Regulation (EU) No 1233/2011 of the European Parliament and of the Council of 16 November 2011 on the application of certain guidelines in the field of officially supported export credits and repealing Council Decisions 2001/76/EC and 2001/77/EC

• 1. The law firm’s relevant experience, which could include experience in legislative and constitutional processes as they relate to the implementation of international treaties in the State, and specific experience in CTC related issues including any experience in advising either a government on implementation and enforcement of the Cape Town Convention or the private sector, or enforcement of creditor’s rights in the State which is proposed to be added to the Cape Town List.

• 1. Whether the law firm is involved or intends to be involved in any transactions that may benefit from a reduction of minimum premium rates if the proposed State is added to the CTC list. ([^E0035])

- 4. The date on which this questionnaire was completed.

II.   QUESTIONS

• 1.1.Has the State ([^E0036]) made each of the qualifying declarations in accordance with the requirements of Annex 1 to Appendix II of the Sector Understanding on Export Credits for Civil Aircraft (‘ASU’) (each a ‘Qualifying Declaration’)? In particular, regarding the declarations concerning ‘Method for Exercising Remedies’ [Article 2 d)] and ‘Timely Remedies’ [Article 2 e)], please specify if one or both of these have been made.

• 1.2.Please describe the way in which the declarations made differ, if at all, from the requirements referred to in Question 1.1.

- 1.3.Please confirm that the State has not made any of the declarations listed in Article 3 of Annex 1 to Appendix II of the ASU.

• 2.1.Has the State ratified, accepted, approved or acceded to the Cape Town Convention and Aircraft Protocol (‘Convention’)? Please could you state the date of ratification/accession and briefly describe the State’s process of accession to or ratification of the Convention?

• 2.2.Do the Convention and Qualifying Declarations (‘QD’) made have the force of law in the whole territory of the State without any further act, implementing legislation or the passing of any further law or regulation?

- 2.3.If so, please briefly explain the process that gives the Convention and QDs the force of law.

• 3.1.Describe and list, if applicable, the implementing legislation and regulation(s) with respect to the Convention and each QD made by the State.

• 3.2.Would the Convention and QDs made, as translated into national law ([^E0037]) (‘Convention and QDs’), overrule or have priority over any conflicting national law, regulation, order, judicial precedent or regulatory practice. If so, please describe the process by which this happens, ([^E0038]) and if not, please provide details.

- 3.3.Are there any existing gaps in the implementation of the Convention and QDs? If so, please describe. ([^E0039])

• 4.1.Please describe any matters, including judicial, regulatory, or administrative practice which could be expected to result in the courts, authorities or administrative bodies failing to give full force and effect to the Convention and QDs. ([^E0040])^, ([^E0041])

• 4.2.To your knowledge, has there been any judicial or administrative enforcement action taken by a creditor under the Convention? If so, please describe the action and indicate whether it was successful.

• 4.3.To your knowledge, since ratification/implementation, have the courts in that State refused in any instance to enforce loan obligations of a debtor or guarantor in the State contrary to the Convention and QDs?

- 4.4.To your knowledge, are there any other matters that may impact whether courts and administrative bodies should be expected to act in a manner consistent with the Convention and QDs? If so, please specify.

Appendix III

MINIMUM INTEREST RATES

The provision of official financing support shall not offset or compensate, in part or in full, for the appropriate premium rate to be charged for the risk of non-repayment pursuant to the provisions of Appendix II.

• a) The minimum floating interest rate shall be, as appropriate for the currency, the EURIBOR, the Bank Bill Swap Rate, i.e. BBSY, the Canadian Dealer Offered Rate (CDOR) or the relevant risk free rate (RFR) for the currency, including term RFRs, as specified by the currency’s benchmark administrator (the ‘floating benchmark rate’). For certainty, for US dollars, the floating benchmark rate shall be the Secured Overnight Financing Rate (SOFR). Where the floating benchmark rate is an overnight rate, it shall be compounded daily during each interest period using generally accepted market conventions. Where the floating benchmark rate is a term rate, it shall be the rate effective two business days prior to each interest period, with the maturity that corresponds to the frequency of interest payment of the officially supported export credit. A margin benchmark calculated in accordance with Article 8 of this Appendix, shall be added to the floating benchmark rate.

