Policy Needed at Eximbank for Financing Aircraft Spare Parts and Other Support Items
ID-81-55
Published: Jul 31, 1981. Publicly Released: Aug 12, 1981.
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Highlights
Pursuant to a congressional request, GAO reviewed the use of credit memorandums in connection with aircraft loans approved by the Export-Import Bank (Eximbank). Credit memorandums, granted by manufacturers as concessions in negotiating these sales, enable buyers to obtain spare parts, ground equipment, training, and other support items for aircraft at no additional cost. The loans reviewed involved two foreign companies and represented well over 50 percent of the costs for the aircraft support items.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Export-Import Bank of the United States | The Export-Import Bank should establish a policy limiting the amount of spare parts and other support items that may be included in its direct long-term financing for commercial aircraft sales, and it should delay disbursement of loan funds for items obtainable with credit memorandums until the memorandums are used. |
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Topics
Aircraft componentsAircraft loan guaranteesCredit salesExportingForeign corporationsOff-budget federal entitiesSpare partsAircraft acquisition programAircraftAircraft industry