Two leading organizations representing major
The two organizations are the Coalition for Employment Through Exports (CEE) and the National Foreign Trade Council (NFTC). CEE represents some 30
Under the President’s proposed accounting change, the Export-Import Bank for the first time will be allowed to directly utilize its revenues to cover all its operating expenses, without federal appropriations. Under the current accounting system, the Bank may apply its revenues to its loan-loss reserve account, but cannot use its revenues to cover its operating expenses, which have required appropriations. Instead, the Bank’s revenues that are not used for loan-loss reserve are credited to the U.S. Treasury as a “miscellaneous receipt”.
Each year, the Bank generated substantial revenues from its fees, premiums for guarantees and insurance, and interest charged on its direct loans.
“In essence, the President is proposing that Ex-Im Bank finally be recognized as a financially self-sufficient entity”, said Edmund Rice, CEE President. “Ex-Im does not need taxpayer funds to operate, if Congress will agree to allow the use of the Bank’s own revenues”, Rice added. “This proposal underscores that export finance can be done on a financially sustainable basis”, Rice said.
The proposed accounting change also addresses growing pressure in the World Trade Organization (WTO) to reduce direct government funding of exports. “By making Ex-Im a truly self-sustaining agency, the