Ex-Im Bank Reauthorization, Funding Cap Increase Discussed at Recent Hearing
At a May 17, 2011 Senate hearing1 on oversight and the reauthorization of the Export-Import (Ex-Im) Bank, Committee Chairman Johnson (D) stated that while he believes the Ex-Im Bank is doing a good job, it must do more, especially if the President’s goal of doubling exports by 2015 is going to be met. Johnson also stated that he plans to work with Ranking Member Shelby (R) and other members of the Committee to reauthorize the Ex-Im Bank. (The Ex-Im Bank’s authorization expires on September 30, 2011.)
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Administration Has Requested Four Year Reauthorization with Increase
Testifying at the hearing was Ex-Im Bank President Hochberg who noted that the Ex-Im Bank has operated in self-sustaining financial status at no cost to the taxpayer since 2008. Hochberg discussed the Administration’s FY 2012 budget proposal to increase the Ex-Im Bank’s administrative budget to allow it to increase staffing for outreach to small business, as well as make information technology system improvements. (Congress sets annual limits on the Bank’s use of funds for program subsidy and administrative expense obligations.) Hochberg also discussed legislation that would increase the Ex-Im Bank’s financing cap over the next four years to $140 billion (from the current $100 billion).
In March 2011, the President’s Export Council also recommended reauthorization of the Ex-Im Bank and an increase in the Bank's financing cap. However, the PEC recommended that the Bank’s financing cap be raised to $200 billion ($60 billion more than recommended by the Administration). (See ITT’s Online Archives or 03/15/11 news, 11031524, for BP summary of PEC’s recommendations for the Ex-Im Bank.)
Ex-Im Bank’s Supply Chain Finance Program Assists Small Businesses
In order to further expand its small business activity, the Ex-Im Bank has initiated several initiatives, including the Supply Chain Finance Guarantee, which provides competitively-priced working capital financing to businesses that supply products or services to larger U.S. exporters.
Bank Has Targeted Nine Emerging Markets for Financing
The Ex-Im Bank also noted that as part of the goal of doubling U.S. exports, it has targeted nine emerging markets - Brazil, Colombia, India, Indonesia, Mexico, Nigeria, South Africa, Turkey, and Vietnam - for its financing activities.
1Senate Banking, Housing, and Urban Affairs Committee
Hearing announcement, witness statements, and link to archived hearing webcast available here