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Interview: Fred Hochberg, US Ex-Im

22 October 2009

Financial year 2009 has proven record-breaking forThe Export-Import Bank of the United States (US Ex-Im).As the bank kicks off a series of eight nationwide seminars under the Exports Live! banner, Oliver O’Connell met with chairman Fred Hochberg.

Read more: [US Ex-Im Hochberg] [Exports US] [Chairman US Ex-Im] [Interview Fred Hochberg] [Obama US jobs] [Obama exports]

It is ironic that as US Ex-Im celebrates 75 years of supporting US exports, the many of the reasons for its founding in 1934 – as a response to the Great Depression – have again reared their heads. As with other major economies, the United States (US) is lumbered with a recession, high unemployment, and depressed consumer demand. The focus falls on government agencies to provide direction. As an export credit agency, US Ex-Im has, over the years, had to adapt to the needs of US manufacturers and exporters, and the financial institutions that service them. As with the wider trade finance sector, the bank’s fortunes are countercyclical and now more than ever the market requires innovation and a renewed sense of purpose.

The chairman’s position at the bank is a presidential appointment, and the Obama administration named name Fred Hochberg, formerly of the Small Business Administration under President Clinton, who...


Poll

Gazpromneft stunned the market this week when it was revealed pricing for their five-year $1 billion pre-export financing was rumoured to be just above 300 basis points over Libor. Is the deal likely to be a syndication success?

Yes - this seems like a sensible pricing benchmark, why not?
10%
No - are you crazy? These prices are ridiculous. What were these banks thinking?
29%
Yes - but for all the wrong reasons. A lack of other deals in the market, and the promise of future business with Gazpromneft will make it hard to ignore but don’t expect many to take up big tickets with this deal. There are much better deals out there.
62%