The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank”) announced on December 5 that it signed a USD 50 million Interbank Export Loan Agreement with Jordan’s HBTF*.

* The Housing Bank for Trade and Finance (HBTF) is the second-largest commercial bank in Jordan established in 1974, with operations in the Levant (encompassing Jordan, Lebanon, and Syria). As of the end of 2012, it has a total of USD 10 billion in assets.

Korea Eximbank Chairman Kim Yong-hwan met with HBTF Chairman Dr. Mihel Marto at the HBTF’s headquarters located in Amman, Jordan, on the afternoon of December 4 (local time), and signed an Interbank Export Loan Agreement to extend a USD 50 million credit line to HBTF so as to provide financing for local companies in the Levant region (including Jordan) importing goods from Korea.

The Interbank Export Loan is a type of credit line extended by Korea Eximbank to foreign banks, under which the latter can lend money borrowed from the former to local companies importing goods from Korea.

It in effect allows Korea Eximbank to use foreign banks as its overseas branches to promote Korean exports.

Korean companies are currently active in the Levant region and neighboring Iraq, exporting USD 4 billion worth of goods including household appliances, mobile phones, and automobiles to those markets.

At a time when multiple Korean companies such as LG Electronics and Samsung Electronics are expanding their sales in the Levant and neighboring Iraq through their foothold in Jordan, this Agreement is expected to provide a further boost to Korean exports in the region.

After the signing ceremony, Chairman Kim noted, “Korea Eximbank has already been supporting Korean companies participating in Jordanian infrastructure projects through EDCF* funding, but the agreement signed today opens up the possibility for us to exploit the financial network of a large Jordanian commercial bank to support Korean business activities in this part of the world. This agreement, which establishes our first credit line with a bank in this region, will serve as a financial bridge for Korean companies targeting the Levant market.”

Korea Eximbank is currently providing a total of USD 209 million in EDCF* funding for seven projects in Jordan, including the Amman Wastewater Treatment Project.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with developing countries and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee.