ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM ( 83) 006 
 
 
 
Vol. 19 83/0004 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003 
(ABI. L  243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit 
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 
der genannten Verordnung freigegeben.  
 
COMMISSION 
OF THE 
EUROPEAN  COMMUNITIES 
General Secretariat COM  (83) final 
Brussels, 17 January 1983 
FOR OFFICIAL  USE  ONLY 
Proposal  for a 
COUNCIL DECISION 
on the application  of certain guidelines  in the  field of officially  supported 
export credits 
(submitted  to the Council by the Commission) 
C0M(83)6  final 

PROPOSAL FOR A 
COUNCIL DECISION 
on the application  of certain guidelines  in the 
field of officially  supported export  credits 
THE COUNCIL OF THE EUROPEAN COMMUNITIES 
Having regard  to the  Treaty establishing  the 
European  Economic  Community, and in  particular 
Article 113 thereof, 
Having regard  to the  proposal from  the Commission, 

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Whereas the  Community  is party to the Arrangement on  guidelines 
for officially  supported  export  credits; 
Whereas this Arrangement was the  subject  of the  Council Decision 
of 4 April 1978; whereas  that Decision  has been extended and 
amended ' most  recently  by the  Decision  of 
27 July 1982. 
Whereas, the  Participants  to th.e Arrangement agreed to draw up a 
consolidated text  of the Arrangement,eacompassing all  amendments 
agreed bythe Particpants since  the Arrangement  entered into force 
on 4 Apri I 1978; ,,. . • 
Whereas it is  necessary  for the  consolidated text  of the Arrangement 
to be formally  adopted by the Community. 

3 
HAS ADOPTED  THIS DECISION 
ARTICLE 1 
The Annex  to the  Decision  of 4 April 1978 as  amended  by Council 
decisions  of 16 November  1981 and 27  July 1982, is hereby replaced 
by the Consolidated Text  of the  Arrangement  on Guidelines 
for Officially  Supported  Export Credits  and by the  complementary 
Undertakings  and Declarations  by Participants  to the  Arrangement 
as indicated  in Annexes I and II to  this Decision. 
ARTICLE 2 
1. The Decision  of 4 April 1978 is hereby extended  until 1 May 1983". 
2. The Decision  of 27 July 1982 is hereby repealed. 
ARTICLE 3 
This Decision  is addressed  to the Member  States. 
Done at Brussels 
For the Council 
The President 

ANNEXE 1 
ARRANGEMENT 
ON 
GUIDELINES  FOR OFFICIALLY  SUPPORTED EXPORT CREPT TÇ 
This text of the  Arrangement, which  was approved  by the 
Participants  as of 1st December,  1982,  takes into account  the 
various  revisions  and amendments made, by  cornaon agreement,  to 
the original  text [TD/C0NSENSUS/78.4(lst.Revision) ] of 
1st April,  1978 and in  particular  the modifications referred  to 
in document  TD/CONSENSUS/82.23. 

2-
CONTENTS 
Page 
FORM AND SCOPE OF THE ARRANGEMENT 
Paragraph  1. CASH PAYMENTS 3 
"' 2. MAXIMUM REPAYMENT TERM 3 
" 3. MINIMUM  INTEREST  RATE 4 
" 4.  SPECIAL  SECTORS 5 
" 5. LOCAL COSTS 5 
" 6. COMMITMENTS AND  PRIOR COMMITMENTS 6 
" 7.  TIED AID CREDITS  7 
" 8. BEST ENDEAVOURS  . . \ 8 
" 9. PROCEDURES 8 
" 10. NO-DEROGATION ENGAGEMENT H 
" 11.  EXCEPTIONS  11 
12. DEFINITIONS  AND RELATED  PROVISIONS  12 
" 13. WIDER  PARTICIPATION  15 
" 14. REVIEW • 15 
15. VALIDITY  AND DURATION 16 
" 16.  WITHDRAWAL  16 
ANNEX A . STANDARD FORM FOR  NOTIFYING  LINES OF ... 17 
CREDIT AS PRIOR COMMITMENTS 
« 
ANNEX B STANDARD FORM FOR  NOTIFYING  PRIOR 19 
COMMITMENTS FOR  INDIVIDUAL 
TRANSACTIONS 
ANNEX C STANDARD FORM FOR  NOTIFICATIONS  REQUIRED 21 
UNDER PARAGRAPH 9 
ANNEX D  LIST  OF PARTICIPANTS  25 

