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Country Limitation Schedule (CLS)
Current CLS ![Current CLS](https://webarchive.library.unt.edu/web/20090114021557im_/http://www.exim.gov/images/pdflogo.gif)
Effective Date of this Endorsement: 12:01 A.M. E.T., October 2, 2008 No.
CLS-10/08
Memorandum of Changes, October 02, 2008
Country Limitation Schedule
Quick Select
A , B , C , D , E , F , G , H , I , J , K , L , M , N , O , P , Q , R , S , T , U , V , W , X , Y , Z
Click on a letter above to quickly navigate to that section.
Please wait until the page is fully loaded before using Quick Select.
Total Term* is from the date of authorization
until final payment - Effective October 2, 2008
"X" Indicates Support is NOT Available
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PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Afghanistan |
X |
X |
X |
X |
X |
X |
10, 13 |
Albania |
|
|
|
|
|
|
1, 3, 4, 5, 10 |
Algeria |
|
|
|
|
|
|
1, 4 |
Angola |
|
|
X |
|
|
X |
1, 4, 5 |
Anguilla |
|
|
|
|
|
|
1 |
Antigua and Barbuda |
|
|
X |
|
|
|
1, 4, 5, 13 |
Argentina |
X |
X |
X |
|
|
X |
1, 13 |
Armenia |
|
|
|
|
|
|
1, 3, 4, 10 |
Aruba |
|
|
|
|
|
|
1, 9 |
Australia |
|
|
|
|
|
|
|
Austria |
|
|
|
|
|
|
|
Azerbaijan |
|
|
|
|
|
|
1, 3, 4, 5 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Bahamas |
|
|
|
|
|
|
|
Bahrain |
|
|
|
|
|
|
|
Bangladesh |
|
|
|
|
|
X |
1, 4, 5, 13 |
Barbados |
|
|
|
|
|
|
1 |
Belarus |
X |
X |
X |
X |
X |
X |
13 |
Belgium |
|
|
|
|
|
|
|
Belize |
|
|
|
|
|
|
6a |
Benin |
|
|
X |
|
|
X |
1, 5, 13 |
Bermuda |
|
|
|
|
|
|
|
Bhutan |
|
|
|
|
|
|
1, 4 |
Bolivia |
X |
X |
X |
X |
X |
X |
13 |
Bosnia-Herzegovina |
|
|
X |
|
|
X |
1, 4, 13 |
Botswana |
|
|
|
|
|
|
|
Brazil |
|
|
|
|
|
|
|
Burma |
X
|
X
|
X
|
X
|
X
|
X
|
7 |
Brunei |
|
|
|
|
|
|
|
Bulgaria |
|
|
|
|
|
|
3, 5, 6a |
Burkina Faso |
|
X |
X |
|
|
|
1, 10, 11a, 13 |
Burundi |
|
X |
X |
|
X |
X |
11a, 11b, 13 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Cambodia |
X
|
X
|
X
|
X
|
X
|
X
|
7 |
Cameroon |
|
|
X
|
|
|
|
4, 5, 6a, 10, 13 |
Canada |
|
|
|
|
|
|
|
Cape Verde |
|
|
|
|
|
|
10 |
Cayman Islands |
|
|
|
|
|
|
|
Central African Republic |
X
|
X
|
X
|
X
|
X
|
X
|
13 |
Chad |
|
X |
X
|
|
X |
X
|
11a, 11b, 13 |
Chile |
|
|
|
|
|
|
|
China |
|
|
|
|
|
|
2 |
Colombia |
|
|
|
|
|
|
|
Comoros |
|
X
|
X
|
|
X
|
X
|
11a, 11b, 13 |
Congo |
|
X
|
X
|
|
X
|
X
|
11a, 11b, 13 |
Congo, Democratic Rep. |
|
X
|
X
|
|
X
|
X
|
11a, 11b, 13 |
Cook Islands |
|
|
|
|
|
|
1, 4 |
Costa Rica |
|
|
|
|
|
|
6b |
Cote d`Ivoire |
X
|
X
|
X
|
|
|
X
|
1 , 13 |
Croatia |
|
|
|
|
|
|
3, 5, 6a |
Cuba |
X
|
X
|
X
|
X
|
X
|
X
|
7 |
Cyprus |
|
|
|
|
|
|
|
Czech Republic |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Denmark |
|
|
|
|
|
|
|
Djibouti |
|
X |
X |
|
|
X |
1, 4, 11a, 13 |
Dominica |
|
|
X |
|
|
|
1 , 13 |
Dominican Republic |
|
|
|
|
|
|
3, 6a |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
East Timor |
|
|
X |
