WORLD TRADE
ORGANIZATIONG/AG/W/56/Add.1
3 February 2003
(03-0662)
Committee on Agriculture Original:  English
IMPLEMENTATION OF ARTICLE 10.2 OF  THE AGREEMENT ON AGRICULTURE −
QUESTIONNAIRE ON AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE,
LOAN AND INSURANCE PROGRAMMES
Responses by Members
Addendum
This document reproduces the response received by the Secretariat to the questionnaire on
export credits and related facilities from Switzerland .
The questionnaire was circulated in the context of the discussion on the implementation of
Art. 10.2 of the Agreement on Agriculture at the regular Committee meeting on 28 June 2002, on the
basis that those Members which are in a position to do so were encouraged to complete and return thequestionnaire to the Secretariat at an early stage.
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SWITZERLAND
AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE, LOAN AND INSURANCE
PROGRAM QUESTIONNAIRE
I. Institution Information
Name:   Export Risk Guarantee Agency - ERG
Function:   Official Export Credit Agency of Switzerland
Source of Lending:   Commercial banks or exporters
Ownership Structure (public/private/sovereign):   Sovereign
II. Program Information
Program Name:   Export Credit Insurance
Program Type (direct credit/credit guarantee/loan/insurance/other):   Insurance
Program Description:   ERG provides political and commercial risk cover for export credits
related to agriculture exports within its standard cover policy.  During the survey period (1997-
2001) no request for cover for export of agricultural products has been put forward to the ERG.
Program Product Coverage:  All industrial and agricultural goods
III. Program Terms and Conditions
Maximum repayment term-  The maximum
allowable period for repayment of a loan.  Themaximum repayment term typically begins at
the starting point of credit and ends on the
contractual date of the final payment.Up to 180 days repayment period.
Starting point of credit -  The date on which
the credit period begins.  For most short-term
business, the starting point of credit is not later
than the acceptance of the goods by the buyer.Delivery date.
Repayment of principal-  The frequency at
which the principal is repaid.  Principal isusually repaid in equal and regular instalments
either semi-annually or annually based on the
starting point of credit.No specific requirement, however full re-
payment after 180 days at the latest.
Payment of interest-   The frequency at which
the interest is paid.  Interest is typically paid inequal and regular instalments semi-annually
based on the starting point of credit.No specification.G/AG/W/56/Add.1
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III. Program Terms and Conditions
Cash payment-   A payment made directly by a
buyer at the time of the contract, at the latest by
final delivery of the goods, before the credit
period begins.  Cash payments arise most
commonly in the context of medium- and long-
term credits or loans or in custommanufactured products.No specific requirement.
Risk sharing-   The percentage of risk not
covered by an institution or programme.  There
is typically a portion of the risk that is retained
by the exporter or financial institution in the
transaction.5% residual risk as a minimum according to
our standard cover policy.
Minimum interest rates-   The lowest rate of
interest at which a financial institution or
export credit agency can offer financing.  It is
not less than the rate at which the institution or
programme providing export credits pays for
the funds.No specific requirement.
Validity period for export credits-   The
period for which the credit terms andconditions for an individual export credit or
line of credit are valid.Our preliminary approval is valid for 6 months.
Within that period the exporter is required tosubmit the final application.
Premiums-   The sum paid by an insured party
to an export credit agency for its facilities.Credit coverage will not usually be fully
effective until the premium has been paid.
Premiums are normally calculated based on the
exposure, length of credit and the risk of doing
business in the buying country.Depend on the country risk category and the
credit period.  For further details please consultwww.swiss-erg.com, section Premium.
Revolving credit-   A credit extended by a
lender with a clause that permits the borrower arenewal of the credit for a specified period
under certain conditions or the extension of a
line of credit up to a specified maximum
amount during a specified period.  The
customer may pay a commitment fee for a
revolving credit and can use and repay the
credit at will.Not available.
Foreign Exchange Cover-   Cover against
movement in exchange rates, whether or notthere are payment defaults.Not available.G/AG/W/56/Add.1
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IV. State Trading Enterprises
State Trading Enterprises (STEs)-   E x p o r t
STEs may employ many of the export credit
facilities offered by export credit agencies.
Some export STEs receive exclusive or special
privileges from their respective governments,
including access to low-cost, government-backed credit.Not available.
V. Additional Information
Transparency-   Transparency refers to the
extent to which the activities of an export credit
institution or programme are clearlydocumented, easily understood, and readily
available.Under www.swiss-erg.com
or
Annual Report
National interest account administration-
Business for which an export credit agency
provides financial cover, even if it does not
meet the agency's normal underwriting criteria
and standards, because the business is deemedto be in the broader interest of the agency's
home country.No specific national interest programmes for
agriculture are available.
Market windows-   A market window is a
government-owned or –directed financial
institution that seeks to break even financially
by operating on a commercial basis providing
credits predominately to foreign buyers for
purchases of imported products or services.
Market window institutions claim not to besubject to the OECD Arrangement on
Guidelines for Officially Supported Export
Credits for industrial goods because their
support is on "market" terms and/or not tied to
domestic content.  Although the credits are notprogrammatically tied to domestic content,
they usually involve domestic content or are
linked to some form of national interest.Not available.
Refinancing-   The replacement of an existing
loan to a borrower (or a debtor country
government) with a new source of finance.  In
a potential claims situation, this can be done byeither an export credit agency, its government,
or a bank under an export credit agency
guarantee, so that the borrower can continue to
service debt that the export credit agency has
insured.  Refinancing in effect exchanges oneinsured debt for another, thus avoiding the need
for the export credit agency to pay a claim.  But
refinancing can also arise when a buyer or
borrower decides to change the source of its
finance for a project (e.g., to a different bank,or from a loan to a bond).No specific policy fixed.G/AG/W/56/Add.1
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VI. Other Information and Practices
Please provide any additional information
relating to officially supported export
credits.For further details see www.swiss-erg.com
ERG reserves the right for matching more
generous terms offered by other official
institutions.
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