Living without ECA backed funding

(EuroMoney Seminars, London, 4 July 2016) The aviation market is in an unprecedented situation with both the major aircraft manufacturers facing a shutdown in government export credit financing. Years of predictable and attractive financial returns have led to a staggering number of new entrants in the aviation finance market, allowing airlines and lessors to benefit from fierce competition among lenders and historically low interest rates. These developments are very good news for borrowers, which have been without European export credit agency (ECA) cover from Britain, France and Germany since April, following a UK government probe into overseas agents on export credit applications involving Airbus aircraft. The US Export-Import Bank (Ex-Im) has been unable to extend guarantees fully for more than a year.