EXPORT-IMPORT BANK OF THE UNITED STATES

(EXIMBANK) one of the principal agencies of the United States government in international finance, originally incorporated as the Export-Import Bank of Washington on Feb. 12, 1934, to assist in financing United States exports. Its name was changed in 1968. The bank operates four principal programs: (1) direct long-term loans, (2) guarantees (principally to commercial banks), (3) short-term and medium-term insurance, and (4) discount loans to commercial banks. The greatest dollar volume of bank assistance has consisted of direct financing to buyers abroad of American goods and services. This assistance has taken the form of long-term credits to public or private entities for the purchase and export of capital equipment and related services, credits to foreign lending institutions for relending to local enterprises, credits to countries suffering temporary dollar shortages to maintain the flow of U.S. trade, and agricultural commodity credits. Through these programs the bank has become involved in the promotion of development projects in less developed countries. The bank's loans, which are made in dollars and are repayable in dollars, are extended for specific purposes. The bank is required to encourage and supplement private capital but not compete with it. It is authorized to have outstanding in loans, guarantees, and insurance an aggregate amount not in excess of $40,000,000,000. Operating funds for these loans and other requirements are derived from repayments of principal and interest on loans; guarantee fees and insurance premiums; capital stock of $1,000,000,000; retained earnings; borrowings from the U.S. Treasury of up to $6,000,000,000; and the proceeds of sales of the bank's debentures, promissory notes, and interests in its portfolio of loans. The bank is governed by a board of five directors.