WASHINGTON, June 30 /PRNewswire-USNewswire/ -- The Export-Import Bank of the United States (Ex-Im Bank) announced that it has signed a framework agreement with the Brazilian development bank, Banco Nacional de Desenvolvimento Economico e Social (BNDES), to seek opportunities for jointly promoting investments and projects in Brazil that will benefit U.S. exporters and Brazilian companies.
Ex-Im Bank and BNDES agreed to strengthen their institutional ties and work together to identify specific programs, sectors, transactions and marketing efforts where each institution can contribute to expanding business opportunities in the United States and Brazil.
"Brazil is one of the world's most promising markets for U.S. 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 U.S.-Brazilian trade," said Ex-Im Bank Chairman and President Fred P. Hochberg.
"The agreement comes at a very opportune moment. Brazil's economy is growing at a very strong pace, and we have become an important player on the world stage, which brings new opportunities. We are certain we can work together and find ways to further increase our cooperation and commercial ties," said BNDES President Luciano Coutinho.
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. Since its establishment in 1952, BNDES has financed large-scale industrial and infrastructure operations and supported investments in agriculture, trade and service industries. BNDES has also supported public investments in education, health care, sanitation and public transportation.
Ex-Im Bank, an independent, self-sustaining federal-government agency, helps to create and maintain U.S. jobs by filling gaps in export financing and strengthening U.S. export competitiveness. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. 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 percent of total authorizations.
Ex-Im Bank approved $285 million for U.S. exports to Brazil in fiscal 2009, including financing for U.S.-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, Petroleo 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 U.S. equipment and services to Petrobras. The financing is anticipated to assist significant sales from major U.S. 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 percent increase over same period in fiscal 2009 and a 150 percent increase over the same period in fiscal 2008. For more information, see Ex-Im Bank's Web site at www.exim.gov.
SOURCE Export-Import Bank of the United States