OPIC Commends FY2019 Budget Proposal for Modern Development Finance Institution
February 12, 2018
WASHINGTON, D.C. - Today, Ray W. Washburne, President and Chief Executive Officer of the Overseas Private Investment Corporation (OPIC), the U.S. Government's development finance institution (DFI), stated his support for the creation of a new development finance institution, as proposed in the President's Fiscal Year 2019 Budget, released today by the Office of Management and Budget (OMB):
The FY19 Budget proposes consolidating the various United States Government development finance functions, such as OPIC and USAID’s Development Credit Authority, to create a new stand-alone DFI with strong linkages to foreign policy and development goals. The DFI will have expanded but streamlined capacity – including a request for $96 million in administrative expenses and $38 million in additional programming funds – as well as various reforms to enhance taxpayer protections.
The objectives of the new DFI include: 1) Advancing U.S. government development and national security objectives; 2) Catalyzing private sector investment; 3) Benefitting the U.S. economy; and 4) Operational efficiency and effectiveness.
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.