News from the Export-Import Bank of the United StatesFOR IMMEDIATE RELEASEAugust 7, 1996 Contact: Marianna Ohe (202) 565-3200 Supports New York, South Carolina Jobs EX-IM BANK INSURES $595 MILLION GE SALE TO SAUDI ARABIA The Export-Import Bank of the United States (Ex-Im Bank) approved export credit insurance for General Electric Corp. (GE), Fairfield, CT, covering $595.5 million of power plant equipment shipments to Saudi Arabia over five years. The policy, one of the largest ever issued by Ex-Im Bank, will cover a maximum of $155 million at any one time. The transaction will help sustain GE jobs through the manufacture 16 gas turbines at the company`s Greenville, SC plant and four steam turbines and 20 generators at its Schenectady, NY plant, GE said. The equipment will make up four gas-turbine combined-cycle power plants that GE will provide to Saudi Consolidated Electric Company-Central Region (SCECO) for its Riyadh Power Plant No. 9. Ex-Im Bank offered to provide this limited political risk insurance because the GE transaction did not fit into the Bank`s loan and guarantee structure for Saudi Arabia. "This is a perfect example of how Ex-Im Bank can make a difference by finding new solutions to meet special customer needs," said Ex-Im Bank President and Chairman Martin A. Kamarck. "We are providing a type of insurance cover not available in the private sector; at the same time, we are limiting taxpayer risk by covering only certain political risks." Normally this type of single-buyer policy covers short-term repayments against political and commercial risks for shipments made over a one-year period. It is the first time Ex-Im Bank has offered such a policy for a multi-year contract. However, the cover will be limited to only two types of political risk -- political violence, and export or import restrictions -- and commercial risks of default will not be covered. Ex-Im Bank is an independent government agency that helps finance and promote the sale of U.S. goods and services around the world. | ||
Original URL: http://www.exim.gov/pressrelease.cfmB10F358B-1032-5B0F-BC587F9D40B8ABC0/
Export-Import Bank of the United States
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