Europe, United States, Brazil and Canada Reached Agreement On Aircraft Credit: Bombardier, Embraer to Benefit

Europe, United States, Brazil and Canada reached an agreement to reform the mechanism for supporting the sale of aircraft, called "aircraft export credits,"
"We reached an agreement yesterday [Tuesday] at the last minute. Includes Europe, United States, Brazil and Canada. Governments should ratify by until Feb. 1," sources told AFP.
Several months ago these countries were negotiating in Europe and OECD for the reform of the Revised 2007 accord to allow foreign airlines to receive a government loan guarantee to facilitate the purchase of aircraft.
The emergence of new competitors to Airbus and Boeing, as Brazil's Embraer and Canada's Bombardier, has reinforced the need for revision of export credits.
Other European and American companies that were not included in the device also called for a reform.
Formal negotiations were concluded on Friday in Paris, but since then the parties were discussing the final details of the agreement.
A European source told AFP that the new text will respond in part to the demands of major U.S. and European airlines (Air Berlin, Air France, British Airways, Delta Airlines, Lufthansa and Virgin).
Transport companies, which had no access to credits, denounce the existence of aid agencies such as Coface in France, Germany Euler, U.S. Exim Bank, which charged interest rates much lower than those in the financial markets.
Now, other companies may benefit under certain conditions from loans at preferential interest rates.
Airbus and Boeing have obtained a transition period, under the principle of "grandfathering" (grandfathered), during which for a certain amount of planes, some of them ordered in 2007, the increase will not apply.