The Participants to the Arrangement on Officially Supported Export Credits have reached a historic agreement to make major changes to the rules for export credits.
The changes will take effect later this year. Many new opportunities arise for Dutch exporters to finance their projects on attractive terms.
The modernisation package, agreed upon after long negotiations at the last OECD Participant Meeting at the OECD in Paris, consists of two main aspects.
- Broader possibilities for offering attractive terms for climate-friendly financing by adding a large number of new project categories.
- Modernisation of general conditions of all export credits will be, simplified and made more accessible. The Participants are Australia, Canada, the European Union, Japan, South Korea, New Zealand, Norway, Switzerland, Türkiye, the United Kingdom and the United States.
Climate Change Sector Understanding (CCSU)
The Arrangement currently has a number of project categories that may benefit from broader conditions because of their climate importance or relationship. The most important are wind and solar energy and climate adaptation. Such projects can take advantage of a maximum repayment term of 18 years as well as more flexible repayment terms .
After the changes, many more project categories will be eligible. Among others, green hydrogen and ammonia, energy storage and zero- or low-emission transportation (including zero-emission ships) will be added. In addition, the conditions will be further eased; depending on the product category, the maximum repayment term will become 18 to 22 years.
For many Dutch exporters, it is also an important step that the phrasing of climate adaptation has been improved in the new Arrangement. For adaptation, the maximum payment term will also increase to 22 years.
Modernisation package
In addition, all conditions in the Arrangement are being revised to better reflect the needs of buyers and existing practices in the financial sector. The current maximum repayment term of (usually) 10 years is often too short, especially considering the economic life of exported goods. For all transactions, the maximum repayment term will become 15 years, regardless of the destination country. Moreover, different repayment profiles - for example, a longer grace period, the time between the delivery of the good and the first repayment on the loan - can be applied more often than now. Finally, for loans longer than 10 years, the premium will be reduced for borrowers with a so-called non-investment grade profile. The latter is highly relevant for projects under the CCSU, given their long maturities.
Subject to reservations, the new agreements will take effect on July 15, 2023.
Read the full statement on the OECD website:
Arrangement Modernisation
Contact information:
For more information reagrding the Arrangement Modernisation, please contact Ivo Habets, our Senior Advisor Products & International Relations via ivo.habets@atradius.com.