|Program Title||Export Import Bank|
|Department Name||Export-Import Bank of the US|
|Agency/Bureau Name||Export-Import Bank of the United States|
|Assessment Rating||Moderately Effective|
|Assessment Section Scores||
|Program Funding Level
|Year Began||Improvement Plan||Status||Comments|
|Year Began||Improvement Plan||Status||Comments|
Developing and implementing more effective performance measures to ensure that the Bank does not provide undue subsidies.
Reviewing the existing performance measure of the percentage of Long Term Guarantees that involve high-risk markets or high-risk customers to ascertain whether 60% is an appropriate target.
Measure: Financing terms (interest rates and fees) competitive with those terms provided by foreign governments to their exporters (Compet. = Competitive)
Explanation:Ex-Im Bank's Charter states that "The bank shall, in cooperation with the export financing instrumentalities of other governments, seek to minimize competition in government-supported export financing..." Therefore, this performance indicator measures whether or not Ex-Im Bank programs are competitive (on core business policies and practices, major program structures, economic philosophies, etc...) to those of the G-7 official export credit agencies (ECAs), the traditional competitors to Ex-Im Bank.
Measure: Percentage of short term and medium term transactions (by authorization amount) that involve high risk markets or high risk customers
Explanation:High risk is defined as transactions that are rated a level 5 or worse on Export Import Bank's budget cost level scale (BCL). A BCL 5 transaction corresponds to a BB on the Standard and Poor's (S&P) scale which is considered non-investment grade. S&P categories BB as a credit that "??faces major ongoing uncertainties to adverse business, financial and economic conditions."
Measure: Percentage of all transactions (by authorization amount) that support U.S. small business exports
Measure: Percentage of annual fees collected from borrowers (offsetting collections) that finance all annual agency expenses (credit subsidy and administrative expenses)
Explanation:As of the FY 2008 Enacted Budget, Ex-Im Bank is completely self-financed.
|Section 1 - Program Purpose & Design|
Is the program purpose clear?
Explanation: Ex-Im Bank's Charter states that "the objects and purposes of the bank shall be to aid in financing and to facilitate the exports of goods and services...between the United States...and any foreign country or the agencies or nationals thereof" and that "The bank shall, in cooperation with the export financing instrumentalities of other governments, seek to minimize competition in government-supported export financing..." The Long-Term (L-T) guarantee helps Ex-Im Bank achieve this mission by providing repayment protection for private sector loans to creditworthy buyers of U.S. exports. The guarantee allows Ex-Im Bank to match officially supported foreign competition or to act as a lender of last resort to maximize support for US exports and contribute to the promotion and maintenance of US jobs.
Evidence: The Export-Import Bank Act of 1945, as amended.
Does the program address a specific interest, problem or need?
Explanation: Ex-Im Bank' s L-T guarantee is used to aggressively match financing offers from foreign, officially supported Export Credit Agencies (ECAs) or to fill private sector financing gaps/address market failures to support US exports and jobs. The L-T guarantee product allows the Bank to accomplish this mission without crowding out private sector sources of financing. It is true that due to successful OECD arrangements, such as the completion of the Commercial Interest Reference Rates (CIRR) system and the floor set on exposure fees, demand for ECA financing has remained constant in recent years and represents a declining percentage of total exports. However, the L-T guarantee has become more relevant to the market in recent years, as the various global financial crises that have arisen since 1997 have diminished the willingness of commercial banks to accept emerging market risk without guarantees from ECAs or multilateral financial institutions.
