Private Export Funding Corporation - PEFCO

AAA

DEFINITION of 'Private Export Funding Corporation - PEFCO'

A single corporation created by the U.S. Treasury and the Export-Import Bank of the U.S. that facilitates funding of exports that have not been subsidized. The PEFCO does this with the purchase of loans in the secondary market from commercial lenders. The loans are then used to finance U.S. exports.

INVESTOPEDIA EXPLAINS 'Private Export Funding Corporation - PEFCO'

The PEFCO was created to help American-made goods find their way into other countries. PEFCO loans are guaranteed by the Export-Import Bank of the United States. Some of the shareholders in PEFCO include large commercial banks that participate in financing U.S. exports, as well as industrial export companies.

RELATED TERMS
  1. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  2. Corporation

    A legal entity that is separate and distinct from its owners. ...
  3. Export

    A function of international trade whereby goods produced in one ...
  4. Import

    A good or service brought into one country from another. Along ...
  5. Secured Debt

    Debt backed or secured by collateral to reduce the risk associated ...
  6. Trade Deficit

    An economic measure of a negative balance of trade in which a ...
Related Articles
  1. Exploring The Current Account In The ...
    Economics

    Exploring The Current Account In The ...

  2. What Is International Trade?
    Personal Finance

    What Is International Trade?

  3. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  4. Do Cheap Imported Goods Cost Americans ...
    Economics

    Do Cheap Imported Goods Cost Americans ...

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center