The US Export-Import Bank (EXIM) board of directors has approved a US$300 million package of support for letters of credit (L/Cs) issued by Iraq.

At its first ever meeting under the agency's new president and chair, Reta Jo Lewis, the board also voted to officially move EXIM off-cover in Russia.

Iraqi L/C insurance

The board unanimously approved a resolution that delegates to certain officers of EXIM the authority to approve, deny, and amend requests for insurance coverage on L/Cs issued by the Trade Bank of Iraq (TBI) up to US$300 million for the purchase of US goods and services.

EXIM expects to authorise various transactions that will insure covered US banks in relation to TBI's irrevocable L/Cs associated with certain purchases. These include goods such as agricultural commodities, including wheat and rice, as well as services, such as engineering, from America's exporters. US exporters will be protected by EXIM against the risk of buyer non-payment.

Other approvals

The board approved a nearly US$48 million loan guarantee to support the sale of diesel electric locomotives to Sri Lanka Railways, while Albania's national electricity utility is expected to benefit from a nearly US$33 million energy efficiency technology authorisation aimed at rehabilitating the country's electricity metering capabilities.

The board also voted for the proposed renewal of a US$450 million guarantee authorisation to Citibank that allows suppliers of Boeing to receive accelerated payments on accounts receivable due from the aircraft manufacturer.

Russian exit

The board voted to move the agency off-cover in Russia, a move which EXIM had already committed to.

It had previously approved an administrative hold on processing Russian applications in September 2014, following Russia's invasion of Crimea. The hold has continued to date, and EXIM has not approved any new transactions in Russia during that time.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.