• b) When the repayment of principal and the payment of interest are combined in equal instalments, a rate based on either the swap rate or the term floating benchmark rate effective two business days prior to the loan drawdown date, shall be used to calculate the entire payment schedule, as if it were a fixed rate, and the principal payment schedule shall then be fixed.

- c) Where official financing support is provided for floating rate loans, buyers/borrowers may have the option to switch from a floating rate to a fixed rate provided that the following conditions are fulfilled:

• 1. The option is restricted to switching to the swap rate only; ([^E0042])
• 1. The option to switch shall only be exercised upon request, only once, and shall be reported accordingly with a reference to the reporting form initially sent to the Secretariat pursuant to Article 24 of this Understanding.

The minimum fixed interest rate shall be either:

• a) The swap rate, concerning the relevant currency of the officially supported export credit and with a maturity equal to the interpolated rate for the two closest available annual periods to the weighted average life of the loan. The interest rate shall be set two business days prior to each drawdown date. OR

- b) The Commercial Interest Reference Rate (CIRR) established according to the provisions set out in Articles 3 to 7 of this Appendix,

to which, in both cases, the margin benchmark, calculated in accordance with Article 8 f) of this Appendix, shall be added.

• a) A CIRR shall be published for the euro, the Japanese yen, the UK pound sterling, the US dollar and, pending the submission of a request by an Interested Participant, any of the eligible currencies set out in Article 9 of this Sector Understanding and calculated by adding a fixed margin of 120 basis points to one of the following three yields (the base rates):
• 1. Five-year government bond yields for a repayment term up to and including nine years,
• 1. Seven-year government bond yields for over nine and up to and including 12 years, or
• 1. Nine-year government bond yields for over 12 and up to and including 15 years.

• b) CIRR shall be calculated monthly using data from the previous month and notified to the Secretariat, no later than five days after the end of each month. The Secretariat shall then inform immediately all Participants of the applicable rates and make them publicly available. CIRR shall take effect on the 15^th day of each month.

- c) A Participant or a non-Participant may request that a CIRR be established for the currency of a non-Participant. In consultation with the non-Participant, a Participant or the Secretariat on behalf of that non-Participant may make a proposal for the construction of the CIRR in that currency using the Common Line procedures set out in Articles 28 to 33 of this Sector Understanding.

• a) Holding the CIRR: the CIRR applying to a transaction shall not be held for a period longer than six months from its selection (export contract date or any application date thereafter) to the credit agreement date. If the credit agreement is not signed within that limit, and the CIRR is reset for an additional six months, the new CIRR shall be committed at the rate prevailing at the date of reset.

- b) After the credit agreement date, the CIRR shall be applied for drawing periods that do not exceed six months. After the first six-month drawing period, the CIRR is reset for the next six months; the new CIRR shall be the one prevailing at the first day of the new six-month period and cannot be lower than the CIRR originally selected (procedure to be replicated for each subsequent six-month period of drawings).

Within the provisions of the credit agreement the borrower shall not be allowed an option to switch from an officially supported floating rate financing to a pre-selected CIRR financing, nor be allowed to switch between a pre-selected CIRR and the short term market rate quoted on any interest payment date throughout the life of the loan.

In the event of a voluntary, early repayment of a fixed interest rate loan as determined in Article 2 of this Appendix, or any portion thereof or when the CIRR applied under the credit agreement is modified into a floating or a swap rate, the borrower shall compensate the institution providing official financing support for all costs and losses incurred as a result of such actions, including the cost to the government institution of replacing the part of the fixed rate cash inflow interrupted by the early repayment.

When market developments require the notification of an amendment to a CIRR during the course of a month, the amended rate shall be implemented ten working days after notification of this amendment has been received by the Secretariat.

