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Sub-Sovereign Program

Ex-Im Bank accepts the credit of qualified cities, states and other sub-sovereign governments in emerging markets for the purchase of U.S. equipment and services to address vital infrastructure needs.

The Sub-sovereign Initiative makes doing business with U.S. companies easier for qualifying sub-sovereign entities in Argentina, Brazil, Bulgaria, Colombia, Croatia, the Czech Republic, Estonia, Latvia, Malaysia, Poland, Russia, Slovakia and South Korea, or in any country whose sub-sovereign entities have acceptable ratings from international credit rating agencies such as Moody’s, Standard & Poor’s, Fitch Ratings, or the Japan Credit Rating Agency.

In particular, this Initiative helps foreign borrowers with municipal, state and provincial support gain access to Ex-Im Bank financing to buy, among other things, medical equipment, construction vehicles, information technology, and environmentally beneficial goods and services.

Ex-Im Bank will consider accepting the credit of sub-sovereign governments whose foreign currency debts are not in default and are rated B/B2 or stronger by an accepted global credit rating agency for short-, medium- and long-term projects. Ex-Im Bank also recently decided to lower this minimum threshhold to B-/B3 for short and medium-term projects only.

Municipalities and other sub-sovereign governments whose foreign currency debts are currently rated B/B2 or stronger are: Argentina: City of Buenos Aires, Province of Buenos Aires, City of Cordoba, Province of Mendoza, Tierra del Fuego, Province of Tucuman, and Province of Santiago Estero; Brazil: State of Bahia, State of Ceara, and City of Rio de Janeiro; Bulgaria: City of Sofia; Colombia: City of Bogota; Croatia: City of Zagreb; Czech Republic: City of Olomuc, City of Ostrova, City of Brno, and City of Prague; Estonia: City of Tallinn; Latvia: City of Riga; Malaysia: City of Johor; Poland: City of Lodz, City of Krakow, City of Szczecin, and City of Wroclaw ; Russia: City of Moscow, City of St. Petersburg; Slovakia: Bratislava; South Korea: City of Pusan, City of Seoul, and City of Taegu.

The list of municipalities and other sub-sovereign entities eligible for the Initiative will change as credit ratings change.

All proposed export transactions under this Initiative will be reviewed on a case-by-case basis by appropriate Ex-Im Bank staff. The global credit rating agencies whose ratings may be used for qualifications are Standards & Poor’s, Moody’s, Fitch Ratings, and the Japan Credit Rating Agency.