As of July 1, 2015, the Export-Import Bank (the Bank), the official export credit agency of the US, is no longer authorized to enter into new transactions. Before it expired, the Bank was authorized under the Export-Import Bank Act of 1945, as amended (Public Law, 79-173; 12 U.S.C. § 635 et seq.) to:

Until its charter is renewed, the Bank cannot authorize any new transactions. But all preexisting loans, guarantees and political insurance policies will continue in full force and effect. The Bank will also continue to manage all transactions in its portfolio until maturity, including issuing waivers and amendments (other than those which increase the Bank’s exposure).

Supporters of the Bank argue that it is needed to facilitate US exports, help US manufacturers compete with China and European countries and increase US influence in developing countries. But in recent years the Bank has come under attack from certain members of Congress who see it as a form of corporate welfare that advantages certain favored companies. As a result, the Bank has been receiving a series of short-term extensions, the last of which expired on June 30, 2015 (see Article, US Project Finance: Key Developments and Trends from 2014 and the Outlook for 2015 and Legal Update, Obama Signs Export-Import Bank Reauthorization Bill).

For more information on ECAs and their role in cross-border transactions, see Practice Notes, Project Finance: Sources of Available Financing and Political Risk Insurance: Is it Necessary?.