Export-Import Plan Said to Be Short on Loan Certainty
House Republican leaders are considering a short-term extension of the U.S. Export-Import Bank amid a dispute with Tea Party-aligned members who want to let the 80-year-old agency lapse Sept. 30.
Leaders are discussing an extension of several months, said a Republican aide who asked yesterday not to be identified because no plans have been made public.
While Export-Import Bank President Fred Hochberg is pushing for reauthorization, he said a short-term extension wouldnt resolve uncertainty for foreign companies that rely on its help to buy U.S. goods.
Business people dont work six weeks at a time, Hochberg said in an Aug. 21 interview. I understand Congress, but thats not the real world of business. Thats not the world of profits and loss, sales and employment. Thats legislative language.
The Export-Import Bank provides loan guarantees, loans and insurance to help foreign companies buy U.S. goods. Without a reauthorization, the agency wouldnt be able to authorize new loans though it still could manage existing loans and contracts.
Hochberg said a short-term reauthorization of the bank would signal to foreign competitors a lot of hand-wringing in America about what to do about this.
Opposition to reauthorizing the Export-Import Bank is a litmus test for some House Republicans pushing for a smaller government. House Financial Services Committee Chairman Jeb Hensarling has called Ex-Im crony capitalism for its frequent business with Boeing Co. (BA)
House Speaker John Boehner is trying to diminish party differences before the November congressional elections.
Even a short extension would show movement by Hensarling, 57, of Texas and other Republicans who have called for abolishing the agency and relying on the private sector to fill its role.
If you wanted to kill it, this is the best time to kill it, said Tom Davis, a former Republican congressman from Virginia. A willingness to consider a short extension would show they want to ruffle as few feathers before the election as possible, he said.
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Export-Import Plan Said to Be Short on Loan Certainty