Export Finance Expansion Act of 1989

Export Finance Expansion Act of 1989 - Amends the Export-Import Bank Act of 1945 (the Act) to authorize the Export-Import Bank to make: (1) subsidy payments to commercial lending institutions that make loans, including loans guaranteed by the Bank, for the export of U.S. goods and services; and (2) mixed credit payments, in combination with other payments, loans, or loan guarantees extended by the Bank, when such financing is required to respond to specific mixed credit offers by foreign governments or export credit agencies. Limits the amount of such payments to the amount of funds appropriated to the Bank for FY 1989.

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.

Authorizes appropriations to cover subsidies associated with direct loans, subsidy payments, or mixed credit payments made by the Bank after October 1, 1989.

Repeals a provision of the Act to abolish the Tied Aid Credit Program and the Tied Aid Credit Fund.