Are the poor getting richer?

• Published in: Airfinance journal 1998-02 (203), p.35
• Main Author: Collett, Naomi
• Format: Article
• Language: English
• Subjects: Air transportation industry; Aircraft; Airlines; Airports; Alliances; Aviation; Commercial banks; Cooperation; Development banks; Financing; Funding; International; International finance; Investments; LDCs; Loans; Operating leases; Privatization; Recapitalization
• ISSN: 0143-2257

At issue is whether the airlines in most need of support from development agencies are really receiving what they need. Also at issue is whether the policies set down by the development banks are misleading. The European Bank for Reconstruction and Development (EBRD) has committed Ecu135.8 million to the air transport sector out of a total of Ecu9.5 billion. The European Investment Bank (EIB) also offers finance on sub-Libor terms although, unlike the EBRD, its mandate is to provide capital to support European Union policy objectives, including promoting a healthy transport system. This sees the EIB providing financing once an airline has undergone European Commission-approved restructuring, which means that the strong British Airways can access EIB financing. Many industry analysts feel the EIB's priority should be those airlines less able to access attractive financing terms elsewhere. In addition, only a modest fraction of the lending activity of the International Finance Corp., the private-sector arm of the World Bank, involves airfinancing.