Washington, D.C. — The Export-Import Bank of the United States (Ex-Im Bank) has disputed a recent report that it has granted a loan to Nigeria's Presidential Committee on Police Equipment Fund.
In the report, carried by the Daily Trust newspaper in Abuja and reproduced on allAfrica, the national coordinator of the fund, Chief Kenny Martins, was quoted as saying the fund had raised the loan, of $150million (about 19 billion Naira), to upgrade police equipment and enhance their welfare.
The bank has said in a statement to allAfrica that the report contained significant errors.
"At the present time, the [bank] has not authorized any financing commitment for this proposed transaction. Ex-Im Bank has issued only a letter of interest (LI) to the U.S. exporter applicant, indicating possible availability of Ex-Im Bank support for the company's potential exports of various kinds of U.S.-made equipment for law enforcement (e.g., bullet-proof vests and armored vehicles)..."
The report also quoted Chief Martins as saying part of the loan would be used for police housing. Ex-Im Bank said the U.S. exporter which had applied for funding had not asked for support for housing. Neither had it asked for funds for firearms.
"A letter of interest is a nonbinding statement of interest by Ex-Im Bank that the proposed transaction, as described by the applicant, is of the type that Ex-Im Bank would be willing to consider for financing," the bank said.
"The determination whether to provide financial support is made by the appropriate Ex-Im Bank authority... after Ex-Im Bank receives an application for a final commitment (accompanied by all required financial and technical information) and Ex-Im Bank staff have thoroughly reviewed the application.
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"LIs are often used by applicants to assist in securing private-sector financing that could be backed by Ex-Im Bank and/or to win export contracts from buyers based on the possibility of Ex-Im Bank's participation in the financing. LI applications typically contain only preliminary transaction information.
"Currently, Ex-Im Bank is not open to provide financing, such as a direct loan, to the public sector in Nigeria but can consider providing a loan guarantee to a commercial lender for a public-sector transaction that is also supported by a Nigerian bank guarantee. At present, Ex-Im Bank does not have an application for a final commitment for the proposed Nigerian Police Equipment Fund transaction," the bank said.
