CELEX: 51983PC0006
Language: en
Date: 1982-01-17
Title: 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)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 006
Vol. 1983/0004
 ---pagebreak--- Disclaimer
Conformément 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
règlement.
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 Economic
Community and the European Atomic Energy Community (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), this 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 Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 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.
 ---pagebreak---                                                                                             COM (83) final
      COMMISSION                                                                             Brussels,  17 J a n u a r y 1983
        OF THE
 EUROPEAN COMMUNITIES                                                                        FOR   OFFICIAL        USE   ONLY
    General Secretariat
                                                 Proposal f o r a
                                               COUNCIL DECISION
       on t h e a p p l i c a t i o n o f c e r t a i n g u i d e l i n e s i n t h e f i e l d o f o f f i c i a l l y supported
                                                export c r e d i t s
                        ( s u b m i t t e d t o t h e C o u n c i l b y t h e Commission)
C0M(83)6final
 ---pagebreak---                    PROPOSAL FOR           A
                    COUNCIL DECISION
on t h e a p p l i c a t i o n o f c e r t a i n g u i d e l i n e s i n t h e
    f i e l d of o f f i c i a l l y supported export c r e d i t s
   THE COUNCIL OF THE EUROPEAN COMMUNITIES
   Having r e g a r d t o t h e T r e a t y e s t a b l i s h i n g t h e
  European Economic Community, and i n p a r t i c u l a r
  A r t i c l e 113 t h e r e o f ,
  Having r e g a r d t o t h e p r o p o s a l from t h e Commission,
 ---pagebreak---                                         - 2 -
   Whereas t h e Community i s p a r t y t o t h e Arrangement on g u i d e l i n e s
   for o f f i c i a l l y supported export c r e d i t s ;
   Whereas t h i s Arrangement was the s u b j e c t o f t h e C o u n c i l D e c i s i o n
  o f 4 A p r i l 1978; whereas t h a t D e c i s i o n has been e x t e n d e d and
 amended                                   '                  most r e c e n t l y by t h e D e c i s i o n o f
  27 J u l y 1982.
 Whereas, t h e P a r t i c i p a n t s t o th.e Arrangement a g r e e d t o draw up a
c o n s o l i d a t e d t e x t o f t h e A r r a n g e m e n t , e a c o m p a s s i n g a l l amendments
 a g r e e d b y t h e P a r t i c p a n t s s i n c e t h e Arrangement e n t e r e d             into force
on 4 A p r i I 1978;                                                                          ,,. . •
Whereas i t i s n e c e s s a r y f o r t h e c o n s o l i d a t e d t e x t o f t h e Arrangement
t o be f o r m a l l y a d o p t e d by t h e Community.
 ---pagebreak---                                             3
    HAS ADOPTED THIS              DECISION
                                         ARTICLE 1
  The Annex t o t h e D e c i s i o n o f 4 A p r i l 1978 as amended by C o u n c i l
  d e c i s i o n s o f 16 November 1981 and 27 J u l y 1982, i s h e r e b y r e p l a c e d
  by t h e C o n s o l i d a t e d Text o f t h e Arrangement on G u i d e l i n e s
  f o r O f f i c i a l l y S u p p o r t e d Export C r e d i t s and by t h e complementary
  U n d e r t a k i n g s and D e c l a r a t i o n s by P a r t i c i p a n t s t o t h e Arrangement
 as i n d i c a t e d i n Annexes I and I I t o t h i s D e c i s i o n .
                                     ARTICLE 2
 1. The D e c i s i o n o f 4 A p r i l 1978 i s h e r e b y e x t e n d e d u n t i l 1 May 1983".
2. The D e c i s i o n o f 27 J u l y 1982 i s hereby                    repealed.
                                    ARTICLE 3
This Decision i s addressed                     t o t h e Member S t a t e s .
                                                              Done a t B r u s s e l s
                                                              For t h e C o u n c i l
                                                             The P r e s i d e n t
 ---pagebreak---                                                                                                   ANNEXE 1
                                               ARRANGEMENT
                                                        ON
                GUIDELINES FOR O F F I C I A L L Y          SUPPORTED EXPORT                 CREPTTÇ
            T h i s t e x t o f t h e A r r a n g e m e n t , w h i c h was a p p r o v e d by t h e
P a r t i c i p a n t s a s o f 1 s t December, 1 9 8 2 , t a k e s i n t o a c c o u n t t h e
v a r i o u s r e v i s i o n s and amendments made, by cornaon a g r e e m e n t , t o
the o r i g i n a l t e x t [ T D / C 0 N S E N S U S / 7 8 . 4 ( l s t . R e v i s i o n ) ] o f
1 s t A p r i l , 1978 and i n p a r t i c u l a r t h e m o d i f i c a t i o n s r e f e r r e d t o
i n document TD/CONSENSUS/82.23.
