April 3, 1987
Dear Mr. Speaker: (Dear Mr. President:)
This report is being transmitted pursuant to Section 7(a)(2) of the Export-Import Bank Act of 1945, as amended (12 U.S.C. 635e(a)(2)(A)(ii)). Including my request for a $100 million decrease in direct lending authority, I have determined that the authority available to the Bank for fiscal year 1987 is sufficient for direct loans. The reduction in direct loan authority will result in a loan ceiling of $800 million in fiscal year 1987. I have also determined that authority is more than sufficient to meet the current estimate of demand for guarantees and insurance from the Bank. This estimate was based upon the transactions already approved, applications received by the Bank, and projections of the level of business likely for the remainder of the fiscal year.
I am not seeking any additional legislation to rescind any authority of the Bank. Estimates of demand for Export-Import Bank guarantees and insurance can change quickly. Continued growth in the U.S. economy and global recovery could create unexpected demand for guarantees and insurance. Therefore, I have concluded that the statutory fiscal year 1987 limit for Eximbank loan guarantee commitments should not be changed.
Sincerely,
Ronald Reagan
Note: Identical letters were sent to Jim Wright, Speaker of the House of Representatives, and George Bush, President of the Senate.