ARRANGEMENT ON  GUIDELINES  FOR OFFICIALLY  SUPPORTED 
EXPORT CREDITS 
FORM AND SCOPE OF THE ARRANGEMENT 
This informal  Arrangement  is applicable  among the 
Parti'cipants(l),  in the  form of guidelines,  to officially 
supported export  credits  with a repayment  term of two  years or 
more, regardless  of whether  they relate  to contracts  for sale 
of goods and services  or to  leases equivalent  in effect to such 
contracts  or to  pure service  contracts. 
1. CASH PAYMENTS 
Participants  will require  purchasers  of exported  goods 
and services  to make  cash payments,  at or before -the  starting 
point equal to a minimum  of 15 per  cent of the  export contract 
value. Participants  will not provide  official  support  for such 
cash payments  other, than insurance  and guarantees against  the 
usual pre-credit  risks. 
2. MAXIMUM REPAYMENT TERM 
. (a) Except for the  special  sectors  referred  to in ' 
Paragraph  4..and  countries  referred  to io  footnote  (2) to 
Paragraph 3(a),  the maximum  repayment  term will be 8.5  years 
for relatively  rich and intermediate  countries  and 10  years for 
relatively  poor countries.  The export  credit  agreement  and 
ancillary  documents  shall not permit the extension  of the 
repayment  term. If a  Participant  intends  to support  a 
repayment  term longer than  5 and up to 8.5  years for a' 
relatively  rich country,,  the Participant  will give prior 
notification  in accordance with  the procedure  set forth in 
Paragraph  9(b)(1). 
(b) Principal  of an  export  credit  which is officially 
supported  by way of  direct  credit,  refinancing,  eligibility  for 
an interest  subsidy, guarantee  or insurance  shall normally  be 
repayable  in equal and regular  instalments  not less frequently 
than every  six months,  commencing  not later than six months 
after the starting  point.  If a  Participant  intends  not to 
follow the normal  practice,  the Participant  will give prior 
notification  in accordance with  the procedure  set forth in 
Paragraph  9(b)(1).  Such  prior  notification  will not be 
required  in the  case of leases if the  amount of principal  and 
interest  combined  is payable  in equal and regular  instalments 
not less frequently  than every  six months,  commencing  not later 
than six months  after the starting  point. 
(1) See Annex D for the  list of Participants. 

- A -
3. MINIMUM  INTEREST  RATE 
(a) The following  minimum  rates of interest  will apply 
where Participants  are providing  official  financing  support  by 
way of  direct  credit,  refinancing  or interest  rate subsidy: 
' Classiflcatlon (l) 
of Country 
2-5 
I Relatively  rich 12.15»! 
II Intermediate  10.85* 
III Relatively  poor 10.0% Number of  years in Maximum  
Repayment  Terms 
Over 5 - 8.5 
12.40% 
11.35% 
10. 0% Over 8.5 10 
not applicable 
not applicablen) 
10.0% 
(b) It is  understood  that if commercial lending rates  of 
interest  for the  national  currency  in a Participant's  country 
fall below the lowest minimum  level at (a)  above, any 
Participant  may provide such  official  financing  support,  for 
export credit  in that currency  carrying  interest  at rates below 
the above  guidelines,  provided  that the interest  rate charged 
for the export  credit  which is being financed*  as a whole or in 
part.with  such official  support,  is not  less than the 
commercial Interest reference rate(3) increased  by 0.3 
percentage points  per annum. 
(1) For criteria  underlying  the classification  cf. Paragraph 
12(a)(8). 
(2) Specific  provisions  for countries which  were classified  in  
Category  III before 6th July, 1982 but as of  this date are  
classified  in Category  II; 
a) the maximum  repayment  term will be 10  years,  the 
minimum  interest  rate applicable  for repayment  terms of 
over 8.5 to 10  years being  the same as  that for 
repayment  terms of over 5 to 8.5  years; 
b) until 31st December, 1982 a minimum  interest  rate of 
10.5 per cent will be applied  for repayment  terms of 
between 2 and 5  years and of 10.75 per  cent for 
repayment  terms of over 5 to 10  years. 
(3) The commercial  interest  reference  rate for Japanese  Yen Is 
the long term prime  rate (LTPR)  for Japan. 

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(c) Interest  on an export  credit  which is  officially 
supported by way of  direct  credit,  refinancing,  eligibility  for 
an interest  subsidy, guarantee or insurance  shall normally not 
be capitalized  during the  repayment  term but  shall be payable 
not less frequently  than every six  months,  commencing  not later 
than six  months  after the starting  point.  If a  Participant 
intends  not to  follow  the normal  practice,  the Participant  will 
give prior  notification  in accordance with the procedure set 
forth in Paragraph 9(b) (D . 
4. SPECIAL SECTORS 
The following  terms  shall apply to the sectors  listed 
below: 
(a) Conventional  Power  Plants : The terms-<jf  this 
Arrangement  shall apply except  that the maximum  repayment  term 
shall be 12 years. If a  Participant  intends to support a 
repayment  term longer than 5 years in  transactions  with 
relatively  rich countries  and longer than the  relevant.-maximum 
set forth  in Paragraph 2(a) for other  countries,  the 
Participant  will give prior  notification  in accordance with the 
procedure set  forth in Paragraph  9(b)(1).-  » 
(b) Ground  Satellite  Communications  Stations : The terms 
of this Arrangement  shall be applicable  except  that the maximum 
repayment  term to any country may not exceed 8 years [as 
provided  for in the  OECD Understanding on Export  Credits  for 
Ground  Satellite  Communications  Stations  - C(74)112(Final)]. 
(c) Ships:  Participants  will apply the terms of  this 
Arrangement,  to ships not covered by the  OECD Understanding on 
Export Credits  for Ships - C(81)103(Final). (See  also 
Paragraph 12(d) of  this Arrangement.) 
5. LOCAL COSTS 
(a) The  following  provisions  apply to  local costs  related 
to those export  credits  to which  this Arrangement  applies: 
(1) For  credits  to intermediate or  relatively  poor 
countries,  Participants  will not finance or  insure 
credit for more than 100 per cent of the value of 
the goods and services  exported.  Thus the amount 
of local  costs supported on  credit  terms  will not 
exceed the cash  payments.  Furthermore, 
Participants  will not grant such support for  local 
costs carrying  interest  rates (if in the  same 
currency  as that of the export  credit)  or 
repayment  terms more favourable than those 
supported for the exports to which such  local 
costs are related. 

