The Export-Import bank of the
United States (Ex-Im Bank) assists in financing the exports of U.S goods and
services to international markets. The Ex-Im Bank enables U.S companies to
maintain and create U.S jobs and contribute to a stronger national economy by
turning export opportunities into real sales. It provides export-financing
products that fill gaps in trade financing. They assume credit and country
risks that private sectors are unable or unwilling to accept. The Ex-Im Bank
also matches the financing that other government provides to their exporters.
The services that the Ex-Im Bank provides include: Working capital guarantees
(pre-export financing), export credit insurance, and loan guarantees and direct
loans (buyer financing). More than 85%
of transactions directly benefit U.S small businesses.
Marion C.
Blakey, President & CEO
of Gulfstream supports the Ex-Im Bank by saying that it is “an essential partner for American job creating manufacturers, and for many supply chain companies that support them.” The Ex-Im
Bank has made a strong commitment to supporting not only GA, but also space
systems and commercial aviation. The Ex-Im Bank actually returned more than
$1.1 billion last year to the treasury.
The Ex-Im
Bank is under criticism for allegedly favoring special interests ahead of
that of the U.S. taxpayer.
Aside from the criticism I find that the Ex-Im Bank is more good than it
is bad. The Ex-Im Bank support is the only way many U.S aerospace manufacturers
have a fair fight. The biggest beneficiaries of these sales are small and
mid-sized companies that supply major manufacturers with parts, systems and
equipment. Also that fact that it actually returned $1.1 billion to the U.S
treasury heavily supports its existence.
Yes, it's hard to argue that it doesn't support manufacturers and the national economy, the question is will the airlines by able to have some international market share under the current system.
ReplyDeleteI agree with you, the Ex-Im provides a significant service to the national economy. Tax payers money is not at risk and the organization returns a substantial profit, it is a win-win.
ReplyDeleteWhat how do u feel about the fact that the U.S. airlines are given an unfair advantage because of the major loan discounts that the foreign competitors get from the Export-Import Bank.
ReplyDeleteThis is the major issue that is in question by those in the industry. I think it is a big problem and needs to be addressed by our government.