Export credits
The OECD is the key multilateral negotiating forum where international disciplines for officially supported export credits are agreed, implemented, and monitored. These disciplines establish a level playing field for exporters via a series of financial and good governance rules.
Key messages
Governments provide officially supported export credits through Export Credit Agencies (ECAs) in support of national exporters competing for overseas sales. ECAs can be government institutions or private companies that operate on behalf of governments.
Such support can take the form either of “official financing support”, such as direct credits to foreign buyers, refinancing or interest-rate support, or of “pure cover support”, such as export credits insurance or guarantee to cover credits provided by private financial institutions.
The OECD is the forum for maintaining, developing and monitoring the financial disciplines for export credits and trade-related tied aid, which are set out in the Arrangement on Officially Supported Export Credits (the “Arrangement”).
These disciplines stipulate the most generous financial terms and conditions that Members may offer when providing officially supported export credits to minimise financial subsidies in compliance with World Trade Organisation obligations. Several rules in the Arrangement are sector-specific and are detailed in the sectoral annexes of the Arrangement. In addition, the Arrangement seeks to limit the use of concessional financing for projects that might be supported through commercial financing via specific rules on aid.
Discussions relating to the Arrangement take place under the auspices of the Participants to the Arrangement on Officially Supported Export Credits (the “Participants”). The Participants is not a formal OECD body; however, it operates within the context of the OECD and according to its rules and procedures. The Participants are composed of Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland, Türkiye, the United Kingdom, and the United States.
More detailed information:
The OECD provides a forum for discussing and co-ordinating national export credits policies, including in relation to good governance issues, such as anti-bribery measures, environmental and social due diligence, and sustainable lending practices.
These discussions take place under the auspices of the Working Party on Export Credits and Credit Guarantees (the “Export Credits Group”, or ECG). All OECD countries are ECG Members, with the exception of Chile, Costa Rica, and Iceland.
At present, there are three Recommendations relating to Good Governance and Export Credits:
- The Recommendation on Bribery and Officially Supported Export Credits
- The Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due diligence
- The Recommendation on Sustainable Lending Practices and Officially Supported Exports Credits
More detailed information:
Non-member countries
Non-member countries are regularly invited to observe meetings of the Export Credit Committees. The OECD Export Credits Secretariat welcomes and will assist non-Members to adhere to any OECD export credits discipline (de facto and de jure).
Stakeholders
Both the ECG and the Participants consult with relevant stakeholders, such as non-governmental organisations, business and banking groups, labour unions, and other international organisations, on an annual basis (the annual Forum with representatives from civil society organisations) and in one-off special sessions when negotiating revisions to disciplines.
If you wish to attend the Forum, please contact the OECD.
News
- The sunset clauses relating to Project Classes G (Low emissions manufacturing) and I (Clean Energy Minerals and Ores) have been replaced by a review clause with a 30 June 2026 deadline.
- The temporary 100 basis points margin of the CIRR has been extended for another year.
Latest updates
11 October 2024
- Updated Country Risk Classification applicable as of 11 October 2024
8 October 2024
- Updated CIRRS (Financing terms and conditions), ASU Margin benchmark, Market reflective surcharge (MRS) and resulting minimum premium rates (MPR) and Commercial Interest Rates (Aircraft specific rules) applicable as of 15 October 2024.
Context
Total Amount of Arrangement official export credits
The scope of official export credit transactions is limited to those transactions with a repayment term of two years or more that were provided in conformity with the Arrangement by Participants (i.e. neither non-Arrangement programmes nor products are included, nor are transactions supported by non-Participants).
“Core” business refers to official export credits supported according to the rules found in Chapter II of the Arrangement, the Climate Change Sector Understanding (Annex I), or the Nuclear Sector Understanding. "ASU" business refers to aircraft supported under the terms and conditions of the Aircraft Sector Understanding (Annex III). "SSU" business refers to ships supported under the terms and conditions of the Ship Sector Understanding (Annex IV).
Export credits work at the OECD
Cash flow
Members of the Export Credits Group report cash flow data on a yearly basis with a view to identifying trends relating to new business, claims, recoveries, etc. and to consider Export Credit Agencies’ positions regarding the obligation provided in the Arrangement to charge premium rates that are not inadequate to cover the long-term operating costs and losses of their export credit programmes.
Download the Cash flow results for the period 1999-2022 for officially supported export credits
