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The Sector Understanding on Export Credits for Ships (SSU) sets common rules for government-supported export credits for ships, in particular concerning interest rates and the duration of credits.
While the Understanding was self standing for many years, in April 2002 it was Annexed to the broader Arrangement on Officially Supported Export Credits.
The most recent update of the SSU came into force in July 2008, and this text can be found here.
At is 105th session, held in November, the Working Party on Shipbuilding (WP6) agreed on work commencing on a number of priority work items contained in the SSU. Initial priority was given to items:
- To review the provisions of the Arrangement in relation to minimum premium benchmarks with a view to incorporating them into this Sector Understanding.
- To review the applicability to this Sector Understanding of provisions of the Arrangement in relation to Project Finance.
- To discuss whether:
- the date of the first instalment of principal
- the Weighted Average Life concept
may be used in relation to the repayment profile contained in Article 5 of this Sector Understanding.
At this session the WP6 also created an informal expert group to consider the various issues and advise the Council Working Party on Shipbuilding of possible ways forward. Mr Yang-Hyun Lim (Korea) was elected as the chairman of this informal group.
In November 2010, the WP6 agreed to allow the informal expert group to decide when it was in a position to also deal with its next item of work.
- To develop an illustrative list of ship types which are generally considered non-commercially viable, taking into account the disciplines on tied aid set out in the Arrangement (on Officially Supported Export Credits).
The informal expert group reports periodically to the WP6 on progress with its work.
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