 ---pagebreak---                                                        2-
                                               C O N T E N T S
                                                                      Page
   FORM AND SCOPE OF THE                    ARRANGEMENT
   P a r a g r a p h 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 P A R T I C I P A T I O N          15
        "           14.     REVIEW                                 • 15
                    15.     V A L I D I T Y 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                   L I S T OF PARTICIPANTS                   25
 ---pagebreak---                         ARRANGEMENT            ON GUIDELINES FOR O F F I C I A L L Y SUPPORTED
                                                         EXPORT CREDITS
       FORM AND SCOPE OF THE                        ARRANGEMENT
                    T h i s i n f o r m a l A r r a n g e m e n t i s a p p l i c a b l e among t h e
       P a r t i ' c i p a n t s ( l ) , i n t h e form o f g u i d e l i n e s , t o o f f i c i a l l y
      s u p p o r t e d e x p o r t c r e d i t s w i t h a r e p a y m e n t t e r m o f two y e a r s o r
      more, r e g a r d l e s s o f w h e t h e r t h e y r e l a t e t o c o n t r a c t s f o r s a l e
      o f goods a n d s e r v i c e s o r t o l e a s e s e q u i v a l e n t i n e f f e c t t o s u c h
      c o n t r a c t s o r t o pure s e r v i c e c o n t r a c t s .
     1.            CASH PAYMENTS
                  P a r t i c i p a n t s w i l l r e q u i r e p u r c h a s e r s o f e x p o r t e d goods
     and s e r v i c e s t o make c a s h payments, a t o r b e f o r e -the s t a r t i n g
     p o i n t e q u a l t o a minimum o f 15 p e r c e n t o f t h e e x p o r t c o n t r a c t
     value.            P a r t i c i p a n t s w i l l not p r o v i d e o f f i c i a l support f o r such
    c a s h payments o t h e r , than i n s u r a n c e and g u a r a n t e e s a g a i n s t t h e
    usual pre-credit r i s k s .
    2.           MAXIMUM           REPAYMENT TERM
             . (a) Except f o r the s p e c i a l s e c t o r s r e f e r r e d t o i n '
    P a r a g r a p h 4..and c o u n t r i e s r e f e r r e d t o i o f o o t n o t e ( 2 ) t o
   P a r a g r a p h 3 ( a ) , t h e maximum r e p a y m e n t t e r m w i l l be 8.5 y e a r s
   f o r r e l a t i v e l y r i c h and i n t e r m e d i a t e c o u n t r i e s and 10 y e a r s f o r
   r e l a t i v e l y poor c o u n t r i e s .           The e x p o r t c r e d i t a g r e e m e n t a n d
   a n c i l l a r y documents s h a l l not p e r m i t t h e e x t e n s i o n o f t h e
   repayment term.                      I f a P a r t i c i p a n t intends t o support a
   r e p a y m e n t t e r m l o n g e r t h a n 5 and up t o 8.5 y e a r s f o r a'
  r e l a t i v e l y r i c h country,, t h e P a r t i c i p a n t w i l l g i v e p r i o r
  n o t i f i c a t i o n i n accordance with the procedure s e t f o r t h i n
  Paragraph 9 ( b ) ( 1 ) .
                ( b ) P r i n c i p a l o f an e x p o r t c r e d i t w h i c h i s o f f i c i a l l y
  s u p p o r t e d by way o f d i r e c t c r e d i t , r e f i n a n c i n g , e l i g i b i l i t y f o r
  an i n t e r e s t s u b s i d y , g u a r a n t e e o r i n s u r a n c e s h a l l n o r m a l l y be
 r e p a y a b l e i n e q u a l and r e g u l a r i n s t a l m e n t s n o t l e s s f r e q u e n t l y
 t h a n e v e r y s i x months, commencing n o t l a t e r t h a n s i x m o n t h s
 a f t e r the s t a r t i n g p o i n t .             I f a P a r t i c i p a n t intends not t o
 f o l l o w t h e normal p r a c t i c e , the P a r t i c i p a n t w i l l g i v e p r i o r
 n o t i f i c a t i o n i n accordance with the procedure s e t f o r t h i n
Paragraph 9 ( b ) ( 1 ) .                   Such p r i o r n o t i f i c a t i o n w i l l n o t be
r e q u i r e d i n t h e c a s e o f l e a s e s i f t h e amount o f p r i n c i p a l a n d
i n t e r e s t c o m b i n e d i s p a y a b l e i n e q u a l and r e g u l a r i n s t a l m e n t s
n o t l e s s f r e q u e n t l y t h a n e v e r y s i x m o n t h s , commencing n o t l a t e r
t h a n s i x months a f t e r t h e s t a r t i n g p o i n t .
( 1 ) See Annex D f o r t h e l i s t                    of Participants.
