The Export-Import Bank of the United States has pre-approved eleven Indonesian banks to receive expedited financing under a new one-billion-dollar bank facility to support U.S. exports to Indonesia. Ex-Im Bank Chairman and President Fred Hochberg announced the new facility June 18th at a meeting with Indonesia's Coordinating Ministry in Jakarta.
Mr. Hochberg said the new facility is expected to be "very attractive to borrowers because of the currently low rates and the fixed-interest rate options." The bank facility will support U.S. exports to Indonesia on short, medium and long repayment terms. Both public-sector and private-sector borrowers are eligible.
Applications for Ex-Im Bank, financing involving the eleven Indonesian banks can be approved by Ex-Im Bank's board of directors and senior officials through an expedited process because each bank has been pre-approved for credit up to an established limit per bank. Total financing under the facility could reach more than one billion dollars.
Ex-Im Bank, an independent, self-sustaining U.S. government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees, to help small and medium –sized U.S. business, 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 the first seven months of 2010, Ex-Im Bank has authorized nearly 15.2 billion dollars in loans, guarantees and insurance – more than twice the amount authorized in the same period in fiscal year 2009.
Indonesia is an important trading partner of the United States. U.S. exports to Indonesia in 2009 totaled more than 5 billion dollars. Indonesian exports to the U.S. came to over 12 billion dollars. The United States is committed to continuing to build its economic partnership with Indonesia.