Evidence: Overall ECA financing has remained fairly stable over the past five years - between 1995 and 2000, ECA financing among the G7 countries decreased by -1.66 percent while at the same time overall merchandising exports from developed countries increased by 16.34 percent. According to the International Institute of Finance, net commercial bank lending (disbursements minus repayments-excluding ECA guarantees) to emerging markets averaged $38 billion per year between 1979 and 1984. This figure dropped to $-.3 billion during the Latin American debt crisis 1985-1990 and rebounded to $56 billion during the period 1991-7. The Asian debt crisis marked the beginning of the current period in which repayments outstripped new disbursements by an average of $40 billion per year from 1998-01. During the Asian debt crisis, Ex-Im Bank supported authorizations increased from $1.5 B in 1998 to $3.1 B in 1999, $3.0 B in 2000 and with the easing of the crisis, Ex-Im Bank authorizations began to decrease with $1.8 B in 2001and approximately $1.2 B in 2002.
Is the program designed to have a significant impact in addressing the interest, problem or need?
Explanation: Ex-Im Bank' s L-T guarantee is used to aggressively match financing offers from foreign, officially supported Export Credit Agencies (ECAs) or to fill private sector financing gaps/address market failures to support US exports and jobs. Although Ex-Im Bank authorizations only represent one to three percent of total U.S. exports that would not have occurred but for Ex-Im Bank financing (known as "additionality"), they represent a significant portion of overall exports to selected emerging markets. In these markets (i.e., China, Indonesia, Russia, Turkey) Ex-Im Bank-financed exports represent from 19 to 37 percent of total U.S. exports.
Evidence: By providing a 100% principal and interest guarantee product, as well as working within the OECD ECA guidelines to provide financing that is competitive in terms of all-in-cost and cover policy, the Bank has been able to make a significant impact in addressing official foreign competition and lack of private sector financing.
Is the program designed to make a unique contribution in addressing the interest, problem or need (i.e., not needlessly redundant of any other Federal, state, local or private efforts)?
Explanation: Ex-Im Bank is the only USG trade agency that offers a L-T guarantee product to match foreign officially-supported competition or to fill financing gaps as a lender of last resort to support U.S. exports and thereby promote and maintain U.S. jobs. The private sector - both exporters and banks utilize Ex-Im Bank to either counter foreign ECA competition or to fill financing gaps.
Evidence: Other USG trade and investment agencies have different missions and offer different types of products, as noted on their websites: www.opic.gov, www.sba.gov, www.tda.gov. For Ex-Im Bank's L-T guarantee aircraft transactions approximately 90 percent of these deals counter foreign ECA financing support for Airbus. As of July 21 2002, over 80 percent of Aircraft transactions were in better risk markets (BCL 4 or better). This is indicative of matching foreign ECA competition. As discussed earlier, Ex-Im Bank authorizations represent a high percentage of exports to emerging markets (due to unwillingness of commercial sector to lend in such markets) which increases significantly during times of crisis. Although, Ex-Im Bank authorizations represent a small portion of total U.S. exports (one to three percent), they represent a significant portion of overall exports to selected emerging markets. In these markets (i.e., Angola, China, Indonesia, Russia, Turkey) Ex-Im Bank financed exports represent from 19 to 37 percent of total U.S. exports.
Is the program optimally designed to address the interest, problem or need?
Explanation: Ex-Im Bank's L-T guarantee has traditionally been viewed as a strong product for three principle reasons: 1) it is a guarantee, versus the conditional insurance product offered by most other ECAs; 2) it is designed to fill financing gaps without crowding out private sector sources of finance; and 3) it optimally leverages tax payer dollars. Due to changes in the ECA competitive landscape and the export credit market, Ex-Im Bank continually strives to ensure that its L-T guarantee continues to add optimal value to the marketplace by adopting modifications as deemed necessary.
Evidence: Ex-Im Bank's L-T guarantee has traditionally been viewed as a strong product for three principle reasons: 1) it is a guarantee, versus the conditional insurance product offered by most other ECAs; 2) it is designed to fill financing gaps without crowding out private sector sources of finance; and 3) it optimally leverages tax payer dollars. Due to changes in the ECA competitive landscape and the export credit market, Ex-Im Bank continually strives to ensure that its L-T guarantee continues to add optimal value to the marketplace by adopting modifications as deemed necessary.
|Section 1 - Program Purpose & Design||Score||100%|
|Section 2 - Strategic Planning|
Does the program have a limited number of specific, ambitious long-term performance goals that focus on outcomes and meaningfully reflect the purpose of the program?
