Export-Import Bank Act Amendments of 1986
PL 99-472 (H.R.5548), enacted 10/15/1986

100 STAT. 1200 
PUBLIC LAW 99-472—OCT. 15, 1986 
Public Law 99-472 
99th Congress 
An Act 
Oct. 15,1986 
[H.R. 5548] 
To amend the Export-Import Bank Act of 1945. 
Be it enacted by the Senate and House of Representatives of the 
Export-Import 
United States of America in Congress assembled. 
Bank Act 
Amendments of 
SECTION 1. SHORT TITLE. 
1986 
12 use 635 note 
This Act may be cited as the "Export-Import Bank Act Amend-
ments of 1986". 
SEC. 2. FEES. 
12 use 635. 
Section 2(aXl) of the Export-Import Bank Act of 1945 is amended 
by inserting after the fifth sentence thereof the following: "The 
Bank may impose and collect reasonable fees to cover the costs of 
conferences and seminars sponsored by, and publications provided 
by, the Bank. Amounts received under the preceding sentence shall 
be credited to the fund which initially paid for such activities.". 
SEC. 3. CREDIT APPLICATION FEES. 
Post, p. 1201. 
Section 2(bXl)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(bXlXB)) is amended by inserting after the third sentence the 
following: "The Bank may not impose a credit application fee unless 
(i) the fee is competitive with the average fee charged by the Bank's 
primary foreign competitors, and (ii) the borrower or the exporter is 
given the option of paying the fee at the outset of the loan or over 
the life of the loan and the present value of the fee determined 
under either such option is the same amount.". 
SEC. 4. ENHANCEMENT OF MEDIUM-TERM PROGRAM. 
Section 2(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(a)) is amended by adding at the end thereof the following new 
paragraph: 
"(3) ENHANCEMENT OF MEDIUM-TERM PROGRAM.— 
"(A) IN GENERAL.—To enhance the medium-term financing 
program established pursuant to paragraph (2), the Bank shall 
establish measures to— 
"(i) improve the competitiveness of the Bank's medium-
term financing and ensure that its medium-term financing 
is fully competitive with that of other major official export 
credit agencies; 
"(ii) ease the administrative burdens and procedural and 
documentary requirements imposed on the users of 
medium-term financing; 
"(iii) attract the widest possible participation of private 
financial institutions and other sources of private capital in 
the medium-term financing of United States exports; and 
"(iv) render the Bank's medium-term 
financing 
as 
supportive of United States exports as is its Direct Loan 
Program. 
PUBLIC LAW 99-472—OCT. 15, 1986 
100 STAT. 1201 
"(B) REPORT REQUIRED.—Not later than April 15, 1988, the 
Bank shall transmit a report to the Congress analyzing the 
measures adopted to enhance medium-term financing.". 
SEC. 5. COMPETITIVENESS MANDATE. 
The second sentence of section 2(bXlXB) of the Export-Import 
Bank Act of 1945 is amended by striking out "equivalent" and 
Ante, p. 1200. 
inserting in lieu thereof "identical in all respects". 
SEC. 6. MULTIPLE-EXPORTER RISK PROTECTION. 
Section 2(bXlXE) of the Export-Import Bank Act of 1945 is 12USC635. 
amended by adding at the end thereof the following new clause: 
"(ix) The Bank shall provide, through creditworthy trade associa-
tions, export trading companies. State export finance companies, 
export finance cooperatives, and other multiple-exporter organiza-
tions, medium-term risk protection coverage for the members and 
clients of such organizations. Such coverage shall be made available 
to each such organization under a single risk protection policy 
covering its members or clients. Nothing in this provision shall be 
interpreted as limiting the Bank's authority to deny support for 
specific transactions or to disapprove a request by such an organiza-
tion to participate in such coverage,". 
SEC. 7. PROGRAM ACCESS. 
Section 2(bXl) of the Export-Import Bank Act of 1945 is amended 
by adding at the end thereof the following new subparagraph: 
"(G) Participation in or access to long-, medium-, and short-term insurance, 
financing, guarantees, and insurance.provided by the Bank shall not 
be denied solely because the entity seeking participation or access is 
not a bank or is not a United States person.". 
