Export-Import Bank of the United States (Ex-Im Bank)
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.
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.