X |
X |
X |
5, 13 |
Ecuador |
|
|
X |
X |
X |
X |
5, 13 |
Egypt |
|
|
|
|
|
|
1 |
El Salvador |
|
|
|
|
|
|
|
Equatorial Guinea |
|
|
X |
|
|
X |
1, 13 |
Eritrea |
|
X |
X |
|
X |
X |
11a, 11b, 13 |
Estonia |
|
|
|
|
|
|
3, 5, 6b |
Ethiopia |
|
X |
X |
|
X |
X |
11a, 11b, 13 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Fiji |
|
|
|
|
|
|
1, 4 |
Finland |
|
|
|
|
|
|
|
France |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Gabon |
|
|
|
|
|
|
5, 6a, 10 |
Gambia |
|
X
|
X
|
|
|
X
|
10, 11a, 13 |
Georgia |
|
|
|
|
|
|
1, 3, 4, 5, 10 |
Germany |
|
|
|
|
|
|
|
Ghana |
|
|
|
|
|
|
1, 4 |
Greece |
|
|
|
|
|
|
|
Grenada |
|
|
X |
|
|
|
1, 5, 13 |
Guatemala |
|
|
|
|
|
|
6b |
Guinea |
|
X
|
X
|
|
X
|
X
|
10, 11a, 11b, 13 |
Guinea-Bissau |
|
X
|
X
|
|
X
|
X
|
11a, 11b, 13 |
Guyana |
X
|
X
|
X
|
|
|
X
|
1, 13 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Haiti |
X |
X |
X |
X |
X |
X |
10, 13 |
Honduras |
|
|
|
|
|
|
|
Hong Kong |
|
|
|
|
|
|
|
Hungary |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Iceland |
|
|
|
|
|
|
|
India |
|
|
|
|
|
|
|
Indonesia |
|
|
|
|
|
|
1, 4, 5 |
Iran |
X |
X |
X |
X |
X |
X |
7 |
Iraq |
X |
X |
X |
X |
X |
X |
10, 13, 14 |
Ireland |
|
|
|
|
|
|
|
Israel |
|
|
|
|
|
|
|
Italy |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Jamaica |
|
|
|
|
|
|
6a |
Japan |
|
|
|
|
|
|
|
Jordan |
|
|
|
|
|
|
6a |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Kazakhstan |
|
|
|
|
|
|
1, 3, 4, 5 |
Kenya |
|
|
X |
|
|
X |
1, 5, 13 |
Kiribati |
|
|
|
|
|
|
1 |
Korea, North |
X |
X |
X |
X |
X |
X |
7 |
Korea, South |
|
|
|
|
|
|
|
Kuwait |
|
|
|
|
|
|
|
Kyrgyzstan |
|
|
X |
|
|
X |
1, 3, 4, 5, 10, 13 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Laos |
X |
X |
X |
X |
X |
X |
7 |
Latvia |
|
|
|
|
|
|
3, 5, 6a |
Lebanon |
|
|
X |
|
|
X |
1, 4, 5, 13 |
Lesotho |
|
|
|
|
|
|
6b |
Liberia |
|
X |
X |
|
X |
X |
10, 11a, 11b, 13 |
Libya |
|
|
|
|
|
X |
1, 3, 4, 5, 13 |
Liechtenstein |
|
|
|
|
|
|
|
Lithuania |
|
|
|
|
|
|
3, 5, 6a |
Luxembourg |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Macau |
|
|
|
|
|
|
1 |
Macedonia |
|
|
|
|
|
|
1, 3, 4, 5, 10 |
Madagascar |
|
X
|
X
|
|
X
|
X
|
10, 11a, 11b, 13 |
Malawi |
|
|
X
|
|
|
|
1, 4, 5, 10, 13 |
Malaysia |
|
|
|
|
|
|
6b |
Maldives |
|
|
|
|
|
|
1 |
Mali |
|
|
X
|
|
|
X
|
1, 4, 5, 13 |
Malta |
|
|
|
|
|
|
|
Marshall Islands |
X
|
X
|
X
|
|
|
X
|
13 |
Mauritania |
|
X
|
X
|
|
X
|
X
|
10, 11a, 11b, 13 |
Mauritius |
|
|
|
|
|
|
|
Mexico |
|
|
|
|
|
|
|
Micronesia |
|
|
|
|
|
|
1 |
Moldova |
|
|
X
|
|
|
X
|
1, 3, 4, 5, 10, 13 |
Monaco |
|
|
|
|
|
|
|
Mongolia |
|
|
|
|
|
X
|
1, 4, 13 |
Montenegro |
|
|
|
|
|
|
1, 3, 5 |
Montserrat |
|
|
|
|
|
|
1 |
Morocco |
|
|
|
|
|
|
6b |
Mozambique |
|
|
|
|
|
|
1, 4, 5, 10
| |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Namibia |
|
|
|
|
|
|
1 |
Nauru |
X |
X |
X |
X |
X |
X |
13 |
Nepal |
|
|
X |
X |
X |
X |
1, 13 |
Netherlands |
|
|
|
|
|
|
|
Neth Antilles |
|
