Boeing CEO says sales at risk due to U. S. EXIM paralysis

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Source:   —  April 07, 2016, at 9:05 PM

S. Export-Import Bank board threatens to cost Boeing Co () sales, the company'south chief executive said on Thursday, raising similar concern for Common Electric () and other U.

n">A delay in appointing members to the U. S. Export-Import Bank board threatens to cost Boeing Co () sales, the company'south chief executive said on Thursday, raising similar concern for Common Electric () and other U. S. companies that depend on the agency'south export financing.

Boeing is on the verge of losing orders because only two of five seats on the agency'south board are filled, not sufficient to approve deals over $ten million, Boeing Chief Executive Dennis Muilenburg said at EXIM'south annual conference in Washington.

The appointment of a third board member would authorize the agency to assistance finance billions of dollars in sales of U. S. aircraft, rail, power and communications equipment around the world, EXIM Chairman Fred Hochberg said.

But proof has been held up by Senate Banking Committee Chairman Richard Shelby'south moratorium on some of the sixteen Obama administration financial nominees who have been awaiting panel confirmation. The moratorium has effectively blocked sales for Boeing, Common Electric, Caterpillar Inc () and other companies.

Muilenburg said Ethiopian Airlines [ETHA. UL] was among the customers concerned that a lack of EXIM financing could prevent it from buying more Boeing planes.

Banks have been cautious about offering loans of 10 years or more to smaller carriers or ones with higher credit risk without a government guarantee, and some experts have voiced concern that if Boeing self-financed such deals, it'd drain resources from product development.

Industry sources declare Boeing already has had to allow or organize bridge financing for several airlines because of the gap in EXIM funds.

Latest year Boeing said it lost two signed or potential satellite deals after EXIM'south charter lapsed on June thirty. The charter was renewed later in the year.

Common Electric decided to move some production overseas to utilize foreign export credit.

This year, global jetliner sales have slowed as an industry-wide boom in orders fades, making export credit more important.

Boeing plans to trim production in two thousand-seventeenth. On Thursday it said it delivered one hundred seventy-six airliners in the first quarter. That pace is below Boeing'south target of seven hundred forty to seven hundred forty-five deliveries for the year, but many deliveries are made later in the year.

Muilenburg also voiced support for the Trans-Pacific Partnership trade deal that's been an issue in the U. S. presidential campaigns.

He said the pact wouldn't keep U. S. workers at a disadvantage. He added that the defense industry needed a "dependable, robust" U. S. defense budget so it could invest.

(Reporting by Alwyn Scott; extra reporting by David Lawder in Washington, D. C. and Tim Hepher in Paris; Editing by Alan Crosby and Dan Grebler)

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