Republican calls for winding down of US Exim bank

US Republican senator and House Majority Leader Kevin McCarthy has called for the winding-down of the US Export-Import (Exim) bank, which supports billions of Dollars’ worth of infrastructure projects around the world. The bank provides loans, guarantees and insurance to support exports by US companies.

Mr McCarthy said in an interview that he would not support the renewal of the bank’s charter when it comes up for review in September. He claimed the bank provided unnecessary support to the private sector.

“The Exim bank is not something the government needs to be involved in. the private sector can do it,” he said. Mr McCarthy added, "One of the biggest problems with government is they go and take hard-earned money do things the private sector can do. That's what the Exim Bank does."

However, according to the bank, it returned more than US$ 1 billion in profits to the US Treasury last year, having made 3,842 authorisations worth US$ 27.3 billion. It estimated it supported US exports worth US$ 37.4 billion and helped safeguard 205,000 jobs.

Of these authorisations, the Exim bank said it provided support to the tune of US$ 9.8 billion for infrastructure projects globally in 2013. It also supports the export of manufactured goods, including construction and mining equipment.