|
|
|
|
|
|
New Zealand |
|
|
|
|
|
|
|
Nicaragua |
|
|
X |
|
|
X |
1, 4, 5, 10, 13 |
Niger |
|
X |
X |
|
|
X |
1, 11a, 13 |
Nigeria |
|
|
|
|
|
|
1, 3, 4, 5 |
Norway |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Oman |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Pakistan |
|
|
|
|
|
|
1, 4, 5 |
Palau |
|
|
|
|
|
|
1, 4, 5 |
Panama |
|
|
|
|
|
|
|
Papua New Guinea |
|
|
|
|
|
|
1 |
Paraguay |
|
|
X |
|
|
X |
6a, 13 |
Peru |
|
|
|
|
|
|
1 |
Philippines |
|
|
|
|
|
|
1, 4 |
Poland |
|
|
|
|
|
|
|
Portugal |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Qatar |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Romania |
|
|
|
|
|
|
3, 5, 6a |
Russia |
|
|
|
|
|
|
1 |
Rwanda |
|
X |
X |
|
|
X |
1, 4, 10, 11a, 13 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Samoa |
|
|
|
|
|
|
1 |
Sao Tome and Principe |
|
X |
X |
|
X |
X |
10, 11a, 11b, 13 |
Saudi Arabia |
|
|
|
|
|
|
|
Senegal |
|
|
X |
|
|
|
1, 4, 13 |
Serbia |
|
|
|
|
|
|
1, 4 |
Seychelles |
|
X |
X |
|
|
X |
6b, 11a, 13 |
Sierra Leone |
|
X |
X |
|
X |
X |
10, 11a, 11b, 13 |
Singapore |
|
|
|
|
|
|
|
Slovak Republic |
|
|
|
|
|
|
3, 5, 6a |
Slovenia |
|
|
|
|
|
|
6a |
Solomon Islands |
|
|
X |
|
|
X |
1, 13 |
Somalia |
X |
X |
X |
X |
X |
X |
13 |
South Africa |
|
|
|
|
|
|
|
Spain |
|
|
|
|
|
|
|
Sri Lanka |
|
|
|
|
|
|
1 |
St. Kitts and Nevis |
|
|
|
|
|
|
1 |
St. Lucia |
|
|
|
|
|
|
1 |
St. Vincent and Grenadines |
|
|
|
|
|
|
1 |
Sudan |
X |
X |
X |
X |
X |
X |
7 |
Suriname |
X |
X |
X |
|
|
X |
13 |
Swaziland |
|
|
|
|
|
|
|
Sweden |
|
|
|
|
|
|
|
Switzerland |
|
|
|
|
|
|
|
Syria |
X |
X |
X |
X |
X |
X |
7 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Taiwan |
|
|
|
|
|
|
|
Tajikistan |
X |
X |
X |
X |
X |
X |
13 |
Tanzania |
|
|
X |
|
|
X |
1 , 4, 5, 10, 13 |
Thailand |
|
|
|
|
|
|
|
Togo |
|
X |
X |
|
X |
X |
11a, 11b, 13 |
Tonga |
|
|
|
|
|
|
1 |
Trinidad and Tobago |
|
|
|
|
|
|
6a |
Tunisia |
|
|
|
|
|
|
|
Turkey |
|
|
|
|
|
|
|
Turkmenistan |
|
|
X |
X |
X |
X |
1, 3, 5, 13 |
Tuvalu |
|
|
|
|
|
|
3 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Uganda |
|
|
|
|
|
|
1, 5, 10 |
Ukraine |
|
|
|
|
|
|
1, 4, 5 |
United Arab Emirates |
|
|
|
|
|
|
8 |
United Kingdom |
|
|
|
|
|
|
|
Uruguay |
|
|
|
|
|
|
6b |
Uzbekistan |
|
|
|
|
|
X |
1, 3, 4, 5, 13 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Vanuatu |
|
|
|
|
|
|
1 |
Vatican City |
|
|
|
|
|
|
|
Venezuela |
X |
X |
X |
X |
X |
X |
13 |
Vietnam |
|
|
|
|
|
|
1, 4, 5 |
Virgin Islands (British) |
|
|
|
|
|
|
|
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Yemen |
|
|
X |
|
|
X |
1, 3, 4, 5, 13 |
Back to Quick Select |
PUBLIC SECTOR |
PRIVATE SECTOR |
|
COUNTRY |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
Up to 1
Year |
1 to 7
Years |
Over 7
Years |
NOTE(S) |
Zambia |
|
|
X |
|
|
X |
1, 5 |
Zimbabwe |
X |
X |
X |
X |
X |
X |
13 |
* Total Term is from the date of authorization until final repayment - Effective October 2, 2008.
