BANK PROPOSES FORMATION OF INSURER TO PROVIDE EXPORT CREDIT COVER

BANK PROPOSES FORMATION OF INSURER TO PROVIDE EXPORT CREDIT COVER

Irving Trust Co. called for the formation of an insurance company, to be owned and managed by major multinational corporations, to provide export credit insurance.

Speaking at the first combined U.S. Export-Import Bank seminar for commercial bankers and exporters, R. Michael Rice, executive vice president of Irving Trust, said that such an organization could be structured as an insurance company, offering a full range of export-credit, political-risk and other trade-related insurance.Ex-Im Bank performs and will continue to perform a vital role in financing U.S. exports, but an additional opportunity exists to supplement and expand its programs through private means, he said.

Mr. Rice said there were many structural forms that such a company could take, but that the most important ingredient was the participation of the exporters themselves.

A private-sector company, working in cooperation with Ex-Im Bank and with concentration in supporting exports, could be the force to get this country's export power moving again, he said.

Rice congratulated Ex-Im Bank for what he said was the best programs you have ever had. He said that the export industry recognized that there are limits to what Ex-Im Bank can do within its budget authorization and certain restrictions imposed by Congress and the Organization for Economic Cooperation and Development agreements.

Ex-Im Bank is putting forth a strong effort on the part of the country, completing new programs and launching new initiatives. A private export insurance company working along with Ex-Im Bank could help the United States regain its place in world trade, Mr. Rice said.

Although many money-center banks have cut back on international operations, one untried way of obtaining additional export financing is for the exporters to come together themselves in a syndicate, Mr. Rice said.