FOR IMMEDIATE RELEASE August 6, 1996
Marianna Ohe (202) 565-3200
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.