US EXIM Bank set to vote on $5 billion loan to Mozambique LNG project

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US EXIM Bank set to vote on $5 billion loan to Mozambique LNG project

Later last week, the Export-Import Bank of the United States, a state-owned indenpendent credit agency which reports directly to federal government and finances US exports of goods and services, headquartered in Washington, had issued a statement saying that the US federal lender’s management board would soon arrange a vote to decide whether the federal financial entity would endorse a direct loan of $5 billion for developing a LNG (Liquified Natural Gas) project in Mozambique, while if the debt is approved, it would be the Washington DC-based federal lender’s largest export financing deal in decades.

Aside from that, in its statement, the US government’s official lender had added that it had already notified the US Congress of the transaction, which would be prepared for a final verdict based on anonymous votes in 35 days.

In effect, the transaction would cover up expenses of engineering, procurement alongside construction of an onshore LNG plant in Mozambique alongside related infrastructures over the Afungi Peninsula located in the Northern part of Mozambique.

While EXIM said later last week that the Mozambique LNG financing would support as much as 16,400 American jobs for US-based suppliers in Texas, Pennsylvania, Georgia, Tennessee, New York, Florida and the District of Columbia, labelling the project critical to US economy given the extent of jobs the project could create, US Commerce Secretary Wilbur Ross said in a statement later on Friday (August 23rd), “This critical project is not only a win for American companies and workers, supporting over 10,000 jobs in the United States, but also for the people of Mozambique as well”.