Ex-Im Bank Offering Longer Terms, Reduced Paperwork For Exports of Renewable Water and Energy Equipment
Ex-Im Bank recently announced liberalized terms on the financing of renewable water and energy equipment exports. Now exports of this equipment can qualify for repayment terms of up to 15 years, but still be treated as “medium term” financing deals. Normally, “medium term” deals are not extended beyond five years and they are almost never extended beyond seven years. So the Bank’s 10-15 year financing of these renewable water and energy equipment sales will have greatly reduced paperwork compared to the Bank’s normal “long term” (beyond seven year) financing.
The Bank had to get an OK for this from the Organization for Economic Cooperation and Development (OECD), because such liberal terms would normally be considered an “export subsidy.” “Export subsidies” are sore points among the world’s industrial nations, who frequently accuse one another of helping their domestic companies with such tactics. The OECD, which is supposed to police this, only let Ex-Im go about halfway in the direction it wanted on this renewable water and energy financing, but the Bank says it will keep pushing for more.
Still, these are great terms to be able to offer buyers if your company is active in these renewable water and energy fields.
For more information, go to: http://www.exim.gov/pressrelease.cfm/066CECD8-0C01-72B2-D0E30937DA6A0B7B/