The U.S. Export-Import (Ex-Im) Bank closed its doors on Tuesday following a lapse in Congressional authority. The 81-year-old agency provided financing for both American companies that export goods and their foreign customers, helping to secure American exporters’ access to emerging markets. But following a push by conservative Republicans who claimed the Ex-Im Bank was a form of corporate welfare, Congress declined to extend the Bank’s charter before recessing for the Fourth of July holiday. Absent congressional action, the Ex-Im Bank is now unable to authorize new loans, insurance, or guarantees, effectively freezing new projects.
American businesses that rely on the Ex-Im Bank are concerned that, without access to the capital the Ex-Im Bank provides, they will not be able to take on large-scale projects abroad, resulting in a substantial loss of jobs here in the United States. Continue reading this entry