“All transactions must have “reasonable assurance of repayment,” which is why EXIM has an exceptionally low default rate, historically hovering around 0.5 percent—a default rate that is the envy of private banking.”
Citation: Project 2025, Section 4.3: Export-Import Bank, Jennifer Hazelton, page 758, paragraph 9
Context:
This is overstating how effective Ex-Im is by double. Ex-Im’s default rate as of March 2024 was 1.012%. [Source]8 While this is lower than the default rate for private lenders, it’s not lower by significant amounts, at least in 2024. The delinquency rate on business loans for the same time period was 1.13% – just over a tenth of a percent. [Source] Ex-Im’s historical default rate is typically under 2%.
Full contextual analysis of Section 4.3: Export-Import Bank here.
Section: Section 4.3: Export-Import Bank
Categories: Big Banks, Imports & Exports