US Ex-Im Bank: When reaching a state of limbo is progress in the US' tormented political spectrum

For some, the re-authorisation of the US Ex-Im Bank in early Dec-2015 was a major victory in the years long political fight over the embattled agency. Its detractors claim Ex-Im is a poster child for corporate welfare and its proponents argue the agency supports hundreds of thousands of US jobs, some of which were jeopardised during the six month hiatus Ex-Im was forced to take when its charter expired in Jun-2015.

But the US Senate still needs to authorise two of five seats on Ex-Im's board of directors, which means the bank cannot approve transactions of more than USD10 million until there is a quorum of directors. Although Ex-Im executives seem optimistic the Senate will move quickly on director approval, US politics is anything but predictable. In the interim, other global export credit agencies will continue to seize on opportunities created by Ex-Im's hands essentially remaining tied.

Ex-Im's current authorisation lasts until Sep-2019, which is after the US presidential and Congressional mid-term elections. Given the US political climate, Ex-Im's may again be open for business, but its future is anything but secured.