SEC. 8. PROHIBITION ON AID TO MARXIST-LENINIST COUNTRIES. 
Section 2(bX2) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(bX2)) is amended to read as follows: 
"(2) PROHIBITION ON AID TO MARXIST-LENINIST COUNTRIES.— 
"(A) IN GENERAL.—The Bank in the exercise of its functions 
shall not guarantee, insure, extend credit, or participate in the 
extension of credit— 
"(i) in connection with the purchgise or lease of any 
product by a Marxist-Leninist country, or agency or na-
tional thereof; or 
"(ii) in connection with the purchase or lease of any 
product by any other foreign country, or agency or national 
thereof, if the product to be purchased or leased by such 
other country, agency, or national is, to the knowledge of 
the Bank, principally for use in, or sale or lease to, a 
Marxist-Leninist country. 
"(B) MARXIST-LENINIST COUNTRY DEFINED.— 
"(i) IN GENERAL.—For the purposes of this paragraph, the 
term 
'Marxist-Leninist 
country' 
means any 
country 
which— 
"(I) maintains a centrally planned economy based on 
the principles of Marxist-Leninism, or 
"(II) is economically and militarily dependent on the 
Union of Soviet Socialist Republics or on any other 
Marxist-Leninist country. 
100 STAT. 1202 
PUBLIC LAW 99-472—OCT. 15, 1986 
Insurance. 
Loans. 
"(ii) 
SPECIFIC 
COUNTRIES 
DEEMED 
TO 
BE 
MARXIST-
LENiNiST.—Unless otherwise determined by the President 
in the manner provided in subparagraph (C), the following 
countries are deemed to be Marxist-Leninist countries for 
purposes of this paragraph: 
"Cambodian People's Republic. 
"Cooperative Republic of Guyana. 
"Czechoslovak Socialist Republic. 
"Democratic People's Republic of Korea. 
"Democratic Republic of Afghanistan. 
"Estonia. 
"German Democratic Republic. 
"Hungarian People's Republic. 
"Lao People's Democratic Republic. 
"Latvia. 
"Lithuania. 
"Mongolian People's Republic. 
"People's Democratic Republic of Yemen. 
"People's Republic of Albania. 
"People's Republic of Angola. 
"People's Republic of Benin. 
"People's Republic of Bulgaria. 
"People's Republic of China. 
"People's Republic of the Congo. 
"People's Republic of Mozambique. 
"Polish People's Republic. 
"Republic of Cuba. 
"Republic of Nicaragua. 
"Socialist Ethiopia. 
"Socialist Federal Republic of Yugoslavia. 
"Socialist Republic of Romania. 
"Socialist Republic of Vietnam. 
"Surinam. 
"Tibet. 
"Union of Soviet Socialist Republics (including its 
captive constituent republics). 
"(C) 
PRESIDENTIAL DETERMINATION THAT A COUNTRY HAS 
CEASED TO BE MARXIST-LENINIST.—If the President determines 
that any country on the list contained in subparagraph (B)(ii) 
has ceased to be a Marxist-Leninist country (within the defini-
tion of such term in subparagraph (B)(i)), such country shall not 
be treated as a Marxist-Leninist country for purposes of this 
paragraph after the date of such determination, unless the 
President subsequently determines that such country has again 
become a Marxist-Leninist country.". 
"(D) PRESIDENTIAL DETERMINATION RELATING TO FINANCING IN 
THE NATIONAL INTEREST.— 
"(i) IN GENERAL.—Subparagraph (A) shall not apply to 
guarantees, insurance, or extensions of credit by the Bank 
to a country, agency, or national described in clause (i) or 
(ii) of subparagraph (A) (in connection with transactions 
described in such clauses) if the President determines that 
such guarantees, insurance, or extensions of credit are in 
the national interest. 
