Mr. Geir Haarde, Who visited our seminar last year in the roles of Prime Minister of Iceland and Ambassador extraordinary and plenipotentiary to the United States, came back to us, now as the Executive Director of the World Bank, representing the countries of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. Director Haarde explained how the World Bank addresses issues at the level of the firm and seeks to improve standards of living and economic performance. Though the bank has more than 9,000 employees in Washington, he conducts his work with a staff of 10. The interest and questioning was very engaged and answers were well received.
We truly enjoyed having Mr. John Diamond to come and share his thoughts on working in the World Bank. He talked about the different projects that are being done in the institution. One of them is We-Fi, which is the Women Entrepreneurs Finance Initiative. He also talked about the formalization of businesses and how it affects international development. He covered the topic of FDI and how it fluctuates with different countries. The students showed a lot of interest in getting to know about Mr. Diamond’s journey to the World Bank as well as the opportunities to work in the prestigious institute.
On February 18th, our class got the pleasure of having a distinguished guest speaker Ms. Anabel Gonzalez, Senior Director of World Bank Group Global Practice on Trade and Competitiveness . We are very grateful for the inspiring thoughts and valuable experiences she shared with us.
ExWorks Capital – a privately funded export & trade finance companyis prepared to finance small to mid-size business as a bridge measure, or ongoing, should the ExIm Bank of the United States have its operations interrupted on June 30th.
ExIm Bank is important to ExWorks Capital under normal circumstances, but also has private capital for trade finance that is often used for companies and transactions which may not fit the usual ExIm Bank profiles.
Furthermore, ExWorks has a SBA export finance platform – World Trade Finance – that is unrelated to ExIm reauthorization issues and completely independent as it operates under the SBA’s authority.
ExWorks provides trade financing with private capital to support the purchase and shipment of U.S. manufactured products to overseas buyers, and to assist and support U.S. manufacturing by procuring and shipping to overseas buyers as a one-stop trading house.
“ExWorks stands ready to support ExIm Bank users and prospective borrowers to bridge this critical period of time should ExIm see interruption in ability to operate” says Randy Abrahams, Executive Chairman of ExWorks Capital. “We remain mystified that a debate even exists around the United States having an export credit agency that by every measure clearly supports small businesses across the country and provides for job creation and preservation in the United States.”
“Without a doubt, small companies will be the most dramatically affected as will be their respective employees by a shut down or interruption of ExIm” comments John McAdams, CEO of ExWorks. “We will be there in support of those companies as needed until the ExIm Bank Charter is reauthorized.”
ExWorks provides trade financing with private capital by buying goods like any domestic customer and taking the risk in selling overseas as well as advancing funds to complete manufacturing of viable export purchase orders.
ExWorks also provides Working Capital lines of Credit under SBA and ExIm Delegated Authority whereby transaction specific loans are provided to U.S. exporters permitting them to extend more aggressive terms to their overseas buyers.
As a result of its private funding, ExWorks Capital will be able to respond to requests as it continues to build its presence as the premier independent non bank lender in the Export Trade Finance space.
Exworks remains hopeful the ExIm Bank will not see interruption in the critical funding it provides for small business, but will plan to help keep these businesses from meltdown in case the much needed authorization for ExIm is not provided by June 30th.
About ExWorks Capital:
ExWorks Capital is an international trade finance company that offers export financing solutions through its export finance company that utilizes its own capital as well as ExIm Bank and SBA export authorities to support small to mid-size businesses. ExWorks Capital’s offerings include:
Working Capital Financing – International Trade Receivable and Inventory Revolvers, including advancing on Raw Materials, WIP and Finished Goods, between $1,000,000 and $25,000,000
Term Loan Financing – Term Loans between $10,000,000 and $100,000,000 to Foreign Customers
Export Trading – Negotiating the buy and/or sell side of a transaction and processing all of the associated documentation from the acquisition of the export to its shipment and delivery to an international customer thus eliminating trade risk to the supplier between $500,000 and $25,000,000
Now is the time to determine the fate of the Export-Import Bank of the United States. This 80-year-old federal institution was created during Franklin D. Roosevel’s New Deal era and has been helping U.S. companies finance the export of goods to foreign markets. Yet, since 2012, Congress has considered stopping the renewal of its charter. The deadline is coming soon — June 30.
What are the key issues and arguments? Some claim that the bank supports less than half of 1 percent of U.S. “small business” and that big companies are the main beneficiaries of the bank. Boeing and General Electric, it is said, can access private financing easily by themselves. Advocates and objectors have important arguments over reauthorizing the EX-IM bank.
Adam Andrzejewski, a Forbes contributor concluded that critics Ex-Im of charge cronyism, waste and outright corruption. His study Federal Transfer Report – Export-Import Bank states that taxpayers have an exposure of almost $140 billion in Ex-Im’s increasing lending. Pemex, which is owned by the Mexican government, is the biggest importer supported by Ex-Im bank, benefiting to the tune of $7.21 billion,. The biggest exporter, Boeing, benefits to the tune of $60 billion and received one third of all export support.
So why does Hillary Clinton and some Congressional representatives such as Republican Stephen Fincher, and Democrat Annie Kuster work hard to save the bank? The answer is straightforward – to save jobs! It is ironic to see the possible demise of the bank while president Obama visits dozens of countries to increase sales of U.S. made products and preserve U.S. jobs.
Policies such as tax and training benefits for reshoring companies (companies which offshored but now return to America) have encouraged firms to create jobs in the United States. Boeing has been severely criticized in the Ex-Im debate. However, the criticism of Boeing may not be entirely fair. Do big companies like Boeing produce every component for their planes? Or do they buy many parts from small businesses? Competition is not the only relationship between big and small companies, cooperation is more than common. American jobs would be lost with the discontinuation of the bank. This is not the best time to experiment with employment, exports and economic growth.