Export-Import Bank

The Export-Import Bank of our country is the official export credit agency of USA. They assist in financing the export of U.S. goods and services to the international markets.
(most of this information is from http://www.exim.gov/about/)
The Ex-Im Bank enables U.S. companies to turn exports into real sales that help to maintain and create jobs and contribute to our national economy. They do not compete with private sector lenders, but provide export financing products that fill gaps in trade financing. They assume credit and country risks that the private sector is unable or unwilling to accept. The Ex-Im Bank also helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. They provide working capital guarantees; export credit insurance; and loan guarantees and direct loans. No transaction is too large or too small for the Ex-Im Bank. On average, more than 85% of their transactions directly benefit U.S. small businesses. The Ex-Im Bank has been around for around 80 years and has supported more than $600 billion of U.S. exports, primarily to developing markets worldwide.

Since the financial crisis in 2008, the Ex-Im Bank has played a major role in financing exports of Boeing aircraft. Since 2008, financing has approximated one-third of Boeing deliveries ($8-10 billion per year). In 2007, a new Aircraft Sector Understanding (ASU) was developed under the Economic Cooperation and Development group. This was a group of 34 democratic countries who promote their collective economic interest. The ASU established terms and conditions under which the countries and their manufacturers could provide aircraft financing to commercial aircraft, engines, components and other modifications. The 2007 ASU was designed to set pricing that is benchmarked off of competing commercial sources with periodic reviews to reset pricing to market. Financing terms such as term, exposure fees, and loan amortization were dependent of the strength of the underlying credit and the aircraft type involved.

Since the Ex-Im Bank is very much so involved in the Aviation Industry now; (since the Export-Import Bank Re-authorization Act of 2012) the Bank has gained much more power over the oversight of the industries financing. This takes more power away from the aviation companies, and it has started taking away jobs from the aviation industry. The Bank has been giving out many loans for the purchase of widebody aircraft. They have been loaning a lot of money to foreign airlines and companies - from the U.S. treasury. This may eventually have a very negative impact on the U.S. taxpayer, if they foreign companies default on their payments. I believe that there should be a greater government oversight on the Ex-Im Bank, to make sure that they do not step on the toes of the U.S. Aviation Industry - in order to hold our interests (the U.S. aviation workers/ U.S. taxpayers) above those of other countries.

http://www.ainonline.com/aviation-news/2014-01-28/alpa-again-urges-end-exim-financing-widebodies explains the recent actions that the ALPA is taking to help secure U.S. Aviation Jobs.