"(ii) 
SEPARATE 
DETERMINATION 
FOR CERTAIN 
TRANS-
ACTIONS.—The President shall make a separate determina-
tion under clause (i) for each transaction described in clause 
PUBLIC LAW 99-472—OCT. 15, 1986 
100 STAT. 1203 
(i) or (ii) of subparagraph (A) for which the Bank would 
extend a loan in an amount equal to or greater than 
$50,000,000. 
"(iii) REPORT OF CLAUSE (i) DETERMINATIONS TO CON-
GRESS.—Any determination by the President under clause 
(i) shall be reported to the Congress not later than the 
earlier of— 
"(I) the end of the 30-day period beginning on the 
date of such determination; or 
"(II) the date the Bank takes final action with respect 
to the first transaction involving the country, agency, 
or national for which such determination is made after 
the date of the enactment of the Export-Import Bank 
Amendments of 1974, unless a report of a determina- 
12 USC 635 note, 
tion with respect to such country, agency, or national 
was made and reported before such date of enactment. 
"(iv) REPORT OF CLAUSE (ii) 
DETERMINATIONS TO CON-
GRESS.—Any determination by the President under clause 
(ii) shall be reported to the Congress not later than the 
earlier of— 
"(I) the end of the 30-day period beginning on the 
date of such determination; or 
"(II) the date the Bank takes final action with respect 
to the transaction for which such determination is 
made.". 
SEC. 9. PROHIBITION ON AID TO ANGOLA. 
Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)) is amended by adding at the end thereof the following new 
paragraph: 
"(11) PROHIBITION RELATING TO ANGOLA.—Notwithstanding any 
Agriculture and 
determination by the President under paragraph (2), the Bank may 
agricultural 
not guarantee, insure, or extend credit (or participate in the exten- commodities, 
sion of credit) in connection with any export of goods or services, 
except food or agricultural commodities, to the People's Republic of 
Angola until the President certifies to the Congress that no combat-
ant forces or military advisors of the Republic of Cuba or of any 
other Marxist-Leninist country (as such term is defined in para-
graph (2)(B)) remain in Angola.". 
SEC. 
1
0
. 
TRANSFERABILITY 
OF 
GUARANTEES. 
Section 2(c) of the Export-Import Bank Act of 1945 is amended by 
adding at the end thereof the following new paragraph: 
"(3) TRANSFERABILITY OF GUARANTEES.—With respect to medium-
term and long-term obligations insured or guaranteed by the Bank 
after the date of the enactment of the Export-Import Bank Act 
Amendments of 1986, the Bank shall authorize the unrestricted 
transfer of such obligations by the originating lenders or their 
transferees to other lenders without affecting, limiting, or terminat-
ing the guarantee or insurance provided by the Bank.". 
SEC. 11. PROHIBITION AGAINST CERTAIN TRANSACTIONS. 
Section 2 of the Export-Import Bank Act of 1945 is amended by 
adding at the end thereof the following: 
"(e) LIMITATION ON ASSISTANCE WHICH ADVERSELY AFFECT THE 
UNITED STATES.— 
71_19A 0 - 8 9 - 5 : QL. 3 Part2 
100 STAT. 1204 
PUBLIC LAW 99-472—OCT. 15, 1986 
Loans. 
12 use 635a-2. 
5 use 5311. 
12 use 635e. 
Post, p. 1205. 
Loans. 
Insurance. 
"(1) IN GENERAL.—^The Bank may not extend any direct credit 
or financial guarantee for establishing or expanding production 
of any commodity for export by any country other than the 
United States, i
f
— 
"(A) the Bank determines that— 
"(i) the commodity is likely to be in surplus on world 
markets at the time the resulting productive capacity 
is expected to become operative; or 
"(ii) the resulting production capacity is expected to 
compete with United States production of the same, 
similar, or competing commodity; and 
"(B) the Bank determines that the extension of such 
credit or guarantee will cause substantial injury to United 
States producers of the same, similar, or competing 
commodity. 
"(2) EXCEPTION.—Paragraph (1) shall not apply in any case 
where, in the judgment of the Board of Directors of the Bank, 
the short- and long-term benefits to industry and employment 
in the United States are likely to outweigh the injury to 
United States producers of the same, similar, or competing 
commodity.". 
