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EXIMBANK GUARANTEE FOR EXPORT TO SOUTH AFRICA

 WASHINGTON, Nov. 17 ~PRNewswire~ -- South African Airways last month took possession of a new Boeing 747-400 aircraft financed through loan guarantees approved by the Export-Import Bank of the United States (EXIMBANK). The $92.3 million guarantee is Exibank's first approval for South Africa since the lifting of U.S. federal sanctions last year. The Embassy having played a major role as facilitator, Ambassador H H Schwarz today attended the formal signing of the documents in Washington D.C.
 This is Eximbank's first approval for a South African parastatal since sanctions were imposed on this type of facility by the Evans Amendment and lifted by Presidential Determination No 92-15 of Feb. 18, 1992 which certified that significant progress had been made toward the elimination of apartheid and authorized Eximbank to consider financing exports to the government of South Africa or its agencies.
 The transaction which is structured as a 10 year loan by Transnet Limited, parent body for South African Airways, is being financed by Hill Samuel Bank Limited of London. Eximbank's guarantee covers 85 percent of the $106.3 million U.S. export value of the airframe, plus exposure fees. Financing for the Rolls-Royce engines will be covered by ECGD, the export credit agency of the United Kingdom.
 The lifting of the restrictions on Eximbank facilities for South Africa, imposed in terms of the Evans Amendment to the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (which amended the Export-Import Act of 1945), is a major breakthrough for South Africa in its quest for financial facilities to improve its balance of payments position by acquiring foreign funds for the needed aircraft. The compliance by the South African government with the principles of Eximbank paved the way for the lifting of these restrictions by presidential decree earlier this year.
 The need to acquire new Boeing aircraft by South African Airways presented South Africa with an ideal opportunity to utilize Eximbank facilities. As facilitator, the Embassy assisted Transnet in order to ensure the success of the transaction.
 The mission of the Export-Import Bank is to facilitate export financing of U.S. goods and services by matching the effect of export credit subsidies from other governments and by absorbing reasonable credit risks that are beyond the current reach of the private sector.
 -0- 11~17~92
 ~CONTACT: Mr. Wesley Johanneson, counselor, or Ms. Andrea Snyman, first secretary, 202-232-4400, both of the South African Embassy~


CO: Embassy of South Africa ST: District of Columbia IN: AIR SU:

TM-LD -- NY101 -- 2128 11~17~92 22:59 EST
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Publication:PR Newswire
Date:Nov 17, 1992
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