Oecd Export Credit Agreement
The Organization for Economic Cooperation and Development (OECD) Export Credit Agreement is an international financial agreement that supports the export of goods and services from its member countries. It aims to support economic growth by providing financial assistance in the form of export credits.
Export credits are loans provided by banks or other financial institutions to exporters, which help them to sell their goods or services to foreign markets. The OECD Export Credit Agreement sets out guidelines for these loans and outlines the conditions under which they can be granted.
The agreement was first signed in 1978 and has since been updated several times to reflect changes in the global economy. Its main purpose is to promote fair competition and prevent distortion of trade by setting common rules for the provision of export credits.
Under the agreement, member countries are required to provide uniform minimum terms and conditions for export credits, including interest rates, repayment terms, and insurance requirements. This helps to create a level playing field for exporters and ensures that they are not unfairly advantaged or disadvantaged by their home country`s export credit policies.
The agreement also includes provisions for the environment and sustainable development. Export credits that support projects with negative environmental impacts or that do not promote sustainable development are discouraged.
Furthermore, the agreement sets up a system for monitoring and reporting on the use of export credits by member countries. This helps to ensure compliance with the guidelines and creates transparency in the provision of export credits.
In summary, the OECD Export Credit Agreement is an important international financial agreement that supports economic growth and fair competition in the global market. Its guidelines for the provision of export credits help to create a level playing field for exporters and promote sustainable development.