US Exim Bank supports Air India deal

Hyderabad: The Export-Import Bank of the US has justified extending a $1.3-billion loan guarantee support to Air India, stating that the airline has been a “good customer” of the bank.
The bank's Chairman, Mr Fred Hochberg, said the bank had been supporting Air India for many years and it was also a customer of Boeing. “We understand that airlines are going through a difficult period,” he told media persons here on Friday.
The Air Transport Association of America had sued the bank in November last year over the Air India deal. The bank's support to Air India was to help the carrier purchase Boeing's Dreamliner aircraft.
Mr Hochberg said the bank had also financed Jet Airways and Spice Jet in India, but did not quantify the total commitment.
He said India is likely to emerge as the largest destination for the bank in the next 12 to 18 months. The official export credit agency of the US Gfederal government ranks India second, next only to Mexico, in credit commitments.
06/01/12 Amit Mitra/Business Line

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Categories: Air India Jan 2012, Foreign Jan 2012