OECD Modernisation of the Arrangement on Export Credits

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On March 31, 2023, the Organisation for Economic Co-operation and Development (the “OECD”) announced that a landmark modernisation package reforming the Arrangement on Officially
Supported Export Credits (the “Arrangement”) had been agreed in principle by the participating countries.

The Arrangement is self-described as a “gentlemen’s agreement” among its participants – Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland, Türkiye, the United Kingdom and the United States (the “Participants”) – that regulates the financing terms and conditions (e.g., repayment terms and minimum premium and interest rates) upon which export credit agencies (“ECAs”) from the Participants provide officially supported export credits and tied aid. The objective of the arrangement is to provide a level playing field in order to encourage competition among exporters based on quality and prices of goods rather than on the most favourable officially supported export credits or tied aid provided by ECAs.1

Reform of the Arrangement has been widely anticipated by industry participants, particularly as ECAs from the Participants have been called on to play a bigger role in supporting the energy
transition and achievement of the UN Sustainable Development Goals.

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