The Trade Bank of Iraq

The Trade Bank of Iraq (TBI) is an independent Iraqi government entity created to facilitate the reconstruction of Iraq by providing trade finance services that Iraqi financial institutions are currently unable to offer. Ex-Im Bank's Board of Directors has approved a $500 million short term insurance facility to support TBI transactions. The facility will utilize two of Ex-Im Bank's Short Term Insurance Products (Bank Letter of Credit Insurance Policy and Financial Institution Buyer Credit Insurance Policy):

Bank Letter of Credit Insurance Policy:

Ex-Im Bank will insure letters of credit issued by TBI and confirmed by a commercial bank. This product provides comprehensive coverage to the confirming bank against the failure of TBI to pay the confirming bank under an irrevocable letter of credit. More information about this product is available at http://www.exim.gov/products/insurance/loc.cfm.

Financial Institution Buyer Credit Insurance Policy:

Ex-Im Bank will provide comprehensive coverage on short term credits extended to TBI by an insured bank. U.S. exporters will receive payment under letters of credit issued by the insured bank. Certain provisions of the policy (reporting and claim filing periods) will be aligned to those of the Bank Letter of Credit policy. More information about this product is available at http://www.exim.gov/products/insurance/buyercredit.cfm.

Third Country Obligors

Ex-Im Bank will consider applications under all of its products (e.g., working capital guarantee, loan guarantee, export credit insurance, and direct loans) to support the sale of goods or services destined for Iraq if there is a creditworthy source of repayment in a third country in the Middle East or elsewhere. The creditworthy source of repayment may be: (i) a buyer (with an end-user in Iraq); (ii) a private or public sector guarantor; or (iii) a financial institution that will open a letter of credit or provide a payment guarantee on behalf of the buyer. For detailed information on the availability of Ex-Im Bank's support for transactions to a particular country, see Ex-Im Bank's Country Limitation Schedule at http://www.exim.gov/tools/country/country_limits.cfm.

Working Capital

Ex-Im Bank will also consider applications under its Working Capital Guarantee Program to support pre-export activities of subcontractors, particularly small businesses, operating under U.S. government-funded contracts for the reconstruction of Iraq. This financing may be used to pay for raw materials, equipment, supplies, labor, overhead and other expenses incurred to fulfill the terms of a subcontract. It may also be used to support standby letters of credit serving as bid bonds, performance bonds, or payment guarantees.

To qualify for this support, applicants must demonstrate that their need for this financing cannot reasonably be met without an Ex-Im Bank guarantee. In addition, Lender Delegated Authority is not available under the Working Capital Guarantee Program for exports to Iraq. For detailed information on Ex-Im Bank's working capital guarantee, see http://www.exim.gov/products/work_cap.cfm.