WASHINGTON, Oct. 22, 2012 /PRNewswire-USNewswire/ -- The Export-Import Bank of the United States (Ex-Im Bank) has renewed a 12-month export credit insurance policy for Wells Fargo to enable the export of American cotton to a large textile firm in Turkey, Menderes Tekstil Sanayi ve Ticaret A.S.Ex-Im Bank's renewal of this policy will sustain jobs at Cargill Cotton, based in Cordova, Tennessee, and the Carolinas Cotton Growers Cooperative Inc., based in Garner, North Carolina.
Farm workers in at least fifteen U.S. farms will produce the cotton for export throughout the next year.Depending upon agricultural factors, and the precise qualities of cotton needed for various textiles, the cotton will be exported from a combination of farms in North Carolina, South Carolina, Tennessee, Virginia, and other states. Ex-Im Bank's support is expected to facilitate $15 million in sales of what these farms produce.
"Ex-Im insurance for this deal supports numerous American jobs in both agriculture and logistics," said Ex-Im Bank Chairman and President Fred P. Hochberg."In this instance, we saw an opportunity to sustain a mutually beneficial relationship.Our financing is good for American jobs, boosts American agriculture, and helps American banks to mitigate their risks in export transactions."
The instrument renewed in this transaction was a Financial Institution Buyer Credit (FIBC), allowing Wells Fargo Bank to extend revolving credit to the Turkish textile manufacturer so it can import American cotton.The Menderes Tekstil firm is the largest home textiles producer in Turkey, and one of the largest in the world.
The primary exporters benefiting from this FIBC policy have deep roots in American agriculture.Cargill Cotton was incorporated in 1930.Carolinas Cotton Growers Cooperative Inc. took shape in 1922 as a cooperative marketing association, and now wholly owns two subsidiaries, Cotton Growers Warehouses Inc. and Southeast Futures Management Inc.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 – an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.