12 U.S.C. § 635i–9: Market windows

Summary

The United States should push for more honesty about what “market windows” are doing under the OECD Export Credit Arrangement so Bank financing stays competitive. If that openness shows market windows are hurting U.S. exporters, the United States should try to negotiate international rules and more openness in the OECD arrangement. The Bank may give loans on terms that do not follow OECD rules in two cases: to match market windows when doing so either helps those negotiations or shows market windows offer better terms than private markets; or when the foreign government‑backed lender refuses to provide enough transparency for the Bank to decide. OECD means the Organization for Economic Cooperation and Development.

Title 12, §635i–9

Banks and Banking, Source: USLM XML via OLRC

(a)Enhanced transparency

To ensure that the Bank financing remains fully competitive, the United States should seek enhanced transparency over the activities of market windows in the OECD Export Credit Arrangement. If such transparency indicates that market windows are disadvantaging United States exporters, the United States should seek negotiations for multilateral disciplines and transparency within the OECD Export Credit Arrangement.

(b)Authorization

The Bank may provide financing on terms and conditions that are inconsistent with those permitted under the OECD Export Credit Arrangement—

(1)to match financing terms and conditions that are being offered by market windows on terms that are inconsistent with those permitted under the OECD Export Credit Arrangement, if—

(A)matching such terms and conditions advances the negotiations for multilateral disciplines and transparency within the OECD Export Credit Arrangement; or

(B)transparency verifies that the market window financing is being offered on terms that are more favorable than the terms and conditions that are available from private financial markets; and

(2)when the foreign government-supported institution refuses to provide sufficient transparency to permit the Bank to make a determination under paragraph (1).

(c)Definition

In this section, the term “OECD” means the Organization for Economic Cooperation and Development.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Report Pub. L. 107–189, § 10(b)(2),

June 14, 2002, 116 Stat. 703, provided that: “Within 2 years after the date of the enactment of this Act [

June 14, 2002], the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on the rationale for seeking or not seeking negotiations for multilateral disciplines and transparency, the successes, failures, and obstacles in initiating negotiations, and if negotiations were initiated, in reaching an agreement.”

§635i–9 Market Windows

Summary

Title 12, §635i–9

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Citations & Metadata