AWG launches Enforceability Index for countries not yet party to the Cape Town Convention
AWG is pleased to announce the inaugural publication of its enforceability index, which assesses the law and practice in countries that are not yet parties to the Cape Town Convention and its Aircraft Protocol (CTC).
More specifically, the enforceability index assesses legal rules and practical experience within such countries based on whether, and the extent to which, they facilitate customary creditor rights and remedies and align with financing and leasing principles in the global aviation market. Please see the methodology for more details on the scoring formula and analytical process.
Publicly available materials also include scorecards and detailed annotations explaining the basis of the scoring. While the AWG secretariat makes all scoring decisions and does so on a purely analytic basis, it has benefitted from consensus input on legal facts and developments from multiple leading aviation finance firm in each country.
This inaugural publication includes scoring and detailed annotations for 6 countries: Israel, Morocco, the Philippines, Poland, South Korea, and Thailand. In the coming months, we will be adding scoring for the following 10 countries: Algeria, Cambodia, Chile, Finland, France, Greece, Hungary, Italy, Japan, and Portugal.
The enforceability index builds on the analytical foundation in, and many years of experience developing, scoring, and revising, our CTC compliance index for CTC countries.
The enforceability index aims to both inform financiers and investors and provide an incentive for legal authorities to take action, and exercise discretion, within their control to align with customary creditor rights and remedies and financing and leasing principles in the global aviation market.
This enforceability index is meant as an interim action in the sense of AWG’s promotion of CTC ratification by all countries scored. We look forward, on their ratification of CTC, to removing them from the enforceability index and adding them to CTC compliance index, as CTC in now the widely acknowledged as international best practice and has been ratified or acceded to by 90 countries.