• a) A SOFR margin benchmark shall be calculated monthly in accordance with paragraph b), using data notified to the Secretariat in accordance with paragraph c), and shall take effect on the 15^th day of each month. Once calculated, the margin benchmark shall be notified by the Secretariat to the Participants and shall be made publicly available.

• b) The SOFR margin benchmark shall be a rate equivalent to the average of the lowest 50 % of the margins over: (i) SOFR (either the daily compounded SOFR calculated on a 3-month frequency or a 3-month term SOFR, as appropriate) charged for floating rate transactions and (ii) SOFR (either the daily compounded SOFR calculated on a 3-month frequency or a 3-month term SOFR, as appropriate) as interpolated by swapping the fixed rate issuance to a floating rate equivalent charged for fixed rate transactions or capital market issuances. In either case, the margins included in the monthly benchmark reports submitted by relevant Participants shall be those from the three full calendar months preceding the effective date set out in paragraph a) above. Transactions/issuances that are used in the calculation of the margin benchmark shall meet the following conditions:
• 1. 100 % unconditional guarantee transactions denominated in US dollars; and
• 1. Official support provided in respect of aircraft valued at or above USD 35 million (or its equivalent in any other eligible currency).

• c) Participants shall report a margin at the time it becomes known and that margin will remain on the Participant’s margin benchmark report for three full calendar months. In the case of individual transactions with multiple pricing events, there shall be no attempt to match subsequent pricing events to ex post notifications.

• d) Participants shall notify transactions as of the date on which the long-term margin is realised. For bank mandated deals (including PEFCO), the date on which the margin is realised would be the earliest of the following: (i) issuance of a final commitment by the Participant, (ii) setting of the margin post-commitment, (iii) loan drawdown, and (iv) setting of the long-term margin post drawdown. In the case of several drawdowns occurring under the same bank mandate at the same margin, notification shall only be made in respect of the first aircraft. For loans funded by way of capital market issuance, the date on which the margin is realised shall be the date on which the long term rate is set which is typically the bond issuance date. In the case of several drawdowns occurring under the same bond and at the same margin, notification shall only be made in respect of the first aircraft.

• e) SOFR margin benchmark shall be applicable to a floating rate transaction and shall be set no earlier than the date of the final commitment and held for the duration of the final commitment.

• f) For a fixed rate transaction, the margin benchmark applicable to the transaction shall be determined by swapping the SOFR margin benchmark into an equivalent spread over the applicable fixed rate, as determined in Article 2 of this Appendix, and be set no earlier than the final commitment date and held for the duration of the final commitment.

• g) For the period from 15 February 2022 to 14 July 2022, the margin benchmark shall be set at 30 basis points plus a credit adjusted spread of 26 basis points ([^E0043]) (the ‘transitional margin benchmark’), for a total of 56 basis points, unless a SOFR margin benchmark can be calculated in accordance with paragraph b) prior to 14 July 2022.

- h) The Participants shall monitor the margin benchmark and shall review the margin benchmark mechanism upon the request of any Participant.

Appendix IV

REPORTING FORM

• 1.Notifying country

• 2.Notification date

• 3.Name of notifying authority/agency

- 4.Identification number

• 5.Name and country of buyer

• 6.Name and country of borrower

• 7.Name and country of guarantor

• 8.Status of buyer/borrower/guarantor, e.g. sovereign, private bank, other private

- 9.Risk classification of buyer/borrower/guarantor

• 10.In what form is official support provided, e.g. pure cover, official financing support

• 11.If official financing support is provided, is it a direct credit/refinancing/interest rate support

• 12.Description of the transaction supported, including the manufacturer, aircraft model and number of aircraft.

• 13.Final commitment date

• 14.Currency of credit

• 15.Credit amount, according to the following scale in USD millions:

Category	Credit Amount
I	0 -200
II	200 -400
III	400 -600
IV	600 -900
V	900 -1 200
VI	1 200 -1 500
VII	1 500 -2 000  [^E0044]

Indicate the number of USD 300 million multiples in excess of USD 2 000 million.

