President Obama Signs Waiver Allowing Ex-Im Bank to Move Forward with Export Financing for Vietnam Communications Satellite
June 26, 2012
(Ex-Im Bank)
Washington, D.C. - The White House on Monday issued a Presidential Determination
on Vietnam by President Barack Obama. The president's action clears the way for
the Export-Import Bank of the United States (Ex-Im Bank) board of directors to
move forward with a $125.8 million direct loan to Vietnam to support their
purchase of a U.S.-manufactured telecommunications and television satellite.
The purchaser is the Vietnam Post and Telecommunications Group, a wholly
state-owned company.
The president's action is required by a provision in the Ex-Im Bank Charter that
mandates a determination by him that it is in the national interest for Ex-Im
Bank to extend a loan of $50 million or more to a Marxist-Leninist country.
"I'm pleased that President Obama has given the board of directors the authority
to advance this loan application from Vietnam, which is one of the nine
countries Ex-Im has identified as offering U.S. exporters the greatest sales
opportunities," said Fred P. Hochberg, chairman and president of Ex-Im. "We hope
to support more U.S. companies' exports to Vietnam, which in turn will support
more American jobs."
Ex-Im Bank transactions have been eligible for such presidential determinations
since President Clinton determined on March 8, 1998 that it was in the national
interest for Ex-Im Bank to do business with the Socialist Republic of Vietnam.
With President Obama's determination, the board will soon vote whether to refer
the transaction to Congress for review and comment. After the expiration of a
35-day comment period the board would schedule a second and final vote.
(Congress is notified of all Ex-Im transactions of $100 million or more so that
Members may provide the Bank with comments for the Board to consider prior to a
final vote.)
The Lockheed Martin Corporation is supplying U.S. equipment and services for the
Vinasat II project. Ex-Im's loan, if approved by the board of directors, will be
secured by the full faith and credit sovereign guarantee of the Socialist
Republic of Vietnam.
The proposed loan of $125.8 million will finance the export of goods and
services valued at about $215 million.
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