Company seeking (big) government loan admits it does not need the help

exim cc

Ex-Im Bank is a nice deal for connected corporations. (If you’re not connected however forget about it.) The idea is that the bank provides financing which otherwise would not be available (or extremely expensive) due to risk levels. Ex-Im provides funds at lower than market rates of interest. This is a huge advantage for the lucky company and is classic crony capitalism.

But it’s worse than just that. Some companies who don’t even need help financing projects still cue up to get sweetheart loans courtesy of the US taxpayer. It appears that Satmex is one such company.

(From The Crony Chronicles)

Mexico-based satellite operator Satélites Mexicanos, known as Satmex, announced that even though it did not need a low-interest rate loan from the U.S. government, it would continue to seek one. During a conference call with investors, Satmex CFO Juan Garcia said that his company’s satellite project “is fully funded” based on the company’s cash flow and is not dependent on a loan from the U.S. Export-Import Bank (Ex-Im). However, Satmex is still working to receive a $255.4 million direct loan from the bank for the purchase of two of satellites.

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