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Bank plan to repay loans allowed on a trial basis by OECD

WASHINGTON, DC - 01/11/06 - The Export-Import Bank (EXIM) of the US has begun offering financing with longer repayment terms on US exports related to international renewable energy projects.

The longer repayment terms, the bank said, can stretch as long as 15 years and are made possible by the recent Organization for Economic Cooperation and Development (OECD) decision to allow export credit agencies to offer financing on new terms for a two-year trial period beginning last December 1. 

"The offering of the 15-year repayment term…is a significant enhancement for US exporters in this sector," said Linda Conlin, the EXIM board member responsible who heads the bank's Environmental Exports Program.

"Historically, EXIM has provided financing for many of the world's prominent hydroelectric projects," said Conlin. "We believe that this enhancement further strengthens the ability of US exporters to compete internationally, and it will help to support highly skilled US jobs in these industries."

The new terms announced by the EXIM specifically apply to financing for wind, solar photovoltaic, solar thermal, geothermal, hydroelectric, ocean thermal, tidal and tidal stream, water, wastewater, wave, and bio-energy projects.

The move came in response to recommendations from US-based renewable energy and water industry sectors encouraging the OECD to permit export credit agencies to offer the extended repayment terms for those projects.

In June 2005, the OECD agreed to extend the maximum repayment term for renewable energy and water-related projects from the previous limits to 15 years.

The international agency agreement permits the 15-year term for renewable energy and water-related projects for a two-year trial period beginning July 1, 2005.

The Paris-headquartered OECD also agreed to permit the 15-year term for hydropower projects for a two-year trial period beginning last December 1.

The OECD represents 30 member countries including the US that cooperate to promote democratic governance and market economics.

The EXIM, the US' official export credit agency, was established in 1935 and helps US-based exporters with sales to emerging markets throughout the world by providing loan guarantees, export credit insurance, and direct loans.

In fiscal year 2005, EXIM authorized $14 billion in transactions supporting almost $17.9 billion of US-produced exports to markets worldwide.

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