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Press Release

Wednesday, September 27, 2006

OPIC and Citigroup Will Establish Loan Facility for Economic Recovery in Lebanon

WASHINGTON, D.C. – The Overseas Private Investment Corporation and Citigroup will work to establish a loan facility to support Lebanon’s economic recovery, mobilizing private capital for home reconstruction, mortgage financing and small and medium-sized enterprises (SMEs).

President George W. Bush announced the OPIC-Citigroup cooperation at the White House on Monday.

When finalized, the OPIC-Citigroup facility is intended to mobilize private capital through Lebanese banks to finance SMEs, home repair and reconstruction, and long-term mortgages. Backed by the OPIC partial guaranty, Citigroup would be able increase both the amount and tenor of the funding it can make available to Lebanon’s private sector.

President Bush said, “Our goal, and our mission, is to help Lebanese citizens and Lebanese businesses not only recover, but to flourish, because we believe strongly in the concept of a democracy in Lebanon.”

“OPIC is in a unique position to assist Lebanon’s financial sector in a timely manner following the recent hostilities,” said OPIC President and CEO Robert Mosbacher, Jr. “Both OPIC and Citigroup recognize the urgency of the situation and the need, especially for small entrepreneurs and families, to have access to credit as soon as possible, so that Lebanon can resume its progress toward economic growth and stability.”


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.