 ---pagebreak---                                                            - A -
      3.           MINIMUM INTEREST RATE
                   ( a ) The f o l l o w i n g minimum r a t e s o f i n t e r e s t w i l l a p p l y
      where P a r t i c i p a n t s a r e p r o v i d i n g o f f i c i a l f i n a n c i n g s u p p o r t by
      way o f d i r e c t c r e d i t , r e f i n a n c i n g o r i n t e r e s t r a t e s u b s i d y :
                ' Classiflcatlon(l)                          Number o f y e a r s i n Maximum
                      of Country                                      Repayment Terms
                                               2 - 5         Over 5 - 8.5                 Over   8.5        10
    I          Relatively rich                 12.15»!             12.40%               not a p p l i c a b l e
    II         Intermediate                    10.85*              11.35%               not a p p l i c a b l e n )
    III        R e l a t i v e l y poor       10.0%                10. 0%                      10.0%
                 (b) I t i s u n d e r s t o o d t h a t i f c o m m e r c i a l l e n d i n g r a t e s o f
   i n t e r e s t f o r the n a t i o n a l currency i n a P a r t i c i p a n t ' s country
   f a l l b e l o w t h e l o w e s t minimum l e v e l a t ( a ) a b o v e , any
  P a r t i c i p a n t may p r o v i d e s u c h o f f i c i a l f i n a n c i n g s u p p o r t , f o r
  e x p o r t c r e d i t i n t h a t c u r r e n c y c a r r y i n g i n t e r e s t a t r a t e s below
  t h e above g u i d e l i n e s , p r o v i d e d t h a t t h e i n t e r e s t r a t e c h a r g e d
  f o r the e x p o r t c r e d i t which i s b e i n g f i n a n c e d * as a whole or i n
  p a r t . w i t h such o f f i c i a l s u p p o r t , i s not l e s s than t h e
 c o m m e r c i a l I n t e r e s t r e f e r e n c e r a t e ( 3 ) i n c r e a s e d by 0.3
 p e r c e n t a g e p o i n t s p e r annum.
 (1) F o r c r i t e r i a          underlying the c l a s s i f i c a t i o n        c f . Paragraph
          12(a)(8).
 ( 2 ) S p e c i f i c p r o v i s i o n s f o r c o u n t r i e s w h i c h were c l a s s i f i e d i n
          C a t e g o r y I I I b e f o r e 6 t h J u l y , 1982 b u t as o f t h i s d a t e a r e
          c l a s s i f i e d i n Category I I ;
         a)       t h e maximum r e p a y m e n t t e r m w i l l be 10 y e a r s , t h e
                  minimum i n t e r e s t r a t e a p p l i c a b l e f o r r e p a y m e n t t e r m s     of
                  o v e r 8.5 t o 10 y e a r s b e i n g t h e same as t h a t f o r
                  r e p a y m e n t t e r m s o f o v e r 5 t o 8.5 y e a r s ;
         b)      u n t i l 3 1 s t December, 1982 a minimum i n t e r e s t r a t e                   of
                 10.5 p e r c e n t w i l l be a p p l i e d f o r r e p a y m e n t t e r m s        of
                 b e t w e e n 2 and 5 y e a r s and o f 10.75 p e r c e n t f o r
                 r e p a y m e n t t e r m s o f o v e r 5 t o 10 y e a r s .
(3) The c o m m e r c i a l i n t e r e s t r e f e r e n c e r a t e f o r J a p a n e s e       Yen I s
        t h e l o n g term prime r a t e (LTPR) f o r Japan.
 ---pagebreak---                                                                     -  5   -
                     ( c ) I n t e r e s t on an e x p o r t c r e d i t w h i c h i s o f f i c i a l l y
        s u p p o r t e d by way o f d i r e c t c r e d i t , r e f i n a n c i n g , e l i g i b i l i t y f o r
       an i n t e r e s t s u b s i d y , g u a r a n t e e o r i n s u r a n c e s h a l l n o r m a l l y n o t
       be c a p i t a l i z e d d u r i n g t h e repayment t e r m but s h a l l be p a y a b l e
       n o t l e s s f r e q u e n t l y t h a n e v e r y s i x months, commencing n o t l a t e r
       t h a n s i x months a f t e r t h e s t a r t i n g p o i n t .               If a Participant
       i n t e n d s not t o f o l l o w the normal p r a c t i c e , the P a r t i c i p a n t w i l l
      g i v e p r i o r n o t i f i c a t i o n i n accordance w i t h the procedure s e t
      f o r t h i n P a r a g r a p h 9(b) ( D .
      4.          SPECIAL SECTORS
                  The       following           terms     shall       apply to the s e c t o r s l i s t e d
     below:
                  ( a ) C o n v e n t i o n a l Power P l a n t s :            The terms-<jf t h i s
    A r r a n g e m e n t s h a l l a p p l y e x c e p t t h a t t h e maximum r e p a y m e n t t e r m
    s h a l l be 12 y e a r s .                I f a P a r t i c i p a n t intends to support a
    r e p a y m e n t term l o n g e r t h a n 5 y e a r s i n t r a n s a c t i o n s w i t h
    r e l a t i v e l y r i c h c o u n t r i e s and l o n g e r t h a n t h e relevant.-maximum
   set f o r t h i n Paragraph 2(a) f o r o t h e r c o u n t r i e s , the
   P a r t i c i p a n t w i l l give p r i o r n o t i f i c a t i o n i n accordance w i t h the
   procedure set f o r t h i n Paragraph 9(b)(1).-                                     »
                (b) G r o u n d S a t e l l i t e C o m m u n i c a t i o n s S t a t i o n s :    The t e r m s
  of t h i s A r r a n g e m e n t s h a l l be a p p l i c a b l e e x c e p t t h a t t h e maximum
  r e p a y m e n t term t o any c o u n t r y may not e x c e e d 8 y e a r s [ a s
  p r o v i d e d f o r i n t h e OECD U n d e r s t a n d i n g on E x p o r t C r e d i t s f o r
 Ground S a t e l l i t e Communications S t a t i o n s - C ( 7 4 ) 1 1 2 ( F i n a l ) ] .
