Proposed changes to Basel III in relation to object-based financing
On 18 April, UIP, together with several other associations representing the railway industry, cosigned a letter to EU negotiators urging them to make the revision of the ‘Capital Requirements’ legislation more conducive to private investment in the procurement of railway rolling stock.
In times where the European Union has ambitious modal shift targets, where credit institutions and private financiers, encouraged by institutions such as the European Investment Bank, see rail projects more and more as necessary and safe investments, the railway industry invites the EU legislators to lower risk-based capital requirements to finance railway rolling stock. If adopted, this proposal will directly make private financing for rolling stock more affordable and should ultimately lead to a more competitive railway industry.