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The new ASU: what to expect

01 February 2011

Changes to the price and terms of export credit expected today.

Tags: Aircraft Sector Understanding  |  Nasu  |  Asu  |  export credit  |  OECD  |  Airbus  |  Boeing

The new Aircraft Sector Understanding (Nasu) is scheduled to enter into force at the beginning of February. The new terms are going to be stricter than the 2007 Aircraft Sector Understanding (Asu) in order to make export credit less attractive to eligible airlines with access to the commercial markets. After the final multilateral negotiations finished in January, the new agreement is supposed to take effect from February 1.

Whereas the 2007 Asu had two different categories for different jet sizes, the 2011 Nasu will apply the same financing rules to all aircraft types manufactured in the OECD countries and Brazil. Other terms will include a maximum of 12-year financing, eight risk categories and a 10% maximum Cape Town discount. Ratifying the Cape Town Treaty with the right declarations can save an airline between 0.72% and 1.47%.

On average the upfront fees in the Nasu will rise by about 106% to...

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