Export Credit Rules
International export credit rules have been a principal feature of the airfinance landscape for the last thirty years.

In 2007, such rules were revised through work on a new Aircraft Sector Understanding (2007 ASU) negotiated at the OECD, which entered into force effective 1 July 2007.

Participant countries to the 2007 ASU agreed to review that agreement during the course of 2010. The result of this review was a significantly revised ASU (2011 ASU). The 2011 ASU entered into force on 1 February 2011.

AWG actively consulted with the OECD and the Participant countries during the development of the 2007 ASU and 2011 ASU.

AWG is assessing the terms of the 2011 ASU and monitoring its practical implementation and effects. AWG shares its views with the OECD and the Participants.


AWG believes that export credit rules:

  • Should ensure a level playing field for manufacturers and borrowers;

  • Should not have the effect of displacing or adversely affecting commercial markets; and

  • Should ensure that reasonable levels of export credit capacity remain available, and that higher volumes are available during times of market disruption or when commercial financing is otherwise not available on reasonable terms.


AWG issued a statement on the 2011 ASU. It has also prepared a descriptive summary of,, and an explanatory PowerPoint on, the 2011 ASU.

These AWG materials are selective. They only address the essential and framework points in the 2011 ASU, seen from the vantage point of users of export credit. These documents provide neither legal advice on nor interpretations of the 2011 ASU. They may not be relied upon.

The 2011 ASU succeeds the 2007 ASU, which, in turn, succeeded the export credit rules applicable since 1986, including the large aircraft sector understanding. That means that the terms of the 2011 ASU apply to all export credit, except for 'grandfathered transactions' and 'great-grandfathered transactions'. For these transactions, see the above linked summaries.


Main features of the 2011 ASU include:

  • a single system, that is, common terms and conditions applicable to all aircraft models;

  • greater differentiation of premium and interest rates, based on the credit risk of the borrower;

  • common credit risk rating of borrowers and classification of them by the export credit agencies;

  • higher premium and interest rates, reflecting risk-based rates plus a market surcharge;

  • inclusion of a material discount for the ratification (with the qualifying declarations) and effective implementation of the Cape Town Convention; and

  • regular adjustments to and reviews of its terms.


The OECD publishes the currently applicable minimum premium rates at the time of any adjustment thereto as well as the margin benchmark for civil aircraft. All historical adjustments under the 2011 ASU have been collected and are available on the above-linked OECD site.

Such OECD materials may include information relating to the applicable liquidity premia for direct credits, and, given the grandfathering clauses in 2011 ASU, the annual resets of the minimum premium rates for (category 2 and 3 aircraft) under the 2007 ASU.

AWG participated in four stakeholders' consultations at the OECD over the course of 2013, 2014 and 2015 (the OECD-organized consultations). Most recently, AWG submitted a fourth technical study for consideration by the stakeholders at their meeting held on 20 November 2015, continuing its participation in the process. A primary purpose of the OECD-organized consultations is to assess the relationship between the Aircraft Sector Understanding of 2011 and current commercial and capital markets, given the objective of ensuring a proper relationship between them. To facilitate that assessment, AWG has regularly submitted materials to the OECD, and, through it, to the governments participating in the Aircraft Sector Understanding of 2011. These materials include three previous technical studies in addition to the recent 20 November 2015 submission. All of these studies were authored by AWG's independent technical export, Professor Vadim Linetsky, Ph.D., Northwestern University.