The Ex-Im Bank is supposed to aid the export of American
goods and services by providing loans to companies who can not or are not
willing to afford the fees and political risks inherent in these transactions.
It has been a self sustaining federal government agency since 1945. It is
regulated by the Congress of the United States.
Any company that wished to secure a loan submits an
application and it goes through an approval process.
The specific issue that aviation companies have with the
Bank is that they are not supposed to favor certain companies. In order for
them to be fair, a mandate has been set for them to offer 20% of their loans to
small businesses. This may sound like a viable plan, but heres the kicker, They
have largely supported Boeing and Enron. In 2007 -2008, 65% of their loan
guarantees went to companies purchasing Boeing aircraft. In 2012, 82% of their
guarantees went to Boeing customers.
I do not particularly care who the bank gives money to, as
long as they do not have a high default rate which affects me as a taxpayer. It
unnerves me that this is a governmental agency. It needs to be a private agency
where ultimately I am not paying the salaries and it is not wasting the time of
my civil servants who could be processing more pressing matters for the United
States. They need to let it be privately owned and run, a regular business with
no bail out potential.
In the revitalization agreement that Obama signed, it has
negotiations. In its second set of negotiations , it aims to reduce and
eventually eliminate export credit financing for all aircraft covered by the
2007 sector. The link for these aircraft describes what this specifically
means. I feel they are finding their own temporary solutions to quell the anger in the aviation industry, but feel this is only a temporary fix for a permanent problem, the bank needs to be private.