EXIM engaged in numerous discussions with exporters, lenders and other EXIM stakeholders about the temporary lack of liquidity from the private sector as a result of the COVID-19 crisis. Foreign purchasers are having difficulty obtaining financing from the commercial markets, due to economic stresses. This difficulty is expected to persist as economic conditions remain uncertain.
EXIM determined that the foreign customers of U.S. exporters are expected to need several billion dollars in temporary, short-term bridge financing to enable them to acquire U.S. goods and services. In response to this need, the EXIM Bridge Financing Program was developed.
This program will enable exports to move forward, thereby assisting the economic recovery in the U.S. and abroad. At the same time, the Bridge Financing Program is designed to facilitate refinancing of these U.S. exports by the private sector, once private sector liquidity returns.
This measure will take effect and be available immediately, subject to the final determination of policies and procedures, as applicable, and will remain in place through April 30, 2021.
By offering the Bridge Financing Program to purchasers of U.S. exports, EXIM will:
- Support U.S. exports during this period of uncertainty;
- Facilitate the re-entry of private sources of financing as soon as possible; and
- Ultimately reduce the amount of EXIM supported long-term financing.
to find out more about the Bridge Financing Program.