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Higher prices expected for export credit
17 December 2010
With talks about the Aircraft Sector Understanding due to be concluded before the end of 2010, Airfinance Journal speaks to interested parties about what is going on behind the scenes.
Read more:
Aircraft Sector Understanding
ASU
OECD
export credit
home market rule
Aviation Alliance
Boeing
Airbus
After long negotiations, the industry is waiting to hear the outcome of the Organisation for Economic Cooperation and Development (OECD) discussions about the Aircraft Sector Understanding (Asu). "We are moving to a revamping of the Asu," says a source involved in the talks. "They are about to reach an agreement."
While the negotiations have not concluded, most industry insiders are expecting the new Asu to be agreed before the end of 2010. "There appears to be a strong will by all the governments to get this in place by mid-December and applied by January," says an interested party.
One of the reasons for revising the original terms is to bring export credit pricing more in line with the commercial markets.
"The rumours are that they are going to dramatically increase the pricing to market levels," says a US banker. "If that happens, then export credit financing may go away."
But...
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