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 ?
This syndicated facility would enhance the two institutions' ability to achieve our mandates," Li Li, President of Export-Import Bank of China, Shanghai Branch, said.
As a government agency, the Export-Import Bank subsidizes the sales of American exports when private banks are unwilling to finance sales of goods to foreign buyers.
The bank's other strategic partners include Netherlands Development Finance Company, International Finance Corporation, Belgian Investment Company for Developing Countries, European Investment bank, Finnish Fund for Industrial Cooperation, African Development Bank, Export-Import Bank of the US, African Export-Import Bank (AFREXIM), and Commerz Bank.
The Export-Import Bank issued a formal demand notice to the Thomas government last year, threatening to pursue all legal avenues to recover the outstanding US$26 million.
Export-Import Bank of China is owned and managed by the Chinese government, Bank of China is the country's main lender in foreign currency, while China Construction Bank is leading within property lending.
The sizeable resulting reductions in licensing and maintenance costs saw Export-Import Bank realize a return on project investment in 12 months.
Emirates signed a $261 million financing agreement with the US Export-Import Bank for two 777-300ERs scheduled for delivery in August and October.
Beijing, confirms the Congressional Research Service, is the single largest beneficiary of trade subsidized by the Export-Import Bank.
AmTrade International Bank and the Export-Import Bank of the U.
The program by the Export-Import Bank of the United States is limited to members of the American Film Marketing Association, a trade group of the independent film industry, and qualified lenders.
TOKYO, March 8 Kyodo Japan will probably extend Export-Import Bank loans to help South Korea build a soccer stadium for the 2002 World Cup finals to be co-hosted by the two nations, a senior Foreign Ministry official said Monday.