BAFT, the international financial services association that is an ABA subsidiary, today joined the Financial Services Roundtable in urging Congress to reauthorize the U.S. Export-Import Bank before its charter expires at the end of June.
“Without Ex-Im Bank programs, private-sector lenders often could not provide reasonable financing terms, which would result in lost sales for clients,” BAFT and FSR said. “Many U.S.-based lenders have turned to Ex-Im for decades to mitigate geopolitical and collateral risk in an effort to retain and grow client relationships and to provide viable trade financing solutions for their corporate customers.”
Ex-Im enhances banker-client relationships, the groups added, and the private sector shares risks with Ex-Im. “Ex-Im complements rather than competes with private-sector lenders, and each transaction considered for support undergoes analysis by Ex-Im to determine whether an Ex-Im guarantee is necessary to facilitate the financing of the company’s export sales,” the said.