U.S. EX-IM BANK AND CANADA'S EDC SIGN CO-FINANCING AGREEMENT
The Export-Import Bank of the United States (Ex-Im Bank) and its Canadian counterpart, the Export Development Corporation (EDC), today signed a co-financing agreement that establishes a broad framework for Ex-Im Bank and EDC to support and promote export transactions involving both U.S. and Canadian firms. The agreement was signed by Ex-Im Bank Chairman James A. Harmon and EDC President and CEO A. Ian Gillespie.
Under the terms of the agreement, Ex-Im Bank and EDC agree to share risk under one financing package and provide support for transactions involving goods and services from both countries. The agreement covers insurance, loan guarantees and direct financing.
This is another step in the right direction by Ex-Im Bank to deliver the same type of flexibility offered by a number of ECAs. We hope that this cooperative agreement provides a model and paves the way for the financing of U.S.-Canadian projects in developing markets, said Harmon.
One of the most noticeable effects of globalization has been the increasing number of U.S. and Canadian companies working together on export transactions and projects, said Gillespie. This enhanced strategic partnership between EDC and Ex-Im Bank will help ensure that both Canadian and U.S. exporters are equipped with the trade finance tools necessary to ensure their competitiveness.
This is the second co-financing agreement signed by Ex-Im Bank with another export credit agency (ECA). The first agreement was sign in January with the Export Credits Guarantee Department (ECDG) of the United Kingdom.
EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation that operates as a commercial financial institution.
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. Ex-Im Bank supported $15.5 billion in U.S. exports in fiscal year 2000.