Manchin Introduces Bipartisan Export-Import Bank Reform and Reauthorization
Bipartisan Reform Bill Will Extend Bank’s Charter to 2019
Washington, D.C. – U.S. Senators Joe Manchin (D-W.Va.) and Mark Kirk (R-IL) today introduced the Export-Import Bank Reform and Reauthorization Act of 2015, which would reauthorize the Bank's charter until September 30, 2019, and would minimize risk to taxpayers by requiring a regular audit of the Bank's risk management practices and procedures. Currently, the Bank’s authorization is set to expire June 30, 2015, and would impact more than 200,000 American jobs that are supported through the Bank.
Senators Heidi Heitkamp (D-N.D.), Lindsey Graham (R-S.C.), Roy Blunt (R-Mo.), Joe Donnelly (D-Ind.), Kelly Ayotte (R-N.H.) and Mark Warner (D-Va.) are also original sponsors.
“The Export-Import Bank is a truly important federal credit agency that helps our business community grow and prosper overseas,” Senator Manchin said. “It supports more than 205,000 American jobs and generated $37.4 billion in U.S. export sales last year by providing loans, guarantees, and insurance services to help U.S. companies sell their products overseas. And about 89 percent of the Export-Import Bank’s 3,842 deals in the past fiscal year benefited small businesses, which are the true beneficiaries for this important agency. The bipartisan bill that was brokered would also allow coal technologies to be exported abroad, which would ensure countries around the world producing coal to generate energy as cleanly as possible. But if Congress fails to reauthorize the Ex-Im Bank by the end of June, it will significantly impact American jobs, exports and small businesses nationwide.”
“This bill contains over a dozen reforms which have brought together a bipartisan coalition of senators who agree that American businesses, large and small, cannot unilaterally disarm against our global competitors,” Senator Kirk said.
Established in 1934, the Export-Import Bank is an export credit agency through the federal government, which guarantees loans and credit to businesses otherwise unable to operate through private lenders. Nearly 90 percent of Ex-Im’s transactions each year directly benefit small businesses, and nationwide, the Bank supports more than 205,000 American jobs.
The Export-Import Bank also operates with no cost to the taxpayer. In 2013, the bank returned more than $1 billion to the U.S. Treasury.
To read the full text of the bill, please click here.
Key provisions in the reauthorization legislation include:
Reduces risk to taxpayers by requiring higher loan loss reserves.
Lifts restrictions on energy projects around the world by prohibiting policies that would prevent the Bank from financing coal-fired or other power-generation projects that would increase U.S. exports and support U.S. jobs.
Puts greater focus on small businesses by increasing the required lending to small businesses from 20 percent to 25 percent.
Increases Oversight of Bank Practices:
The bill creates a Chief Risk Officer and a Risk Management Committee to oversee the Bank's operations, requires the Inspector General to audit the Bank’s risk management procedures regularly, and creates a non-political Chief Ethics Officer to oversee ethics practices of Bank employees.
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