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US Exim Bank to stop new approvals
The Export-Import Bank of the United States has decided to stop issuing new approvals of financing for US export to India, following the imposition of sanctions by President Bill Clinton. The sanctions will immediately affect approximately $ 500 million worth of US exports to India. An additional $ 3.5 billion dollars worth of exports, projected based on indications of interest received by the bank, could be effected in a longer run. The Exim Bank will not give approval to loans or credit insurance in support of US exports to India. Sanctions take effect immediately regarding all new business in the public and private sector. Financing for export transactions to India authorised prior to May 13 is not affected by the sanctions, says an Exim Bank release. The decision to this effect was taken by the board of director of the Exim Bank. The US secretary of state also notified the Exim Bank the sanctions required under the ban act be invoked. The Exim Bank authorises financing to support $ 15 billion worth of US export worldwide.