Doubts have been cast over the future ability of the US Export Import Bank’s (Ex-Im Bank’s) ability to provide letters of credit (L/Cs) for the country’s small businesses.
On 30 June the bank lost its lending authority and is currently at the centre of a fierce political debate.
The US Senate has voted to advance a bill that to reauthorise Ex-Im Bank, but there is fierce opposition from right wing republicans who oppose the bank’s reopening in its current form.
Up until last month, Ex-Im Bank offered L/Cs and loans to small businesses to support their export sales.
But politicians opposed to the bank say it represents crony capitalism, existing mainly for foreign customers buying from giant US corporations such as Boeing and Caterpillar.
The Senate voted 67-26 to advance the bill, with 24 Republicans voting with the chamber’s Democrats.
Categories: Trade Based Financial crimes News