Eximbank unveils new plans; focus on Caribbean exporters

Having recently undergone an internal review, the Export Import Bank of Trinidad and Tobago Limited (EXIMBANK) held its product launch “A Platform for an Explosion in Trade” on December 16 at the Hilton Hotel and Conference Centre. Minister of Trade and Industry, Ken Valley, delivered the feature address at the launch. Other speakers included EXIMBANK’s Chairman, Clarry Benn, Deputy Chairman, Kamaluddin Mohammed as well as Deputy Chairman and Acting CEO, Josephine Ible. Manufacturers, members of the financial sector and other members of the business community were also there. EXIMBANK’s renewed mission is to become the premier financial institution in the region of managing export credit risk, thereby facilitating the increased participation of local manufacturers in the globalised marketplace.

The new focus of the institution will be to provide Insurance services as its core product and working in a complementary and supplementary manner with the local commercial banks to support export sales. The bank also intends to expand its presence in the Caribbean by offering its services to exporters in other islands. EXIMBANK credit and insurance programmes provide local exporters with protection against commercial and political risks. Over the past five years the bank has provided direct financing and export insurance guarantees to local exporters in excess of TT $2 billion. More than 300 exporters have benefitted from EXIMBANK. “We are currently in the process of establishing lines of credit with other EXIMBANKs” said deputy chairman, Kamaluddin Mohammed. “We have revamped our business plan and reviewed our operations, policies, products and procedures to cement a strong foundation for trade that is sustainable and successful.”

An area of emphasis has been to work with other financial institutions to expand the domestic sector by targeting businesses in the non-oil sector. This focus has been enhanced by the recent agreement to complement and supplement the banking sector rather than attempt to compete with allied institutions. Chairman, Clarry Benn said, “In this new spirit of reciprocity, we have had agreement to further reduce the interest rates for those exporters using our Export Credit Insurance facility.” “In this regard,” he continued, “we have made the distinction between insurance and other financing arrangements. It has become imperative that we encourage our exporters to continue observing sound commercial practices since our discounting is in fact a loan that still attracts the normal penalties and procedures in the case of default.” EXIMBANK’s business prospects continue to improve. Reputable buyers from overseas now demand even longer credit terms from local exporters, fully aware of their buying power in the highly competitive market place. Exporters also continue to penetrate traditional CARICOM markets and new ones in Latin America such as the Dominican Republic, El Salvador, Guatemala, Honduras, Mexico and Venezuela. EXIMBANK and the TT Government are also cooperating to encourage trade with Cuba.

“Cuba is a large, untapped market with tremendous trading potential for our local manufacturers,” Benn said. He noted that in recognition of this and in support of the Government’s thrust, the Board has drafted an Aide Memoire to the Minister of Finance outlining a framework for providing support for the export of goods and services to this critical market. “As a member of the Association of Caribbean States, (ACS)” Benn continued, “that has also been displaying great interest in the CARICOM process, Cuba perhaps offers opportunities way in excess of any other set of arrangements for other parts of the Caribbean basin.” EXIMBANK has been a member of the Association of Latin American Export Credit Agencies for the past 10 years. The Association provides opportunities for member agencies to engage in continuous learning about various aspects of export credit, including underwriting and risk management.