Jordan Times
Wednesday, January 14, 2004
Master Guarantee Agreements highlighted as huge facilitator to take part in Iraq reconstruction
By Ruba Saqr
AMMAN — The Master Guarantee Agreements (MGA) Jordanian banks have started signing with the US Export-Import Bank (Ex-Im) will help Jordanian businesmen / importers of American products and services to launch into the Iraqi market and take part in the reconstruction of the war-torn country, an EX-Im Bank official said Tuesday.On Sunday, Ex-Im, the official export credit agency of the world's strongest economy, signed a MGA agreement with the Housing Bank for Trade and Finance and is planning to sign a similar agreement with the Jordan National Bank in the coming few days.
April Foley, first vice president and vice chair of Ex-Im Bank, said Jordanian companies (particularly small- and medium-size enterprises) will “find it easier to work with... banks with whom we have a Master Guarantee Agreement than to try to come all the way to Washington.”
Foley explained that her institution has not yet started doing business with Iraqi companies, adding the Ex-Im can do its credit analysis based on the Jordanian companies who are utilizing US exports and launching them into the war-battered country.
“I think this is a huge facilitator for Jordanians to take part in the Iraqi reconstruction,” Foley told the Jordan Times.
Late last year, Ex-Im bank joined export credit agencies from 15 other nations in signing “Framework Guarantee Agreements” (FGA) with the newly-founded Trade Bank of Iraq and the Coalition Provisional Authority (CPA), and providing over $2 billion in support for the Trade Bank to help facilitate Iraqi reconstruction.
In April last year, the Jordanian government and Ex-Im signed a FGA, under which the two parties expect requests for a total of up to $200 million in Ex-Im insurance and loan guarantees for individual, short-term transaction.
Foley's remarks were made during a business lunch bringing together representatives of American financial institutions that are specialised in enhancing US imports into overseas markets, such as Iraq and Afghanistan, and several multinationality business- people taking part in the OUTREACH 2004 exhibition.
The US-led expo and workshop programme that brought together around 300 companies from 21 countries, wrapped up Tuesday in Amman.
Hosted by the Jordan-American Business Association (JABA), the meeting also featured Executive Vice President of Overseas Private Investment Cooperation Ross Connelly (also former CEO of giant American developer, Bechtel), and regional director of US Trade Development Agency (USTDA). Both agencies are public bodies entrusted with realising foreign economic policies of the Bush administration.
Foley is in Amman as part of a three-nation trip to Jordan, Iraq and Kuwait to advance Ex-Im Bank's efforts to support the scheme of rebuilding Iraq. She met with counterparts from different financial institutions as well as officials from the private and public sectors in Jordan.