8 December 2010
Since 2008 the OECD Arrangement has allowed on a trial basis up to 30 per cent local costs in transactions and projects with export credit coverage against normally 15 per cent. The OECD countries have now decided to make the new limit of up to 30 per cent local costs permanent.
This possibility is significant for Danish exporters who carry out large construction works in the buyer country, in part because buyers sometimes require to a certain extent the use of local sub-supplies.
Danish exporters are now in a better position to accept this requirement and at the same time maintain export credit coverage of the whole transaction. And in part because Danish exporters may benefit from purchasing certain sub-supplies locally.
For further information on guarantees for business transactions including local costs please contact one of EKF’s customer advisors via EKF’s switchboard on +45 35 46 61 00.
For further information on the OECD Arrangement on Guidelines for Officially Supported Export Credits please contact head of International Relations, Mariane Søndergaard-Jensen on +45 35 46 61 15, or by e-mail: firstname.lastname@example.org