General Electric Co. plans to do its part to get lending jump-started again in 2009, as the conglomerate said it will be extending financing to its industrial business customers in the areas of energy, transportation and water projects next year, even if the credit markets remain locked up. CEO Jeffrey Immelt told the Financial Times Thursday that GE Capital plans to originate $130 billion to $150 billion in new loans next year even if the buyers continue to stay away from debt markets.
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Although Immelt has been steadily shrinking the size of GE Capital, the
lending unit will continue to play a crucial role in making sure the
industrial customers can go forward with building the huge projects that
create demand for GE's other businesses, ranging from turbines for
wind farms to water purification systems. Of particular concern for GE's management is
the danger that tight credit market will kill infrastructure projects
that promise years of future revenues for the conglomerate. -
George
White
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