After two years of intensive negotiations, OECD countries participating in the Arrangement on Officially Supported Export Credits agreed to new measures to expand the risk pricing disciplines of the Arrangement.
The new disciplines, which build upon long-established rules on minimum pricing for country credit risk, introduce a common framework for the pricing of buyer credit risk along with new minimum premium rates for country credit risk that had remained unchanged since the first rules on risk premium (the Knaepen Package) came into effect in 1999.
The need for this agreement has grown in recent years as the focus of ECA activity continues to shift towards private buyers. Moreover, the recent sharp increase in the demand for official export credit support related to the Global Financial Crisis emphasised the need to ensure that a level playing field is maintained for exporters competing with official export credit support for overseas sales.
The Chairman of the Premium Experts Group, Mr. David Drysdale, welcomed the new agreement and expressed his appreciation for the work undertaken by his predecessor, the late Detlev Malzkuhn.
The new disciplines will be implemented by September 1, 2011.