Exim Bank approves Garuda loan<\/p>\n
WASHINGTON (Dow Jones): The U.S. Export-Import Bank approved
\nThursday a long-term loan guarantee to back Boeing Co.'s (BA)
\n$345 million export of 11 737 aircraft to state-owned airline
\nGaruda Indonesia.<\/p>\n
The Boeing aircraft will help Garuda provide critical links
\nbetween Indonesia's widely scattered islands at a time when many
\nof the country's domestic airlines have ceased or curtailed
\noperations, according to a U.S. Exim Bank statement.<\/p>\n
\"We continue to look for ways to finance credit worthy
\ntransactions in Indonesia as the Indonesian government's economic
\nreforms continue to move forward,\" said Exim Bank Chairman James
\nA. Harmon.<\/p>\n
The exports will take the form of an asset-based finance lease
\nwith the aircraft serving as collateral. To address credit risks,
\nIndonesia's Finance Ministry will serve as lessee of the planes
\nrather than the usual arrangement whereby the airline is the
\nlessee.<\/p>\n
The Finance Ministry will agree to allow and cooperate in
\nrepossession of the aircraft if it defaults.<\/p>\n
The Finance Ministry and Garuda are in the process of choosing
\na lender to arrange the loan that U.S. Exim Bank will guarantee.<\/p>\n
The six 737-300 and five 737-500 narrow-body aircraft provided
\nwill be fitted with engines made by CFM International Inc. of
\nCincinnati, Ohio.<\/p>\n
CFM is a joint venture between France's SNECMA and General
\nElectric Co. (GE)<\/p>\n
U.S. Exim Bank is a government agency that assists export
\nfinancing for U.S. goods and services. Its financing for Boeing's
\nsale to Indonesia will take effect after a normal 30-day
\ncongressional review period.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exim-bank-approves-garuda-loan-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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