcrederedienst (OND) of Belgium, Atradius of the Netherlands, Hermes Kreditversicherungs-Aktiengesellschaft (Hermes) of Germany, Oesterreichische Kontrollbank Aktiengesellschaft (OeKB) of Austria, Compagnie Francaise d'Assurance pour le Commerce Exterieur (Coface) of France, and Export Credit Insurance Corporation of Singapore Ltd. (ECICS).
  • NEXI is a Japanese independent administrative institution established in April 2001 to provide trade and investment insurance services.
  • In fiscal year 2003, NEXI's underwritings reached 11.1 trillion yen.
  • The Ex-Im Bank has authorized financing to support $US14.3 billion of U.S. exports worldwide in fiscal year 2003.

Statistics:

  • 70th anniversary of Ex-Im Bank, established to help finance the sale of U.S. exports.
  • $US14.3 billion: the amount of U.S. exports supported by Ex-Im Bank in fiscal year 2003.
  • 11.1 trillion yen: NEXI's underwritings in fiscal year 2003.
  • 7: the number of co-financing agreements concluded by NEXI with other ECAs.
  • 4: the number of co-financing agreements concluded by Ex-Im Bank.

Sources:

  • Export-Import Bank of the United States
  • Nippon Export and Investment Insurance (NEXI)

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