Senate Committee Supports Export-Import Bank Lending Increase
The Senate Banking Committee backed a 40 percent increase in lending authority for the U.S. Export- Import Bank, sending to the full chamber legislation to keep the bank in business.
Under the reauthorization measure, approved by a voice vote, the loan ceiling would increase $10 billion annually, to $140 billion, by fiscal year 2015, letting the bank make more loans after borrowing by companies approached the current maximum.
The Export-Import Bank, which is self-sustaining, provides financing to U.S. exporters, including direct loans, guarantees and payment insurance. The bank’s outstanding loans may exceed $80 billion this year, with the ceiling at $100 billion ceiling, Chairman Fred Hochberg said in May.
Demand for bank support from companies such as General Electric Co. (GE), KBR Inc. (KBR), Caterpillar Inc. (CAT) and Boeing Co. (BA) surged after the global financial system seized up in 2008 and banks tightened borrowing requirements. The lender, chartered by Congress, needs its authority renewed to operate beyond Sept. 30.
New loans will climb to a record for a third year after the bank provided $24.5 billion in new financing in fiscal 2010, Hochberg said in May.
To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net
To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net
Rate this Page