6 
For credits  to relatively  rich countries,  the 
provisions  of Paragraph  5(a)(1)  will apply, 
provided,  however,  that any support  will be 
confined  to insurance  or guarantees. 
(b) For the  purposes  of this Paragraph,  and in  accordance 
with the text of the OECD  Declarations  on local costs of 15th 
May..1975: 
Local costs  means  expenditure  for the supply from 
the buyer's  country  of goods and services  (however 
commissions  payable  to the  exporter's  agent in the 
buying country  do not  fall within  the definition 
of local  costs in the  context of the  Arrangement) 
which are necessary  either  for executing  the 
exporter's contract  or for completing  the project 
of which the exporter's contract  forms  part. 
(2) Exported  goods and services includes  goods and 
services supplied  by third countries. 
COMMITMENTS(1)  AND PRIOR COMMITMENTS 
Individual  Transactions  not covered  by Lines of Credit 
The credit  terms and conditions  of new  commitments 
shall not be  fixed for period's  exceeding  six months. 
In the case of changes  in the  guidelines  of the 
Arrangement,  the support  of credit conditions  not in 
conformity with  the guidelines  as modified  shall not 
be justified  after a period of six months  from the 
date of modification.  Non-conforming  commitments 
still outstanding six  months  after the date of 
modification  shall be notified  to all other 
Participants  immediately,  utilizing  the standard  form 
set out in  Annex B. 
(b) Lines  of Credit(2) 
The credit  terms and conditions  of a  line of credit, 
whether new or one  that is being renewed  or 
prolonged,  shall not be  fixed for a  period  exceeding 
six months.  In the  case of changes  in the  guidelines 
of this Arrangement,  the support  of credit conditions 
attributable  to the  lines of credit  which are not in 
conformity with  the modified guidelines  shall not be 
justified  after a period of six months  from the date 
of modification. Credit  lines, not in  conformity 
with the guidelines  as modified,  still  outstanding 
six months  after the date of modification  shall be 
notified  to all other Participants  immediately 
utilizing  the stand-ard  form set out in  Annex A. 
(1) For definition  cf. Paragraph  12(a)(2). 
(2) For definition^.  Paragraph  12(a)(3). 

7 
(c) Matching 
(1) Any Participant  has the  right to match the terms 
supported  by another  Participant  under a prior 
commitment. 
(2) The matching  Participant  will make reasonable 
efforts to determine whether non-conforming terms 
of a prior commitment  for an  individual 
transaction  or of a  prior credit  line will be used 
to support  a particular transaction.  This 
Participant  will be considered  to have made such 
reasonable  efforts  if it has informed  by telex the 
Participant  assumed  to offer such non-conforming 
terms of Its intention  to match, but has not  been 
informed  within  three working days  that the prior 
commitment  or prior credit  line will, not be  used 
to support  the transaction  in question. 
Insofar as the  individual  transactions  referred  to 
in Paragraph  6(a) are  concerned,  the matching 
Participant  will follow the procedure  set forth in 
Paragraph 9(b)(2)  and (3). » 
Insofar as lines of credit referred  to in 
Paragraph  6(b) are  concerned, each  Participant  has 
the right  to match the credit terms  offered  by 
another  Participant  on an  individual  transactions 
basis, or by means of  another  line of credit.  If 
the latter  method  is adopted,  the date of expiry 
of the matching  line of credit  shall not surpass 
the length  of commitment  made within the framework 
of the line of credit being matched. 
If a Participant  matching  a credit  line intends  to 
support  terms which  include  any other 
non-conforming element,  the Participant  shall 
follow the prior notification  and discussion 
procedure  set forth in Paragraph  9(a)(2)(ii).  As 
soon as a Participant  commits  itself,  It must in 
all cases immediately inform all other 
Participants  accordingly. 
TIED AID CREDITS(l) 
If a Participant  intends  to support  a tied aid credit the 
Participant  shall,  without  prejudice  to official  development 
assistance  procedures administered  by the  Development 
Assistance  Committee,  give notification  in accordance  with the 
procedures  set forth in Paragraphs: 
(1) For definition  cf. Paragraph  12(a)(4). 

