The U.S. Export Import Bank has expanded its programs to support the sale of U.S. goods and services to China's private sector, in its latest effort to help U.S. exporters continue to do business in the credit-short economies of Asia. Prior to October 15th, Eximbank's lending and financing relationships in China were made mainly with government entities and have involved sovereign financing carrying the full faith and credit of the Chinese government. Now U.S. exporters or Chinese buyers of U.S. goods can apply for short, medium and long-term financing for private sector transactions under Eximbank's loan guarantee and insurance programs.
For sales to South Korea, meanwhile, Eximbank and the Seoul government recently agreed to provide $2 billion in export credit to Korean companies to purchase U.S. goods. The Bank has given South Korea up to five years to repay the credit which will be made available in two tranches of $1 billion each. Financing is guaranteed by the government and will be made in the form of direct loans to the Korean Development Bank, which will then use the money to finance the purchase by Korean companies of U.S. goods and services.