[John Valentine]

Who is it you want to go to the bank, Boeing or Comair?

Comair is buying the planes; shouldn’t they borrow the money they need?

Yes, and under the Ex-Im that’s just what they do. Ex-Im makes it possible for large loans to be made attractive to banks by creating the potential for them to graduate to sovereign loans in the case of default. In other words, if Comair defaults on their Ex-Im guaranteed loan, then the Government of South Africa is on the hook for it, directly indemnifying the US Government for its guarantee.

Without this sort of system in place the risk cost to the bank for making such a loan to Comair would make the loan quite costly if a bank would make the loan at all.

If Boeing can’t offer the possibility of attractive borrowing costs to its overseas customers it will lose them to producers who do offer such protection to the banks - and that is virtually EVERY other producer, whether from France, Great Britain, Russia, Japan. You name the country and if they are interested in exports, they have some sort of government backed export financing scheme. Count on it.

If all governments all got rid of export financing guarantees, it would be a level playing field, but it would be a rough one, with far fewer trade opportunities and higher costs for everyone.

It’s just stupid for the United States to just deal itself out out the game unilaterally.

[who_would_fardels_bear]

So because all other countries are shifting the risk of loans from investors to their taxpayers, the US should do so as well.

BS.

[lewislynn]

...if Comair defaults on their Ex-Im guaranteed loan, then the Government of South Africa is on the hook for it, directly indemnifying the US Government for its guarantee.

What a circle jerk. "Guaranteed" by who? Don't give me that "South Africa on the hook $hit. Why else would the US Congress be involved?

In case you don't know it dimwit "the US Government" is ME.