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The fiscal year 2003 budget request would fully fund our export financing programs, said Ex-Im Bank Vice Chairman Eduardo Aguirre, Jr. We are going to be able to do more export financing for less due to changes in the government-wide methodology for estimating default costs for international loans.

Ex-Im Bank's financing commitments for the current fiscal year are anticipated to be $10.4 billion requiring $727 million of program budget. For FY2003, Ex-Im Bank anticipates $11.5 billion of financing commitments requiring $541 million of program budget. The lower level of program budget needed for a higher level of financing support in FY2003 is due to changes made by the Office of Management and Budget in the methodology used to establish the budget cost of international credits throughout the federal government. Until this budget, OMB used average interest rates charged by private investors to foreign borrowers as a measure of risk. The new method improves on the old by isolating the costs of default.

Ex-Im Bank projected the increase in export financing authorizations to $11.5 billion in FY2003 based on a careful analysis of potential demand for the Bank's direct loan, guarantee and insurance programs.

Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports primarily to emerging markets throughout the world by providing loans, guarantees and insurance. In fiscal year 2001, Ex-Im Bank authorized $9.2 billion in financing which supported $12.5 billion of U.S. exports worldwide.