SEC. 12. IMPACT ANALYSIS. 
Section 1911 of the Export-Import Bank Act Amendments of 1978 
is amended by adding at the end thereof the following: "In all cases 
to which this section applies, the Bank shall consider and address in 
writing the views of parties or persons who may be substantially 
adversely affected by the loan or guarantee prior to taking final 
action on the loan or guarantee. This requirement does not subject 
the Bank to the provisions of subchapter II of chapter 5 of title 5, 
United States Code.". 
SEC. 13. AUTHORIZATION OF APPROPRIATIONS. 
Section 7(a) of the Export-Import Bank Act of 1945 is amended by 
adding at the end thereof the following new paragraph: 
"(3) AUTHORIZATION OF APPROPRIATION.—There are authorized to 
be appropriated $145,259,000 for fiscal year 1987 to cover the subsidy 
cost of new direct loans obligated by the Bank in that fiscal year. 
Any amounts appropriated under this paragraph shall be perma-
nent additions to the capital and reserves of the Bank.". 
SEC. 14. EXTENSION OF CHARTER. 
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is 
amended by striking out "September 30,1986" and inserting in lieu 
thereof "September 30,1992". 
SEC. 15. MATCHING FOREIGN OFFICIAL EXPORT CREDITS IN THE UNITED 
STATES. 
(a) IN GENERAL.—Section 1912(b) of the Export-Import Bank Act 
Amendments of 1978 (12 U.S.C. 635a-3(b)) is amended to read as 
follows: 
"(b) The Secretary of the Treasury shall issue such authorization 
to the Bank to provide guarantees, insurance, and credits to compet-
ing United States sellers, unless the Secretary determines that— 
"(1) the availability of foreign official noncompetitive financ-
ing is not likely to be a significant factor in the sale; or 
PUBLIC LAW 99-472—OCT. 15, 1986 
100 STAT. 1205 
"(2) the foreign noncompetitive financing has been with-
drawn.", 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 1912(aXl) 
of the Export-Import Bank Act Amendments of 1978 (12 U.S.C. 
635a-3(aXl)) is amended by inserting "irrespective of whether these 
credits are being offered by governments which are signatories to 
such standstills, minutes, or practices," after "major export coun-
tries have agreed,". 
SEC. 
1
6
. 
REPORT 
ON 
ROLE 
OF 
PRIVATE 
INSURANCE. 
Not later than October 1, 1987, the Export-Import Bank of the 
United States and the Office of Management and Budget shall 
jointly prepare and transmit to the Congress, and the General 
Accounting Office shall prepare and transmit to the Congress, re-
ports analyzing— 
(1) the need for United States Government involvement in 
export credit insurance, considering the current activities of 
private insurance companies in this area, private insurance 
industry trends over the longer term, and ways in which private 
insurance companies can be encouraged by the Bank to maxi-
mize export credit insureuice activities; 
(2) the need to employ an agent in administering government-
supported insurance programs which are determined to be 
necessary; and 
(3) the efficiency and effectiveness of continuing to utilize the 
Foreign Credit Insurance Association as the Bank's agent 
(including an analysis of the administrative and economic cost 
to the government and the Bank of maintaining the Foreign 
Credit Insurance Association). 
SEC. 17. CONFORMING AMENDMENT RELATING TO CREDIT AUTHORITY. 
The second sentence of section 7(a) of the Export-Import Bank Act Ante, p. 1204. 
of 1945 is amended by inserting "and credit" immediately after the 
words "All spending". 
SEC. 18. DIRECTORS' TERMS. 
Section 3(cX8) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a(cX8)) is amended by adding at the end thereof the following 
new subparagraph: 
"(E) Any director whose term has expired may continue to serve 
on the Board of Directors until the earlier of— 
"(i) the date on which such director's successor is qualified; or 
"(ii) the end of the 6-month period beginning on the date such 
director's term expires.". 
SEC. 19. TIED AID CREDIT WAR CHEST. 
Grants. 
The Export-Import Bank Act of 1945 is amended by adding at the 12 use 635 note 
end thereof the following new section: 
"SEC. 15. TIED AID CREDIT PROGRAM AND FUND. 