Explanation: Ex-Im Bank has committed to using the L-T guarantee product to meet two long-term strategic goals that suport the program's mission of matching officially supported foreign competitors and acting as lender of last resort.
Evidence: Ex-Im Bank's FY 01-06 Strategic Plan highlights these two strategic goals: (1) For qualified transactions, aggressively match financing offers from foreign, officially supported competitors; (2) To provide financing support for high risk countries/markets seeking U.S. qualified exports for which private market financing is not available.
Does the program have a limited number of annual performance goals that demonstrate progress toward achieving the long-term goals?
Explanation: In support of its first annual performance goal to finance guarantee transactions that face foreign competition (see Evidence), Ex-Im Bank tries to assess whether a transaction faces competition. However, with its second annual performance goal (see Evidence), Ex-Im Bank does not adequately demonstrate why achieving 60% (versus some other percentage) of L-T transactions involving high-risk markets or high-risk customers is chosen to measure their second strategic goal of acting as lender of last resort. OMB and Ex-Im Bank agree to work towards strengthening this measure of additionality.
Evidence: The FY02 Annual Performance Goals for the L-T guarantee are as follows: (1) In FY 2002, provide financing which meets confirmed competition on qualified loan and guarantee transactions; (2) In FY 2001 and FY 2002, 60% of all long-term loan and guarantee transactions (by number) will involve high-risk markets or high-risk customers so as to ensure that the Ex-Im Bank L-T guarantee program focuses on the Bank's role as a lender of last resort.
Do all partners (grantees, sub-grantees, contractors, etc.) support program planning efforts by committing to the annual and/or long-term goals of the program?
Explanation: At the time they apply for support, Ex-Im Bank's customers (i.e., banks, exporters, borrowers) must indicate that their request for financing fulfills one of Ex-Im Bank's long-term strategic goals. The customers, however, are not required to provide any additional evidence of said competition or of their inability to obtain private financing. OMB will work with Ex-Im Bank to strengthen the Bank's process of determining the private market appetite for financing and the existence of competitive offers from other ECA's.
Evidence: At the time they apply for support, Ex-Im Bank's customers (i.e., banks, exporters, borrowers) must indicate that their request for financing fulfills one of Ex-Im Bank's long-term strategic goals. The customers, however, are not required to provide any additional evidence of said competition or of their inability to obtain private financing. OMB will work with Ex-Im Bank to strengthen the Bank's process of determining the private market appetite for financing and the existence of competitive offers from other ECA's.
Does the program collaborate and coordinate effectively with related programs that share similar goals and objectives?
Explanation: Ex-Im Bank coordinates with related programs. The Bank works through the Trade Promotion and Coordination Committee (TPCC) to coordinate effectively with other USG programs. The TPCC was established under the Export Enhancement Act of 1992 to provide a unifying framework to coordinate the export promotion and export financing activities of the USG and to develop a government-wide strategic plan for carrying out such programs. The Bank also collaborates with USAID on the SEED (Support for East European Democracy Act) program, cofinances with OPIC, meets regularly with TDA regional directors, Treasury on OECD ECA negotiations and State on Paris Club issues.
Evidence: TPCC National Export Strategy Report, 2002. Ex-Im Bank collaborates with OPIC on approximately 28 percent of current project financing transactions. These cofinanced transactions, with Ex-Im and OPIC sharing resources and costs (independent engineers and outside counsels), represent 9 of 32 projects. During OECD negotiations, the Bank works with Treasury to level trade finance terms among the ECAs. During the past ten years, multiple OECD Arrangements have established maximum tenor and minimum fees for L-T guarantee transactions.
Are independent and quality evaluations of sufficient scope conducted on a regular basis or as needed to fill gaps in performance information to support program improvements and evaluate effectiveness?
