What is the Export Import Bank? Should It Be Re-authorized?

The Export Import Bank was not re-funded or re-authorized this year 2015. There are influential people who feel that the Export Import Bank is “welfare” for large corporations to do business around the world. The intent of the Export Import Bank according to their website is supporting American jobs.

What is it?

The Export-Import Bank of the United States (EXIM) is the official export credit agency of the United States. EXIM is an independent, self-sustaining Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services.  Source: Export Import Bank

Why is it important?

When private sector lenders are unable or unwilling to provide financing, EXIM fills in the gap for American businesses by equipping them with the financing tools necessary to compete for global sales. In doing so, the Bank levels the playing field for U.S. goods and services going up against foreign competition in overseas markets, so that American companies can create more good-paying American jobs.

Because it is backed by the full faith and credit of the United States, EXIM assumes credit and country risks that the private sector is unable or unwilling to accept. The Bank’s charter requires that all transactions it authorizes demonstrate a reasonable assurance of repayment; the Bank consistently maintains a low default rate, and closely monitors credit and other risks in its portfolio.  Source: Export Import Bank

Examples of the Argument

Here is an example of the argument from Bloomberg QuickTake.

The New York Times Op Ed has an article about the demise of the Export Import Bank, read it here.

Why wasn’t it re-funded?

Here’s an article from the PBS Newshour’s “Making Sense” feature: 5 things to know about the controversial Export Import Bank.

What do you think? Should the Export Import Bank be refunded?

Update on this topic: The Import-Export Bank was re-funded in October, 2015. See this link:  New York Times article