"(a) FINDINGS.—The (Dongress finds that— 
"(1) tied aid and partially untied aid credits offered by other 
countries are a predacious method of financing exports because 
of their market-distorting effects; 
"(2) these distortions have caused the United States to lose 
export sales, with resulting losses in economic growth and 
employment; 
100 STAT. 1206 
PUBLIC LAW 99-472—OCT. 15, 1986 
"(3) these practices undermine market mechanisms that 
would otherwise result in export purchase decisions made on 
the basis of price, quality, delivery, and other factors directly 
related to the export, where official financing is not subsidized 
and would be a neutral factor in the transaction; 
"(4) support of commercial exports by donor countries with 
tied aid and partially untied aid credits impedes the growth of 
developing countries because it diverts development assistance 
funds from essential developmental purposes; and 
"(5) there should be established in the Bank a temporary tied 
aid program to target the export markets of those countries 
which make extensive use of tied aid or partially untied aid 
credits for commercial advantage for the purpose of facilitating 
the negotiation of a comprehensive international arrangement 
restricting the use of tied aid and partially untied aid credits for 
commercial purposes, and such program should be aggressively 
used until such an arrangement is established. 
"(b) ESTABUSHMENT OF TiED AlD CREDIT PROGRAM.— 
"(1) IN GENERAL.—For the purpose of facilitating the negotia-
tion of a comprehensive international arrangement restricting 
the use of tied aid and partially untied aid credits for commer-
cial purposes, the Bank shall establish a tied aid credit program 
under which grants shall be made from funds available in the 
Tied Aid Credit Fund established under subsection (c)— 
"(A) to supplement the financing of a United States 
export when there is a reasonable expectation 
that 
predacious financing will be provided by another country 
for a sale by a competitor of the United States exporter 
with respect to such export; 
"(B) to supplement the financing of United States exports 
to foreign markets which are actual or potential export 
markets for any country which the Bank determines— 
"(i) engages in predacious official export financing 
through the use of tied aid or partially untied aid 
credits; and 
"(ii) impedes negotiations to eliminate the use of such 
credits for commercial purposes; or 
"(C) to supplement the financing of United States exports 
under such other circumstances as the Bank may deter-
mine to be appropriate for carrying out the purposes of this 
section. 
"(2) ADMINISTRATION OF PROGRAM.—The tied aid credit pro-
gram shall be administered by the Bank— 
"(A) in consultation with the Secretary of the Treasury 
and in accordance with the Secretary's recommendations 
on how such credits could be used most effectively and 
efficiently to promote the negotiation of a comprehensive 
international arrangement restricting the use of tied aid 
and partially untied aid credits for commercial purposes; 
"(B) in cooperation with private financial institutions or 
entities, as appropriate; and 
"(C) in consultation with the National Advisory (Douncil 
on International Monetary and Financial Policies. 
"(3) COORDINATION WITH OTHER EXPORT FINANCING.—Under 
the tied aid credit program, the Bank may combine grants from 
the Tied Aid Credit Fund with— 
PUBLIC LAW 99-472—OCT. 15, 1986 
100 STAT. 1207 
"(A) any guarantee, insurance, or other extension of Insurance, 
credit provided by the Bank under this Act; 
"(B) any export financing provided by any private finan-
cial institution or other entity; and 
"(C) any other type of export financing, 
in such manner and under such terms as the Bank determines 
to be appropriate, including combinations of export financing in 
the form of blended financing and parallel financing. 
"(4) INFORMATION ON COUNTRIES WHICH ENGAGE IN OFFICIAL 
PREDACIOUS EXPORT FINANCING AND IMPEDE NEGOTIATIONS.—IN 
order to assist the Bank to make the most efficient use of funds 
available for supplemental financing under paragraph (1)(B), 
the United States Trade Representative and the Secretary of 
Commerce may provide information on principal sectors and 
key markets of countries described in paragraph (1)(B) to the 
Bank, the Secretary, and the National Advisory Council on 
International Monetary and Financial Policies. 