Explanation: In FY00, Ex-Im Bank began participating in the American Customer Satisfaction Index (ACSI), an annual survey that uses survey and modeling methodology to isolate factors that have the highest impact on satisfaction. The ACSI is produced through a partnership between the National Quality Research Center at the University of Michigan Business School, the American Society for Quality, and Arthur Andersen. Ex-Im Bank received valuable feedback on the performance of its L-T guarantee program from this survey in FY00 and FY01. ACSI, however, does not evaluate Ex-Im Bank's effectiveness with respect to achieving any of its long term or annual performance goals. In addition, while not independent, the Competitiveness Report, produced by the Bank's Policy and Planning Group does indicate that the Bank has been effective in matching foreign ECA financing.
Evidence: ACSI Reports, FY00 and FY01; FY 00 and FY01 Competitiveness Report.
Is the program budget aligned with the program goals in such a way that the impact of funding, policy, and legislative changes on performance is readily known?
Explanation: Ex-Im Bank's calculation of their annual subsidy appropriations is based on an estimation of demand for their L-T guarantees and their estimation of risk of these transactions. As a result, a reduction in the program budget would reduce the dollar value of the transactions that the Bank could potentially support thereby possibly reducing the Bank's ability to meet its long-term goals.
Evidence: Ex-Im Bank forecasts demand based on a careful and comprehensive analysis of its customers. For L-T guarantees, the demand is forecasted from projects currently in the pipeline and expected exports requiring Bank financing. Proj. finance and aircraft transactions represent 70-80% of total L-T transactions (FY2000/1Data). Given the time requirements for project finance transactions (8-14 months), the Bank uses transactions in the pipeline to accurately forecast demand. For aircraft transactions, the Bank works with US aircraft manufacturers to develop demand forcasts. US aircraft manufacturers share their multi-year production/delivery schedule with the Bank so the Bank can then identify potential customers for Ex-Im financing support based on staff experience. The Bank also factors in a projected increase in global economic demand, withdrawal of private capital from specific markets, and value of the U.S. dollar compared to the other major currencies. With this estimated demand, the Bank calculates the required subsidy using the appropriate risk premia provided by OMB.
Has the program taken meaningful steps to address its strategic planning deficiencies?
Explanation: Ex-Im Bank has developed a GPRA process that serves as a strategic planning tool. For example, as part of the GPRA process, Ex-Im Bank sets a performance goal to increase the proportion of high risk L-T loan and guarantee transactions to ensure that the guarantee program focused on its mandate to act as a lender of last resort. Ex-Im Bank, however, has yet to demonstrate why the Bank has settled on 60% as an adequate measure of performance.
Evidence: FY01-06 Strategic Plan, FY99, 00, and 01 Annual Performance Reports, FY00 and 01 Annual Performance Plans.
|Section 2 - Strategic Planning||Score||86%|
|Section 3 - Program Management|
Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?
Explanation: The Ex-Im Bank regularly collects key information on L-T guarantees in order to manage the program. The Bank uses both a weekly status report and monthly Financial Highlights report. In addition, the Bank regularly meets with a wide variety of individual corporations and interest groups, including the Bankers Association of Foreign Trade (BAFT) and the Coalition for Employment Through Exports (CEE), to solicit input on programs and products. Finally, the Bank is mandated by Congress to publish the annual Competitiveness Report, which surveys users of Bank programs and other ECAs in an effort to benchmark Bank's competitive stance vis-a-vis other ECAs.
Evidence: The weekly status report lists actual cases and potential cases for the rest of the fiscal year. Managers use this report to project L-T guarantee transactions and monitor loan officer progress on specific transactions. The monthly financial hightlights report provides significant detail on L-T guarantees - forecasts with actual and yearly comparisons. The annual Competitiveness Report has consistently shown that the Bank is competitive vis-a-vis other ECAs, especially in terms of all-in-cost and cover policy.
