Summary: GAO discussed the U.S. Export-Import Bank's (Eximbank) role in assisting U.S. exports. GAO noted that: (1) in 1989, Eximbank assisted in the export of $6.6 billion in U.S. goods and services to 125 foreign markets, including $719 million in loans, $1.3 billion in guarantees, and $4.3 billion in export credit insurance; (2) economic and political changes have allowed Eximbank to provide guarantees and insurance for the export of U.S. goods and services to new markets in the Soviet Union and Eastern Europe; (3) mixed credits help international negotiations to reduce the use of credit subsidies for exports; (4) because of Eximbank's ability to borrow from the Federal Financing Bank, it can continue to operate despite its losses and a $5.3-billion deficit; and (5) legislation has permitted Eximbank to engage in commercial exports of military equipment and services to certain countries. GAO believes that: (1) Eximbank's ability to work with other government agencies could help to avoid such problems as excessive credit exposure and overlap and duplication with other government programs that finance exports; and (2) Eximbank needs to continue to market its services and respond to exporters' needs in order to better assist U.S. exports.
