Comparative Analysis of U.S. and OECD Arrangement Export Credit Agencies

Submitting OIG:

Export-Import Bank of the United States OIG

Short / Alternative Report Title:

ECA Evaluation

Date Issued:

Friday, September 29, 2023

Agency Reviewed / Investigated:

Export-Import Bank

Submitting OIG-Specific Report Number:

OIG-EV-23-04

Location(s):

Agency-Wide

Type of Report:

Inspection / Evaluation

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

Yes

View Document:

Attachment	Size
EXIM-OIGECA-EvaluationOIG-EV-23-04FINAL.pdf	2.83 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
Direct staff to conduct an analysis to determine suggested policy changes to further reduce the impact of a potential future loss of a Board quorum on EXIM’s medium- and long-term lending.
2	Open	No
Direct staff to conduct an analysis to determine what changes should be made to further mitigate the risks to EXIM’s medium- and long-term export credit financing that were generated by the lack of Board quorum.
3	Open	No
Direct staff to conduct a study exploring the potential for varying EXIM’s domestic content requirement by industry or sector for all exporters—not just those that qualify under the narrow exceptions of the CTEP program—and adopt policy changes to reflect any modifications or revisions to domestic content requirements based on the results of the study.
4	Open	No
In advance of EXIM’s next reauthorization, request that EXIM’s Senior Vice President for Congressional and Intergovernmental Affairs engage with interagency stakeholders to develop legislative proposals that address the challenges associated with the default rate cap.
5	Open	No
Direct the Senior Vice President of the Office of Board Authorized Finance to document and circulate guidance to the agency’s underwriters clarifying that they should not factor the two percent default rate cap into their decisions.
6	Open	No
Direct the Senior Vice President for Policy Analysis and International Relations to seek updates to EXIM’s MOU with MARAD to reflect changes in EXIM’s policies and priorities and consider revisiting the $20 million threshold for U.S.-flagged shipping.
7	Open	No
Develop a comprehensive plan, in coordination with MARAD, to provide clearer and more effective guidance on EXIM’s website for U.S. exporters to assist them in complying with EXIM’s domestic shipping requirements and procedures, including processes for requesting a MARAD waiver on the use of U.S. flagged vessels.
8	Open	No
In advance of EXIM’s next reauthorization, engage with interagency stakeholders to develop proposals that address the challenges associated with the impact on EXIM’s competitiveness of requiring exporters to use U.S. flagged shipping vessels.
9	Open	No
Direct staff to conduct a study exploring the potential for adopting a policy of implementing future changes to the OECD Arrangement automatically if no constraints exist in EXIM’s charter or enabling legislation.
10	Open	No
In advance of EXIM’s next reauthorization, engage with interagency stakeholders to develop legislative proposals that would modify the agency’s charter to address the limitation in Sec. 2(a)(2), which prevents EXIM from matching recent updates to the OECD Arrangement.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Direct staff to conduct an analysis to determine suggested policy changes to further reduce the impact of a potential future loss of a Board quorum on EXIM’s medium- and long-term lending.

Open

Direct staff to conduct an analysis to determine what changes should be made to further mitigate the risks to EXIM’s medium- and long-term export credit financing that were generated by the lack of Board quorum.

Open

Direct staff to conduct a study exploring the potential for varying EXIM’s domestic content requirement by industry or sector for all exporters—not just those that qualify under the narrow exceptions of the CTEP program—and adopt policy changes to reflect any modifications or revisions to domestic content requirements based on the results of the study.

Open

In advance of EXIM’s next reauthorization, request that EXIM’s Senior Vice President for Congressional and Intergovernmental Affairs engage with interagency stakeholders to develop legislative proposals that address the challenges associated with the default rate cap.