This article first appeared online at TheNewAmerican.com on Thursday, March 26, 2015:
On January 21, NewSat, a private satellite communications company headquartered in Australia, defaulted on a $21 million payment to its primary satellite provider, Lockheed Martin. That default is triggering an avalanche of defaults that could sink not only NewSat but also very likely the bank that guaranteed the loans financing the deal, the Export-Import Bank, whose charter is up for renewal on June 30.
The Ex-Im Bank has touted its ability and willingness to provide financing for American companies seeking to do business abroad but which couldn’t arrange financing the regular way: through private banking channels. According to the bank’s charter,