Organisation for Economic Co-operation and Development
This page explains the role of the Organisation for Economic Co-operation and Development (OECD) in export credits, and how UK Export Finance supports its work.
OECD has developed a system of international regulation for the provision of medium and long term export credits by member governments. There are two groups in the OECD that discuss and regulate issues about export credits. These are:
- The Participants to the OECD Arrangement on Officially Supported Export Credits;
- The OECD Export Credits Group (ECG).
The Participants to the OECD Arrangement on Officially Supported Export Credits
In 1978 OECD members agreed on a set of rules to provide a level playing field in the provision of export credits, in order to prevent trading distortions and to minimise export subsidies. These rules are contained in the OECD Arrangement on Officially Supported Export Credits (the Arrangement).
The Arrangement sets boundaries on the provision by national export credit agencies of export insurance and of support for export credit loans. This includes minimum down payments, maximum repayment terms, minimum risk premiums and minimum fixed interest rates, known as Commercial Interest Reference Rate (CIRRs). CIRRs are re-set every month.
The Arrangement also contains rules on the provision of aid funding in combination with export credits.
The European Commission represents European Union (EU) member states in these negotiations. To reach an agreed EU position at meetings of the OECD participants, EU member states meet with the Commission and the European Council on a monthly basis at the Council Working Group on Export Credits in Brussels. UK Export Finance officials represent the UK at EU meetings.
The OECD Export Credits Group
In the OECD Export Credits Group (ECG), unlike the Participants group, all OECD member countries within the EU represent themselves. The ECG deals with a broader spectrum of export credit issues and has reached agreements on:
- the environment (the OECD Common Approaches on the Environment and Officially Supported Export Credits);
- combating bribery (the OECD Recommendation on Bribery and Officially Supported Export Credits);
- sustainable lending (Principles and Guidelines to Promote Sustainable Lending to Low Income Countries).
UK Export Finance officials represent the UK at meetings of the OECD Export Credits Group.
Go to the export credits division on the OECD website, which you can find on the right hand side of this page, for more information on the OECD’s work on export credits.
