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Commercial Bank On-Lending Agreements

  • OPIC partially guaranties U.S. commercial banks’ emerging markets medium and long-term loans to businesses or correspondent banks
  • No U.S. equity or borrower is required for these loans
  • A framework agreement is established once OPIC underwrites a bank’s credit policies and procedures:
    • Credit underwriting and servicing is delegated to the bank;
    • OPIC approves projects for Statutory issues;
    • OPIC retains discretion whether to risk share on any loan; and
    • The framework sets risk sharing; OPIC covers up to 75 percent of the loan