Updated January 15, 2020
Export-Import Bank of the United States (Ex-Im Bank)
Ex-Im Bank, the official U.S. export credit agency (ECA),
loan guarantees to lenders against default on loans to
provides financing and insurance to facilitate the export of
foreign buyers of U.S. exports (lender usually sets rate);
U.S. goods and services to support U.S. jobs, pursuant to a
insurance to protect U.S. exporters or financial
renewable, general statutory charter (Export-Import Bank
institutions against export-related risks; and
Act of 1945, as amended; 12 U.S.C. §635 et seq.). It aims to
working capital loans and guarantees, which are short-
provide support for U.S. exports when the private sector is
term, secured types of financing.
unwilling or unable to do so and/or to counter foreign ECA
Underwriting techniques such as project, structured, and
financing. The Bank is demand-driven, fee-based, and
backed by the U.S. government’s full faith and credit.
supply chain finance may be used in some cases. The latest
extension requires the Bank generally to have a goal to
Background
reserve 20% of its portfolio for a new program that the
Bank must establish to counter export subsidies by China or
Authorization. The Further Consolidated Appropriations
other designated countries for exports in specified high-
Act, 2020 (P.L. 116-94, enacted December 20, 2019)
technology sectors.
extends Ex-Im Bank’s general statutory authority for a
record seven years, through December 31, 2026. This
Activity. In FY2019, Ex-Im Bank approved $8.2 billion for
extension, which includes certain other changes, brings new
2,348 authorizations of direct loans, loan guarantees, and
stability to an agency that has faced active policy debate
export credit insurance (see Figure 1), to support $9.1
and constraints on its operating authority in recent years.
billion in estimated U.S. export sales, and in support of an
Absent reauthorization, the Bank generally would not have
estimated 34,000 U.S. jobs. Transactions for small business
been able to approve new transactions, but would have been
exporters accounted for 27.5% of authorizations by amount
able to continue to manage its existing financial obligations,
and 89.1% by number. Previously, between FY2014 and
and to perform certain other functions “for purposes of an
FY2018, the Bank’s authorization levels declined, largely
orderly liquidation” (12 U.S.C. §635f).
due to the board’s inability to approve larger deals; the
number of authorizations stayed relatively more stable as
Leadership. By statute, a five-member board of directors,
the Bank focused more on small business exporters.
representing both political parties, leads Ex-Im Bank. Board
members are appointed by the President and confirmed by
Figure 1. Ex-Im Bank Authorizations, FY1997-2019
the Senate. The Bank president and first vice president
serve respectively as the board chairman and vice chairman.
The board needs a quorum of at least three members to
conduct business, including to approve transactions above a
certain threshold (previously $10 million, now $25 million
after board action), make policies, and delegate authority
(e.g., to staff to approve transactions below the threshold).
Advisory and other committees support the board. The
recent extension creates alternative procedures to fill
vacancies on the board temporarily if the quorum lapses.
On May 8, 2019, the Senate confirmed three nominations to
the board (president/chairman and two members), thereby
reinstating a quorum and enabling the board to exercise the
full panoply of its statutory authorities. The board lacked a
Source: CRS, based on data from Ex-Im Bank annual reports.
quorum from July 20, 2015, until the May 8, 2019, Senate
confirmations, as terms expired and no board nominees
In FY2014, the Bank’s overall portfolio exposure reached
were confirmed. “Holds” in the Senate had prevented action
$112 billion (nearing the $140 billion statutory exposure
on nominations reported from committee. The Senate
cap in FY2014). It dropped in subsequent years, down to
confirmations followed renewed support for the Bank
$56 billion in FY2019 (less than half of the $135 billion
voiced by the Trump Administration, and subsequent
exposure cap for that year), as repayments on transactions
cloture votes that limited debate. The Senate has not acted
exceeded new activity. The recent reauthorization sets the
on the nominations for the two other positions (first vice
Bank’s exposure cap at $135 billion through FY2027.
president/vice chairman and another member). Board terms
Requirements. Ex-Im Bank financing may be extended
are staggered, expiring in January 2021 or January 2023.
only where there is a “reasonable assurance of repayment”
Products and programs. Key Bank products include:
and should supplement, not compete with, private capital.
The Bank must consider a proposed transaction’s potential
direct loans to foreign buyers of U.S. exports (interest
rate based on parameters set in international rules);
economic impact to U.S. industry and its environmental
impact, among other issues. The Bank, which views the
amount of U.S. content in an export contract to be a proxy
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link to page 2 
Export-Import Bank of the United States (Ex-Im Bank)
for U.S. jobs, reduces its level of support based on foreign
concerns, due to the size of its ECA financing, lack of
content in an export contract. The Bank also has U.S.-flag
transparency, and flexibility in operating outside of the
shipping requirements. The Bank must make available not
OECD rules. China’s use of concessional financing, for
less than 30% of its total authority to finance small business
instance, has put pressure on ECAs operating under the
exports (increased from 25% under the recent extension). It
Arrangement. An International Working Group (United
also must promote renewable energy exports and, under the
States, China, and other countries) reportedly has made
extension, must make available not less than 5% of its
limited progress to negotiate new export credit rules.
portfolio to support such exports. In addition, Ex-Im Bank
Figure 2. Export Financing by Selected ECAs in 2018
must support environmentally beneficial exports and
exports to sub-Saharan Africa (no percentage requirement).
