Purpose of Export-Import Bank
State the purpose of Export-Import Bank?
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Export-Import Bank or EXIM bank of United States was founded to be an independent government agency that facilitate and finance U.S. export trade. EXIM bank’s purpose is to offer does finance in conditions where the private financial institutions are not able or unwilling as:
a) Loan maturity was too long;
b) Amount of loan was really too large;
c) Loan risk was too great; and,
d) Where the importing firm had difficulty in obtaining the hard currency for payment. In order to meet its objectives, EXIM bank offers service through three types of programs: direct loans to the borrowers of foreign, loan guarantees, and the credit insurance.
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