• 16.Percentage of official support

• 17.Repayment term

• 18.Repayment profile and frequency – including, where appropriate, weighted average life

• 19.Length of time between the starting point of credit and the first repayment of principal

• 20.Interest rates:

• — Minimum interest rate applied

• — Margin benchmark applied

• 21.Total premium charged by way of:

• — Up-front fees (in percentage of the credit amount) or

• — Spreads (basis points per annum above the applied interest rate)

• — As appropriate, please indicate separately the 15 % surcharge applied in accordance with Appendix II Article 20 b).

• 22.In the case of direct credit/financing, fees charged by way of:

• — Arrangement/Structuring fee

• — Commitment/Premium holding fee

• — Administration fee

• 23.Premium holding period

• 24.In the case of pure cover, premium holding fees

• 25.Transaction structuring terms: risk mitigants/premium surcharge applied

- 26.As appropriate, an indication of the impact of the Cape Town Convention on the premium rate applied

Appendix V

LIST OF DEFINITIONS

All-In Cost Equivalence: the net present value of premium rates, interest rate costs and fees charged for a direct credit as a percentage of the direct credit amount is equal to the net present value of the sum of premium rates, interest rate costs and fees charged under pure cover as a percentage of the credit amount under pure cover.

Asset-Backed: a transaction that meets the conditions set out in Article 19 a) of Appendix II.

Buyer/Borrower: includes (but is not limited to) commercial entities such as airlines and lessors, as well as sovereign entities (or if a different entity, the primary source of repayment of the transaction).

Buyer Furnished Equipment: equipment furnished by the buyer and incorporated in the aircraft during the manufacture/refurbishment process, on or before delivery, as evidenced by the Bill of Sale from the manufacturer.

Cape Town Convention: refers to the Cape Town Convention on International Interests in Mobile Equipment and the Protocol thereto on Matters specific to Aircraft Equipment.

Commitment: any statement, in whatever form, whereby the willingness or intention to provide official support is communicated to the recipient country, the buyer, the borrower, the exporter or the financial institution, including without limitation, eligibility letters, marketing letters.

Common Line: agreement of the Participants for a given transaction, or in special circumstances on specific financial terms and conditions for official support; such common line shall prevail over the relevant provisions of this Sector Understanding only for the transaction or in the circumstances specified in the common line.

Conditional Insurance Cover: official support, which in the case of a default on payment for defined risks provides indemnification to the beneficiary after a specified waiting period; during the waiting period the beneficiary does not have the right to payment from the Participant. Payment under conditional insurance cover is subject to the validity and the exceptions of the underlying documentation and of the underlying transaction.

Conversion: A major change in the type design of an aircraft through its conversion into a different type of aircraft (including the conversion of a passenger aircraft into a water bomber, cargo aircraft, search and rescue, surveillance aircraft, or business jet), subject to certification by the responsible Civil Aviation Authority.

Country Risk Classification: the prevailing country risk classification of the Participants to the Arrangement on Officially Supported Export Credits as published on the OECD website.

Credit Rating Agency: one of the internationally reputable rating agencies or any other rating agency that is acceptable to the Participants.

Engine Kits: a set of parts introduced to improve reliability, durability and/or on-wing performance procurement through introduction of technology.

Export Credit: an insurance, guarantee or financing arrangement which enables a foreign buyer of exported goods and/or services to defer payment over a period of time; an export credit may take the form of a supplier credit extended by the exporter, or of a buyer credit, where the exporter’s bank or other financial institution lends to the buyer (or its bank).

Final Commitment: a final commitment exists when the Participant commits to precise and complete financial terms and conditions, either through a reciprocal agreement or by a unilateral act.

Firm Contract: an agreement between the manufacturer and the person taking delivery of the aircraft or engines as buyer, or, in connection with a sale-leaseback arrangement, as lessee under a lease with a term of at least five years, setting forth a binding commitment (excluding those relating to then unexercised options), where non-performance entails legal liability.