               (c) S h i p s : P a r t i c i p a n t s w i l l a p p l y t h e t e r m s o f t h i s
 A r r a n g e m e n t , t o s h i p s n o t c o v e r e d by t h e OECD U n d e r s t a n d i n g on
 E x p o r t C r e d i t s f o r S h i p s - C ( 8 1 ) 1 0 3 ( F i n a l ) . (See a l s o
 Paragraph 12(d) of t h i s Arrangement.)
5.           LOCAL COSTS
             ( a ) The f o l l o w i n g p r o v i s i o n s a p p l y t o l o c a l        costs related
to     those e x p o r t c r e d i t s to which t h i s Arrangement                          applies:
                 (1)        For c r e d i t s to i n t e r m e d i a t e or r e l a t i v e l y poor
                            c o u n t r i e s , P a r t i c i p a n t s w i l l not f i n a n c e o r i n s u r e
                            c r e d i t f o r more t h a n 1 0 0 p e r c e n t o f t h e v a l u e o f
                            t h e goods and s e r v i c e s e x p o r t e d .         Thus t h e amount
                           o f l o c a l c o s t s s u p p o r t e d on c r e d i t t e r m s w i l l n o t
                           exceed the cash payments.                           Furthermore,
                           P a r t i c i p a n t s w i l l not g r a n t such s u p p o r t f o r l o c a l
                          c o s t s c a r r y i n g i n t e r e s t r a t e s ( i f i n t h e same
                          c u r r e n c y as t h a t o f t h e e x p o r t c r e d i t ) o r
                          r e p a y m e n t terms more f a v o u r a b l e t h a n t h o s e
                          s u p p o r t e d f o r the e x p o r t s to which such l o c a l
                          costs are r e l a t e d .
 ---pagebreak---                                                                6
                         For c r e d i t s t o r e l a t i v e l y r i c h c o u n t r i e s , t h e
                         p r o v i s i o n s of Paragraph 5(a)(1) w i l l apply,
                         p r o v i d e d , however, t h a t any s u p p o r t w i l l be
                         confined to insurance or guarantees.
           ( b ) F o r t h e p u r p o s e s o f t h i s P a r a g r a p h , and i n a c c o r d a n c e
 w i t h t h e t e x t o f t h e OECD D e c l a r a t i o n s on l o c a l c o s t s o f 1 5 t h
 May..1975:
                         L o c a l c o s t s means e x p e n d i t u r e f o r t h e s u p p l y f r o m
                         the b u y e r ' s c o u n t r y o f goods and s e r v i c e s ( h o w e v e r
                         commissions payable t o t h e e x p o r t e r ' s agent i n t h e
                         b u y i n g c o u n t r y do n o t f a l l w i t h i n t h e d e f i n i t i o n
                         of l o c a l costs i n the context of the Arrangement)
                         which are necessary e i t h e r f o r e x e c u t i n g t h e
                        exporter's contract or for completing the project
                        of which the e x p o r t e r ' s c o n t r a c t forms p a r t .
                (2)     E x p o r t e d goods and s e r v i c e s i n c l u d e s g o o d s a n d
                        s e r v i c e s s u p p l i e d by t h i r d c o u n t r i e s .
          COMMITMENTS(1) AND PRIOR COMMITMENTS
                  Individual             Transactions          n o t c o v e r e d by L i n e s  of Credit
                  The c r e d i t t e r m s and c o n d i t i o n s o f new c o m m i t m e n t s
                 s h a l l n o t be f i x e d f o r period's e x c e e d i n g s i x m o n t h s .
                  In t h e c a s e o f c h a n g e s i n t h e g u i d e l i n e s o f t h e
                 Arrangement, the support o f c r e d i t c o n d i t i o n s not i n
                 c o n f o r m i t y w i t h t h e g u i d e l i n e s as m o d i f i e d s h a l l n o t
                 be j u s t i f i e d a f t e r a p e r i o d o f s i x months f r o m t h e
                 date o f m o d i f i c a t i o n .           Non-conforming commitments
                 s t i l l o u t s t a n d i n g s i x months a f t e r t h e d a t e o f
                 m o d i f i c a t i o n s h a l l be n o t i f i e d t o a l l o t h e r
                 P a r t i c i p a n t s immediately, u t i l i z i n g the standard                  form
                 s e t o u t i n Annex B.
