OECD announces new sustainable lending policies for export credits

(OECD, Paris, 16 January 2008) Official export credits to public and publicly guaranteed buyers in low income countries should reflect Sustainable Lending practices, i.e. lending which doesn't endanger LDC financial futures and long-term development prospects. ECG Members have agreed to apply principles to avoid lending decisions that might contribute to future debt distress for official export credits with repayment terms of one year or more. While ECA Watch welcomes this decision, we will monitor it's implementation and ask that loan conditions be fair and transparent to parliaments and the taxpaying public. This is particularly important since there have been major shortcomings in this field as part of standard practice with many OECD ECAs.