EXIM Backstops Swiss Commodity Trader $400 million

The Board of Directors of the Export-Import Bank of the United States (EXIM) announced their approval of a $400 million dollar credit guarantee for the trading book of a Swiss commodity trader.

Financial Institution Buyer Credit (FIBC) policies backstop credit lines for Geneva – based Trafigura to broker natural gas purchases from the US “primarily to European Buyers,” according to the EXIM announcement.

The subsidies to Trafigura’s bankers, Citibank and Credit Agricole “could support over 12,000 U.S. jobs,” according to EXIM.   According to EXIM, each policy is for $200 million, with a 90 percent guarantee, for a taxpayer exposure of $360 million.

Trafigura, which reported profits of $7 billion last year, has been under investigation by the US Department of Justice for commodity price manipulation, and was one of the biggest buyers of Russian oil before the war.   The firm continues to trade with Moscow, according to reporting by the Financial Times, most recently importing Russian Diesel to Argentina.

The EXIM board also approved a loan commitment of more than $238 million to support the export of Boeing B737 MAX 8 aircraft to SunExpress Airline in Turkey.  According to EXIM, this transaction could support around 1,100 American jobs nationwide.