EXIM Board Votes to Authorize $327 Million Loan Guarantee in Support of 1,300 U.S. Jobs in Hard-Hit Aviation Sector
December 16, 2020
(Ex-Im Bank)
Following Congressional Notification Period, EXIM Board Unanimously Approves
Copa Airlines Final Commitment
WASHINGTON — The Export-Import Bank of the United States (EXIM) Board of
Directors today voted unanimously to approve a final commitment to guarantee a
$327 million loan from Citibank to Copa Airlines of Panama, to finance the
purchase of seven Boeing 737 MAX 9 aircraft. The transaction is estimated to
support 1,300 jobs in the aviation sector, which has been hard-hit as a result
of the COVID-19 pandemic.
“I have had the opportunity to see first-hand some of the important work small
businesses across our nation are doing to support U.S. aviation industry supply
chains and create and maintain U.S. jobs,” said EXIM President and Chairman of
the Board Kimberly A. Reed. “Our agency is committed to upholding our
Congressional mandates, while protecting the American taxpayer. As our economy
continues to recover in the wake of COVID-19, EXIM is committed to helping the
world—and, in this particular case, Panama—buy American.”
“In the midst of the holiday season, EXIM continues to work hard to serve the
American people,” said EXIM Director and former Congressman Spencer Bachus.
“Approving this transaction today will ensure that almost 1300 workers will
keep their jobs, making it a very happy holiday indeed.”
“Today’s approval of this transaction is a perfect example of EXIM tools and
policies effectively supporting American jobs through exports,” said EXIM
Board Member Judith D. Pryor. “By providing this loan guarantee, EXIM not only
supports continued employment at Boeing as they restart 737-MAX exports, but
also supports the many jobs up and down the supply chain and across the
country.”
On November 19, 2020, EXIM’s Board voted to provide Congress with notification
of the transaction and a notice was published in the Federal Register (link is
external) for public comment (link is external) on the same day.
EXIM received comments from several suppliers in support of the transaction. In
their comments, Marcia Mies, President of Manufacturing Development Inc, in
Cheney, Kansas, stated (link is external), “EX-IM Bank’s support of this
transaction will allow Boeing and, by extension, MDI to remain competitive in
the global economy while supporting the jobs of American workers who manufacture
the planes and components for those airplanes.”
Bill Binder, Vice President and General Manager of Exotic Metals Forming in
Kent, Washington, highlighted the importance of EXIM, stating (link is
external), “The role of the Exim bank to facilitate sales for this industry is
critical in getting this industry back on its feet and helping to restore the
lives of so many of our citizens.”
Ali Aafedt, Director, Trade Facilitation Policy at the National Association of
Manufacturers, commented (link is external), “Ex-Im Bank tools support a
vibrant manufacturing sector in the United States, leveling the playing field to
help U.S. manufacturers win sales around the world. … This sale promotes
ongoing economic opportunities for U.S. companies that provide routine
maintenance, parts and service for the lifespan of the aircraft, strengthening
commercial diplomacy between the two nations [United States and Panama] for
decades to come.”
Lee Falck, co-owner of Pacific Tool, Inc., in Redmond, WA, highlighted what EXIM
means Pacific Tool, saying (link is external), “The 737 MAX represents
approximately 40% of our revenue, about 75 high-wage, production jobs. The
financing role EXIM Bank provides Boeing’s existing and new customers directly
relates to increased revenue and jobs.”
In November, EXIM Chairman Reed, Chief of Staff Ryan McCormack, and Chief
Banking Officer Steve Renna visited Pacific Tool Inc., and heard first-hand how
important EXIM supply chain financing is to maintaining the viability of U.S.
aircraft manufacturing jobs.
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