“The past year at EXIM has been one marked with unprecedented challenges and monumental successes. Through it all, our talented and diverse EXIM team stayed focused on our vision: ‘Keeping America Strong: Empowering U.S. businesses and workers,’” said EXIM President and Chairman Kimberly A. Reed.
WASHINGTON (PRWEB) January 22, 2021
The Export-Import Bank of the United States (EXIM) today released to the United States Congress and to the American people its full fiscal year (FY) 2020 Annual Report, which reports the agency’s authorizations and financial condition as of the close of FY 2020 as well as providing additional data and information about EXIM’s activities in FY 2020 and in the first quarter of FY 2021.
The 2020 Annual Report—entitled “All America” for the agency’s priority initiative on reaching, educating, informing, and supporting small business across the United States—covers EXIM’s achievements in implementing reforms and policies to increase U.S. competitiveness in global markets, supporting U.S. companies during the COVID-19 pandemic, fulfilling small business and other Congressional mandates, and expanding U.S. exports to sub-Saharan Africa.
The Report also provides an update on the EXIM’s Program on China and Transformational Exports (China Program), which was mandated by the U.S. Congress in the agency’s historic 2019 reauthorization and is one of the most significant initiatives in the 87-year history of EXIM.
Important reforms and policy changes implemented in FY 2020 and in the first quarter of FY 2021 include updating the agency’s “additionality” (the likelihood that a transaction would not go forward without EXIM’s support) and economic impact procedures, as well as establishing a narrowly-tailored content policy specific to the agency’s new China Program.
“The past year at EXIM has been one marked with unprecedented challenges and monumental successes. Through it all, our talented and diverse 515-person EXIM team stayed focused on our vision: ‘Keeping America Strong: Empowering U.S. businesses and workers.’ Throughout the challenging COVID-19 pandemic, we worked successfully to level the playing field for American employers and their employees in the tremendously competitive global marketplace in order to make America’s great ‘Made in the USA’ goods and services more available to customers throughout the world,” said EXIM President and Chairman Kimberly A. Reed. “EXIM’s 2020 Annual Report illustrates our successes and commitment to implementing reforms and to making the policy adjustments needed to enhance America’s competitiveness abroad while protecting the U.S. taxpayer.”
EXIM’s 2020 Annual Report details the agency’s FY 2020 total authorizations and breakdowns of support. The agency’s total authorizations were somewhat lower in FY 2020 for two primary reasons. First, the COVID-19 pandemic and the global economic slowdown disproportionately affected key sectors of the U.S. economy (e.g., aviation) that historically have utilized EXIM’s long-term financing. Second, the lingering effects of the four-year lapse in the EXIM Board quorum from July 2015 to May 2019 discouraged U.S. export opportunities and applications for the agency’s support for large deals that typically require several years to be developed. EXIM’s small business support remained a top priority and relatively steady in FY 2020.
Highlights of the 2020 Annual Report include the following:
- EXIM authorized $5.4 billion of loan guarantees, export credit insurance, and direct loans in support of an estimated $10.8 billion of U.S. export sales and an estimated 37,000 jobs.
- EXIM’s small business authorizations totaled more than $2.0 billion, representing 38.6 percent of total authorizations—exceeding the agency’s charter requirement of 25 percent. Transactions that directly benefited small business exporters were nearly 89 percent of total transactions.
- EXIM authorized $335.4 million for minority- and women-owned businesses.
- As of the FY 2020 year-end on September 30, 2020, EXIM’s quarterly default rate was 0.819 percent, well under the “below 2 percent” cap established in EXIM’s Charter in 2015.
For more information, see the fact sheet summarizing highlights of the 2020 Annual Report.
The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth and keeps America strong by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt. Learn more at http://www.exim.gov.