          (b)    Lines        of Credit(2)
                 The c r e d i t t e r m s and c o n d i t i o n s o f a l i n e o f c r e d i t ,
                 w h e t h e r new o r one t h a t i s b e i n g renewed o r
                 p r o l o n g e d , s h a l l n o t be f i x e d f o r a p e r i o d e x c e e d i n g
                 s i x months.              In t h e c a s e o f c h a n g e s i n t h e g u i d e l i n e s
                 of t h i s Arrangement, the support o f c r e d i t c o n d i t i o n s
                 a t t r i b u t a b l e t o the l i n e s o f c r e d i t which a r e not i n
                 c o n f o r m i t y w i t h t h e m o d i f i e d g u i d e l i n e s s h a l l n o t be
                j u s t i f i e d a f t e r a p e r i o d o f s i x months f r o m t h e d a t e
                of m o d i f i c a t i o n .       C r e d i t l i n e s , not i n conformity
                w i t h t h e g u i d e l i n e s as m o d i f i e d , s t i l l        outstanding
                s i x months a f t e r t h e d a t e o f m o d i f i c a t i o n s h a l l be
                n o t i f i e d t o a l l other P a r t i c i p a n t s immediately
                u t i l i z i n g t h e stand-ard form s e t o u t i n Annex A.
(1) F o r d e f i n i t i o n       c f . Paragraph           12(a)(2).
(2) F o r d e f i n i t i o n ^ .          Paragraph          12(a)(3).
 ---pagebreak---                                                                 7
               (c)     Matching
                    ( 1 ) Any P a r t i c i p a n t has t h e r i g h t t o match t h e t e r m s
                              s u p p o r t e d by a n o t h e r P a r t i c i p a n t u n d e r a p r i o r
                              commitment.
                    ( 2 ) The m a t c h i n g P a r t i c i p a n t w i l l make r e a s o n a b l e
                             e f f o r t s t o determine whether non-conforming                            terms
                             o f a p r i o r commitment f o r an i n d i v i d u a l
                             t r a n s a c t i o n o r o f a p r i o r c r e d i t l i n e w i l l be u s e d
                            to support a p a r t i c u l a r t r a n s a c t i o n .            This
                            P a r t i c i p a n t w i l l be c o n s i d e r e d t o have made s u c h
                            r e a s o n a b l e e f f o r t s i f i t h a s i n f o r m e d by t e l e x t h e
                            P a r t i c i p a n t assumed t o o f f e r s u c h n o n - c o n f o r m i n g
                            t e r m s o f I t s i n t e n t i o n t o m a t c h , b u t has n o t been
                           i n f o r m e d w i t h i n t h r e e w o r k i n g days t h a t t h e p r i o r
                           commitment o r p r i o r c r e d i t l i n e w i l l , n o t be u s e d
                           to support the t r a n s a c t i o n i n q u e s t i o n .
                           I n s o f a r as t h e i n d i v i d u a l t r a n s a c t i o n s r e f e r r e d t o
                          i n Paragraph 6(a) are concerned, the matching
                          P a r t i c i p a n t w i l l follow the procedure s e t f o r t h i n
                          P a r a g r a p h 9 ( b ) ( 2 ) and ( 3 ) .                 »
                          I n s o f a r as l i n e s o f c r e d i t r e f e r r e d t o i n
                         Paragraph 6(b) a r e concerned, each P a r t i c i p a n t has
                         t h e r i g h t t o match t h e c r e d i t t e r m s o f f e r e d by
                         a n o t h e r P a r t i c i p a n t on an i n d i v i d u a l t r a n s a c t i o n s
                         b a s i s , o r by means o f a n o t h e r l i n e o f c r e d i t . I f
                        t h e l a t t e r method i s a d o p t e d , t h e d a t e o f e x p i r y
                        of the matching l i n e o f c r e d i t s h a l l not surpass
                        t h e l e n g t h o f commitment made w i t h i n t h e f r a m e w o r k
                        o f t h e l i n e o f c r e d i t b e i n g matched.
                        If a P a r t i c i p a n t matching a c r e d i t l i n e i n t e n d s t o
                       s u p p o r t t e r m s w h i c h i n c l u d e any o t h e r
                       non-conforming element, the P a r t i c i p a n t                        shall
                       f o l l o w t h e p r i o r n o t i f i c a t i o n and d i s c u s s i o n
                      procedure s e t f o r t h i n Paragraph 9 ( a ) ( 2 ) ( i i ) .                       As
                      s o o n as a P a r t i c i p a n t c o m m i t s i t s e l f , I t must i n
                      a l l cases immediately inform a l l other
                      Participants accordingly.
        TIED AID            CREDITS(l)
        If a     P a r t i c i p a n t intends to support a t i e d a i d c r e d i t the
Participant        s h a l l , without prejudice to o f f i c i a l                     development
assistance       p r o c e d u r e s a d m i n i s t e r e d by t h e D e v e l o p m e n t
Assistance       Committee, g i v e n o t i f i c a t i o n i n accordance w i t h t h e
procedures      s e t forth i n Paragraphs:
(1) F o r d e f i n i t i o n c f . P a r a g r a p h       12(a)(4).
