FOR IMMEDIATE RELEASE September 19, 2004
Andrew Yarrow (202) 565-3200
WASHINGTON, DC- The Export-Import Bank of the United States (Ex-Im Bank) has approved an $86.8 million loan guarantee to help General Motors Electro-Motive Division (GM-EMD), of LaGrange, Illinois and London, Ontario, sell a large number of locomotive upgrade kits and related parts to the Turkish State Railways.
This transaction- to the Number 2 U.S. export market in the Middle East -- continues Ex-Im Bank's recent progress in expanding rail exports, Bank Chairman Philip Merrill said. Turkey will be able to modernize its fleet of locomotives thanks to an export that will support U.S. production and jobs.
Because approximately 15 percent of the contract price involves components produced at GM-EMD's Ontario facility, Ex-Im Bank will receive a counter guarantee from Export Development Canada, the export credit agency of Canada, for the Canadian portion of the contract price. Toronto-Dominion Bank, of Houston, Texas, will be the guaranteed lender.
Ex-Im Bank has a long history of supporting U.S. exports to Turkey, having authorized more than $1.5 billion in financing for energy-sector projects, in addition to financing for a variety of other U.S. exports, ranging from hotel equipment and medical supplies to generators for a thermal-spring tourist resort.
Ex-Im Bank, the official U.S. export credit agency, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2003, the Bank authorized financing to support $14.3 billion of U.S. exports. For more information, visit www.exim.gov.