Are Federal managers and program partners (grantees, subgrantees, contractors, etc.) held accountable for cost, schedule and performance results?
Explanation: On the management aspect, all Ex-Im Bank managers are required to undergo annual performance reviews. Regarding program partners, the L-T guarantee program lenders for project finance and aircraft are held accountable for cost, schedule and performance results.
Evidence: Ex-Im Bank managers are evaluated through annual Human Resources Performance appraisals. Managers are graded under the following areas-results, leadership, resource management, individual skills & customer services. Ex-Im Bank controls the timing and amounts of disbursements under the L-T guarantee program. For example, for project finance transactions, the major contractor must certify that the project has met specific milestones (based upon percentage of completion) to receive payments. In FY01, Ex-Im Bank authorized 13 aircraft transactions with an average of $197M per transaction and 15 proj. finance transactions with an average of $141M per transaction.
Are all funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?
Explanation: Ex-Im Bank has two primary accounts - Administrative Expenses and Program Budget. Each is separate and distinct. Ex-Im Bank does not shift funds from one account to the other. Both accounts are obligated and expended under appropriate timeframes. Administrative Expenses is a 1-yr appropriation. The Program budget is a 4-yr appropriation - reflecting OMB and Congressional understanding for flexibility to obligate funds for complicated transactions in a timely manner.
Evidence: Ex-Im Bank follows current Federal Law and apportions funds with OMB and Treasury. In FY 2001, Ex-Im obligated 99.7 percent of appropriated Administrative funds by the end of the fiscal year. Ex-Im Bank calculates estimated program budget for each L-T guarantee transaction once approved by the Board of Directors. These calculations are completed within one business day of approval with funding obligated at that time. Each transaction has an expiry date, and shipments must be completed before said date. In addition each guaranteed lender must submit disbursement documents to Ex-Im Bank to obtain the Ex-Im Bank guarantee on that disbursement.
Does the program have incentives and procedures (e.g., competitive sourcing/cost comparisons, IT improvements) to measure and achieve efficiencies and cost effectiveness in program execution?
Explanation: For the L-T guarantee program, Ex-Im Bank established procedures to achieve efficiencies and cost effectiveness. The project finance division is a prime example. Ex-Im Bank established this office with limited staff - 5 staff. Through the use of outside financial and legal advisors that were hired on a competitve basis and compensated by the project sponsors, the Bank was able to leverage resources and authorize approximately $2 billion in annual transactions. The advisers are essential to the timely processing of these complex transactions.
Evidence: Internal studies have demonstrated that the use of outside advisers has saved Ex-Im Bank thousands of staff hours per transaction. To accomplish the same amount of work without outside help would require additional FTEs. Project Finance Magazine recognized Ex-Im Bank as the Best Project Finance ECA 1999; and has also specifically recognized individual transactions: Asia Pacific Power Deal of the Year 2001; Latin Americna Merchant Deal of the Year 2001; and European Power Deal of the Year 2001.
Does the agency estimate and budget for the full annual costs of operating the program (including all administrative costs and allocated overhead) so that program performance changes are identified with changes in funding levels?
Explanation: Ex-Im Bank develops a cost breakdown for all Administrative and Program Budget costs for L-T guarantee programs.
Evidence: Each fiscal year, the Bank receives an Administrative and Program Budget appropriation from Congress. The Program Budget reflects the subsidy for all transactions. The Budget provides significant detail of these proposed transactions including a separate line for L-T guarantees. In terms of the Administrative Budget, Ex-Im Bank breaks out specific costs for L-T guarantees and estimates shared costs for this program on an annual basis. Over time FTEs for L-T guarantees have been adjusted to reflect changing authorizations levels.
Does the program use strong financial management practices?
Explanation: Ex-Im Bank supports independent accountants to conduct an audit of financial position and internal controls. The Audit from PWC stated that "results of its operations and its cash flows??ended in confromity with accounting principles generally accepted in the United States of America."
