Noting that many lenders turn to the U.S. Export-Import Bank to add balance sheet capacity and meet their customers’ needs, ABA’s global finance subsidiary BAFT today expressed its disappointment in Congress’ failure to reauthorize the Export-Import Bank before its charter expired last night.
“BAFT looks forward to swift congressional action in July to reauthorize the bank,” said BAFT President and CEO Tod Burwell. “Ex-Im plays a crucial role in boosting U.S. exports and supporting our economy, and there will be a significant gap in export finance for U.S. businesses without the continued, long-term operational support of this critical institution.”
Starting today, Ex-Im and its delegated authority lenders cannot authorize any new transactions. However, pre-existing loans, guarantees and insurance policies will continue in effect, and all previously approved transactions will close according to their terms. Ex-Im said it will manage all transactions in its portfolio until maturity.