8 
(i) 9(a)(1),  if the grant  element  Is less than 15 per 
cent; 
(11) 9(b)(1),  if the grant  element  is of 15 per cent or 
more, but less than 25 per cent; 
(iii) 9(c)(1),  If the grant  element  is 25 per cent or 
more. 
8. BEST  ENDEAVOURS 
(a) The  guidelines  set out in  this Arrangement  represent 
the most generous  credit  terms  for which  Participants  intend In 
general  to give  official  support. All  Participants  recognise 
the risk that in the course of time these  guidelines  may come 
to be regarded as  norms.  They therefore undertake to take, as 
far as possible,  the necessary steps to prevent  this risk from 
materialising. 
(b) In particular,  they undertake that  where,  In an 
individual  branch of trade or  industrial  sector to  whid'h  this 
Arrangement  applies,  terms  less generous  to buyers than those 
set out are customary, they  will continue to Tespect such 
customary  terms  and will do everything  In'their  power  to 
prevent those  terms  from being eroded as a  result  of recourse 
to the terms- set out in  this Arrangement. 
(c) In keeping with the  objectives  set forth in 
sub-paragraphs (a) and (b)  above,  Participants  recognise the 
advantage  which can accrue if a  clearly  defined  common  attitude 
toward the  credit  terms  for a  particular  transaction  can be 
achieved and if  maximum  use is  made of the  existing 
arrangements  for exchanging information at an  early stage. If 
a Participant  informs another  Participant  of the  terms which it 
envisages supporting for a  particular  transaction  and requests 
similar  information'from the other  Participant,  then, in the 
absence  of a satisfactory  reply  within  seven calendar days, the 
enquiring  Participant  may assume  that the other  will support 
the transaction  on the  most favourable  terms permitted by these 
guidelines.  In cases of  particular  urgency, the enquiring 
Participant  may request a  more rapid reply. 
9. PROCEDURES 
(a) Derogations: Procedure for  Prior Notification  and 
Discussion 
(1) Notification  and Discussion: If a  Participant 
intends  to take the  initiative  to support  terms  not in 
conformity  with this Arrangement  or to support a  tied aid 
credit having a grant  element  of less than 15 per cent, 

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the Participant will notify all other Participants of the terms  
it intends to support at least ten calendar days before  issuing  
any commitment.  If any  other Participant requests a discussion  
during this period, the  initiating Participant will delay an 
additional ten calendar days before  issuing any commitment on  
such terms. Normally this discussion shall be by telex. In  
extreme cases face to face discussion may be requested and  
would be arranged, preferably in the country intending to  
derogate. If the initiating Participant moderates or withdraws  
its intention to support non-conforming terms, it must  
immediately inform all  other Participants accordingly.
C2) Matching (identical or by  other support): On and
after the expiry of the first ten day period referred  to above  
if no discussion is requested Cor on and after the  expiry of  
the second ten day period if discussion  is requested) and 
unless the matching Participant  ha$ received notice from the  
initiating Participant that the latter has withdrawn Its  
intention to  support non-conforming terms, any Participant  
shall have the right to support:
(i) With respect to identical matching,»terms which  
include the  identical non-conforming element but which  
otherwise conform to the guidelines  provided that the matching  
Participant notifies, as early as  possible, its intention to do  
so; or
(ii) With respect to other support prompted by the  
initial derogation,  any other non-conforming  element of the 
terms, provided that the responding  Participant introduces a  
fresh derogation, initiating a five calendar day  prior · 
notification and five  calendar day discussion  procedure and 
awaits its completion.  This period can run  concurrently with  
that of the prior notification and discussion procedure  
initiated by the derogating Participant, but cannot elapse 
before the end of the ten or twenty  days period referred to  
under Paragraph 9(a)(1).
(3) Terms Offered by a Non-Participant:  The  Participant
which intends to meet non-conforming  terms offered by a  
non-Pa rticipant will follow the prior notification and  
discussion procedure under (1) and (2) above. Before  
considering meeting non-conforming  terms, the Participant shall  
make every effort to verify that the non-conforming terms are  
receiving official support. The Participant shall inform all  
other Participants of the nature and outcome of these efforts.
(4) Information on Commitment:  As soon as a Participant
commits itself to  support non-conforming terms, it must in all  
cases immediately Inform all other Participants accordingly.
»