Evidence: In FY 2001, Ex-Im Bank received a clean audit statement - first in the USG (Oct 12, 2001) for the fiscal year.
Has the program taken meaningful steps to address its management deficiencies?
Explanation: Ex-Im Bank staff constantly interfaces with its stakeholders to receive feedback on management deficiencies. As a result of this process, the L-T guarantee program will be reorganized.
Evidence: "Ex-Im Bank has developed a reorganization plan that will result in three new divisions: i) a unified Export Finance group devoted to managing transaction relationships across all Ex-Im Bank financing products, ii) an independent Credit and Risk Management group to provide consistent credit standards and oversight, and iii) a Communications group encompassing existing public affairs and marketing functions. These changes will be effective October 1, 2002. This reorganization is designed to allow Ex-Im Bank to become more market focused and customer driven while enhancing risk management. "
Is the program managed on an ongoing basis to assure credit quality remains sound, collections and disbursements are timely and reporting requirements are fulfilled?
Explanation: These functions are split between Ex-Im Bank's Asset Management Division and Credit Review and Operations Division. CR&O is responsible for credit quality assurance and timely disbursements. AMD is responsible for managing and reporting on claim and recovery efforts.
Evidence: Ex-Im Bank Quarterly Portfolio Reports. The Report highlights "Portfolio Exposure", "Loss Reserves" and Troubled Assets" in an organized and detailed fashion. The graphical representation of portfolio change over time as well as those that detail the different types of risk.
Does the program consistently meet the requirements of the Federal Credit Reform Act of 1990, the Debt Collection Improvement Act and applicable guidance under OMB Circular A-1, A-34, and A-129?
Explanation: Ex-Im Bank consistently meets the relevant credit acts and guidance. Since Credit Reform all loans, guarantees and insurance are placed on an equal footing; only the estimated program budget cost is scored as Budget Authority and is scored for all programs at the time of commitment
Evidence: Ex-Im Bank meets the deadline provided by OMB for apportionment, outlay plans and quarterly budget execution plans. The independent accountants also include in their annual audit a review of the relevant credit laws and guidance to ensure that the Bank is meeting these requirements. The accountants provided a clean audit in FY 2001.
Is the risk of the program to the U.S. Government measured effectively?
Explanation: Ex-Im Bank conducts an annual re-estimate of the Bank's portfolio. Using the most recent premia from OMB, the Bank will re-estimate the reserves required for L-T guarantees.
Evidence: The independent accountants (for the audit) analyze the methodology for the annual re-estimation of reserves required. In FY 2001, the accountants provided a clean audit
|Section 3 - Program Management||Score||100%|
|Section 4 - Program Results/Accountability|
Has the program demonstrated adequate progress in achieving its long-term outcome goal(s)?
Explanation: Ex-Im Bank has not adequately demonstrated that the L-T guarantee program has met both of its long term goals. Data from the annual Competitiveness Report does reveal that Ex-Im Bank has met its first strategic goal, but Ex-Im has not adequately demonstrated that its financing meets its goal of "additionality". Given that approximately 50 - 70 percent of the Bank's L-T transactions are intended to counter foreign ECA financing first strategic goal, the Bank received a score of Large Extent.
Evidence: As cited in the Competiveness Report, Ex-Im Bank provides a competitive all-in rate on non-sovereign transactions among the G-7 ECAs. In both FY 2000 and FY 2001, Ex-Im Bank's L-T guarantee program fully met its objectives and no authorized L-T guarantee transactions were lost to foreign competition. Over the past five fiscal years, Ex-Im Bank authorized @ $57.6 billion, $30.7 billion of which was L-T guarantees. L-T guarantee authorizations have on average accounted for over 50% of Ex-Im Bank total authorizations during this same period. Ex-Im Bank makes very good use of its Congressionally appropriated funds; for all its programs, Ex-Im Bank returns an average of $18 of export value for every $1 appropriated by the US Congress. Although, Ex-Im Bank authorizations represent a small portion of total U.S. exports (1- 3 percent), they represent a significant portion of overall exports to selected emerging markets.
