Joint Business Position: Export Credits and Covid-19

w

Joint Business Position: Export Credits and Covid-19 x

x
Publication date: 22 July 2020

EBF joins BIAC (Business at OECD) and ICC (International Chamber of Commerce) in a business position on Covid-19 and Export Credits.

Summary of key policy recommendations

A) General considerations and short-term liquidity support

1. Improving access to liquidity


2. Evaluating credit impact


3. Broadening financial products offering


4. Enhancing re-insurance agreements with other ECA’s


5. Restructuring the existing loan portfolio

B) Actions specifically related to the OECD Arrangement

1.  Increasing the current local costs limitation to 50% of the total scope


2. Greater flexibility for ECAs in covering the minimum 15% down payment


3. Allow market-reflective repayments to better align with the nature of different projects


4. Increase the maximum repayment term to 18 years and cease to distinguish between different sectors


5. Revise the premiums applied to private borrowers in high-income OECD countries


6. Introduce an easy to define, transparent & predictable CIRR to provide a level playing field


7. Temporary suspension of country risk category reviews until at least 31 December

Joint Business Position: Export Credits and Covid-19