Congress-backed bank agrees to approve $600M in loan guarantees stemming from Bucyrus deal
By APWednesday, June 30, 2010
Congress-backed bank reaches deal in Bucyrus sale
SOUTH MILWAUKEE — Wisconsin Sen. Herb Kohl says a Congress-funded bank has reversed itself, agreeing to approve $600 million in loan guarantees for U.S.-made mining equipment.
Wednesday’s announcement would help preserve 1,000 jobs in Wisconsin and 13 other states.
The U.S. Export-Import Bank cited environmental concerns last week when it voted to deny loan guarantees to a coal-fired power plant and mine in India. That vote effectively wiped out about $600 million in equipment sales from Bucyrus (byoo-SY’-rus) International Inc., based in South Milwaukee.
Kohl says the bank has agreed to approve the loan guarantees to Indian borrower Reliance Power Inc. The Democratic senator says the approval is contingent on Reliance moving ahead with renewable-energy projects that also could use U.S.-made equipment.
Online: bucyrus.com/
