For the purpose of preventing unfair competition in the field of Officially Supported Export Credits and fostering a level playing field for the foreign trade support, in order to encourage competition based on quality and price of goods and services rather than on the most favourable financial terms and conditions, official export-credit agencies providing export credit finance and insurance customarily adhere to the general international rules (OECD Consensus, The Berne Union General Understanding)

OECD Consensus

OECD Arrangement defines financing terms and conditions for export of goods and services with repayment terms of 2 or more years, short version of the terms are as follows and the comprehensive valid original document can be read under Arrangement on Guidelines for Officially Supported Export Credits:

Buyer/Bank Credit cannot exceed 85% of the export contract value.

Down payment of at least 15% should be stipulated in the export contract payable as a rule before the first delivery or at the latest before the finalisation of the last delivery.

Local costs financed out of the Buyer/Bank Credit must not exceed 30 % of the export contract value.

a) Maximum Repayment Terms vary according to the classification of the country of destination, as follows:

• For Category I * countries, the maximum repayment term is 5 years, with the possibility of agreeing up to 8.5 years with prior notification of OECD,
• For Category II ** countries, the maximum repayment term is up to 10 years.
• In case of finacing construction of renewable energy resources, as an exception, the maximun repayment term can be up to 15 years.

*  Category I countries – GNP per capita in excess of USD 6.275

** Category II countries – GNP per capita USD 6.275 or less
 

b) Starting Point of Credit

In the case of a contract for the sale of capital goods consisting of individual items usable in themselves, the starting point of credit is the actual date when the buyer takes physical possession of the goods in the country of import.

In the case of a contract for the construction of a complete plant or factory (thermal power plant or alike), the starting point of credit is the date when the buyer is to take over the entire plant contracted under the export contract (unless the supplier has the responsibility for commissioning);

In the case of construction contracts, where the contractor has no responsibility for commissioning, the starting point of credit is the date when construction has been completed;

In the case of any contract where the supplier or contractor has a contractual responsibility for commissioning, the starting point is the date when he has completed installation or construction and preliminary tests to ensure that it is ready for operation. This applies whether or not it is handed over to the buyer at that time in accordance with the terms of the contract and irrespective of any continuing commitment which the supplier or contractor may have e.g. for guaranteeing its effective functioning or for training local personnel;

In the case of paragraphs from b) - d) where the contract involves the separate delivery of individual parts of a project, the starting point is the date of delivery for each separate part, or the mean date of those starting points, or the delivery date for an essential part of the project.

c) Repayment of Principal - shall normally be effected in equal semi-annual instalments and with the first instalment to be made no later than six months after the starting point of credit.

The minimum interest rate for official fixed rate loans cannot be lower than the relevant Commercial Interest Reference Rate – CIRR
Interest shall not be capitalised during the repayment period.

Terms and conditions for Export Credits for ships, nuclear power plants, aircrafts and parts for such aircrafts as well as tied aid are separately specified within the

Consensus in documents called Sector Understandings.