"(c) TIED AID CREDIT FUND.— 
"(1) IN GENERAL.—There is hereby established within the 
Bank a fund to be known as the 'Tied Aid Credit Fund' (herein-
after in this section referred to as the 'Fund'), consisting of such 
amounts as may be appropriated to the Fund pursuant to the 
authorization contained in subsection (e). 
"(2) EXPENDITURES FROM FUND.—Amounts in the Fund shall 
be available for grants made by the Bank under the tied aid 
credit program established pursuant to subsection (b) and to 
reimburse the Bank for the cost of any tied aid credits au-
thorized by the Bank during fiscal year 1986. 
"(d) CONSISTENCY WITH ARRANGEMENT.—Any export 
financing 
involving the use of a grant under the tied aid credit program shall 
be consistent with the procedures established by the Arrangement, 
as in effect at the time such financing is approved. 
"(e) AUTHORIZATION OF APPROPRIATIONS.— 
"(1) IN GENERAL.—There is hereby authorized to be appro-
priated to the Fund for fiscal years 1987 and 1988, $300,000,000. 
Except as provided in paragraph (2), such sums shall remain 
available until expended. 
"(2) RESCISSION AUTHORITY.— 
"(A) DETERMINATION BY PRESIDENT.—If the President 
determines that any amount appropriated to the Fund is 
not required to achieve the purpose of the Fund, the Presi-
dent shall transmit a special message of such determination 
to the Congress in the manner provided in section 1012(a) of 
the Impoundment Control Act of 1974. 
2 use 683. 
"(B) SPECIAL MESSAGE.—Any message under this para-
graph shall be treated as a special message under such 
section for purposes of such Act. 
"(f) NONREVIEWABILITY.—No action taken under this section shall 
be reviewable by any court, except for abuse of discretion. 
"(g) REPORT TO CONGRESS.— 
"(1) REPORT REQUIRED.—Before the end of the 6-month period 
beginning on the date of enactment of this section and every six 
months thereafter, the Bank, in consultation with the Sec-
retary, shall prepare and transmit a report on tied aid credits to 
the President of the Senate and the Speaker of the House of 
Representatives. 
100 STAT. 1208 
PUBLIC LAW 99-472—OCT. 15, 1986 
"(2) CONTENTS OF REPORT.—Each report required by para-
graph (1) shall contain a description of^ 
"(A) the principal offers of predacious financing by for-
eign countries during the course of the previous 6 months; 
"(B) steps taken by the United States to combat specific 
predacious financing practices of foreign countries; 
"(C) any use by the Bank of the Tied Aid Credit Fund to 
match specific predacious financing practices of foreign 
countries and to initiate tied aid credit offers; 
"(D) any additional steps the United States may take in 
the future to discourage use of predacious financing prac-
tices; and 
"(E) any progress achieved in negotiations to establish a 
comprehensive international arrangement restricting the 
use of tied aid and partially untied credits for commercial 
purposes. 
"(3) CONFIDENTIAL INFORMATION.—To the extent the Bank 
determines any information required to be included in the 
report under this subsection should not be made public, such 
information may be submitted separately on a confidential basis 
or provided orally, rather than in written form, to the Chairmen 
and ranking minority Members of the Committees of the Senate 
and the House of Representatives with jurisdiction over the 
subject matter of the report. 
"(h) DEFINITIONS.—^f'or the purpose of this section— 
"(1) TIED AID AND PARTIALLY UNTIED AID CREDIT.—The terms 
'tied aid credit' and 'partially untied aid credit' mean any credit 
which— 
"(A) has a grant element greater than zero percent, as 
determined by the Development Assistance Committee of 
the 
Organization 
for 
Economic 
Cooperation 
and 
Development; 
"(B) is, in fact or in effect, tied to— 
"(i) the procurement of goods or services from the 
donor country, in the case of tied aid credit; or 
"(ii) the procurement of goods or services from a 
restricted number of countries, in the case of partially 
untied aid credit; and 
"(C) is financed either exclusively from public funds or 
partly from public and partly from private funds. 
"(2) SECRETARY.—The term 'Secretary' means the Secretary of 
the Treasury. 
