European Banking Federation submits OECD export credit position paper calling for further modernization of official export finance rules

The European Banking Federation has submitted a position paper to the OECD Export Credit Consultation, urging further modernization of the OECD Arrangement on Officially Supported Export Credits. Its main message is that the multilateral export finance framework should remain competitive, transparent and effective while better reflecting changing market conditions and financing structures. The paper acknowledges that the reform effective from July 2023 advanced the framework through longer repayment terms, changes to the Commercial Interest Reference Rate and a broader Climate Change Sector Understanding. It argues, however, that further clarification and more consistent application are needed, particularly on repayment terms, drawdown periods and project classification. The EBF’s recommendations include optimizing premiums for green and social projects, creating a permanent framework for down payments and export credit agency cover, clarifying how the Aircraft Sector Understanding applies to sovereign non-commercial projects, reviewing the TCMB-BAP methodology, adapting local cost provisions to changing supply chains, improving the clarity and usability of the Climate Change Sector Understanding, and strengthening recognition of social projects within the Arrangement. The submission forms part of the ongoing OECD review of the Arrangement, with the EBF indicating that it expects to continue engaging with policymakers and other stakeholders on the future of export finance.