It is agreed that pursuant to the provisions of Ex-Im Bank loans and guarantees
and Ex-Im Bank export credit insurance policies, the country limitation schedule
has been amended effective October 2, 2008. This revision supersedes the
May 29, 2008 Country Limitation Schedule and any amendments thereto.
Please note that Ex-Im Bank only sends updates to the Country Limitation Schedule via e-mail. Policyholders must register at http://www.exim.gov/lists/subscribe.cfm, or use the link from Ex-Im Bank's homepage (www.exim.gov) under "E-Mail Subscriptions" to receive updates to the CLS via e-mail along with other Ex-Im Bank publications such as the Exporter and Africa newsletters.
GENERAL CONDITIONS
Exceptions to any condition or limitation contained herein must be obtained in writing from Ex-Im Bank.
Ex-Im Bank reserves the right to set additional conditions for any particular buyer or issuing bank including
the right to set a different percentage of coverage. Ex-Im Bank also reserves the right to reject any particular application.
The sector where the risk lies (public or private) and the country of the obligor, or guarantor if there is one,
will generally be used for determining appropriate country limitations and fees.
The following insurance policies are affected by this country limitation schedule. Please note that Short-Term
Insurance Policies are governed by the columns titled "Up to one year":
Short-Term Insurance Policies: EBD, ELC, ENB, ENV, ESC, ESM(ST), ESS, ETM(ST), EUS,
FB, FB-E, FV, ESP, ESSP, FP, MCP(ST).
Medium-Term: All medium-term and lease-policy types, ESM, ETM, MCP, MRP, MSC,
MSC-E, MTR, MTR-E.
Notes:
#1. Discretionary Credit Limits under Short
Term Insurance Policies are withdrawn. Cover not available unless specified
in a Special Buyer Credit Limit endorsement, an Issuing Bank Credit Limit endorsement,
or a Country Limit of Liability endorsement.
#2. For sovereign transactions in the People's Republic of China ("China"), Ex-Im Bank will typically require an indication of Chinese government support in the form of a "Notice of MOF Guarantee" as defined in the Framework Agreement, dated January 24, 2005 between the Ministry of Finance of China and Ex-Im Bank.
For public sector non-sovereign and private sector transactions under medium- and long-term programs, Ex-Im Bank will consider transactions with financial institutions or other entities that are able to provide detailed financial information sufficient to enable Ex-Im Bank to reach a credit conclusion.
Under short-term insurance policies for public sector non-sovereign transactions, the use of Discretionary Credit Limits and Country Limits of Liability typically requires the obligation of one of the following: the Bank of China, the China Development Bank, the China Construction Bank, the Industrial and Commercial Bank of China, or the Bank of Communications. For private sector transactions, Discretionary Credit Limits are not available, and cover is not available unless specified in a Special Buyer Credit Limit endorsement or an Issuing Bank Credit Limit endorsement.
Coverage under the Working Capital Guarantee Program (WCGP) requires that the transaction be supported by an irrevocable Letter of Credit issued by a bank referenced in the immediately preceding paragraph, or by a bank pre-approved by Ex-Im Bank. Exceptions may be made for private sector transactions that are insured for comprehensive political and economic risk.
