FOR IMMEDIATE RELEASE October 10, 2001
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The Export-Import Bank of the United States (Ex-Im Bank) today notified all airlines operating Ex-Im Bank supported aircraft that it will continue to refrain, until November 30, 2001, from exercising its rights regarding required amounts of third party war risk insurance. Ex-Im Bank's action is intended to provide the time needed to develop a consensus among interested parties regarding possible longer-term solutions to the issue of aircraft third party war liability insurance. During the next several weeks, Ex-Im Bank will meet with interested parties including export credit agencies, commercial banks, commercial insurers, aircraft operating lessors, airlines and aircraft manufacturers to review past practices and hopefully develop new long-term solutions. Ex-Im Bank also will examine coverage obtained by airlines on a case-by-case basis, in light of the fact that increased amounts of insurance are now available commercially.
As a direct consequence of the September 11, 2001 terrorist attacks, the international aviation insurance industry took actions to cancel and then modify the terms of coverage for third party liability arising from war and related perils. Many governments including the United States quickly agreed to provide, for a limited time, gap third party war risk insurance coverage for their domestic air carriers to avoid a major disruption to the global air transport system. On September 24, 2001 and again on October 1, 2001, Ex-Im Bank responded to the dramatic changes in the international aviation insurance market by announcing that it would not enforce its rights to require third-party war risk liability insurance in the amounts originally required. Ex-Im Bank's lifting of this insurance requirement was to last through 23:59 EDT, October 11, 2001.
Today's decision by Ex-Im Bank to continue not to exercise its rights regarding war risk insurance is subject to revocation upon 24 hours' prior written notice from Ex-Im Bank. Ex-Im Bank's action does not affect the rights of any other parties (including other financiers) or any airline's obligations to comply with all laws and regulations in all applicable jurisdictions. Ex-Im Bank does not make any comment on any aspect of any airline's business or operations, including any decision by an airline to operate or not operate any aircraft or any route.
Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports primarily to emerging markets throughout the world by providing loans, guarantees and insurance. Ex-Im Bank supported approximately $12.4 billion in U.S. exports in fiscal year 2001.