JCSM Shareware Collection 1993 November/JCSM Shareware Collection - 1993-11.iso/cl060/japanj.lzh/JAP22

Text File | 1992-10-28 | 15.5 KB | 285 lines

                              EXPORT FINANCING

          Export-Import Bank of the United States

          The Export-Import Bank of the United States (Eximbank) can
          provide export financing assistance to American companies
          through the following programs:

          Working Capital Guarantee Program:  This program helps
          small businesses obtain critical pre-export financing from
          commercial lenders.  Eximbank will guarantee 90 percent of
          principal and a limited amount of interest on loans or
          revolving lines of credit extended to eligible exporters.
          The funds may be used for such pre-export activities as
          buying raw materials or foreign marketing.  For more
          information, contact the U.S. Division at [phone].

          Export Credit Insurance:  Through its agent, the Foreign
          Credit Insurance Association, Eximbank offers insurance
          which covers political and commercial risks on export
          receivables.  For more information, contact the Insurance
          Division at [phone].

          (1) The New-to-Export Policy is available to firms just
              beginning to export or with average annual export sales
              of less than $750,000 for the past two years.  The
              policy offers enhanced coverage and a lower premium
              than usually found in regular insurance policies.

          (2) The Umbrella Policy is available to commercial lenders,
              state agencies, export trading companies, and similar
              organizations to insure export receivables of their
              small and medium-sized clients.

          (3) The Bank Letter of Credit Policy insures commercial
              banks against loss on irrevocable letters of credit
              issued by foreign banks for U.S.  exporters.

          (4) The Multi-Buyer Policy insures all or a reasonable
              spread of an exporter's short- or medium-term export
              credit sales.

          (5) The Financial Institution Buyer Credit Policy insures
              individual short-term export credits extended by
              financial institutions to foreign buyers.

          (6) The Short-Term Single-Buyer Policy and the Medium-Term
              Single-Buyer Policy allow exporters to insure their
              receivables against loss due to commercial and
              specified political risks on a selective basis.

          (7) Lease Insurance Policies offer a lessor the opportunity
              to expand its overseas leasing program by providing
              comprehensive insurance for both the stream of lease
              payments and the fair market value of the leased
              products.

          Guarantee Program:  This program provides repayment
          protection for private sector loans to creditworthy buyers
          of U.S. capital equipment and services exports.  Coverage
          is available for loans of up to 85 percent of the U.S.
          export value, with repayment terms of one year or more.
          Eximbank's guarantee is available for fixed or floating
          rate export loans in U.S.  dollars or convertible foreign
          currencies.  For more information, contact the Export
          Finance Group at [phone].

          Loan Program:  This program provides competitive, fixed
          interest rate financing for U.S. export sales facing
          foreign competition backed by subsidized financing.
          Eximbank extends direct loans to foreign buyers of U.S.
          exports and intermediary loans to responsible parties that
          make loans to foreign buyers.  Coverage is available for
          loans of up to 85 percent of the U.S. export value.  The
          interest rates are the official minimum matrix rates agreed
          on by members of the Organization for Economic Cooperation
          and Development (OECD) and depend on the repayment period
          and the classification of the buyer's country.  For more
          information, contact the Export Finance Group at (202)
          566-8187.

          Engineering Multiplier Program:  This program stimulates
          the exports of U.S.  architectural, industrial design, and
          engineering services.  Eximbank will extend loans or
          guarantees up to 85 percent of the U.S. export value of
          services involving projects with the potential of
          generating U.S. export orders of $10 million or double the
          original export contract, whichever is greater.  It also
          will guarantee commercial financing for approved
          project-related costs in the host country of up to 15
          percent of the U.S.  export value.  For more information,
          contact the Engineering Division at [phone].

          Operations and Maintenance Contracts Program:  This program
          helps U.S. firms compete for overseas contracts to operate
          and maintain new or established projects.  Eximbank will
          provide loans or guarantees for up to 85 percent of the
          U.S. export value of operations and maintenance
          transactions with repayment terms of up to five years.  The
          contract must provide a long-term benefit to the owner,
          such as training local personnel to take over the operation
          or establishment of permanent procedures to assure good
          operation of the project.  For more information, contact
          the Engineering Division at [phone].

          Foreign Credit Insurance Association

          The Foreign Credit Insurance Association (FCIA) helps U.S.
          exporters shipping on short-term credit (up to one year) to
          be assured of receiving payment while extending appropriate
          credit terms.  As an agent of Eximbank, it insures U.S.
          companies against the risk of nonpayment by foreign buyers
          for commercial and political reasons.  The insurance can
          cover 90 percent of the commercial risks and 100 percent of
          the political risks or 95 percent of all risks, a decision
          that is made by the policyholder.  For more information,
          contact FCIA at [phone].

          The Small Business Administration

          The Small Business Administration (SBA) can provide export
          financing assistance to American companies through the
          following programs:

          Export Revolving Line of Credit Program:  This program
          guarantees loans up to $750,000, the proceeds of which can
          be used to finance foreign market development or labor and
          materials needed to manufacture or wholesale for export.
          The maximum maturity is 18 months.  For more information,
          contact the Office of Financial Assistance at (202)
          205-6497.

          International Trade Loan Guarantee Program:  This program
          offers small businesses that can significantly expand
          existing export markets, develop new export markets, or
          those adversely affected by import competition, loan
          guarantees up to $1 million for facilities and equipment
          and up to $250,000 for working capital.  Maturities of
          loans may extend up to 25 years.  For more information,
          contact the Office of Financial Assistance at (202)
          205-6497.

