International Rules for Officially Supported Export Credits

Arrangement on Officially Supported Export Credits

The main purpose of the Arrangement on Officially Supported Export Credits (the Arrangement) is to provide a framework for the orderly use of officially supported export credits. The Arrangement seeks to foster a level playing field for official support, in order to encourage competition among exporters based on quality and price of goods and services exported rather than on the most favorable officially supported financial terms and conditions. The Arrangement, developed within the OECD framework, initially came into effect in April 1978 as Gentlemen’s Agreement among the Participants with indefinite duration.

The Arrangement shall apply to all official support provided by or on behalf of a government for export of goods and/or services, including financial leases, which have a repayment term of two years or more. Official support may be provided in form of export credit guarantee or insurance, official financing support (direct financing and refinancing, or interest rate support) or as any combination of the above mentioned forms. The Arrangement shall apply to tied aid and trade-related untied aid as well.

The Arrangement sets out limitations on terms and conditions that may be officially supported, such as, down payment, maximum official support, local costs, maximum repayment terms and interest and premium rates.

EXIMBANKA SR, as a state Export-Credit Agency of OECD as well as EU Member State, is obliged to conducts its activities in line with the Arrangement provisions for official support of export since the Slovak Republic become member state of OECD in 2000.