FRENCH AID TO AERO 2008 CLEARED.
The European Commission authorised, on 8 March, a state guarantee scheme put in place by France to cover the exchange rate risk for aeronautic suppliers (AERO 2008), managed by COFACE. The EU executive found that the guarantee is in line with market principles and does not constitute state aid within the meaning of Article 107(1) TFEU. The AERO 2008 guarantee enables aeronautic suppliers at Tier 2 and below (the measure does not relate to Tier 1 and Super Tier 1 suppliers, which are partners sharing risks with aircraft manufacturers), which normally conclude supply contracts in US dollars, to benefit from a state-guaranteed US dollar forward rate for a specified amount of turnover and for a maximum period of five years. The Commission verified that the premium charged by COFACE covers not only the market value of the guarantee, but also the insured's default risk and administrative costs.
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|Date:||Mar 14, 2011|
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