Export credits

Export Credits and the Financial Crisis

 

CHALLENGES AND RESPONSES

 

Thirty-six countries have agreed to co-ordinate export credit support to help boost international trade and investment during the economic crisis. The OECD will host regular meetings to exchange information and monitor progress. In a Statement issued following a meeting of the OECD’s Working Party on Export Credits on 23 April 2009, these governments welcomed the commitment by the G20 nations to provide at least $250 billion over the next two years to support trade finance through export credit and investment agencies. The governments of Brazil, China, Estonia, Indonesia, Israel, Romania, Singapore and Slovenia which are not members of the OECD also signed the statement. Other countries may join the agreement at a later stage.

 

Since the outbreak of the global financial crisis, the OECD members have intensified the dialogue in the area of export credits. In November 2008, the Working Party on Export Credits and Credit Guarantees held a meeting attended by other major exporters (Brazil, Estonia, India, Israel, Romania, the Russian Federation and Slovenia) and they all pledged their determination to maintain their export credit support and ensure that sufficient capacity would be available with the aim of supporting international trade flows, in line with sound underwriting principles. To this end,  these governments adopted a Statement on 24 November 2008: Major exporters pledge ongoing credit support for developing country imports.

 

In January 2009, the financial crisis was addressed by the Participants to the Arrangement on Officially Supported Export Credits, in a special meeting; they decided to adjust some of the disciplines of the Arrangement with a view to facilitate the financing of projects, in particular in the area of renewable energies and water projects and more generally for project-finance type transactions. [Modifications to the Arrangement on Officially Supported Export Credits].

 

In order to maintain transparency and to foster a fruitful exchange of views on the most appropriate responses brought to the financial crisis in the context of export credits, the Participants to the Arrangement also decided to explain the measures they have taken at the national level; these measures are reflected in a synthesis document as at 30 June 2009 [TAD/PG(2009)17/FINAL].

 

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