Statement of Administration Policy: S. 2247 - To Amend and Extend the Export-Import Bank Act of 1945, and to Eliminate Foreign Predatory Export Practices

(Senate)
(Senator Heinz (R) Pennsylvania and 7 others)

The Administration supports the Title II Warchest provisions and reauthorization of the Export Import Bank, however, we oppose Senate passage of S. 2247 unless amendments are adopted to authorize the Administration's I-Match program and remove certain objectionable provisions. I-Match is an interest rate subsidy program designed to replace direct loans while providing fully competitive export financing, minimizing Government intervention in the credit market, and reducing Federal outlays.

The objectionable provisions are:

— section 103, which would require the Export-Import Bank to make direct credits under its medium-term financing program rather than working through commercial banks;

— section 106, which would undermine the flexibility and independence of the Bank's Board by giving the National Advisory Council on International Monetary and Financial Policies (NAC) ultimate power for decisions on reasonable assurance of repayment;

— section 109, which requires the full transferability of guarantees to other lenders, which will result in increased competition with Treasury securities and ultimately raise Treasury interest costs as well as costs to Eximbank; and

— section 113, which would create the potential for significant diversion of Eximbank resources from financing export sales to financing domestic transactions.

Other provisions of S. 2247 are of concern, although to a lesser degree, and the Administration will seek in conference to have S. 2247 conform more closely to the Administration's proposals.

(Not to be Distributed Outside Executive Office of the President)