US President Donald Trump on Tuesday signed an executive order to help US refiners refinance some of their loans with US dollars, and in doing so will help the country avoid billions of dollars in government bailout costs.
The order, which is expected to come into effect on Monday, aims to help refiners and other companies refinance at less than 30 per cent of their original borrowing costs.
The order, titled “Improving the Nation’s Refinance Program”, is aimed at helping refiners make payments for the US government’s $5.7bn subsidy on the $8.5bn NGCC’s $12bn US oil tanker contract, which was awarded to BG Group.
“This order is a welcome step to help the refiners in refinance their loans in a more timely fashion, as we have a number of pending and pending projects that require this type of assistance,” US Energy Secretary Rick Perry said in a statement.
Mr Trump is expected next week to sign an executive action to help banks lend to refiners, with a potential extension of the program to refineries that are still in need of help.
US refiners have had to pay out millions of dollars to lenders as the government has helped refiners pay off their debt.
In the aftermath of the financial crisis, US refineries were forced to borrow at record rates, and were forced into debt restructuring, which included the government’s Help America Vote Act of 2002, which imposed a $1.25bn payment limit on refiners to pay off outstanding debt.