 ---pagebreak---                                                                    8
                          (i)   9 ( a ) ( 1 ) , i f the grant element I s l e s s               t h a n 15   per
                                cent;
                       ( 1 1 ) 9 ( b ) ( 1 ) , i f t h e g r a n t e l e m e n t i s o f 15 p e r c e n t       or
                                more, b u t l e s s t h a n 25 p e r c e n t ;
                     (iii)      9(c)(1),        I f t h e g r a n t e l e m e n t i s 25 p e r c e n t     or
                               more.
       8.           BEST ENDEAVOURS
                    ( a ) The g u i d e l i n e s s e t o u t i n t h i s A r r a n g e m e n t r e p r e s e n t
      t h e most g e n e r o u s c r e d i t t e r m s f o r w h i c h P a r t i c i p a n t s i n t e n d I n
      general to give o f f i c i a l support.                       A l l Participants recognise
      t h e r i s k t h a t i n t h e c o u r s e o f t i m e t h e s e g u i d e l i n e s may come
      t o be r e g a r d e d as norms.                 They t h e r e f o r e u n d e r t a k e t o t a k e , as
      f a r as p o s s i b l e , t h e n e c e s s a r y s t e p s t o p r e v e n t t h i s r i s k f r o m
     materialising.
                  ( b ) In p a r t i c u l a r , t h e y u n d e r t a k e t h a t where, I n an
     i n d i v i d u a l b r a n c h o f t r a d e o r i n d u s t r i a l s e c t o r t o whid'h t h i s
    Arrangement a p p l i e s , terms l e s s generous t o buyers than t h o s e
    set out a r e c u s t o m a r y , they w i l l c o n t i n u e t o T e s p e c t s u c h
    c u s t o m a r y t e r m s and w i l l do e v e r y t h i n g I n ' t h e i r power t o
    p r e v e n t t h o s e t e r m s from b e i n g e r o d e d as a r e s u l t o f r e c o u r s e
    t o t h e terms- s e t o u t i n t h i s A r r a n g e m e n t .
                 ( c ) In k e e p i n g w i t h t h e o b j e c t i v e s s e t f o r t h i n
   sub-paragraphs                 ( a ) and (b) a b o v e , P a r t i c i p a n t s r e c o g n i s e t h e
   a d v a n t a g e w h i c h c a n a c c r u e i f a c l e a r l y d e f i n e d common a t t i t u d e
   t o w a r d t h e c r e d i t t e r m s f o r a p a r t i c u l a r t r a n s a c t i o n c a n be
   a c h i e v e d and i f maximum use i s made o f t h e e x i s t i n g
   a r r a n g e m e n t s f o r e x c h a n g i n g i n f o r m a t i o n a t an e a r l y s t a g e .      If
  a P a r t i c i p a n t i n f o r m s another P a r t i c i p a n t o f the terms which i t
  e n v i s a g e s s u p p o r t i n g f o r a p a r t i c u l a r t r a n s a c t i o n and r e q u e s t s
  s i m i l a r i n f o r m a t i o n ' f r o m the o t h e r P a r t i c i p a n t , t h e n , i n the
  absence o f a s a t i s f a c t o r y r e p l y w i t h i n seven c a l e n d a r days, the
  e n q u i r i n g P a r t i c i p a n t may assume t h a t t h e o t h e r w i l l s u p p o r t
  t h e t r a n s a c t i o n on t h e most f a v o u r a b l e t e r m s p e r m i t t e d by t h e s e
  guidelines.                 In c a s e s o f p a r t i c u l a r u r g e n c y , t h e e n q u i r i n g
 P a r t i c i p a n t may r e q u e s t a more r a p i d r e p l y .
 9.           PROCEDURES
 (a)         Derogations:                 Procedure f o r P r i o r        Notification          and
                                         Discussion
             ( 1 ) N o t i f i c a t i o n and D i s c u s s i o n : I f a P a r t i c i p a n t
i n t e n d s to t a k e the i n i t i a t i v e t o s u p p o r t terms not i n
c o n f o r m i t y w i t h t h i s Arrangement or to support a t i e d a i d
c r e d i t h a v i n g a g r a n t e l e m e n t o f l e s s t h a n 15 p e r c e n t ,
 ---pagebreak---                                                                - 9   -
               the Participant will notify all other Participants of the terms
              it intends to support at least ten c a l e n d a r days b e f o r e issuing
              any c o m m i t m e n t . If any other Participant requests a discussion
             during this per iod, the initiating Participant will d e l a y an
             a d d i t i o n a l ten c a l e n d a r days b e f o r e issuing any commitment on
             such terms. Normally this discussion shall be by telex.                           In
            e x t r e m e 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
           i m m e d i a t e l y i n f o r m all other Participants accordingly.