#3. Prior to accepting an application for
a preliminary or final commitment for a public sector transaction, or for
any insurance or WCGP coverage for a public sector transaction, Ex-Im Bank will require
an indication of host government support for the application. Contact Ex-Im
Bank for more detailed information on specific markets.
#4. Ex-Im Bank cover/support for short- and
medium-term private sector transactions is typically limited to transactions
with a commercial bank as obligor or guarantor. Coverage under the WCGP for private sector transactions requires that the transaction be supported by an irrevocable
Letter of Credit.
#5. Ex-Im Bank cover/support for public sector
transactions is typically limited to transactions which commit the full
faith and credit of the government.
#6. Under Short-Term Insurance Policies,
coverage under Discretionary Credit Limits and a Country Limits of Liability
shall be the lesser of the limits authorized in the policy or:
a. $50,000
b. $100,000
Higher limits will be considered upon application for a Special Buyer
Credit Limit endorsement, an Issuing Bank Credit Limit endorsement, or Country
Limits of Liability endorsement.
#7. Support legally prohibited.
#8. Public sector transactions in Sharjah,
Fujairah, Ras Al-Khaimah, Umm Al-Qaywayn, and Ajman require the guarantee of the federal government of the United Arab Emirates. Coverage under the WCGP for public sector transactions for the above may be considered if supported by an irrevocable
Letter of Credit.
#9. Sovereign transactions with total term
in excess of one (1) year require the Government of Aruba as the borrower. For
the WCGP, a transaction may also be considered eligible if it is supported by an
irrevocable Letter of Credit.
#10. When open for cover, medium- and long-term
public sector transactions are subject to Ministry of Finance notification
to Ex-Im Bank that the transaction is of the highest priority and would
conform with IMF program limits on non-concessional debt.
#11a. Public sector risk cover is available under Ex-Im Bank`s Short Term Africa Pilot Program. Discretionary Credit Limits are withdrawn. Transaction structure and additional information requirements will be determined on a case-by-case basis. Public sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.
b. Private sector risk cover is available under Ex-Im Bank`s Short Term Africa Pilot Program. Discretionary Credit Limits are withdrawn. Transaction structure and additional information requirements will be determined on a case-by-case basis. Private sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.
#12a. As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the public sector. Coverage under the WCGP for public sector transactions is currently not available.
b. As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the private sector. Coverage under the WCGP for private sector transactions is currently not available.
#13.Where the CLS indicates support is not available, Ex-Im Bank can still consider financing arrangements that eliminate or externalize country risks. Potentially acceptable transactions include structured transactions that earn revenues offshore in a country with no CLS restrictions and are held in a bank or trust account acceptable to Ex-Im Bank; third-party guarantees from creditworthy entities in countries with no CLS restriction; and asset-backed lease and financing structures involving equipment such as aircraft.
In addition, coverage under the WCGP may be available for a transaction that is supported by an irrevocable Letter of Credit issued by a bank, and/or due from a Buyer, located in a country where Ex-Im Bank is open without restrictions for short-term transactions.
#14. Ex-Im Bank cover/support may be available for transactions where the primary source of repayment is the Development Fund for Iraq or another entity or facility with access to foreign exchange and protection from the claims of creditors of the former regime. Ex-Im Bank cover/support also may be available for transactions where the primary source of repayment is an acceptable financial institution or other party located in a third country where Ex-Im Bank is open for the amount and term of the proposed transaction.
In addition, coverage under the WCGP may be considered, subject to additionality requirements, for subcontractors supported by U.S. Government or internationally funded contracts. Delegated Authority is not available under the WCGP for such coverage.
INFORMATION SUPPLEMENT ON
MEDIUM- AND LONG-TERM PROGRAMS
"Open for Cover" versus "Off-Cover." The
attached Country Limitation Schedule indicates where Ex-Im Bank is "open
for cover" and where Ex-Im Bank is "off-cover." The Schedule
is organized along three dimensions: the country where the risk lies, sector
(public sector or private sector), and term of total exposure (including
both disbursement period and repayment term). Ex-Im Bank defines "public
sector" as including those obligors or guarantors which are at least
50% owned, directly or indirectly, by the government. Where the CLS presents
an X mark, Ex-Im Bank is "off-cover," and is therefore not willing
to consider approval of routine transactions. These "off-cover"
determinations are due to economic and/or political risks associated with
the country.
