Statement of Administration Policy: H.R. 1787 - Export-Import Bank Act Amendments of 1985

(Rules)
(Rep. Neal (D) North Carolina)

The Administration strongly opposes enactment of H.R. 1787 because it (1) continues the Ex-Im Bank direct loan program which the Administration seeks to eliminate and (2) specifically prohibits the Administration's requested interest rate subsidy program.

The need for a subsidized direct loan program has been diminished through international negotiations that have reduced official export subsidies by 80$ over the past four years. The Administration proposal would, instead, support subsidized interest rates on up to $1.8 billion in guaranteed loans. This represents a 23% increase over 1984 direct loan obligations and more than a two-fold increase over 1983 obligations. Getting Ex-Im out of the loan origination business will allow the Bank to continue meeting foreign subsidized credit competition while making the economic subsidy cost more explicit and substantially reducing Treasury borrowing and budget outlays.