About -PEFCO & Ex-Im Bank-
Private Export Funding Corporation (PEFCO) was established in 1970 with the assistance of the Export-Import Bank of the United States (Ex-Im Bank) to supplement the export financing then available through Ex-Im Bank and from commercial banks and other lending institutions. Ex-Im Bank continues to maintain a close interest in PEFCO's activities. All of PEFCO's programs have been established in conjunction with Ex-Im Bank and at its request or with its permission.
PEFCO was established in 1970 with the assistance of the Export-Import Bank of the United States (Ex-Im Bank) to supplement the export financing then available through Ex-Im Bank and from commercial banks and other lending institutions. Ex-Im Bank continues to maintain a close interest in PEFCO's activities. All of PEFCO's programs have been established in conjunction with Ex-Im Bank and at its request or with its permission.
PEFCO offers a broad range of financing programs as a direct lender and as a secondary market buyer of export loans originated by lenders (PEFCO does not buy loans from exporters). To be eligible for financing by PEFCO, all loans must be protected against nonpayment under an appropriate guarantee or insurance policy issued by Ex-Im Bank or for certain small business export loans under a guarantee issued by the Small Business Administration (SBA).
Ex-Im Bank cooperates with PEFCO through a variety of agreements including the following:
- a Guarantee Agreement providing a full and unconditional guarantee for the due and punctual payment of principal and interest on all long-term direct loans made by PEFCO with the approval of Ex-Im Bank; and
- a Guarantee and Credit Agreement providing for a full and unconditional guarantee of the due and punctual payment of interest to investors holding PEFCO's Secured Notes.
In consideration for the support provided in these agreements, Ex-Im Bank maintains a broad measure of supervision over PEFCO's major financial management decisions.
- The approval of Ex-Im Bank is required on the terms of PEFCO's individual long-term direct loan commitments and PEFCO's long-term Secured Notes.
- Surplus funds may be invested only in Ex-Im Bank-approved types of assets.
- Ex-Im Bank is entitled to representation at all meetings of PEFCO's Board of Directors, Advisory Board and Exporter's Council.
- PEFCO furnishes Ex-Im Bank with full information as to budgets, financial condition and operating results.