          Small Business Investment Companies:  Licensed by SBA,
          firms whose investment strategies include export activities
          may receive equity capital or term working capital in
          excess of SBA's $750,000 statutory limit.  For more
          information, contact the Investment Division at (202)
          205-6734.

          Business Loan Guarantee Program:  Financing for fixed-asset
          acquisition or general working capital purposes may be
          obtained; the program encourages private lenders to make
          loans of up to $750,000 to borrowers who could not borrow
          on reasonable terms without government help.  For more
          information, contact the Office of Financial Assistance at
          [phone].

          The Overseas Private Investment Corporation

          The Overseas Private Investment Corporation (OPIC) can
          provide export financing assistance to American companies
          through the following programs:

          Finance Programs:  Medium- to long-term financing for
          overseas investment projects is made available through loan
          guaranties and direct loans.  Loans generally range up to
          $6 million and are reserved exclusively for projects
          significantly involving U.S. small businesses or
          cooperatives. Guarantees, as large as $50 million, are
          available for projects sponsored by any U.S.  company
          regardless of size.  OPIC's financing commitment may range
          up to 50 percent of total project costs for new ventures
          and up to 75 percent for expansion of existing successful
          operations, with final maturities of 5 to 12 years or more.
          A special small contractor's guarantee program is also
          available. For more information, contact Public Affairs at
          [phone].

          Lease Financing Program:  This program offers loans and
          guarantees to foreign leasing companies in which there is a
          significant U.S. private business interest.  Terms of the
          guarantee are typically from four to seven years.  For more
          information, contact Public Affairs at [phone].

          Small Contractor's Guarantee Program:  This program will
          guarantee an eligible financial institution for up to 75
          percent of an on-demand standby letter of credit or other
          form of payment guarantee issued on behalf of a small
          business construction or service contractor.  For more
          information, contact Public Affairs at [phone].

          The U.S. Department of Agriculture

          The U.S. Department of Agriculture (USDA) can provide
          export financing assistance to American companies through
          the following programs:

          Export Credit Guarantee Programs:  These programs are
          designed to expand U.S. agricultural exports by stimulating
          U.S. bank financing of foreign purchases.  The programs
          operate in cases where credit is necessary to increase or
          maintain U.S. exports to a foreign market and where private
          financial institutions would be unwilling to provide
          financing without a guarantee.  These programs guarantee
          letters of credit from foreign financial institutions
          against default.  For more information, contact the USDA at
          [phone].

          Market Promotion Program:  Authorized by the Food,
          Agricultural, Conservation, and Trade Act of 1990 and
          administered by USDA's Foreign Agricultural Service, the
          Market Promotion Program promotes a wide variety of U.S.
          commodities in almost every region of the world.  Surplus
          stocks or funds from the Commodity Credit Corporation are
          used to partially reimburse agricultural organizations
          conducting specific foreign market development projects for
          eligible products in specified countries.  For more
          information, contact Marketing Operations at (202)
          720-5521.

          Japanese Entities

          The Export-Import Bank of Japan (JEXIM):  In order to
          increase Japan's imports, the JEXIM has expanded the scope
          of eligible borrowers for low-interest financing.  Products
          of American companies are eligible for the Japanese
          Government import credit program.  For information,
          contact:

          The Export-Import Bank of Japan  The Export-Import Bank of Japan
          375 Park Avenue, Suite 3601      2000 Pennsylvania Ave., N.W.
          New York, NY 10152               Suite 3350
          Phone:  [phone]           Washington, DC 20006
                                           Phone:  [phone]

          The Japan Development Bank (JDB):  The JDB has sharply
          increased low-interest financing offered to foreign
          companies for import-related facilities in Japan as well as
          for direct investment in Japan by U.S.  companies.  For
          information, contact:

          The Japan Development Bank       The Japan Development Bank
          Center for Promotion of Direct   Center for Promotion of Direct
           Investment in Japan              Investment in Japan
          1101 17th Street, N.W.           575 Fifth Avenue, 28th Floor
          Suite 1001                       New York, NY 10017
          Washington, DC 20036             Phone:  [phone]
          Phone:  [phone]

          The Export-Import Insurance Division of the Ministry of
          International Trade and Industry (EID/MITI):  EID/MITI,
          which began operations in 1950, insures repayment of export
          credits. EID/MITI insurance enables commercial banks, which
          normally would be unwilling to assume the risk of certain
          types of financing, to fund overseas projects.  EID/MITI
          has a wide range of short, medium, and long-term insurance
          programs for Japanese and non-Japanese exporters,
          importers, and investors.  For more information, contact:

              Ministry of International Trade and Industry
              Export-Import Insurance Division
              1-3-1, Kasumigaseki
              Chiyoda-ku, Tokyo 100, Japan

          In May 1991, the Export-Import Bank of the United States
          reached an agreement for cooperation with the financial
          institutions of the Government of Japan (JEXIM, JDB, and
          EID/MITI) to advance mutual objectives in:  (1) expanding
          the role of exports in the growth of global trade, (2)
          facilitating the flow of trade and investment capital to
          developing countries, (3) assisting cooperation between
          suppliers and banks of Japan and the United States, and (4)
          increasing the volume of exports from the United States to
          Japan and other countries.  It is expected that the
          cooperative application of financing support by the
          respective agencies will enable projects to be financed
          which otherwise could not proceed for lack of complete
          capital resources.  In particular, it is expected that U.S.
          exports will benefit from more effective access to
          financing supported by the Japanese agencies.