Where Ex-Im Bank is Open for Cover. The "open for cover"
designation refers to the possibility, rather than the certainty, of Ex-Im
Bank support in particular cases. Proposed obligors, guarantors, and transaction
structures under medium- and long-term programs are all subject to case-by-case
Ex-Im Bank approval. Approval depends on the case-by-case application of
Ex-Im Bank policies, particularly the Ex-Im Bank`s determination of reasonable
assurance of repayment. The following paragraphs provide very general guidance
to the application of policies in markets where Ex-Im Bank is on-cover.
- Identification of Obligor or Guarantor. Ex-Im Bank will approve
a final commitment, a preliminary commitment (PC), or a medium-term insurance
policy or commitment (MTIP or MTIC), only if a specific obligor or guarantor
has been identified. Ex-Im Bank may approve an indicative letter of interest
(LI) for a proposed transaction, subject to the condition that an obligor
or guarantor is identified at the time the LI is converted to a final commitment,
PC, MTIP, or MTIC; and Ex-Im Bank can accept the credit risk of the proposed
obligor or guarantor.
- Information Requirements regarding Obligors or Guarantors. Ex-Im
Bank requires that obligors or guarantors offer "reasonable assurance
of repayment." To process applications for final commitments, PCs,
MTIPs, and MTICs, Ex-Im Bank will first require information on proposed
obligors and guarantors. Such information includes financial statements
and credit references. Engineering data is required for long-term transactions.
Generally, Ex-Im Bank will require more detailed information regarding
obligors or guarantors when processing relatively large transactions, or
transactions with obligors or guarantors with which Ex-Im Bank has had
no favorable direct credit experience. Ex-Im Bank`s application form and
program literature specify the Bank`s standard information requirements.
- Sovereign Guarantees for Public Sector Buyers or Obligors. For
cases involving proposed public sector buyers or obligors which do not
have significant independent sources of revenue outside the central government
budget and which do not have independently audited financial statements,
Ex-Im Bank will routinely require a sovereign guarantee.
- Prior Evidence of Host Government Willingness to Provide Sovereign
Guarantee in Some Countries. In some countries, Ex-Im Bank requires
applications for a final commitment for a medium- or long-term loan or guarantee,
or for medium-term insurance, to be accompanied by prior evidence of the
host government`s willingness to provide a sovereign guarantee.
- Temporary Suspension of Cover. In countries where the CLS indicates
that Ex-Im Bank is "open for cover," Ex-Im Bank may, under certain
circumstances, temporarily suspend cover. This is most likely to be the
case for public sector obligors and guarantors only, but may involve all
obligors and guarantors. In such an event, Ex-Im Bank will advise applicants
as quickly as possible.
- Large Transactions in Smaller Markets. Relatively large transactions
in smaller economies, even when sovereign guaranteed, will be subject to
special Ex-Im Bank review. Ex-Im Bank will review the potential macroeconomic
impacts of the transaction, in terms of higher debt burden and debt repayment
capacity.
- Private Companies. Ex-Im Bank will accept the direct credit
risks of private buyers, if available information suggests that these buyers
offer a "reasonable assurance of repayment." For closely held
companies, Ex-Im Bank may require financial information from owners. For
holding companies, Ex-Im Bank may require financial information on operating
components, and may require their counter-guarantee.
- Commercial Bank Guarantees. Ex-Im Bank may require the guarantees
of acceptable commercial banks in the event that information available
to Ex-Im Bank on proposed private buyers suggests that these buyers by
themselves do not offer a "reasonable assurance of repayment."
- Limited-Recourse Projects. Ex-Im Bank will consider limited-recourse
project finance structures (those without full recourse to an acceptable,
established obligor or guarantor), but only after a comprehensive review
of project features. These features shall include the financial commitment
of the project`s equity shareholders over the life of the proposed Ex-Im
Bank commitment; the experience and capacity of project participants, including
suppliers and offtakers; project cash flow coverage of foreign currency
debt service; and security structures, including hard currency external
payments arrangements. Ex-Im Bank will review only well-developed proposals,
and will require project sponsors to fund review of project proposals by
consultants retained by the Bank. Significant changes to proposed structures
may be required.