Interested Participant: a Participant that (i) provides official support for airframe or aircraft engines completely or partially manufactured in its territory, (ii) has an existing substantial commercial interest or has experience with the buyer/borrower concerned, or (iii) has been requested by a manufacturer/exporter to provide official support to the buyer/borrower in question.

Interest Rate Support: can take the form of an arrangement between on the one hand a government, or an institution acting for or on behalf of a government and, on the other hand, banks or other financial institutions which allows the provision of fixed rate export finance at or above the relevant minimum fixed interest rate.

Major Modification/Refurbishing: operations of reconfiguration or upgrading of either a passenger or cargo aircraft.

Net Price: the price for an item invoiced by the manufacturer or supplier thereof, after accounting for all price discounts and other cash credits, less all other credits or concessions of any kind related or fairly allocable thereto, as stated in a binding representation by each of the aircraft and engine manufacturers the engine manufacturer representation is required only when it is relevant according to the form of the purchase agreement – or service provider, as the case may be, and supported by documentation required by the provider of official support to confirm that net price. All import duties and taxes (e.g. VAT) are not included in the net price.

New Aircraft: see Article 8 a) of this Sector Understanding.

Non-Asset-Backed: a transaction that does not meet the conditions set out in Article 19 a) of Appendix II.

Non-Sovereign Transaction: a transaction that does not meet the description set out in Article 57 b) of Appendix II.

Premium Holding Period: subject to Article 36 b) of Appendix II, period(s) during which a premium rate and related mandatory risk mitigants offered for a transaction are being maintained; not to exceed 18 months from the date it has been set until the final disbursement.

Premium Rate Conversion Model: model agreed by and made available to the Participants, to be used for the purpose of this Sector Understanding in order to convert up-front premium fees into spreads and vice versa, in which the interest rate and the discount rate used shall be 4,6 %; such rate shall be reviewed regularly by the Participants.

Prior Notification: a notification made at least ten calendar days before issuing any commitment, using the reporting form set out in Appendix IV.

Pure Cover: Official support provided by or on behalf of a government by a way of export credit guarantee or insurance only, i.e. which does not benefit from official financing support.

Repayment Term: the period beginning at the Starting Point of Credit and ending on the contractual date of the final repayment of principal.

Sovereign Transaction: a transaction that meets the description set out in Article 56 b) of Appendix II.

Starting Point of Credit: for the sale of aircraft including helicopters, spare engines and parts, at the latest the actual date when the buyer takes physical possession of the goods, or the weighted mean date when the buyer takes physical possession of the goods. For services, the latest starting point of credit is the date of the submission of the invoices to the client or acceptance of service by the client.

Swap Rate: a fixed rate equal to the rate to swap floating rate debt to fixed rate debt (Offer side), posted as the relevant currency’s Overnight Index Swap (OIS) curve, on any independent market index provider, such as Bloomberg, Reuters, or its equivalent, at 11:00 am New York time, two business days prior to the loan drawdown date.

Weighted Average Life: the time it takes to retire one-half of the principal of a credit; this is calculated as the sum of time (in years) between the starting point of credit and each principal repayment weighted by the portion of principal repaid at each repayment date.

ANNEX IV

SECTOR UNDERSTANDING ON EXPORT CREDITS FOR SHIPS

CHAPTER I

GENERAL PROVISIONS

The purpose of this Sector Understanding is to provide a framework for the orderly use of officially supported export credits for the items specified in Article 4 below. The Sector Understanding seeks to foster a level playing field for official support, as defined in Article 5 a), in order to encourage competition among exporters based on quality and price of goods and services exported rather than on the most favourable officially supported financial terms and conditions.

The Participants to this Sector Understanding (the Participants) acknowledge that the provisions included in this Sector Understanding have been developed for the sole purpose of this Sector Understanding and such provisions do not prejudice the other parts of the Arrangement on Officially Supported Export Credits (the Arrangement) and their evolution.

