At the end of February, the United Kingdom signed the Luxembourg Protocol to the Cape Town Convention on International Interests in Mobile Equipment. Once adopted and in force, it will make financing of rolling stock world-wide cheaper and easier.
“I am very pleased to see the UK signing the Rail Protocol and the message that it gives that the UK is a major centre for financing railway rolling stock” he said. “The Rail Working Group is always pleased to work with countries that are looking to adopt the Luxembourg Rail Protocol and gain the benefits that it offers” Martin Fleetwood, Secretary of the Rail Working Group and its UK Contact Group Chairman, said.
This is the first step in the process for the UK Government to accede to the Luxembourg Rail Protocol. The next step will be for a consultation within the UK on the various potential options that the UK Government may adopt when ratifying the Luxembourg Rail Protocol.
By introducing a new set of creditor protection rules, which will apply globally, the Luxembourg Rail Protocol will make financing and leasing of rolling stock in, or from, the UK more secure, easier and cheaper. Although banks should gain through lower capital costs, the Protocol will also encourage private equity and pension funds to invest in what are very stable long term assets,” Howard Rosen, Chairman of the Rail Working Group said.
Share on:
