Export-import Bank

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Export-import Bank


a bank that promotes the development of foreign trade.

In capitalist countries, export-import banks grant credits for ventures that private banks consider too risky. The first export-import banks appeared with the onset of the general crisis of capitalism, when economies and currencies became less stable and the struggle for markets intensified. This set of circumstances reflected the development of state monopoly capitalism in the area of credit and the effort by monopolies to pass on to the taxpayers the heightened credit risks that resulted from granting export credits for longer terms. Special export-import banks that belong to the state or receive state support exist in numerous countries, including Austria, Belgium, Canada, Denmark, the Federal Republic of Germany (FRG), Finland, France, Italy, Japan, the Netherlands, Norway, Sweden, Switzerland, and the USA (see). Their operations are closely linked with institutions that insure export credits.

In 1919 the Banque Française du Commerce Exterieur was founded in France (it received its present name in 1946). It grants and guarantees long-term (more than seven years) and shortterm credits and rediscounts medium-term (up to seven years) and long-term bills of exchange issued by commercial banks. The bank derives its resources from budgetary appropriations and the issuance of bonds in the loan capital market.

In the FRG the state-owned Kreditanstalt für Wiederaufbau specializes in the financing of exports of equipment to developing countries. Credits for exports to other countries are granted by private banks and by Ausfuhrkredit AG, which was founded in 1952 and includes 50 banks among its stockholders.

Great Britain, with its highly developed network of banks, does not have a special export-import bank: foreign trade is financed exclusively by commercial banks, including Commonwealth banks (formerly colonial banks). The commercial banks grant medium-term and long-term credits at favorable rates; the difference between market rates and these lower rates, as well as part of the credits granted, is covered by the government’s Export Credit Guarantee Department, which also insures export credits.

Italy has several institutions that specialize in medium-term and long-term credit. The state is the main stockholder in these institutions, the most important of which are the Instituto Mobiliare Italiano (IMI), Mediobank, and Mediocredito.

In Japan, the Export Bank was founded in 1950 and renamed the Export-Import Bank of Japan in 1952. Its resources are derived primarily from credits from the State Savings Fund and budgetary appropriations. The bank deals primarily in medium- and long-term credits for exports of equipment. The Ministry of International Trade and Industry is responsible for insuring export credits within the limits established annually by the Japanese government.

Export-import banks play an important role in helping the capital of imperialist countries penetrate the economies of other countries; they are also an important means by which monopolies expand into foreign markets.

In several socialist countries special banks finance foreign trade. These banks, which operate within the framework of the state monopoly on foreign trade, are the Bank for Foreign Trade of the USSR (Vneshtorg-bank) in the USSR, the Hungarian Foreign Trade Bank in Hungary, the Deutsche Aussenhandelsbank in the German Democratic Republic, and the Bank for Foreign Trade in the People’s Democratic Republic of Korea.


References in periodicals archive ?
The Finance Minister appreciated the support of the State bank of Pakistan in setting up the EXIM Bank and gave guidance to the effect that the bank should begin operations at the earliest.
I also would like to acknowledge the tremendous support from EXIM Bank, Ministry of Commerce, and the Indian Embassy in bringing this large contract to fruition.
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A meaningful longstanding partnership between the EXIM Bank and LCCI can enhance trade and economic cooperation between the two countries", they said.
The establishment of the Shari'ah compliant Exim bank will boost cooperation between public and private sectors, enhance capabilities of the local trade finance lenders and encourage exports.
Susanna Pak spoke with Yaduvendra Mathur, Chairman and Managing Director of Exim Bank, about the implications.
The proposed Exim Bank aligned to some of the best global operating models will support the achievement of this objective and further enhance our existing position," said Sami Al Qamzi, Director General of DED.
Dubai's Department of Economic Development (DED) on Wednesday said it has enlisted Noor Investment Group to conduct a feasibility study for the Exim bank project, which would adhere to Shariah-compliant rules.
Yaduvendra Mathur, Chairman and Managing Director, EXIM Bank of India said that the concessional lines of credit extended by Indian government are extremely popular in Africa.
Montenegro's Finance Minister Radoje A1/2ugiA and Minister of Transport and Maritime Affairs Ivan BrajoviA met with President of Exim Bank Li Ruogu to discuss the possibility of funding the Bar-Boljare high-way project, that is, its priority section from Podgorica to Mateševo, through the Exim Bank's preferential loan.
The agreement was signed by Chris Fellner, head of international banking at Doha Bank, and Seop Shim, senior executive director at South Korea ExIm Bank.