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Apply | Exposure Fee Advice Tables
Standard Repayment Terms
Ex-Im Bank's repayment terms applicable to the Insurance and medium- and
long-term Loan and Guarantee Programs are explained below.
What is the Repayment Term?
The "repayment term" is the period from the starting
point of credit to the final maturity of a transaction. The starting point of
credit is generally the completion of the exporter's responsibility under the
export contract (e.g., shipment or project completion). Acceptance,
retention, and warranty periods are not counted in determining the starting
point. The "final maturity" is the due date of the final installment.
Repayment begins approximately six months after the starting point, and payments
of principal and accrued interest generally must be made semiannually.
For example, assume that a transaction has a 5-year repayment term, semiannual
installments, and one shipment scheduled to occur in December 2001.
Repayment would begin in June 2002 and consist of ten equal semiannual
installments of principal (plus accrued interest). The final payment would be
due in December 2006.
What is a Notifiable Repayment Term?
Ex-Im Bank must notify other official export credit agencies (ECAs)
of its intention to offer certain repayment terms. Notifiable terms include (but
are not limited to) terms of more than five years in Category I countries.
Applicants will be advised when notification is required so that they may make
an informed choice between notifiable and non-notifiable terms.
How to Determine the Applicable Repayment
Term
Repayment terms hinge generally on three factors: 1) OECD country category;2)
Ex-Im Bank's internal budget cost level evaluation; and 3) contract price.
Other special conditions may apply which could shorten or lengthen the maximum
repayment term.
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Step 1. Identify the country category (I or II) from the list
below for the country where the export items will be used.
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Step 2. Find the standard term in Chart I that applies to the
country category and the contract price of your transaction.
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Step 3. Review the terms in Chart II, the Shorter Than Standard
Terms, and the Longer Than Standard Terms to determine if they apply to your
transaction.
Applicants may request shorter terms than indicated in this
section. Since Ex-Im Bank's exposure fee
is related to the repayment term, a shorter term carries a
lower exposure fee.
Country Category
The country category is determined by the Organization for
Economic Cooperation and Development (OECD) and the categorization is updated
annually. Countries classified in Category I are listed below. Category I
non-OECD countries are bolded. Category II consists of all countries
not classified in Category I.
Andorra, Anguilla, Antigua & Barbuda, Aruba, Australia,
Austria, Azores, Bahamas, Bahrain, Barbados, Belgium, Bermuda, British
Virgin Islands, Brunei, Canada, Cayman Islands, Channel Islands, Croatia, Cyprus,
Czech Republic, Denmark, Faeroe Islands, Finland, France, French
Guyana, French Polynesia, Germany, Gibralter, Greece, Greenland, Guadeloupe,
Guam, Hong Kong, Hungary, Iceland, Ireland, Isle of Man, Israel, Italy, Japan,
Kuwait, Libya, Liechtenstein, Luxembourg, Macao, Madeira, Malta, Martinique,
Mayotte, Mexico, Monaco, Netherlands, Netherlands Antilles,
New Caledonia, New Zealand, Northern Marianas, Norway, Oman,
Palau, Portugal, Puerto Rico, Qatar, Reunion, Saint Kitts & Nevis, Saint Pierre
& Miquelon, American Samoa, San Marino, Saudi Arabia, Seychelles, Singapore,
Slovenia, South Korea, Spain, Sweden, Switzerland, Taiwan, Trinidad &
Tabago, Turks & Caicos, United Arab
Emirates, United Kingdom, Vatican City, U.S. Virgin Islands.
(Note: Not all countries listed are eligible for Ex-Im Bank financing.)
Chart I. Standard Terms
The following terms apply in the absence of the factors described in
Chart II and the sections on Shorter Than Standard Terms and Longer Than
Standard Terms.
Contract Price* |
Maximum Repayment Term in Years
|
|
Category I Countries |
Category II Countries |
Less than $80,000 |
2 |
2 |
$80,000 to $174,999 |
3 |
3 |
$175,000 to $349,999 |
4 |
4 |
$350,000 to $7,000,000* |
5 |
5 |
$7,000,001 to $11,764,705** |
5 |
7 |
$11,764,706 to $25,000,000 |
5 |
8 |
More Than $25,000,000 |
5 |
10 |
* Price of U.S. goods and services, including any
eligible foreign content.
** 85% of $11,764,705 = $10,000,000, which is the maximum financed portion
for medium-term transactions.
