FlyerTalk Forums - View Single Post - Delta Embarrassed By Export-Import Bank Loan Guarantee While Lobbying Against Agency
Old May 8, 2013 | 12:31 pm
  #13  
sr_tipitinas
All eyes on you!
25 Years on Site
 
Join Date: May 2000
Location: Nawlins, LA
Programs: Nada!
Posts: 431
EXIM Bank guarantees the loans but they don't actually make the loans. Traditional banks make the loans and use the EXIM guarantee to "even" the playing field or in effect, take the political risk out of a loan to make a foreign company equal to a US company. So GOL is basically getting US bank financing while EXIM absorbs some of the risk. It's not a bad deal for either party. Delta knows they will get paid although it does allow comapnies like GOL or Air India to operate cheaper.
sr_tipitinas is offline