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  4. Trans-Pacific Aerospace (TPAC) Message Board

Remember around May 11th Muse sent out an email an

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Post# of 22940
Posted On: 06/15/2016 1:37:43 PM
Posted By: InToWin
Re: CountryMac #9342
Remember around May 11th Muse sent out an email and tweet about a way around the $10M limit. I don't have the email but I believe it was the "Sovereign Loan Program", excerpts and two links below, this enables US Ex-Im to get around the limit, I believe because while Ex-Im guarantees the loan it relies on a sovereign guarantee from China (as opposed to just Ex-Im as the sole guarantor). TPAC can participate in this becuase they have the Chinese entity to work through (Godfrey) and backed up by the great new today that their application was accepted.

"A Framework Agreement signed in
2005 between Ex-Im Bank and China’s
Ministry of Finance governs the
procedures for arranging Ex-Im Bank
medium term and long term financing
on sales to Chinese buyers eligible to
receive a sovereign guarantee.
The Sovereign Loan Program was
designed to help boost exports of
advanced technology and equipment
from the U.S. to China, while
strengthening economic and trade ties
between the two countries."
http://www.exim.gov/sites/default/files/manag...chi-01.pdf

"Under this framework agreement, a company in China could get up to 100 percent financing from a U.S. commercial bank with guarantees from the U.S. ExIm Bank, which in turn relies upon the sovereign guarantee of China. This financing applies to loans of two years or longer. In addition to creating attractive lending terms, the Chinese government has agreed to waive all import duties on U.S. products using this program. The expectation is that the goods and services where the U.S. has a competitive advantage are ideal for this type of government support."
http://www.manzellareport.com/index.php/trade...l-relevant


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