While everyone was focused on the automanufacturers and banks getting bailed out, Boeing was busy ramping up its own private government subsidy to hand over more money.
From the WSJ:
The U.S. Export-Import Bank, hoping to alleviate the effects of the credit crunch, plans to boost its guarantees for Boeing Co. jetliner sales by almost 50%, to as much as $9 billion this year.
The bank could guarantee between $7 billion and $9 billion of aircraft deliveries — overwhelmingly Boeing jetliners but also some business jets and small planes — said Robert Roy, deputy vice president of the bank’s transport division. The bank guaranteed $5.2 billion of such deliveries last year and at most $4.5 billion annually between 2002 and 2007.
“Given problems in financial markets, we’re predicting a significant pickup in 2009,” Mr. Roy told a Dublin, Ireland, conference on aviation finance. “It’s going to be a big year for us,” he said.
The U.S. Export-Import Bank supports foreign sales of U.S. produced products and services, mainly by guaranteeing loans provided by private-sector banks. When credit markets are functioning smoothly, its role is limited to specific transactions where a guarantee is thought necessary, for example to lower credit risk. But with lenders now skittish about funding a vast array of borrowing, the U.S. Export-Import Bank and comparable export credit agencies in other countries are proving vital to international transactions.
(And, yes, we know this story is a week old. It had escaped our notice, so we thought maybe it had escaped yours too.)
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