Identifier
Created
Classification
Origin
09JAKARTA448
2009-03-13 09:42:00
UNCLASSIFIED
Embassy Jakarta
Cable title:
FIRST COMMERCIAL SUCCESS UNDER CAPE TOWN CONVENTION
how-toVZCZCXYZ0006 RR RUEHWEB DE RUEHJA #0448 0720942 ZNR UUUUU ZZH R 130942Z MAR 09 FM AMEMBASSY JAKARTA TO RUEHC/SECSTATE WASHDC 1827 INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS JAKARTA 000448
SIPDIS
DEPARTMENT FOR E, EAP/MTS, EAP/EP, EEB/IFD/OMA, E/CBA
TREASURY FOR IA/MALACHY NUGENT AND TRINA RAND
COMMERCE FOR ZARIT
DEPARTMENT PASS EXIM BANK VP MORIN
DEPARTMENT PASS USTR WEISEL, EHLERS
E.O. 12958: N/A
TAGS: BEXP ETRD EAIR EINV ECON ID
SUBJECT: FIRST COMMERCIAL SUCCESS UNDER CAPE TOWN CONVENTION
REF: 08JAKARTA 2304
On March 3, 2009 national carrier Garuda Airlines announced a USD
$346 million Boeing aircraft capital lease financing deal, the first
contract enabled under the Cape Town Convention (CTC). Post's
Foreign Commercial Service and Economic Section together with the
U.S. Export Import Bank (ExIm) worked extensively with Indonesian
parliament and industry representatives to implement the CTC through
the civil aviation legislation passed on December 17, 2008 (reftel).
The President of Indonesia signed the bill into law in January.
The law with respect to CTC protects creditor interests and allows
prompt asset recovery of Indonesian registered aircraft in the case
of a non-performing loan. The financing for the Garuda deal is
guaranteed by ExIm in cooperation with Dubai Aerospace Enterprises.
HEFFERN