EX-IM Bank of US approves Air India's $2-bn loan guarantee

NEW DELHI: Export-Import (EX-IM) Bank of US on Monday said that it has approved $2 billion loan guarantee of Air India for buying Boeing aircraft.

"We have approved loan guarantee last month," said EX-IM Bank of US Member Dianee G Farrell here.

The loan guarantee is for the purchase of aircraft from Boeing, she said.

The loan is being given by J P Morgan Chase, she said but refuged to give further details about the Boeing and Air India deal.

The bank is charging 2 per cent interest rate for the loan guarantee, she added.

Meanwhile, the EX-IM Bank and Confederation of Indian Industry (CII) signed an agreement for increasing the trade of goods and services between their respective countries.

The Washington-based bank was established with the mandate to aid in financing of credit-worthy entities to facilitate the export of goods and services of US origin.

As per the agreement, CII will undertake activities to help identify appropriate business opportunities in India that are suitable for the bank's programmes.