Export-Import Bank:

The U.S. Export-Import Bank's Financing of Dual-Use Exports

GAO-01-1110R, Aug 31, 2001

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Since October 1994, the Export-Import Bank of the United States has had statutory authority to provide loans, guarantees, and insurance to help finance U.S. exports of dual-use defense articles and services, provided that these items are nonlethal and meant primarily for civilian use. These dual-use exports include air traffic control systems. The U.S. Export-Import Bank used $153.2 million during fiscal year 1999 to finance three dual-use exports, including transport aircraft and aircraft parts to be used to develop and protect the Amazon region in Brazil and radar systems to be used for vessel and air traffic control in Croatia. End-use monitoring procedures are in place, but no end-use reports have been filed for these dual-use exports because none of the exports has been delivered. In fiscal year 2000, the Bank used $31.2 million to finance five dual-use exports, including transport aircraft parts, vehicles, and construction equipment to be used to protect and develop rural regions in Venezuela. In fiscal year 2001, the Bank used $202.6 million to finance three dual-use exports, including transport aircraft and support systems to be used for pipeline monitoring in Algeria and construction equipment to be used for territorial protection and development in Venezuela.