                       C2) Matching ( i d e n t i c a l or by other s u p p o r t ) : On a n d
          after the expiry of the first ten day p e r i o d r e f e r r e d to above
          if no discussion is requested Cor on and a f t e r the expiry of
         the second ten day p e r i o d if d i s c u s s i o n is requested) and
         unless the m a t c h i n g P a r t i c i p a n t ha$ received notice from the
         initiating Participant that the latter has withdrawn Its
        i n t e n t i o n to support non-conforming terms, any Participant
        s h a l l have the right to support:
                      (i)                  With respect to identical m a t c h i n g ,»terms which
       i n c l u d e the identical n o n - c o n f o r m i n g e l e m e n t but which
       otherwise conform to the g u i d e l i n e s provided that the m a t c h i n g
      P a r t i c i p a n t not i f i e s , as e a r l y as possible, its intention to do
      so; or
                  (ii)                   With respect to other support prompted by the
     initial d e r o g a t i o n , any other n o n - c o n f o r m i n g element of t h e
     terms, provided that the r e s p o n d i n g Participant introduces a
     fresh derogation, initiating a five c a l e n d a r day prior ·
    n o t i f i c a t i o n and five calendar day d i s c u s s i o n procedure a n d
    awaits its c o m p l e t i o n .           This p e r i o d can run concurrently with
    that of the p r i o r n o t i f i c a t i o n a n d d i s c u s s i o n p r o c e d u r e
   initiated by the derogating Participant, but cannot e l a p s e
   b e f o r e the e n d of the ten or t w e n t y days p e r i o d r e f e r r e d to
   under Paragraph 9(a)(1).
              (3) Terms O f f e r e d by a N o n - P a r t i c i p a n t : The Participant
  which intends to meet n o n - c o n f o r m i n g terms o f f e r e d by a
  non-Pa r t i c i p a n t will f o l l o w the p r i o r n o t i f i c a t i o n and
  discussion procedure under (1) and (2) above.                             Before
 considering meeting n o n - c o n f o r m i n g terms, the Participant shall
 make every effort to verify that the non-conforming terms are
 receiving o f f i c i a l support. The Participant s ha ll i n f o r m all
 other Participants of the nature and outcome of these efforts.
           (4) Information on C o m m i t m e n t : As soon as a Participant
commits i t s e l f to support non-conforming terms, it must in all
cases immediately I n f o r m all o t h e r P a r t i c i p a n t s a c c o r d i n g l y .
                                      »
 ---pagebreak---                                   - 10  -
 (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 P a rticipant
 intends:
          (i)          to support a credit with a repayment term of "ove
5 to '8.5 years" to a relatively rich country, or
         (ii)         not to follow normal payment practices with respec
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 elemen
of 15 per cent or more but less than 25 per cent, or
          (v)          to support credit conditions for any type o f ship
to which the existing OECD Understanding applies, which would
be more favourable than those credit conditions p e r m i t t e d by
this Arrangement.
       (2) If the initiating Participant, moderates or w i t h draws
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 m a t c h i n g , terms w hich
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 s u p p o r t , 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).
 ---pagebreak---                                                  - 11 -
                (4) Information on C o m m i t m e n t : As soon as a Participant
     commits itself, it must in all cases immediately inform all
     other Participants accordingly.
     (c)     Prompt Notification Procedure
               Cl) N o t i f i c a t i o n : 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 C o m m i t m e n t : 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 M e n t i o n e d
            under (a), (b) and (c) above
            Ine notifications called for by the above p r o c e d u r e s 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.      N O - 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 o f .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 e q u i p m e n t .
        (b) Agricultural c o m m o d i t i e s .
        (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.
 ---pagebreak---                                                       -   12  -
                  (d) Nuclear Power Plants: The terms of the OECD
                         "standstill" (TC/EC G / M / 7 5 . 1, item 6 and Annex III B)
                         shall apply.
                 (e ) Ships covered by the OECD Understanding on Export
                        Credits for Ships - C ( 8 1 )1 0 3 ( F i n a l ) . (See also
                        Paragraph 12(d) of this Arrangement).
       12.      D E F I N I T I O N S 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 e s t a b l i s h e d
     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 declar a t i o n
   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 g u a r a n t e e
   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 p r o vided 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 p u r poses 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
 ---pagebreak---                                             - 13 -
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 t e r m : 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.
l o c o m o t i v e s ) , 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 p o s s e s s i o n
of the entire equipment (excluding spare parts) supplied under
the contract.
           ·(i i i ) In the case of construction contracts where the
contractor has no responsibility for c o m m i s s i o n i n g , 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 essen t i a l
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
                                *
 ---pagebreak---                                                  - 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 Catego r i e s 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 l o n g - e s t a b l i s h e d
  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 d i s t r i b u t e d
 to all the Participants in document T D / C O N S E N S U S / 7 8 . 12 and
 Addenda.