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(b) Procedure for Prior Notification without Discussion
(1) Notification :  A Participant will notify all other
Participants of the terms it intends to support at least ten  
calendar days before issuing any commitment, if the Participant  
intends:
(i) to support a credit with a repayment term of "over  
5 to '8.5 years" to a relatively rich country, or
(ii) not to follow normal payment practices with respect  
to principal or interest referred to in Paragraphs 2(b) and  
3(c), or
(iii) to support a credit for a conventional power plant  
with a repayment term longer than the relevant maximum set  
forth in Paragraph 2(a), or
(iv) to support a tied aid credit having a grant element  
of 15 per cent or more but less than 25 per cent, or
(v) to support credit conditions for any type of ships  
to which the existing OECD Understanding applies, which would  
be more favourable than those credit conditions permitted by  
this Arrangement.
(2) If the initiating Participant, moderates or withdraws  
its intention to give such support, it must immediately inform  
all other Participants accordingly.
(3) Matching (identical or by other support): On and
after the expiry of the ten day period referred to above and  
unless the matching Participant has received notice from the  
initiating -Participant that the latter has withdrawn its  
intention to support terms referred to in Paragraph 9(b)(1),  
any Participant shall have the right to support:
(i) with respect to identical matching,  terms which  
include the identical element referred to in Paragraph 9(b)(1)  
but' which otherwise conform to the guidelines provided that the  
matching Participant notifies, as early as possible, its  
intention to do so; or
(ii) with respect to other support,  any other element of  
the terms which does not conform to the guidelines, provided  
that the responding Participant initiates a five calendar day  
prior notification procedure without discussion and awaits its  
completion. This period can run concurrently with that of the  
prior notification procedure started by the initiating  
Participant, but cannot elapse before the end of the ten day  
period referred to under Paragraph 9(b)(1).

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(4) Information on Commitment:  As soon as a Participant
commits its elf, it must in all cases immediately inform all  
other Participants accordingly.
(c) Prompt Notification Procedure
Cl) Notification:  As soon as a Participant commits
itself to support a tied aid credit having a grant element of  
25 per cent or more; the Participant must notify all other  
Participants accordingly.
(2) Matching :  No prior notification need be given if a
Participant supports terms to match a tied aid credit with a  
grant element of 25 per cent or more.
(3) Information on Commitment:  As soon as a Participant
commits itself, it must in all cases immediately inform all  
other Participants accordingly.
(d)  Information to be Supplied under the Procedures Mentioned  
under (a), (b) and (c) above
Ine notifications called for by the above procedures will  
be made in accordance with and contain the information set out  
in the "Standard Form" in Annex C and be copied to the  
Secretariat of the OECD.
10. NO-DEROGATION ENGAGEMENT
Participants agree not to avail themselves from  
15th October, 1982 onwards of the possibilities provided under  
the Arrangement under:
- Paragraph 9(a)(1) for derogations with respect to  
maximum repayment terms (whatever the form of support),  
to minimum interest rates or to the limitation of the  
validity of.commitments to a maximum of six months.
- Paragraph 9(a)(1) and 9(b)(1)(iv) to support tied aid  
credits having a grant element of less than 20 per cent.
11. EXCEPTIONS
The guidelines of this Arrangement shall not apply to:
(a) Military equipment.
(b) Agricultural commodities.
(c) Aircraft: The terms of the OECD "standstill"
(TC/ECG/M/75.1, item 6 and Annex III A) shall apply  
to officially supported export credit and lease  
transactions.

-  12 -
(d) Nuclear Power Plants: The terms of the OECD
"standstill" (TC/ECG/M/75.1, item 6 and Annex III B)  
shall apply.
(e)  Ships covered by the OECD Understanding on Export  
Credits for Ships - C(81)103(Final).  (See also  
Paragraph 12(d) of this Arrangement).
12. DEFINITIONS  AND RELATED PROVISIONS
(a) For the purposes of this Arrangement:
(1) Cash payments means payments to be received for goods  
and services exported by the completion of the exporter's  
contractual obligations, the date of completion being  
determined by the starting point.
The quantum of the minimum cash payments is established  
by reference to the'total export contract value except „.that in  
the case of a transaction involving some goods or services  
supplied from outside the exporter's country the total export  
contract value may be reduced proportionately· if the official  
suppqrt from which the exporter benefits does not cover those  
goods and services.
Retention payments due after the latest appropriate  
starting point referred to in Paragraph 12(a)(6) do not count  
as cash payments for the purpose of conformity with the  
Guidelines.
(2) Commitment means any arrangement for or declaration  
on credit conditions, in whatever form, by means of which the  
intention or willingness to refinance, insure or guarantee  
supplier credits or to grant, refinance, insure or guarantee  
financial credits is brought to the attention of the recipient  
country, the buyer or the borrower, the exporter, or the  
financial institution.
(3) A line of credit signifies any understanding or  
statement, in whatever form, whereby the intention to grant  
credit benefiting from official support up to a ceiling and in  
respect of a series of transactions, linked or not to a  
specific project, is brought to the attention of the recipient  
country, the buyer or the borrower, or the financial  
institution.
(4) Tied aid credit means a credit which is provided for  
development aid purposes and which is financed either  
exclusively from public funds, or, as a mixed credit, partly  
from public and partly from private funds. For the purposes of  
this Arrangement the grant element of the ODA or concessional  
portion is calculated in accordance with the method adopted by  
the Development Assistance Committee of the OECD and that of  
the export credit portion is considered to be zero. The grant  
element of a tied aid credit is determined by dividing (i) the  
sum of the results obtained by multiplying the face value of

