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Last post for export credit

01 November 2007

Read more: Aircraft sector understanding export credit OECD.

There does not seem to be a lot of love for the new aircraft sector understanding (ASU), an agreement between the OECD countries that, for the first time, includes the manufacturing nations of Brazil and Canada and brings export credits more in line with commercial financings. For airlines it means increased premiums for export credit-guaranteed financings, which could more than double for the weak airline credits, and for lenders it means no more mismatch loans to help offset the low margins of export credit agency financing.

If there was ever a feeling that OECD governments were trying to get out of providing export credit financings, the ASU has gone a long...


Quote

“At the current pricing it will become attractive again to issue Ex-Im-guaranteed bonds. This will help stabilize and drive pricing down from where it is now.”

Kostya Zolotusky, managing director, capital markets, Boeing Capital, says about the price of export credit.

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