Does the program (including program partners) achieve its annual performance goals?
Explanation: Ex-Im Bank has not adequately demonstrated that the L-T guarantee program has met both of its annual performance goals. Given that data from the annual Competitiveness Report does reveal that Ex-Im Bank has met its first annual performance goal (which represents 50 - 70 percent of the Bank's L-T transactions) and exceeded its second performance goal of 60%, the Bank received a score of Large Extent. As stated earlier, Ex-Im Bank has not adequately demonstrated why the 60% target is an adequate measure for "additionality".
Evidence: By far the largest non-aircraft L-T guarantees are located in markets rated BB or riskier. As of July 31, 2002, 66 percent of Ex-Im Bank L-T guarantee transactions are in these risk categories. The evidence related to meeting foreign competition is outlined above.
Does the program demonstrate improved efficiencies and cost effectiveness in achieving program goals each year?
Explanation: As previously noted, Ex-Im Bank hires financial and legal advisers to help process the Long-Term Structured Finance guarantee applications. These advisers, who are compensated by project sponsors and assist Ex-Im staff with due diligence activities for these complex transactions, provide significant cost and time savings for the program.
Evidence: Between 1999 and 2002, Ex-Im staff was able to process double the number of transactions with the same number of staff; the number of cases increased from eight in 1999 to 17 in 2002.
Does the performance of this program compare favorably to other programs with similar purpose and goals?
Explanation: Not applicable given no other similar programs in the Federal Budget. Ex-Im Bank fills a unique niche in the US Government, that of an export and jobs promotion agency, the L-T guarantee is not directly comparable with the products of any other Federal agency.
Evidence: With over $30 billion worth of authorizations in the past five fiscal years, Ex-Im Bank has only suffered on average 3% default rate on its L-T guarantee portfolio. This default rate, which is lower than that of most commercial banks demonstrates that Ex-Im Bank's L-T guarantee program performs as well as, if not better than, similar programs administered by private sector sources of financing. As cited in earlier responses, Ex-Im Bank provides lower cost and greater coverage than comparable foreign ECAs.
Do independent and quality evaluations of this program indicate that the program is effective and achieving results?
Explanation: For the past two years, ACSI customer service survey has found that satisfaction with Ex-Im Bank has been higher than the federal government average. This survey, however, does not measure whether or not the Bank is effective in achieving its long term and annual performance goals. The Competitiveness Report (not independent) does indicate that the program is effective in matching official foreign ECA financing. In addition, the IIE Special Report #14,: "The Ex-Im Bank in the 21st Century, A New Approach?" (Jan 2001), which includes a collection of papers detailing Ex-Im Bank's environment, challenges and program evaluations, represents an independent, quality evaluation of Ex-Im Bank's programs from a macro perspective. Even though the aformentioned reports indicate that the Bank's programs are effective and achieving results on a variety of levels, these reports are either not independent or do not completely evaluate whether or not the L-T guarantee program is effective in achieving its long term and annual performance goals. As such, the Bank received a score of Small Extent.
Evidence: ACSI Reports, FY00 and FY01,Competitiveness Report. Independent evaluations: IIE Special Report #14: "The Ex-Im Bank in the 21st Century, A New Approach?" The Report noted that "Exports have become an extremely important component of the American economy. Their share in total output has tripled over the past 30 years.....The Export-Import Bank of the United States plays an important role in ensuring that US exports reach the markets of emerging nations..." The Report also contained the following comments from William Cline of the IIF who argues, "??global pribate capital markets facing the emerging markets have undergone enormous changes in composition and have experienced very large cyclical fluctuations." Allan Mendelowitz, of the US Trade Deficit Review Commission, states in this Report that Ex-Im Bank was integral in producing OECD Arrangements.
|Section 4 - Program Results/Accountability||Score||67%|