THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
March 24, 2000
New Financing to Expand India-U.S. Trade
President Clinton will today announce over $2 billion in U.S. government financial support for American exports to India. The U.S. Export-Import Bank will provide major new financing for small business exports to India, guarantees of rupee-denominated loans to Indian importers, and financing for the purchase of 10 Boeing passenger aircraft by Jet Airways of India. In addition, the President announced that over $4 billion in business agreements between U.S. and Indian companies have been signed and witnessed by U.S. Secretary of Commerce William M. Daley during his visit this week.
Ex-Im Bank to Provide $1 Billion in Financing for Small- and Medium-sized Enterprises
The President also said that the U.S. Ex-Im Bank will guarantee up to $1 billion in loans, denominated in rupees, India's currency. He has also made a preliminary commitment for $358 million in financing for the purchase of 10 Boeing B737-800 aircraft to be operated by Jet Airways of India.
- President Clinton announced that the U.S. Export-Import Bank has pledged a total of $1 billion to the India Ex-Im Bank, the Industrial Development Bank of India, and its subsidiary, the Small Industries Bank of India, to enable Indian small- and medium-sized businesses to purchase U.S.-made goods and services they need to grow and prosper.
- Ex-Im India and Ex-Im Bank will work to find new ways to cooperate with each other in order to provide financing that would be beneficial to small- and medium-sized enterprises (SMEs) in the U.S. and India. Ex-Im India and Ex-Im Bank will pursue information exchanges and joint activities to further the goal of providing the maximum financial support to Indian SMEs and other Indian companies seeking to purchase U.S. goods and services. Ex-Im India will facilitate the identification of appropriate financing opportunities and work with Ex-Im Bank to structure the most efficient means of providing the financing. A similar cooperative arrangement will be designed with the Small Industries Development Bank of India.
Ex-Im Bank to Guarantee Up to $1 Billion in Rupees Denomination Trade Financing
- Ex-Im Bank's Foreign Currency Guarantee Program provides U.S. exporters with the ability to offer their foreign buyer the choice of either a dollar-denominated loan from Ex-Im Bank or a foreign currency-denominated loan from a commercial bank. Ex-Im Bank currently can authorize foreign currency transactions denominated in the French franc, German mark, Japanese yen, Swiss franc, British pound, South African rand, and now, the Indian rupee.
- Indian companies will now have the option of arranging rupee-denominated loans guaranteed by Ex-Im Bank to finance their dollar purchases of U.S. goods and services. In the event of a claim, Ex-Im Bank would pay the guaranteed lender in the foreign currency. Allowing U.S. exporters the flexibility to offer their buyers a guarantee in their local currency helps them to be more competitive and enables them to reach more Indian buyers.
Ex-Im Bank Gives Preliminary Commitment for $358 Million in Financing for Purchase of 10 Boeing Jets:
- Ex-Im Bank has approved a preliminary commitment for $358 million in financing for a twelve-year comprehensive guarantee that will support the sale of 10 Boeing B737-800 airframes to be operated by Jet Airways of India. Deliveries are scheduled to begin in January of 2001.