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U.S., KOREAN EX-IM BANKS COOPERATE TO FINANCE U.S. CARGO AIRCRAFT SALES

FOR IMMEDIATE RELEASE October 3, 2004

Media Contact Name/Phone: 

Andrew Yarrow (202) 565-3200

WASHINGTON, DC- The Export-Import Bank of the United States (Ex-Im Bank) and The Export-Import Bank of Korea (KEXIM) today signed a joint financing framework agreement for U.S.-manufactured cargo aircraft that will make it easier for South Korea's airline companies to finance and purchase such aircraft.

This agreement will further develop our working relationship with KEXIM, and bring new sources of financing to the aircraft industry, Ex-Im Bank Chairman Philip Merrill said during the signing ceremony with KEXIM Chairman and President Dong-kyu Shin at Ex-Im Bank's headquarters. It also reaffirms the historically strong relations between the United States and South Korea, our seventh-largest trading partner.

This agreement will enhance the productive relationship between our two countries and agencies, Shin said.

Under the agreement, Ex-Im Bank can provide loan guarantees for up to 85 percent of the cost of Boeing cargo aircraft purchased by South Korean airlines, and KEXIM can provide Ex-Im Bank a counter-guarantee for a portion of that amount. This financing agreement implements part of an agreement between Ex-Im Bank and KEXIM signed in Seoul on February 10, 2004.

KEXIM also inaugurated its new Washington, D.C., office at 1300 L Street, N.W. today.

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On October 4, 2004, Ex-Im Bank Chairman Philip Merrill and Dong-Kyu Shin, president and chairman of the Export-Import Bank of Korea (KEXIM), signed a joint financing framework agreementthat will make it easier for South Korea's airline companies to finance and purchase U.S.-manufactured cargo aircraft.

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.