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each credit comprising the tied aid credit by the respective  
grant element of each credit by (ii) the aggregate face value  
of the credits
(5) Repayment term:  means the period of time commencing  
at the starting point and terminating on the date of the final  
payment.
(6) Starting point is the same as the Berne Union  
definition currently in use and is as follows:
(i) In the case of a contract for the sale of capital  
goods consisting of individual items usable in themselves (e.g.  
locomotives),  the starting point is the mean date or actual  
date when the buyer takes physical possession of the goods in  
his own country.
(ii) In the case of a contract for the sale of capital  
equipment equipment for complete plant or factories where the  
supplier has no responsibility for commissioning, the starting  
point is the date when the buyer is to take physical possession  
of the entire equipment (excluding spare parts) supplied under  
the contract.
·(iii)  In the case of construction contracts where the  
contractor has no responsibility for commissioning,  the  
starting point is the date when construction has been completed.
(iv) In the case of any contract where the supplier or  
contractor has a contractual responsibility for commissioning,  
the starting point is the date when he has completed  
installation or construction and preliminary tests to ensure  
that it is ready for operation. This applies whether or not it  
is handed over to the buyer at that time in accordance with the  
terms of the contract and irrespective of any continuing  
commitment which the·supplier or contractor may have, e.g. for  
guaranteeing its effective functioning or for training local  
personnel.
(v) In the case of paragraphs (ii), (iii) and (iv)  
above where the contract involves the separate execution of  
individual parts of a project, the date of the starting point  
is the date of the starting point for each separate part, or  
the mean date of those starting points or, where the supplier  
has a contract, not for the whole project but for an essential  
part of it, the starting point may be that appropriate to the  
project as a whole.
(7) Interest excludes:
(i) Any payment by way .of premium or other charge for  
insuring or guaranteeing supplier credits or financial credits;
(ii) Any other payment by way of banking fees or  
commissions associated with the export credit, other than
*

-  14 -
annual or semi-annual bank charges payable throughout the  
repayment term; and
(iii) Withholding taxes imposed by the importing country.
(8) The classification of countries in Paragraph 3(a) is  
based on the following criteria:
Cat. I: Countries with a GNP per capita income of
over $4,000 p.a. according to the definite  
1979 figures shown in the 1981 World Bank  
Atlas.
Cat. II: Countries not classified with Categories I
or III.
Cat. Ill: Countries eligible for IDA credits plus any
others on the IBRD list of low income  
countries and other countries or  
territories, the GNP per capita of which  
•would not exceed the IDA eligibility level.
(b) Interest Rate and Official Support *
Apart from agreement on the definition of interest set  
forth- in Paragraph 12(a)(7) it has not proved possible to  
establish common definitions of interest rate and official  
support in the light of differences between long-established  
national systems of export credit and export credit insurance  
now in operation in the Participating countries. Efforts will  
be pursued to elaborate solutions for these definitions. While  
such definitions are being elaborated, these guidelines' do not  
prejudice present interpretations. In order to facilitate  
these efforts, notes concerning actual practices in this area,  
including information on annual or semi-annual bank charges  
payable throughout the repayment term and considered as part of  
interest, as they result from the different national systems,  
were transmitted to the Secretariat of the OECD and distributed  
to all the Participants in document TD/CONSENSUS/78.12 and  
Addenda.
(c) Action to Avoid or Minimize Losses
The provisions of this Arrangement are without prejudice  
to the right of the export credit or insurance authority to  
take appropriate action after the export credit agreement and  
ancillary documents become effective to avoid or minimize  
losses.
(d)  Applicability of this Arrangement to Ships
Apart' from agreement as set forth in Paragraph 4(c) on  
the applicability of the provisions of this Arrangement to  
ships not covered by the OECD Understanding on Export Credits  
for Ships [cf. C(81)103(Final)] it has not proved possible to
V

