Brussels, 13/01/2014 (Agence Europe) - The OECD sector understanding on export credits for rail infrastructure entered into force on 1 January for a period of four years.
Through this agreement, the participants in the OECD arrangement on export credits benefitting from public support - the EU, Australia, Canada, South Korea, the US, Japan, Norway, New Zealand and Switzerland - authorise their export credit agencies to grant longer time periods for the repayment of loans that finance infrastructure.
The agreement adapts the rules of the arrangement to the financing conditions of new railway infrastructure projects. Its modalities and conditions aim to respond to the variable needs of public authorities and exporters, in both advanced and emerging economies, while helping the use of rail as a viable alternative to road and air transportation.
The agreement lengthens repayment periods for rail export contracts for an overall value of over 10 million special drawing rights (SDR). Its modalities authorise repayment up to 12 years for transactions in OECD countries and up to 14 years for those in other countries. It is applicable to contracts for essential rail infrastructure assets - including rail control, tracks, electrification, rolling stock and construction work. (EH/transl.fl)