"(3) ARRANGEMENT.—The term 'Arrangement' means the 
Arrangement on Guidelines for Officially Supported Export 
Credits established through the Organization for Economic Co-
operation and Development. 
"(4) BLENDED FINANCING.—The term 'blended 
financing' 
means financing provided through any combination of official 
development assistance, official export credits, and private 
commercial credit which is integrated into a single agreement 
with a single set of financial terms. 
"(5) PARALLEL FINANCING.—The term 'parallel 
financing' 
means financing provided by any combination of official devel-
opment assistance, official export credits, and private commer-
cial credit which is not integrated into a single agreement and 
does not have a single set of financial terms.". 
PUBLIC LAW 99-472—(Xrr. 15, 1986 
100 STAT. 1209 
SEC. 20. INTEREST SUBSIDY PAYMENTS. 
Loans. 
(a) IN GENERAL.—Section 2 of the Export-Import Bank Act of 1945 
(as amended by section 11) is amended by adding at the end thereof Ante, p. 1203. 
the following new subsection: 
"(f) INTEREST SUBSIDY PAYMENTS.— 
"(1) PAYMENTS AUTHORIZED.—The Bank may enter into 
commitments to make payments to commercial lending institu-
tions and other lenders, in such amounts as the Bank may 
determine to be appropriate, to provide a sufficient return on 
loans by such lenders (including loans guaranteed by the Bank) 
in support of United States exports (of goods or services) when 
financing at less than market rates is required for such exports 
in order to respond to subsidized financing offered by foreign 
export credit agencies. 
"(2) 
AUTHORITY TO MAKE PAYMENTS SUBJECT TO MINIMUM 
AMOUNT OF DIRECT LOAN AUTHORITY.—The authority to enter 
into commitments to make interest subsidy payments under 
paragraph (1) shall be effective for any fiscal year only if the 
aggregate principal amount of direct loans the Bank may obli-
gate in such fiscal year is equal to or greater than $700,000,000. 
"(3) PAYMENTS ALLOWED ONLY FROM FUNDS APPROPRIATED FOR 
SUCH PURPOSE.—The estimated aggregate amount of commit-
ments entered into by the Bank under paragraph (1) in any 
fiscal year beginning after fiscal year 1986 may not exceed the 
amount of funds appropriated to the Bank for such purposes for 
such fiscal year. 
"(4) AUTHORIZATION OF APPROPRIATIONS.— 
"(A) IN GENERAL.—Subject to subparagraph (B), there are 
authorized to be appropriated to the Bank, for any fiscal 
year beginning after fiscal year 1986, such sums as may be 
necessary to carry out the purposes of this subsection. 
"(B) BUDGET SCORING.—No amount is authorized to be 
appropriated for commitments to make interest subsidy 
payments on loans for which the Bank extends a loan 
guarantee commitment if any amount of such loan guaran-
tee commitment is scored as budget authority in any esti-
mate of budget authority prepared pursuant to any 
provision of the Congressional Budget and Impoundment 
Control Act of 1974. 
2 USC 621 note. 
"(5) SUNSET PROVISION.—The authority to enter into commit-
ments to make interest subsidy payments shall lapse on Octo-
ber 1,1988.". 
(b) GAO REPORT ON INTEREST SUBSIDY PAYMENTS.—Section 9 of the 
Export-Import Bank Act of 1945 (12 U.S.C. 635g) is amended by 
adding at the end thereof the following new subsection: 
"(e) GAO REPORT ON INTEREST SUBSIDY PAYMENTS.— 
"(1) REPORT REQUIRED,—Not later than March 1, 1988, the 
Comptroller General of the United States shall transmit to both 
Houses of the Congress a report on the manner in which and 
the extent to which the Bank is exercising its authority to make 
interest subsidy payments under section 2(f). 
Supra. 
