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President Clinton will today announce over $2 billion in U.S. government
financial support for American exports to India. The U.S. Export-Import
Bank will provide major new financing for small business exports to
India, guarantees of rupee-denominated loans to Indian importers, and
financing for the purchase of 10 Boeing passenger aircraft by Jet
Airways of India. In addition, the President announced that over $4
billion in business agreements between U.S. and Indian companies have
been signed and witnessed by U.S. Secretary of Commerce William M. Daley
during his visit this week.
Ex-Im Bank to Provide $1 Billion in Financing for Small- and
Medium-sized Enterprises
The President also said that the U.S. Ex-Im Bank will guarantee up to $1
billion in loans, denominated in rupees, India's currency. He has also
made a preliminary commitment for $358 million in financing for the
purchase of 10 Boeing B737-800 aircraft to be operated by Jet Airways of
India.
President Clinton announced that the U.S. Export-Import Bank has
pledged a total of $1 billion to the India Ex-Im Bank, the Industrial
Development Bank of India, and its subsidiary, the Small Industries Bank
of India, to enable Indian small- and medium-sized businesses to
purchase U.S.-made goods and services they need to grow and prosper.
Ex-Im India and Ex-Im Bank will work to find new ways to cooperate
with each other in order to provide financing that would be beneficial
to small- and medium-sized enterprises (SMEs) in the U.S. and India.
Ex-Im India and Ex-Im Bank will pursue information exchanges and joint
activities to further the goal of providing the maximum financial
support to Indian SMEs and other Indian companies seeking to purchase
U.S. goods and services. Ex-Im India will facilitate the identification
of appropriate financing opportunities and work with Ex-Im Bank to
structure the most efficient means of providing the financing. A
similar cooperative arrangement will be designed with the Small
Industries Development Bank of India.
Ex-Im Bank to Guarantee Up to $1 Billion in Rupees Denomination Trade
Financing
Ex-Im Bank's Foreign Currency Guarantee Program provides U.S.
exporters with the ability to offer their foreign buyer the choice of
either a dollar-denominated loan from Ex-Im Bank or a foreign
currency-denominated loan from a commercial bank. Ex-Im Bank currently
can authorize foreign currency transactions denominated in the French
franc, German mark, Japanese yen, Swiss franc, British pound, South
African rand, and now, the Indian rupee.
Indian companies will now have the option of arranging
rupee-denominated loans guaranteed by Ex-Im Bank to finance their dollar
purchases of U.S. goods and services. In the event of a claim, Ex-Im
Bank would pay the guaranteed lender in the foreign currency. Allowing
U.S. exporters the flexibility to offer their buyers a guarantee in
their local currency helps them to be more competitive and enables them
to reach more Indian buyers.
Ex-Im Bank Gives Preliminary Commitment for $358 Million in Financing
for Purchase of 10 Boeing Jets:
Ex-Im Bank has approved a preliminary commitment for $358 million in
financing for a twelve-year comprehensive guarantee that will support
the sale of 10 Boeing B737-800 airframes to be operated by Jet Airways
of India. Deliveries are scheduled to begin in January of 2001.