Jim Puzzanghera reports that kill the Export-Import Bank, all that House Republican leaders opposing it have to do is let the bank charter expire Tuesday and they are leaving Friday for the Fourth of July recess without even holding a vote to reauthorize it. The 81-year-old federal agency that helps companies sell their products abroad has been a prime target of conservatives, who want to reduce the size of government and eliminate what they call crony capitalism.
Shutting down the bank, though, also would eliminate tens of thousands of jobs, say business executives, trade groups and the Obama administration. It is going to be devastating for us, said Don Nelson, of ProGauge Technologies Inc., a Bakersfield manufacturer of oil industry equipment. Basically, we will not be able to export anymore.
Conservatives have criticized the Ex-Im Bank as a Boeing Bank because the aerospace giant and other big firms are the largest recipients of its assistance, which includes loans to foreign buyers of U.S. goods and various guarantee programs for U.S. exporters.
The bank is funded through interest and fees on its aid. Last year, it provided $20.5 billion in assistance that financed $27.5 billion in export. The bank said those sales supported about 164,000 U.S. jobs.
At least 59 other nations including China, Germany and France have similar agencies assisting their exporters. Ex-Im Bank President has said the U.S would be putting its exporters at a major disadvantage, allowing competitors such as Airbus in France to grab more business.
If the bank charter is not reauthorized, it would continue to provide assistance for deals it already has committed to fund. But it would no longer be able to provide new aid, meaning its portfolio would shrink over time until the bank finally shuts down. Loans have terms as long as 18 years, but the vast majority of insurance and guarantee assistance last only about a year. Those adversaries should be beware of the unintended consequences.
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