Amid ongoing revenue difficulties for GE Aviation, the Export-Import Bank of the United States (US Exim) has moved to support exports from the firm to Turkish Airlines.
As part of the deal, approved by the bank’s board last week, US Exim has agreed to cover a US$54.9mn loan from BNP Paribas to Turkish Airlines.
A US Exim spokesperson tells GTR that the deal will support the purchase of GE aircraft engines by the airline and the export credit agency (ECA) will provide a 100% guarantee with an eight-year tenor.
US Exim notes in a statement that the transaction will support an estimated 300 jobs at GE Aviation’s manufacturing facility in Ohio, as well as related components assembly in Indiana and North Carolina.
“Exim’s support fills the gap in aviation finance that has widened during the Covid-19 pandemic. The loan would not have been available in the private sector without Exim’s guarantee, which will enable the deliveries of the GE engines to be completed in 2021,” the bank adds.
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