The Senate Banking, Housing, and Urban Affairs Committee began discussions on Mar. 27 about legislation led by U.S. Senators Kevin Cramer and Mark Warner to reauthorize the U.S. Export-Import (EXIM) Bank for ten years, marking what would be the longest extension in the bank’s history.
The proposed reauthorization is intended to provide greater certainty for businesses relying on the bank’s support and strengthen domestic manufacturing efforts. The committee heard testimony from John Jovanovic, Chairman of the EXIM Bank, who offered recommendations regarding risk management provisions and default rate policies.
Cramer reflected on his longstanding involvement with EXIM Bank matters in Congress. “The Export-Import Bank has been as high a priority on this committee for me as any, which is, you know, why I was quite honored seven years ago to be able to carry the ball for the, at that time, record reauthorization of seven years […] But now, of course, I have the bill, along with Senator Warner, to extend it to 10 years. I think that certainty helps the certainty of the bank and the ability of the bank to lend to companies who need long-term certainty. And so I’m looking forward to that. I’m very encouraged by the encouragement and by the enthusiasm on both sides of the aisle on that.”
During questioning about risk management thresholds like a 2% default rate cap placed on EXIM lending activity, Jovanovic said: “Senator Cramer, thank you for your continued thought leadership,” adding “Thank you for championing EXIM clearly in times when it was a lot less popular to do so… We’re simply saying that over the course of past few years we’ve had provisions put on [the] bank that weren’t meant to set it up for success… bring us back to [a] system that works so well… allow us to pursue transactions we want.” He also addressed concerns about risk: “[It is] significantly lower. I’m not asking to move the goalpost,” he said. “You can keep the 2%. All I’m saying is allow us a very reasonable opportunity… It’s really threat of looming pencils down provision that’s chilling.”
Cramer also raised issues related to competition with China through programs like China and Transformational Exports Program (CTEP). He said: “We talked a lot about China provision… if we’re really doing our job China doesn’t matter… But I think it’s great … even if it’s just rhetorical focus… irony is not lost … we’re all in bipartisan way championing Export-Import at same time as our colleagues … are trying defund our customs offices.”
Cramer serves North Dakotans by assisting them with federal agencies according to his official website. He previously served three terms as North Dakota’s at-large representative in Congress before joining Senate according to his official biography. Cramer grew up in Kindred and holds degrees from Concordia College and University of Mary according his official website. He serves on several Senate committees including Environment and Public Works; Veterans’ Affairs; Banking; Housing; Urban Affairs; Armed Services according his office.
Looking ahead, further negotiations are expected as lawmakers consider adjustments aimed at balancing oversight with operational flexibility at EXIM Bank.
