The nation’s biggest exporter says it may have to move operations offshore if Congress does not renew the charter of the Export-Import Bank. Chicago-based Boeing is the biggest beneficiary of Ex-Im credit facilities, which means if the bank is not extended Boeing’s business will suffer a severe blow. Many developing countries rely on Ex-Im loans and loan guarantees to buy Boeing planes, which can cost over $200 million each. Rival aircraft company Airbus has access to several European export-credit agencies, but if Ex-Im goes away Boeing would have to self-finance many of its sales because it doesn’t build planes in other countries that have their own export-credit programs. Boeing Chairman W. James McNerney says where the company builds its planes might have to change so it can match the financing of its chief competitor. The logical destination for Boeing operations would be Canada, which already extends hefty financing to foreign purchasers of planes made by Montreal-based Bombardier. I have written a commentary for Forbes here.
Find Archived Articles: