Eximbank Financing Support for Exports of Defense-Related Products

NSIAD-84-66: Published: Apr 13, 1984. Publicly Released: Apr 13, 1984.

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In response to a congressional request, GAO reviewed the Export-Import Bank of the United States' (Eximbank) financing of exports of defense-related equipment.

Eximbank provides loan, loan guarantee, and insurance programs to supplement and facilitate private sector financing of U.S. exports. Although Eximbank is prohibited from financing military sales to developing countries, it does support defense-related sales when there is a civilian or commercial use for the product. U.S. exporting firms which GAO contacted asserted that there is a lack of competitive financing available to promote exports of military and defense-related products for certain developing countries. However, these firms could not document specific cases which showed that the lack of Eximbank financing was causing lost sales. GAO found that, except for Japan, credit agencies in major competitor nations do not have legal restrictions on financing military sales similar to those imposed on Eximbank.

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