The Bank is also subject to various reporting requirements,
including new China-related reporting under the extension.
It is generally barred from financing defense exports.
Funding. Ex-Im Bank’s revenues include interest, risk
premia, and other fees charged for its support. Revenues
acquired in excess of forecasted losses are recorded as
offsetting collections. Ex-Im Bank reports contributing to
the Treasury, since 1992, $9.4 billion after covering its
administrative and program costs, and other expenses. (This
is on a cash basis, and different from the amount calculated
on a budgetary basis.) During the quorum lapse, the Bank’s
portfolio shrank, and its offsetting collections decreased and
did not fully cover the Bank’s program and administrative
costs in FY2018 and FY2019.
An FY2020 appropriations law (P.L. 116-94) provides Ex-
Im Bank with a limit of $110.0 million for administrative
expenses, and with $5.7 million for the Office of Inspector
General. It rescinds $64.3 million of unobligated balances
for tied-aid grants. The appropriations law adds a new
Source: CRS, based on Ex-Im Bank 2018 Competitiveness Report.
prohibition against Ex-Im Bank using its funding to support
Note: Data are for new medium- and long-term official export credit
nuclear-related exports to Saudi Arabia, unless the country
financing, and subject to analytic assumptions and other limitations.
meets certain nonproliferation requirements.
*Brazil abides by the Arrangement’s Aircraft Sector Understanding.
Risk management. Based on its charter, Ex-Im Bank
Policy Debate and Issues for Congress
assesses and monitors credit and other risks of transactions,
and maintains reserves against losses. It reported a default
Over the years, Ex-Im Bank has been the object of policy
rate of 0.497% as of September 2019 (sent quarterly to
debate. Supporters argue that the Bank fills gaps in private-
Congress). In FY2019, its reserves and allowances for total
sector financing for exports and helps U.S. firms compete
losses were $2.2 billion (4.7% of total outstanding balance).
against foreign ECA-backed firms, while managing risks
The latest extension places a new anti-fraud requirement on
and advancing other U.S. policy goals. Critics argue that the
the Bank’s consideration of applications for support.
Bank crowds out the private sector, picks winners and
losers, is corporate welfare, and imposes taxpayer risks.
International context. The United States has led efforts to
develop international rules for ECA activity. Ex-Im Bank
Despite vocal opposition by some Members, Ex-Im Bank
abides by the Organisation for Economic Co-operation and
enjoys overall bipartisan support in Congress. Yet, policy
Development (OECD) Arrangement on Officially
disagreements on specific terms and conditions for the
Supported Export Credits, which aims to ensure a level
Bank made prospects for a long-term extension unclear.
playing field for exporter competition. Applying to ECA
Issues included the balance between ensuring the Bank’s
financing with repayment terms of two years or more, the
flexibility to conduct activities and imposing potential new
Arrangement sets minimum interest rates, maximum
limits (e.g., regarding the environment or supporting
repayment terms, and other terms and conditions. It also has
exports to China) to advance other U.S. policy goals.
transparency and other provisions on tied aid (concessional
Ultimately, bipartisan compromise was reached on certain
financing for projects in developing countries linked to
structural and programmatic changes, enabling the recent
procurement from the donor country). Ex-Im Bank does not
seven-year extension (P.L. 116-94).
initiate tied aid for commercial purposes; it aims to match
Potential issues for the 116th Congress include: oversight of
foreign offers, but does so infrequently, due in part to lack
implementation of the reauthorization changes; examination
of transparency in foreign financing packages.
of whether current international ECA rules support U.S.
Under an exception to the World Trade Organization
policy goals or require changes, and other options to
(WTO) rules, Arrangement-compliant export credit
address “unfair” competition from foreign ECAs; and
practices are not treated as prohibited export subsidies.
Senate consideration of outstanding board nominations. See
Over time, unregulated ECA financing has grown, with
CRS Report R43581, Export-Import Bank: Overview and
non-OECD countries operating ECAs and OECD members
Reauthorization Issues, by Shayerah Ilias Akhtar.
providing financing outside of the Arrangement’s scope
(see Figure 2). China especially presents competitiveness
https://crsreports.congress.gov
Export-Import Bank of the United States (Ex-Im Bank)
IF10017
Shayerah Ilias Akhtar, Specialist in International Trade
and Finance
Disclaimer
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https://crsreports.congress.gov | IF10017 · VERSION 20 · UPDATED