The Sector Understanding is a Gentlemen’s Agreement among its Participants and is Annex IV to the Arrangement; it forms an integral part of the Arrangement and it succeeds the Sector Understanding, which came into effect on 1 September 2011.

The Participants to the Sector Understanding are: Australia, the European Union, Japan, Korea, New Zealand and Norway.

This Sector Understanding sets out specific guidelines for officially supported export credits, which have a repayment term of two years or more, relating to export contracts of:

• a) Any new sea-going vessel of 100 gt and above used for the transportation of goods or persons, or for the performance of a specialised service (for example, fishing vessels, fish factory ships, ice breakers and as dredgers, that present in a permanent way by their means of propulsion and direction (steering) all the characteristics of self-navigability in the high sea), tugs of 365 kw and over and to unfinished shells of ships that are afloat and mobile. The Sector Understanding does not cover military vessels. Floating docks and mobile offshore units are not covered by the Sector Understanding, but should problems arise in connection with export credits for such structures, the Participants to the Sector Understanding (hereinafter the ‘Participants’), after consideration of substantiated requests by any Participant, may decide that they shall be covered.

• b) Any conversion of a ship. Ship conversion means any conversion of sea-going vessels of more than 1 000  gt on condition that conversion operations entail radical alterations to the cargo plan, the hull or the propulsion system.

- c) - 1) Although hovercraft-type vessels are not included in the Sector Understanding, Participants are allowed to grant export credits for hovercraft vessels on equivalent conditions to those prevailing in the Sector Understanding. They commit themselves to apply this possibility moderately and not to grant such credit conditions to hovercraft vessels in cases where it is established that no competition is offered under the conditions of the Sector Understanding.

• 1. In the Sector Understanding, the term "hovercraft" is defined as follows: an amphibious vehicle of at least 100 tons designed to be supported wholly by air expelled from the vehicle forming a plenum contained within a flexible skirt around the periphery of the vehicle and the ground or water surface beneath the vehicle, and capable of being propelled and controlled by airscrews or ducted air from fans or similar devices.
• 1. It is understood that the granting of export credits at conditions equivalent to those prevailing in this Sector Understanding should be limited to those hovercraft vessels used on maritime routes and non-land routes, except for reaching terminal facilities standing at a maximum distance of one kilometre from the water.

• a) Official support may be provided in different forms:
• 1. Export credit guarantee or insurance (pure cover).
• 1. Official financing support:
• — direct credit/financing and refinancing, or
• — interest rate support.
• 1. Any combination of the above.

- b) Official support shall not be provided if there is clear evidence that the contract has been structured with a purchaser in a country which is not the final destination of the goods, primarily with the aim of obtaining more favourable repayment terms.

A Participant to this Sector Understanding may withdraw from it by notifying the Secretariat in writing by means of instant communication, e.g. using the electronic mail system that is maintained by the Secretariat to facilitate communications amongst Participants and the Secretariat. The withdrawal takes effect 180 calendar days after receipt of the notification by the Secretariat.

The Secretariat shall monitor the implementation of the Sector Understanding.

CHAPTER II

FINANCIAL TERMS AND CONDITIONS FOR EXPORTS CREDITS

Financial terms and conditions for export credits supported under this Sector Understanding encompass all the provisions set out in this Chapter which shall be read in conjunction one with the other. The Sector Understanding sets out limitations on terms and conditions that may be officially supported. The Participants recognise that more restrictive financial terms and conditions than those provided for by the Sector Understanding traditionally apply to certain trade or industrial sectors. The Participants shall continue to respect such customary financial terms and conditions, in particular the principle by which repayment terms do not exceed the useful life of the goods.

The maximum repayment term is 12 years after delivery.

The Participants shall require a minimum cash payment of 20 % of the contract price by delivery.

• a) The principal sum of an export credit shall be repaid in equal instalments at regular intervals of normally six months and a maximum of 12 months.

• b) Interest shall be paid no less frequently than every six months and the first payment of interest shall be made no later than six months after the starting point of credit normally at delivery.