- 15 -
establish common provisions for all ships. Efforts will be  
pursued to arrive at such provisions. Without prejudice to the  
rules applicable under the OECD Understanding on Export Credits  
for Ships and until common provisions for all ships are agreed  
upon, if a Participant intends to support terms for any type of  
ships to which the existing OECD Understanding applies, which  
would be more favourable than those terms permitted by this  
Arrangement, the Participant will notify all other Participants  
of such terms in accordance with the procedure set forth in  
Paragraph 9(b)(1). Participants will make maximum use of the  
existing arrangements for exchanging information.
(e) The Applicable Interest Rate and Repayment Term for  
Exports through a "Relay Country1 *
Participants considered that the interest-rate and  
repayment term set out in Paragraphs 2 and 3 corresponding to  
the country of "final destination" should apply in cases:
- where the "relay country" makes payment, if anti when  
received from the country of final destination, to the  
exporting country on the basis of the latter's portion  
in the total export value; or
•  - where there is direct guarantee., and payment by the  
country of final destination.
13. WIDER PARTICIPATION
Any OECD Member country, which is willing to apply these  
guidelines, may become a Participant in the Arrangement. Any  
other country, which is willing to apply these guidelines, may  
become a Participant upon the prior invitation of the then  
existing Participants.
14. REVIEW
(a) Participants will review, at least annually, the  
operation in practice of these guidelines(l).  In the review  
they will examine, inter alia, the functioning of the various  
prior and prompt notification procedures; derogations and  
questions related to matching (including lines of credit);  
prior commitments; agriculture credit practices and, without  
prejudice to the possibility of ad hoc consideration of a  
request to participate in the Arrangement, questions related to  
wider Participation in the Arrangement.
(b) At each annual Review Participants will review and  
decide in the light of the economic and monetary situation  
prevailing at that time modifications which might prove to be  
necessary to the minimum interest rate provisions of this  
Arrangement. The aim would be notably to bring the matrix
(1) The reviews will normally take place in the spring of each  
year.
A

-  16  -
interest rates closer to market rates.
(c) Each review will be prepared by the OECD Secretariat,  
based upon information on Participants' experience in respect  
of the points mentioned above, such information to be provided  
by Participants not later than 45 days before the date of the  
review.
15. VALIDITY and duration
The provisions of the present Arrangement are applicable  
without limit of time, unless revised in accordance with  
Paragraph 14, however, the provisions laid down in document  
TD/CÛNSENSUS/82.23 are only valid until 1st May, 1983.
16. WITHDRAWAL
Any Participant may withdraw from this Arrangement upon 
not less than 60 calendar days prior written notice to-the 
other Participants. »

- 17 -
ANNEX A
STANDARD FORM FOR NOTIFYING LINES OF CREDIT  
AS PRIOR COMMITMENTS
1. Name of authority/agency administering support for the line
o.f credit under the Arrangement.
2. "We regard the following line(s) of credit as prior
commitment(s) which is (are) not in conformity with the  
guidelines in effect since .............
The
 following points to be covered in respect of each and every  
line of credit:
3. Country of buyers/borrowers.
4. (Where relevant) names and locations of buyers/borrowers.
5. (Where relevant)’  nature of project/goods covered by,, the  
line of credit; location of project.%
6. Amount of line of credit in the denominated currency [see  
also point 10(a) below].
(a) Initial amount.
(b) Amount still available for use on .............
(c)
 The indicative or restrictive nature of the  
ceiling in the framework of credit lines that  
also have a date limit.
7. Any minimum contract value in the denominated currency.
8. Details of credit terms which may be supported under the  
line of credit:
(a) cash payments;
(b) repayment term (including starting point of  
credit, frequency of instalments for repaying  
principal amount of credit, and whether these  
instalments will be equal in amount);
(c) interest rate;
(d) support for local costs (including the total  
amount of local costs expressed as a percentage  
of the total value of goods and services  
exported, the tefms of repayment, and the nature  
of the support to be given).
9. Date on which we entered into this prior commitment.
V

- 18 -
10. (a) Indicate when this prior commitment will lapse,
specifying whether the commitment is expressed in terms  
of a terminal calendar date, or a ceiling amount of  
credit, or a combination of both these factors.
(b) Indicate the date on which any of the credit terms of  
the line of credit may be reviewed or revised.
11. Final date for placing contracts [if different from date  
given at 10(a)],

-19-
ANNEX B
STANDARD FORM FOR NOTIFYING PRIOR COMMITMENTS
FOR INDIVIDUAL TRANSACTIONS
.  Points to be covered in each and every notification:
1. Name of authority/agency responsible under the Arrangement  
for making notifications.
2. Reference number.
3. "We are notifying in accordance with the provisions of
Paragraph 6(a) the following transaction for which the  
credit terms are not in conformity with the -guidelines as  
modified with effect of ............. ".
4. 
Not applicable.
5. Country of buyer/borrower.
6. Name and location of buyer/borrower. ·
7. Nature of project/goods to be exported; location of project.
8. Value of the project or contract: both total value and  
value of exporter's national share(*).
9. (If relevant) specify any minimum contract valueC*).
10. Credit terms which 1. intends to support:
(*) Values shall be stated in terms of value ratings in  
accordance with the following scale in Special Drawing  
Rights (SOR's):(a) cash payments;
Category I:  
Category II: 
Category III: 
Category VI: 
Category V: 
Category VI: 
Category VII: 
Category VIII: 
Category IX: 
Category X:exceeding 40,000,000 SDR's.from 600,000 to  
from 1,000,000 to  
from 2,000,000 to  
from 3,000,000 to  
from 5,000,000 to  
from 7, 000, 000 to  
from 10,000,000 to  
from 20,000,000 toup to 600,000 SDR's
1.000. 000 SDR's
2.000. 000 SDR's
3.000. 000 SDS's
5.000. 000  SDR's
7.000. 000 SDR's
10.000. 000 SDR's
20.000. 000 SDR's
40.000. 000 SDR's
»