 (c)      Action to Avoid or Minimize Losses
          The provisions of this Arrangement are without p r e j u d i c e
 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 )    A p p l icability 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 ( 8 1 ) 1 0 3 ( F i n a l ) ] it has not proved possible to
                           V
 ---pagebreak---                                        - 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 C o u n t r y 1*
               Participants considered that the interest-rate and
     repayment term set out in Paragraphs 2 and 3 c o r r e s p o n d i n g 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 g u i d e l i n e s ( l ) . In the r eview
  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.
 ---pagebreak---                                             -   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 p r o v i d e d
by Participants not later than 45 days before the date of the
review.
15.    VALIDITY a n d d u r a t i o n
       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 P a r t i c i p a n t may w i t h d r a w from this A r r a n g e m e n t upon
not less than 60 c a l e n d a r days p r i o r w r i t t e n n o t i c e to-the
other Participants.                                            »
 ---pagebreak---                                           - 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 r e p aying
                       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 percen t a g e
                      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
 ---pagebreak---                              - 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)],
 ---pagebreak---                                                       - 1 9 -
                                                    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 s h a r e ( * ) .
   9.       (If relevant) specify any minimum contract valueC*).
  10. Credit terms which 1. intends to support:
                  (a) cash payments;
  (*) Values shall be stated in terms of value ratings in
          accordance with the following scale in Special Drawing
          Rights (SOR's):
 Category               I:      up to           6 0 0 , 0 0 0 SDR's
 Category            II:        from           600,000 to             1.000.   000 SDR's
 Category          III:         from        1,000,000 to              2.000.   000 SDR's
Category             VI:       from        2,000,000 to              3.000.    000 SDS's
Category               V:      from        3,000,000 to              5.000.   000 SDR's
Category            VI:        from        5 , 0 0 0 , 0 0 0 to      7.000.   000 SDR's
Category           VII:        from        7, 000, 000 to           10.000.  000 SDR's
C a t e g o r y VIII:          from       10,000,000 to             20.000.  000 SDR's
Category            IX:       from       20,000,000 to              40.000.  000 SDR's
Category              X:      exceeding 40,000,000 SDR's.
                                »
 ---pagebreak---        (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 s u pport
          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).                             *
 ---pagebreak---                                                   -  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 A r rangement
         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 notif i c a t i o n 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 d iscussion
                                                 or
          - giving prompt notification."
5.     Country of b u y e r / b o r r o w e r .
6.     Name and location of buyer/borrower.
7.     Nature of project/goods to be exported; location of project.
 ---pagebreak---      8 .       Value of line of c r e d i t / p r o j e c t / c o n t r a c t : 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
            •s u p p o r t e d ) :
             (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 a c c o r d a n c e
                with the following scale in Special Drawing Rights
                (SDR 1s ) :
 Category           I:         up to          600.000     SDR's
 Category        II:           from           600.000     to                1.000.     000 SDR's
 Category      III:            from       1 .000. 000      to               2.000.     000 SDR's
 Category        VI:          from        2 . 0 0 0 . 000  to               3.000.     000 SDR's
Category           V:         from        3 . 0 0 0 . 000  to               5.000.    000 SDR's
Category        VI:           from        5 .000. 000      to               7.000.    000 SDR's
Category VII:                 from        7.000. 000       to            10.000.     000 SDR's
Category VIII:                from     1 0 . 0 0 0 . 000  to             20.000.     000 SDR's
Category        IX:          from      2 0 . 0 0 0 . 000  to             40.000.     000 SDR's
Category          X:         exceeding 4 0 . 0 0 0 . 000  SDR's.
 ---pagebreak---                         - 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).
 ---pagebreak---                                   - 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.         *
                  >
 ---pagebreak---                                                                                                               AN NE X II
                                C O M P L E M E N T A R Y U N D E R T A K I N G S AND D E C L A R A T I O N S
                            BY P A R T I C I P A N T S TO THE A R R A N G E M E N T ON G U I D E L I N E S
                                 FOR O F F I C I A L L Y SUPP ORT ED E X P O R T C R ED ITS
  (a) Ac c e s s to Yen f i n a n c i n g
       P a r t i c i p a n t s n o t e d a s t a t e m e n t by the D e l e g a t e for J a p a n that
       Yen f i n a n c i n g will be o p e n to P a r t i c i p a n t s w i t h o u t d i s c r i m i n a t i o n
       between Participants.
 (b) M e t h o d s of c a l c u l a t i o n of the grant e l e m e n t of t i e d a i d c r e d i t s
      P à r t i c i p a n t s a g r e e d that a st u d y of* the m e t h o d of c a l c u l a t i o n
      of the gr an t e l e m e n t of ti e d aid c r ed its sh o u l d be u n d e r t a k e n .
(c) Te rm s of ex port c r e d i t s for ai r c r a f t a n d n u c l e a r p o w e r p l a n t s
     P a r t i c i p a n t s a g r e e d to p r o c e e d to n e g o t i a t i o n s on a g r e e m e n t s on
     terms of export c r e d i t s for a i rc raf t a n d n u c l e a r p o w e r p l a n t s .