FOR IMMEDIATE RELEASE
Wednesday, May 22, 2002

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For further information, contact:
Lawrence Spinelli (202) 336-8690
Timothy Harwood (202) 336-8744

OPIC BOARD APPROVES LENDING FACILITY FOR SMALL AND MEDIUM-SIZED BUSINESSES

WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) approved a $100 million loan guaranty for the establishment of a new lending facility with Wachovia Bank that will enable the bank to expand its lending to small and medium-sized businesses investing in emerging markets.

OPIC and Wachovia, the fourth largest U.S. bank in terms of assets, will share risk in downstream loans of extended tenors originated by Wachovia in eligible countries.  The OPIC guaranty will enhance the bank’s ability to provide medium and long-term financing in developing markets. Historically, U.S. commercial bank financing for the offshore projects of small and medium-sized enterprises has been difficult to obtain; the facility was developed to provide liquidity to that particular customer base.

“OPIC’s board recognizes that small and medium-sized businesses represent a vital engine of economic growth in developing countries.  We are pleased to work with Wachovia Bank to unleash the capacity of small businesses here in the United States and overseas to deliver much-needed capital to emerging markets,” said OPIC President and CEO Dr. Peter Watson.

OPIC was established as an independent agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.

Over the agency’s 30-year history, OPIC has supported $142 billion worth of investments that have helped developing countries to generate over $11 billion in host-government revenues and create over 673,000 host-country jobs. OPIC projects have also generated $64 billion in U.S. exports and create more than 253,000 American jobs.