ANNOUNCEMENT 17 Apr 2009In April 2009, the governments of United States and Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
"Korea and US Eximbanks Sign $500 Million Cooperation Agreement Supporting Green Growth," Available at http://www.koreaexim.go.kr/en2/01_exim/04_bank/01_view.jsp?nCP=1&nRegNo=415&cUseYN=&nSSecNo=9&sSKeyword=
On 17 April 2009 the Export-Import Bank of Korea announced the signing of a Cooperation Agreement with the United States Eximbank. The agreement concerned "collaborative aid in green industries and new and renewable energy."
The relevant press release states the scale and purpose of this initiative, which is not confined to influencing trade between the signatories:
"According to the agreement, Korea Eximbank will receive a $500 million credit line from US Eximbank for the purchase of new and renewable energy related equipment from the US. Additionally, Korea Eximbank and its US counterpart will jointly provide assistance to support green industries in other countries.
"The agreement provides Korea Eximbank with funds from US Eximbank for fifteen years at the lowest interest rate level allowed by the Organization for Economic Cooperation and Development (OECD) Export Credit Guidelines. The agreement thus ensures long-term availability of foreign currency at low interest rates.
"The agreement is expected to greatly contribute towards the development of green industries through the provision of funds at rates that are considerably lower than market interest rates."