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Aircraft Sector Understandings

 

Sector Understanding on Export Credits for Civil Aircraft (the ASU) :

2017

October

  • Articles 33 and 34 were amended to eliminate the 25 bp cap on the MRS and introduce a new “constraint” on the final MPRs to ensure that the MPR for a specific rating could not be lower than that of a better rating.

This version of the ASU can be found in Annex III of the October 2017 Arrangement on Officially Supported Export Credits [TAD/PG(2017)8]


2016

February

  • Article 20 c) has been rewritten for more clarity (meaning unchanged).
  • In Appendix II:
    • Article 20 a) 3): to clarify that a reduced repayment term to 10 years may be used as an “A” risk mitigant irrespective of the maximum repayment term allowed
    • new Article 21 to specify the date of premium setting
    • Article 47 amended to allow for corrective actions prior to a decision to remove of a state from the Cape Town List
    • Article 56 to specify that it applies to new and used aircraft
    • Article 60 amended to clarify that the Cape Town discount procedures also apply to asset-backed spare engines or conversion
    • new Article 61 to mention that the reduction of minimum premium rate for conditional insurance cover also applies to all goods and services other than used aircraft
  • In Appendix V: a new definition of Premium Holding Period

This version of the ASU can be found in Annex III of the February 2016 Arrangement on Officially Supported Export Credits [TAD/PG(2016)1]


2015

July

  • Article 36 a) 1) amended as the result of the 2015 review of the ASU, to insert a new review date in calendar year 2019 and every fourth year thereafter

This version of the ASU can be found in Annex III of the October 2015 Arrangement on Officially Supported Export Credits [TAD/PG(2015)7]

January

  • Article 24 b) amended as agreed in connection with the changes made to the calculation of the Margin Benchmark.
  • Annex III: Minimum Interest Rate: new method of calculation of the reference margin included in Articles 2, 6 and 8.

This version of the ASU can be found in Annex III of the January 2015 Arrangement on Officially Supported Export Credits [TAD/PG(2015)1]


2013

October

  • Article 13 a) 1) third dash reworded as follows: "in the case of a floating rate transaction, the principal amortising profile shall be set for the entire term, no more than five business days prior to the disbursement date based on the floating or swap rate at that time".
  • Appendix II, Article 19 b) Table 1 setting out the Risk Mitigants has been changed (deletion of the column with "B" risk mitigants) and Article 20 b) has been reworded as follows: "Subject to a prior notification, up to one of the "A" risk-mitigants may be replaced by a 15% surcharge on the applicable minimum premium rate."
  • Appendix II, Article 22: Table 2 on Risk-based rates has been changed to reflect upfront rates equivalent to spreads.
  • Appendix II, Article 34-1. second dash: reworded to allow a combination of spreads/upfront premium to be charged.
  • Appendix III, Article 1 a) and b): the Canadian Dealer Offered Rate has been added among the minimum floating interest rates.

This version of the ASU can be found in Annex III of the October 2013 Arrangement on Officially Supported Export Credits [TAD/PG(2013)11]

January

  • Articles 19 and 21 were updated to reflect changes agreed to the terms of the ASU relating to the Sale of Used Aircraft and to Contracts for Conversion/Major Modification/ Refurbishing respectively.

This version of the ASU can be found in Annex III of the January 2013 Arrangement on Officially Supported Export Credits [TAD/PG(2013)1]


2012

September

  • New definition of “Interested Participant”.

This version can be found in Annex III of the 2012 Arrangement on Officially Supported Export Credits [TAD/PG(2012)9]


2011

September

  • Appendix II, A new Article 34 to explain formula used for the calculation of the minimum premium rates. explain formula used for the calculation of the minimum premium rates.
  • Appendix II, A new Section 2-II and a new Annex 2, to update the provisions relating to the reduction of minimum premium rates in relation with the impact of the Cape Town Convention on aircraft transactions.
  • Appendix IV, A new Article 1 a) to include Bank Bill Swap Bid Rate (BBSY) as an option for floating rate loans.
  • Appendix IV, A new Article 8 to specify the calculation formula and effective date of Market Benchmarks.
  • Appendix V, A new definition of Premium Holding Period.

This version of the ASU can be found in Annex III of the September 2011 Arrangement on Officially Supported Export Credits [TAD/PG(2011)13]

February

  • the new ASU regime (“the 2011 Aircraft Sector Understanding” [TAD/PG(2011)3]) became effective as of 1 February 2011 and replaced the previous aircraft sector understandings.

This version of the ASU can also be found in Annex III of the March 2011 Arrangement on Officially Supported Export Credits [TAD/PG(2011)4]

More on the review of the 2007 ASU, which resulted in the 1 February 2011 ASU. 


2010

January

  • the «de minimis» classification provision has been made permanent by deleting the clause of «trial period» of two years.

This version of the ASU can be found in Annex III of the January 2010 Arrangement on Officially Supported Export Credits [TAD/PG(2010)2]


2008

January

  • Appendix III, Article 11: new footnote 2 establishing accelerated risk-classification procedures for small transactions.
  • Appendix V: clarification of information relating to the buyer/borrower and guarantor.
  • Appendix VI: amendment to the definition of «Net Price» to exclude import duties and charges.

This version of the ASU can be found in Annex III of the January 2008 Arrangement on Officially Supported Export Credits [TAD/PG(2007)28-FINAL]


2007

July


2005

December

  • The 2005 Aircraft Sector Understanding can be found in Annex III of the December 2005 Arrangement on Officially Supported Export Credits [TAD/PG(2005)38-FINAL]