EXIM Reports Third-Quarter Default Rate to U.S. Congress, Underscoring Agency's Commitment to Protect Taxpayers

Targeted News Service (Press Releases)

WASHINGTON, Sept. 30 -- The Export-Import Bank of the U.S. issued the following news release:

The Export-Import Bank of the United States (EXIM) has reported to Congress a 0.531 percent fiscal year 2020 third quarter default rate, as of June 30, 2020. Previously, EXIM reported a 0.473 percent default rate as of March 30, 2020. The small increase reflects the economic slowdown caused by the COVID-19 pandemic. EXIM's default rate remains well below the 2 percent statutory cap.

As detailed in EXIM's June 2020 Default Rate Report, the agency's consistently low default rates are the result of continuous efforts to improve strong underwriting processes, employee expertise, and effective management of exposure and recoveries on those credits that default. EXIM's default rate is determined by dividing the total amount of the required payments that are overdue by the total financing of its active credit portfolio, which includes all disbursements under its loans, guarantees, and insurance policies that will mature after the date of the fiscal-year quarter that is being reported.

EXIM's Risk Management Committee consists of Board Members Judith D. Pryor and Spencer Bachus III. In conjunction with EXIM's Chief Financial Officer Mary Buhler, the committee oversees the periodic stress-testing of EXIM's portfolio and the monitoring of industry, geographic, and obligor exposure levels, and reviews the agency's quarterly Default Rate Report.

EXIM has made concerted efforts to enhance its risk protection and mitigation. For example, following the restoration of the quorum of EXIM's Board of Directors by the Senate in May 2019, the Board of Directors formally approved Chief Risk Officer Kenneth Tinsley, who had been appointed to the position in January 2016. EXIM staff also provided the Risk Management Committee with additional COVID-related risk analyses and stress tests to track and account for emerging risks related to the COVID pandemic.

EXIM has provided relief measures for U.S. exporters and financial institutions impacted by the COVID-19 pandemic. The relief measures--which include waivers, deadline extensions, streamlined processing, and flexibility--were originally announced in March 2020 and have been extended through October 31, 2020.