"(2) CONTENTS OF REPORT.—The report required "finder para-
graph (1) with respect to interest subsidy payments shall— 
"(A) compare the efficiency and competitiveness of 
interest subsidy payments with the efficiency and competi-
100 STAT. 1210 
PUBLIC LAW 99-472—OCT. 15, 1986 
tiveness of direct Bank financing of an equivalent value of 
exports; 
"(B) compare the cost, to the United States Government, 
of making interest subsidy payments and the impact of 
such payments on the financial condition of the Bank with 
the cost and impact of direct Bank finsmcing of an equiva-
lent value of exports; 
"(C) compare the impact of interest subsidy payments on 
the Federal budget with the impact on such budget of direct 
Bank financing of an equivalent value of exports; and 
"(D) include all views and recommendations of the Ad-
visory Committee of the Bank which are submitted to the 
Ck)mptroller General of the United States before Decem-
ber 1, 1987.". 
i2USC635g. 
(c) REPORT SUNSET PROVISION.—Effective March 2, 1988, the 
amendment made by subsection (b) is repealed. 
SEC. 21. POLICY TOWARD UNITED STATES BUSINESS TRANSACTIONS IN 
ANGOLA. 
(a) The Congress finds that— 
(1) the Marxist Popular Movement for the Liberation of 
Angola (hereafter in this section referred to as the "MPLA") 
has failed to hold fair and free elections since assuming power 
in Angola in 1975; 
(2) Angola currently harbors more than 35,000 Soviet and 
Cuban troops and advisers; 
(3) the Cubans and Soviets have channeled more than 
$4,000,000,000 in assistance and military £iid in furtherance of 
this intervention in Africa; 
(4) the MPLA government of Angola obtains more than 90 
percent of its foreign exchange from the extraction and produc-
tion of oil; 
(5) most of Angola's oil is extracted in Cabinda Province, 
where 75 percent of it is extracted by the Chevron-Gulf Oil 
compEiny; 
(6) the MPLA has refused to take meaningful steps to end its 
dependency on Soviet and Cuban forces, engage in national 
reconciliation efforts within Angola, or encourage the independ-
ence of Namibia; and 
(7) United States business interests are in direct conflict with 
United States foreign policy objectives in aiding the MPLA 
government of Angola, which directly opposes Jonas Savimbi 
and UNIT 
A, recipients of United Stat^ support. 
(bXD It is the sense of the Congress that the interests of the 
United States are best served when United States business trans-
actions conducted in Angola do not directly or indirectly support 
Cuban troops and Soviet advisers. 
(2) The Congress hereby requests that the President consider 
50 use app. 2401 using his authorities under the Export Administration Act of 1979 
note. 
to restrict United States business transactions that conflict with 
United States security interests in Angola. 
22 u s e 262h. 
SEC. 22. OPPOSITION OF MULTILATERAL ASSISTANCE FOR FOREIGN SUR-
PLUS COMMODITIES AND MINERALS. 
The Secretary of the Treasury shall instruct the United States 
Executive Directors of the International Bank for Reconstruction 
and Development, the International Development Association, the 
PUBLIC LAW 99-472—OCT. 15, 1986 
100 STAT. 1211 
International Finance Corporation, the Inter-American Develop-
ment Bank, the International Monetary Fund, the Asian Develop-
ment Bank, the Inter-American Investment Corporation, the 
African Development Bank, and the African Development Fund to 
use the voice and vote of the United States to oppose any assistance 
by such institutions, using funds appropriated or otherwise made 
available pursuant to any provision of law, for the production or 
extraction of any commodity or mineral for export, if^ 
(1) such commodity or mineral, as the case may be, is in 
surplus on world markets; and 
(2) the export of such commodity or mineral, as the case may 
be, would cause substantial injury to the United States produc-
ers of the same, similar, or competing commodity or mineral. 
Approved October 15, 1986. 
LEGISLATIVE HISTORY—H.R. 5548 (S. 2878): 
HOUSE REPORTS: No. 99-956 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Sept. 22, considered and passed House. 
Sept. 25, S. 2878 considered in Senate. 
Sept. 26, S. 2878 considered in Senate; H.R. 5548 considered and passed Senate, 
amended. 
Oct. 2, House agreed to conference report. 
Oct. 7, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 22 (1986): 
Oct. 15, Presidential statement.