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Viewing cable 09JAKARTA448, FIRST COMMERCIAL SUCCESS UNDER CAPE TOWN CONVENTION

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Reference ID Created Released Classification Origin
09JAKARTA448 2009-03-13 09:42 2011-08-24 01:00 UNCLASSIFIED Embassy Jakarta 
VZCZCXYZ0006
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