(b) repayment term (including starting point of credit,  
frequency of instalments for repaying principal  
amount of credit, and whether these instalments  
will be equal in amount);
(c) interest rate;
(d) support for local costs (including the total amount  
of local costs expressed as a percentage of the  
total value of goods and services exported, the  
terms of repayment, and the nature of the support  
to be given).
Dates concerning the prior commitment:
(a) Date on which this prior commitment was made.
(b) Date of expiry of this prior commitment.
//♦
Any other relevant information (including references to  
related cases). *

-  21  -
ANNEX C
STANDARD FORM FOR NOTIFICATIONS REQUIRED UNDER
PARAGRAPH 9
Points to be covered in each and every notification:
1. Name of authority/agency responsible under the Arrangement  
for making notifications.
2. Reference number.
3. "We are notifying the following transaction/1ine of credit  
which we regard as:
- an outright derogation
or " ·  .
- a derogation justified by the need to'match
or
··
- a permissible deviation or required notification as  
provided for in the Arrangement - (indicate nature)".
4. "Accordingly we are/hereby:
- initiating the prior notification and discussion  
procedure
or
- giving prior notification without discussion
or
- giving prompt notification."
5. Country of buyer/borrower.
6. Name and location of buyer/borrower.
7. Nature of project/goods to be exported; location of project.

8.Value of line of credit/project/contract:  both total
value and value of exporter's national share(*)
9. In the case of a line of credit, specify any minimum  
contract value(*).
10. Credit terms which 1. intends to support (or has  
•  supported):
(a) cash payments;
(b) repayment term (including starting point of credit,  
frequency of instalments for repaying principal  
amount of credit, and whether these instalments will  
be equal in amount);
(c) interest rate;
(d) support for local costs (including the total amount  
of local costs expressed as a percentage of the total  
value of goods and services exported, the terms of  
repayment, and the nature of the support to be given).
(*) .  Values shall be stated as follows:
(a) The exact value in the denominated currency for a  
line of credit, and for any minimum contract value  
under a line of credit.
(b) The value of an individual project or contract should  
be disclosed in terms of value ratings in accordance  
with the following scale in Special Drawing Rights  
(SDR 1s):
Category I:  
Category II: 
Category III:  
Category VI: 
Category V: 
Category VI: 
Category VII: 
Category VIII: 
Category IX:  
Category X:up to
from
from
from
from
from
from
from
from
exceeding600.000 SDR's
600.000 to
1.000. 000 to
2.000. 000 to
3.000. 000 to
5.000. 000 to
7.000. 000 to
10.000. 000 to
20.000. 000 to
40.000. 000 SDR's.1.000. 000 SDR's
2.000. 000 SDR's
3.000. 000 SDR's
5.000. 000 SDR's
7.000. 000 SDR's
10.000. 000 SDR's
20.000. 000 SDR's
40.000. 000 SDR's

- 23 -
Justification, if any, for instance:
(a) matching - specify competition to be matched.
(b) permissible deviation or required notification as  
provided for in the Arrangement - (indicate nature).
Any other relevant information including references to  
related cases and in the case of a tied aid credit:
(a) - the name of authority/agency responsible for the
concessional aid loans;
- the nature of project/goods to be exported under  
the loan; the location of the project;
- the terms of the aid loan (as under item 10 above);
(b) the overall grant element of the tied'aid credit  
calculated in accordance with Paragraph 12(a)(4).

- 25 -
ANNEX D
LIST OF PARTICIPANTS
Australia
Austria
Canada
European Economic 'Community(l)
Finland
Japan
*
New Zealand
Norway
Portugal
Spain
Sweden
Switzerland
United States
Composed of the following Member States:  
elgium, Denmark, France, Germany, Greece, Ireland Itaiw  
Luxembourg, Netherlands, l/nited Kingdom. *
>

ANNEX II
COMPLEMENTARY UNDERTAKINGS AND DECLARATIONS  
BY PARTICIPANTS TO THE ARRANGEMENT ON GUIDELINES  
FOR OFFICIALLY SUPPORTED EXPORT CREDITS
(a) Access to Yen financing
Participants noted a statement by the Delegate for Japan that  
Yen financing will be open to Participants without discrimination  
between Participants.
(b) Methods of calculation of the grant element of tied aid credits
Pàrticipants agreed that a study of* the method of calculation  
of the grant element of tied aid credits should be undertaken.
(c) Terms of export credits for aircraft and nuclear power plants
Participants agreed to proceed to negotiations on agreements on  
terms of export credits for aircraft and nuclear power plants.