- Political-Only Cover. Ex-Im Bank`s standard guarantee and insurance
cover is "comprehensive," under which Ex-Im Bank will pay claims
resulting from both commercial and political perils. For private borrowers,
Ex-Im Bank also offers a narrower form of coverage, under "political-only"
cover. Ex-Im Bank`s guarantee agreements and insurance policies describe
in detail and/or define the specific risks which are subject to this form
of coverage.
The following is intended as a summary: For long-term transactions,
Ex-Im Bank covers default arising from four "core" perils: transfer
risk, expropriation, U.S. export license risk and political violence. Transfer
risk involves borrowers` inability to acquire foreign exchange through
legal foreign exchange markets. Expropriation involves the government`s
confiscation of assets or ownership, or arbitrary or discriminatory intervention
in business operations. U.S. export license risk involves the cancellation
or non-renewal of a U.S. export license or imposition of certain restrictions
on such license after shipment. Political violence involves war, revolution,
insurrection, and other such acts. Under medium-term insurance policies,
Ex-Im Bank also covers defaults arising from other defined risks.
Suppliers and/or lenders choosing political-only cover must be prepared
to assume broad commercial risks associated with the borrower`s capacity.
Ex-Im Bank`s political-only cover does not cover defaults arising from
the borrower`s capacity to withstand domestic or international commercial
market disruptions, or currency devaluation or depreciation. If suppliers
and/or lenders are unable to assume these and other commercial risks, then
Ex-Im Bank comprehensive cover would be a more appropriate form of coverage.
Political-only cover is offered only for private buyers or borrowers,
those which are not subject to the administration of government authorities,
and for which it is possible to distinguish between commercial perils and
political risk perils. Political-only cover is not available for guaranteed
lenders that are majority-owned or controlled by the host country government.
Political-only cover is the only form of coverage available from Ex-Im
Bank for borrowers which are effectively controlled by suppliers and/or
lenders participating in transactions. Political-only cover is available
only in those countries where Ex-Im Bank is "open for cover"
for private sector risk.
Where Ex-Im Bank is Off Cover for Country Credit Reasons. Ex-Im
Bank will not consider routine transactions in countries and sectors (public
or private) where the country limitation schedule indicates that the Bank
is off-cover (where there is an X). However, four special categories of
transactions may be eligible for Ex-Im Bank support, under restrictive
conditions, subject to additional special review:
- Borrowers on International Capital Markets. Individual borrowers
(either public sector or private sector) with a strong record of independent
access or those borrowers which in Ex-Im Bank`s opinion could have access
to private international capital markets or other international sources
of funds, absent external (including sovereign) guarantees. The fee grade
assigned, and the extent of Ex-Im Bank support, will take into account
information related to the borrower`s financings and ratings. For Ex-Im
Bank to consider such borrowers, information on the borrower`s international
borrowings for at least the last six months must accompany the application.
For each traded debt security, the required information includes the maturity
and coupon, credit ratings (if any), and recent yield data. For syndicated
loans, the required information includes interest rates, arranging fees,
maturity profile, amounts borrowed, and names of arranging and key participating
banks.
- Insulated Project Finance Structures. Ex-Im Bank`s approval
in "off-cover" markets/sectors of limited-recourse structures
depends on the establishment of structures which do not require the financial
or operating commitments of host government agencies and which are effectively
insulated from government involvement. Furthermore, these structures must
involve the channeling of project foreign exchange earnings through offshore
payments and escrow mechanisms. In some country environments, the only
acceptable limited-recourse structures may be "enclave" projects
which are almost completely insulated from the broader country environment.
The fee grade assigned, and the extent of Ex-Im Bank support, will take
into account project structure and other conditions.
- Secured Long-Range Aircraft Leases. Ex-Im Bank approval of asset-secured
long-range aircraft lease transactions requires that the airline`s country
of registry become a signatory to international conventions protecting
aircraft property rights. Ex-Im Bank approval for aircraft transactions
in off-cover markets is more likely for privately owned airlines with established
operating records. Depending on the nature of transaction participants
and structures, Ex-Im Bank may also require offshore payments and escrow
mechanisms, or may provide a reduced percentage of cover. Aircraft transactions
are subject to special fees and covenants.
- Acceptable Borrower Outside the Country. Support may be available
if an acceptable financial institution (e.g., commercial or multinational
bank) outside of the country acts as the obligor.
It should be noted that these exceptions do not apply in countries where Ex-Im Bank
is legally prohibited from operating.
Top of Page
Export-Import Bank of the United States
Revised: October 2, 2008
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