The Export Import Bank of the United States (Ex-Im Bank) can be a valuable partner for Bulgarian public and private sector entities seeking to buy U.S. goods and services. Ex-Im Bank is an independent U.S. government agency that helps finance U.S. exports to emerging markets throughout the world by providing loans, guarantees, and insurance.
In Bulgaria Ex-Im Bank financing already is supporting U.S. exports to Bulgaria’s power, construction, and telecommunication sectors – from the upgrade of the Kozloduy Nuclear Power Plan to the Alexandra Group’s new Cineplex. The Bank has noticed a marked increase in demand for financing related to private sector projects, and stands ready to expand its support to meet that demand. Ex-Im Bank can provide foreign buyers with financing in markets where commercial bank funding may not be available. In fiscal year 2002, Ex-Im Bank financed nearly $13 billion in exports worldwide.
A Bulgarian buyer of U.S. goods and services can begin the Ex-Im Bank financing process by contacting the Ex-Im Bank regional representative, Mr. Craig O'Conner by phone at +1 202 565 3556 or by e-mail at craig.oconner@exim.gov .
Ex-Im Bank offers short-, medium-, and long-term products to public and private Bulgarian companies. Under our short-term product, Ex-Im Bank insures open account or Letter of Credit sales of consumer goods, non-durables, spare parts, and bulk agriculture products produced in the U.S. Ex-Im Bank’s short-term insurance policies are available for terms of 30 to 360 days.
For capital goods, Ex-Im Bank offers five year financing. In some cases, such as environmentally beneficial goods, medical equipment, and transportation security equipment, Ex-Im Bank will offer longer terms as well as provide some local cost financing and allow for capitalization of interest during construction. Ex-Im Bank will also provide long-term financing for larger infrastructure projects in the oil, gas, power, and electricity sectors.
Ex-Im Bank typically guarantees or insures commercial bank financing for medium- or long-term transactions. Ex-Im Bank’s 100% guarantee lowers the interest rate and thus makes it more affordable for Bulgarian companies to purchase U.S. goods and services.
To review an application, Ex-Im Bank requires financial and credit information on the Bulgarian buyer. For medium-term transactions, Ex-Im Bank requires three years of financial statements to analyze a company’s past performance. For transactions greater than $1 million, Ex-Im requires that these financial statements be prepared and audited according to International Accounting Standards. For transactions less than $1 million, Ex-Im Bank would accept financial statements prepared according to local accounting standards. These financial statements should however be translated into English and include footnotes or explanations on accounting practices. Ex-Im Bank will also ask a Bulgarian company to provide a bank reference. Preferably this bank has extended credit to the Bulgarian company in the past and can address payment history.
For more information, please visit the website at www.exim.gov.
At present, Ex-Im Bank has MGAs with two Bulgarian banks.
and