Date: 15/03/2019

Briefing Session on additional funding opportunities with OPIC/EXIM

AmCham member representatives gathered at a Briefing Session with experts from the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank of the United States (EXIM) to talk about their range of financial products, all of which help U.S. businesses expand into emerging markets, including loans and guaranties, political risk insurance and support for investment funds.

The Overseas Private Investment Corporation (OPIC) and the Export-Import Bank of the United States (EXIM) have a long tradition of helping U.S. businesses of all sizes invest in emerging markets, manage the risks associated with foreign direct investment, and foster economic development in those countries.

OPIC representatives talked about their broader mission. Operating in 60 countries around the world, they offer three types of basic products, covering areas such as political risk insurance, project finance and investment fund support. The range will be expanded in the fall as the agency transforms into the new U.S. Development Finance Corporation (DFC), which will increase opportunities to engage with companies in various markets.

The new DFC will bring equity authority, a higher investment cap, technical assistance and increased integration and coordination with the State Department and USAID, and will focus on low-income and lower-middle income countries.

The Export-Import Bank of the United States (EXIM) offers short-term and long-term insurance products. Short-term insurance provides cover for purchased debts with a maximum credit period of 360 days, while long-term individual insurance policies are offered on 18-year repayment terms for large-volume, medium and long-term export transactions, projects and foreign investments.

For buyers of credit insurance, the facility covers payment risks for loans granted by banks to foreign buyers or for the purchase of goods of Hungarian origin. The insurance covers claims arising from loan agreements, i.e. the granted loan amount and the interest.

For suppliers, credit insurance cover may be granted for buyers’ payment risk, risk of a letter of credit opened in the exporter’s favor, risk of promissory notes or payment risk on a bank guarantee. Supplier credit is ideal for exporters who require a bank loan for post-shipment finance.