Current Issues

We serve as the industry’s voice before multilateral agencies, export credit agencies, finance ministries, central banks and legislative bodies. We collaborate around the world with other industry groups and trade associations. As a member of BAFT, we represent you in continually striving to:

  • develop international standards such as the “Master Participation Agreement” for trade risk
  • support the “national treatment” of financial firms in the markets where they do business
  • promote the harmonization of financial services regulation and supervision between countries
  • coordinate with private and public sector stakeholders to ensure that governments, multilateral agencies, and leading policymakers around the globe have substantive feedback and reliable data on market dislocations and industry trends
  • Advocate for the positive consideration of trade finance and transaction banking under the Basel capital and liquidity framework
  • Use common Trade Finance Definitions to standardize industry/regulatory terminology and facilitate prioritization of trade risk in sovereign events
  • Ensure the continuation of benefits afforded companies via ECA financing

Policy News

BAFT Calls on EXIM to Renew Partnership with Private Export Funding Corporation (PEFCO)

by Diana Rodriguez | Aug 12, 2020
On August 12, BAFT responded to EXIM’s Federal Register Notice sharing the strategic importance of the EXIM partnership with PEFCO.

BAFT has long supported EXIM’s operations and recognizes the longstanding and strategic importance of its 50-year partnership with PEFCO. As the EXIM Board reviews the PEFCO agreement due to expire at the end of the calendar year, BAFT filed comments calling on EXIM to renew its partnership with PEFCO. 

At a time of increasing global competition, EXIM’s partnership with PEFCO takes on greater significance. The availability of PEFCO support helps U.S. exporters counter the competitive advantages to foreign competitors. PEFCO provides attractive and competitive fixed and floating USD funding alternatives that complement banks’ suite of funding solutions and is a valuable component of the broader industry supporting U.S. exporters.

PEFCO is a successful public private partnership that decreases EXIM’s reliance on taxpayer-provided funding (direct loans). PEFCO does not compete with commercial banks as it has no origination capability. Rather, PEFCO plays an important role to “crowd-in” transactions or syndications that might constrain lenders’ balance sheets, helping exporters compete for important sales.

PEFCO’s funding capacity may be increasingly helpful in light of bank balance sheet limitations that may arise in an evolving regulatory environment, with growing counterparty and country constraints. Considering the liquidity- and credit-challenged COVID-19 environment, the EXIM-PEFCO partnership becomes even more important to navigate the credit cycle ahead.

On August 13, Stacey Facter, Senior Vice President, Trade Products will participate in an open meeting of the EXIM Board to share BAFT member priorities.

To view the comment letter, visit our Library of Documents under the Comment Letters section.