Charge: The U.S. government is giving away more than $2 billion in taxpayer dollars to Brazil's largest oil and gas company to drill for oil in Brazil.
Fact: The Bank has established a $2 billion financing opportunity for Petrobras to use solely for the purchase of American-made goods and services. So far, Ex-Im has approved $300 million to finance Petrobras' purchase of U.S. oil and gas equipment and services.
The funds go to American exporters as payment for their sales to the Petrobras.
If Petrobras fails to award contracts to U.S. companies for the remaining amount, it will not access those dollars.
Of note, the Bank is self-sustaining and no taxpayer dollars are involved.
Charge: The loans to Petrobras represent a giveaway of U.S. tax dollars.
Fact: Ex-Im is a self-funding, independent agency which operates at no cost to the taxpayer. Ex-Im does not make grants, and charges fees and interest for the financing it provides. In fact, since 2006 the Ex-Im Bank has generated more than $3.4 billion in revenue for U.S. taxpayers.
Charge: America is exporting jobs to Brazil as a result of the loans.
Fact: Only American made goods and services qualify for Ex-Im Bank loans or guarantees.
Ex-Im Bank only supports U.S. jobs by providing financing to ensure that American goods and services can compete on a level playing field against foreign competition.
Charge: The loan to Petrobras represents a reversal of the Obama Administration's policies on off-shore drilling.
Fact:There is no connection between federal policies on offshore drilling in U.S. waters and financing U.S. export sales for drilling by other countries. In fact, should Ex-Im Bank refuse to finance sales by U.S. companies it is likely that the sales will go instead to their foreign competitors.
It is notable that the Bank's bipartisan Board of Directors unanimously approved the preliminary commitment to Petrobras on April 14, 2009, before any Obama appointees joined the Bank. In fact, at the time the Bank's Board consisted of three Republicans and two Democrats, all of whom were appointed by President George W. Bush.