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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 was established as an 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.

 

OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency's 39-year history, OPIC has supported $194 billion worth of investments that have helped developing countries to generate over 842,000 host-country jobs. OPIC projects have also generated $74 billion in U.S. exports and supported more than 274,000 American jobs.