Chart II. Terms for Certain Types of Exports
The following terms apply in the absence of the factors described in
the sections on Shorter Than Standard Terms and Longer Than Standard Terms:
Export Items |
Maximum Repayment Term |
|
(All Countries) |
1. Non-capital items, raw materials, lumber, paper, pulp, spare parts |
180 days
|
2. Bulk agricultural commodities, fertilizers, pesticides, consumer
durables (ranges, refrigerators, etc.) |
360 days
|
3. Breeding cattle
Contract price not exceeding $150,000
Contract price exceeding $150,000 |
2 years
3 years
|
4. Ships* |
10 years
|
5. Power plants***
Non-nuclear
Nuclear (excluding fuel)
Initial fuel load
Subsequent fuel reloads |
12 years**
15 years**
4 years
2 years
|
6. Aircraft
Large civil aircraft(more than 70 seats in a passenger configuration)
Category A aircraft (Turbine powered, generally with 30 to 70 seats)
Category B aircraft (Other turbine powered aircraft)
Category C aircraft (Non-turbine powered aircraft) |
12 years
10 years
7 years
5 years |
* Refers to ships subject to the OECD Arrangement terms. In certain circumstances, Ex-Im Bank may offer up to 12 year repayment terms, pursuant to the OECD Understanding on Export Credits for Ships. Contact Ex-Im Bank for qualification details.
** Ex-Im Bank must notify other official export credit agencies before
offering the indicated repayment terms.
*** Power plants are complete power stations or parts of power stations,
including components, equipment, materials, and services directly required for
the construction and commissioning of power stations.
Shorter than Standard Terms
The following limits take precedence over the terms in Charts I and II and
the Longer Than Standard Terms:
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If the export items are purchased for resale, the term generally may not
exceed 2 years. Ex-Im Bank will consider a term longer than 2 years in
conjunction with a Preliminary Commitment or Final Commitment application,
provided that the buyer is (i) purchasing the export items to satisfy a
specific contract with the end-user of the items, (ii) providing financing
to the end-user with a repayment term at least as long as the term requested
from Ex-Im Bank.
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If the export items have an expected or useful life that is shorter than
the applicable term in Chart I, then the term may not exceed the expected or
useful life.
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If the borrower's budget cost level, as determined by
Ex-Im Bank, is 8 or higher or Ex-Im Bank is not open for a total term of
more than seven years in the borrower's/guarantor's country (refer to
Country Limitation Schedule), the repayment term generally may not exceed
five years. Ex-Im Bank will consider a repayment term longer than five years
in conjunction with a Preliminary Commitment or Final Commitment
application, provided the total term from the authorization
date to the final repayment date does not exceed seven years.
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If the transaction is under a Credit Guarantee Facility, the term may not
exceed 5 years without Ex-Im Bank's prior approval.
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If the average price of the export items comprising a majority of the
contract price is less than $1,000,000 and the transaction does not
qualify for the Environmental Exports Program (EEP), the term may not exceed
5 years.
Longer Than Standard Terms
The following limits take precedence over the terms in Chart I, provided that
the Shorter Than Standard Terms do not apply:
- If the transaction qualifies for the EEP, the contract
price exceeds $349,999, and the budget cost level, as determined by
Ex-Im Bank, is under 8, the maximum term is:
- eight and one half years for exports to Category I
countries.
- ten years for exports to Category II countries.
- fifteen years for certain renewable energy and water projects, irrespective of country category
- If the contract price exceeds $11,764,705 and the export items are
to be used in a project, Ex-Im Bank will consider the following
maximum terms on a case-by-case basis:
- eight and one half years for exports to Category I non-OECD
countries.
- ten years for exports to Category II countries.
- The rationale for a Longer Than Standard Term for a project must be based
on at least one of the following factors:
- The degree to which Ex-Im Bank will rely on the project's anticipated cash
flows for
assurance of repayment.
- The need for alignment of Ex-Im Bank's term with the term granted by other
lenders to the
project.
- If confronting a directly competing tied aid offer, please consult Ex-Im
Bank's Tied Aid
Capital Projects Fund Fact Sheet. Longer Than Standard Terms may be
available. (Foreign
tied aid offers are easily recognized: they usually involve terms longer
than 20 years, interest
rates one-half or two-thirds of market rates, or large grants.)
EBD-M-26 July 20, 2005
Export-Import Bank of the United States
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