Friday 15 October 2010

U.S. Export-Import Bank Says Persian Gulf Aircraft Aid Fills Financing Gap - Bloomberg

The U.S. Export-Import Bank said governmental aircraft financing for Persian Gulf airlines such as Emirates doesn’t distort global markets because the funds fill a need that financial institutions aren’t meeting.

“When it comes to exports, banks have been more reluctant to make loans when it comes to foreign credits than domestic credits,” Export-Import Bank Chairman Fred Hochberg told reporters today at a briefing in Dubai. “We exist to level that playing field and take out market distortions.”

U.S. and European airlines are urging governments to limit financing of aircraft exports to avoid giving an advantage to competitors abroad buying from Airbus SAS and Boeing Co., the Washington-based Air Transport Association trade group said in a letter yesterday to U.S. Treasury Secretary Timothy Geithner. Hochberg said the needs of plane manufacturers and carriers must be considered when private banks won’t give loans for purchases.

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