The US Export-Import Bank (Eximbank) signed on 5 October a framework trade financing agreement with the Finance Ministry and Trade Bank of Iraq (TBI). The signing is a renewal of an agreement concluded late last year between Eximbank, TBI and the Coalition Provisional Authority (CPA), in which the export credit agency approved a $500 million short-term insurance facility to support the export of US goods and services to Iraq financed by TBI. Renewal of the framework agreement allows TBI to continue to access the $500 million facility (MEED 9:1:04).
Under the terms of the agreement, Eximbank can now insure letters of credit issued by TBI and confirmed by a local bank. It can also provide coverage on short-term credits extended to TBI by insured banks. Eximbank approved its first transaction in post-war Iraq in May when it underwrote a letter of credit issued by TBI to the US' Tifafor the sale to the Health Ministry of $15 million worth of fogging machines and accessories for insect abatement (MEED 7:5:04).
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