Export Finance Expansion Act of 1988

Export Finance Expansion Act of 1988 - Amends the Export-Import Bank Act of 1945 to authorize the Export-Import Bank (Bank) to prepay or refinance outstanding obligations held by the Treasury or the Federal Financing Bank. Prohibits any reduction in the capital and reserves of the Bank arising from any fee or charge required to be paid in connection with such prepayment or refinancing. Provides that if any fee or charge is required to be paid in connection with such prepayment or refinancing that: (1) the Bank may issue capital stock in an amount to offset any resulting reduction in Bank capital and reserves; and (2) the Secretary of the Treasury must purchase such stock.

Authorizes appropriations to cover subsidies associated with direct loans or loan guarantees made by the Bank on or after October 1, 1988.

Requires the Bank to provide 100 percent coverage of the interest and principal on guaranteed obligations of the Bank to ensure acceptance of such Bank guarantees by U.S. financial institutions for transactions in markets in which the Bank does business. Authorizes the Bank to guarantee the payment of principal and interest on pool certificates representing ownership of part or all of any loan or loans guaranteed by the Bank to encourage the free transfer of such Bank obligations.

Prohibits amounts included in budget function 150 for Bank guarantee, insurance, coinsurance, and reinsurance programs for any fiscal year after October 1, 1988, from exceeding the amount of subsidies associated with new obligations incurred under such programs.

Makes amounts in the Tied Aid Credit Fund available to reimburse the Bank for the cost of any tied aid credits authorized by the Bank during FY 1988 through 1990. Authorizes appropriations for such Fund for FY 1989 and 1990.