OECD Participants in the Arrangement on Export Credits Refuse Better Terms for Local Costs

May 16, 2005 (Source: ECA Watch) — In late April OECD Participants in the Arrangement on Export Credits agreed to extended repayment terms for renewable energy projects (see Item 1 above), but failed to arrive at a consensus on all points in the EU proposal on renewable energy (PDF). The EU had recommended increases in the maximum allowable local costs eligible for export financing from 15% to 30% of the export contract value. Had it been approved, this policy to cover local expenditures would reduce the tied aid component of ECA support and facilitate the transfer of technology and enhance the development impact of ECA financing. This would have been in keeping with the OECD’s stated commitment to achieving the Millennium Development Goals. NGOs had recommended its increase to 50%.