The US Export-Import Bank has agreed to offer cheap financing to help General Electric (GE.NYSE) beat a Chinese bid to supply Pakistan with locomotives, the Wall Street Journal reported. The Ex-Im Bank will finance US$437 million of the US$477 million deal under a 12-year loan, with a lending rate tied to Treasury bond yields. China’s financing arm has long helped Chinese exporters offer cheap financing terms more favorable than those able to be offered by members of the OECD. Member countries of the OECD must operate by agreed-upon financing limits. However, the Ex-Im Bank received encouragement from the OECD to offer financing for the GE deal to challenge China’s practices. "[China is] winning deals in part because they’re not playing by the rules," said Ex-Im Bank Chairman Fred Hochberg. "This says: We’re not going to sit idly by and let you buy business."
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