*EPF319 07/19/00
Fact Sheet: Ex-Im Bank Announces Program for HIV/AIDS Exports
($1,000 million program targets sub-Saharan Africa) (490)

(The following fact sheet on a $1,000 million program for HIV/AIDS-related medical exports to sub-Saharan Africa was issued on July 19 by the Export-Import Bank of the United States.)

(Note: In the text, "billion" means 1,000 million.)

(begin text fact sheet)

$1 BILLION EX-IM BANK PROGRAM FOR HIV/AIDS-RELATED MEDICAL EXPORTS
TO SUB-SAHARAN AFRICA

The world is hearing an urgent call to increase access to affordable medications and other medical services for treatment of persons with HIV/AIDS in sub-Saharan Africa. The administration recently issued an executive order to help reduce trade barriers, and potentially make HIV/AIDS-related drugs and medical technologies more affordable. It has also proposed a Millennium Vaccine Initiative to accelerate the development of AIDS, Malaria and TB vaccines. In May, a group of five pharmaceutical companies announced that they intended to deeply discount anti-AIDS drugs for purchase by many African countries.

We all know, however, that much more is required. The Ex-Im Bank believes in the potential of sub-Saharan Africa. In supporting current and future U.S. exports, we want to do our part to help overcome a humanitarian crisis that will prevent African countries from developing their economies, eradicating poverty, and fully joining the world economic community.

Ex-Im Bank is thus announcing today an innovative pilot initiative to provide financing to support the sale to sub-Saharan African countries of HIV/AIDS-related medicines, goods and services. In the initial phase of this initiative, Ex-Im Bank will add scope and flexibility to existing programs in order to help reduce the cost and maximize the tenor of financing, thus contributing to reducing the cost, and increasing the availability of desperately needed medicines, equipment and services. These would include:

-- providing financing for packages of items that combine HIV/AIDS-related medications with capital goods and services, with the full packages being given the appropriate longer terms;

-- exploring ways of lowering the cost and increasing the availability of HIV/AIDS-related medications to sub-Saharan Africa (in coordination with other export credit agencies in the Berne Union and other international forums), including by increasing the terms of and introducing an element of concessionality to subsidize financing packages;

-- openly considering any and other suggested improvement in our programs or requirements that would make the sale of these medicines or equipment less expensive for sub-Saharan African countries.

It must be noted that Ex-Im Bank is not a development agency and we are subject to legal and other limitations on our programs (such as a need to find a reasonable assurance of repayment for every credit). But in its own small way Ex-Im is hoping to contribute to the broader international effort to confront this crisis and help the countries of sub-Saharan Africa to reach their full potential.

(end text fact sheet)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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