• c) For export credits provided in support of lease transactions, equal repayments of principal and interest combined may be applied in lieu of equal repayments of principal as set out in paragraph a).

• d) Interest due after the starting point of credit normally at delivery shall not be capitalised.

- e) A Participant to this Sector Understanding intending to support a payment of interest on different terms than those set out in paragraph b) shall give prior notification at least ten calendar days before issuing any commitment, in accordance with Appendix I of this Sector Understanding.

Interest excludes:

• a) any payment by way of premium or other charge for insuring or guaranteeing supplier credits or financial credits;

• b) any payment by way of banking fees or commissions relating to the export credit other than annual or semi-annual bank charges that are payable throughout the repayment period; and

- c) withholding taxes imposed by the importing country.

Financial terms and conditions for an individual export credit or line of credit, other than the validity period for the Commercial Interest Reference Rates (CIRRs) set out in Article 17, shall not be fixed for a period exceeding six months prior to final commitment.

This Sector Understanding does not prevent export credit authorities or financing institutions from agreeing to less restrictive financial terms and conditions than those provided for by the Understanding, if such action is taken after the contract award (when the export credit agreement and ancillary documents have already become effective) and is intended solely to avoid or minimise losses from events which could give rise to non-payment or claims.

Taking into account a Participant’s international obligations and consistent with the purpose of the this Understanding, a Participant may match, according to the procedures set out in Article 24, financial terms and conditions offered by a Participant or a non-Participant. Financial terms and conditions provided in accordance with this Article are considered to be in conformity with the provisions of this Understanding.

The Participants providing official financing support for fixed rate loans shall apply the relevant CIRRs as minimum interest rates. CIRRs are interest rates established according to the following principles:

• a) CIRRs should represent final commercial lending interest rates in the domestic market of the currency concerned;

• b) CIRRs should closely correspond to the rate for first class domestic borrowers;

• c) CIRRs should be based on the funding cost of fixed interest rate finance;

• d) CIRRs should not distort domestic competitive conditions; and

- e) CIRRs should closely correspond to a rate available to first class foreign borrowers.

• a) Each Participant wishing to establish a CIRR shall initially select one of the following two base rate systems for its national currency:
• 1. three-year government bond yields for a repayment term of up to and including five years; five-year government bond yields for over five and up to and including eight and a half years; and seven-year government bond yields for over eight and a half years; or
• 1. five-year government bond yields for all maturities. Exceptions to the base rate system shall be agreed by the Participants.

• b) CIRRs shall be set at a fixed margin of 100 basis points above each Participant’s base rate unless Participants have agreed otherwise.

• c) Other Participants shall use the CIRR set for a particular currency should they decide to finance in that currency.

• d) A Participant may change its base-rate system after giving six months’ advance notice and with the counsel of the Participants.

- e) A Participant or a non-Participant may request that a CIRR be established for the currency of a non-Participant. In consultation with the interested non-Participant, a Participant or the Secretariat on behalf of that non-Participant may make a proposal for the construction of the CIRR in that currency using Common Line procedures in accordance with Articles 32 to 34.

The interest rate applying to a transaction shall not be fixed for a period longer than 120 days. A margin of 20 basis points shall be added to the relevant CIRR if the terms and conditions of the official financing support are fixed before the contract date.

• a) Where official financing support is provided for floating rate loans, banks and other financing institutions shall not be allowed to offer the option of the lower of either the CIRR (at time of the original contract) or the short-term market rate throughout the life of the loan.

- b) In the event of a voluntary, early repayment of a loan of or any portion thereof, the borrower shall compensate the government institution providing official financing support for all costs and losses incurred as a result of such early repayment, including the cost to the government institution of replacing the part of the fixed rate cash inflow interrupted by the early repayment.

• a) CIRRs for currencies that are determined according to articles 16, 17 and 18 shall be sent by means of instant communication at least monthly to the Secretariat for circulation to all Participants.

- b) Such notification shall reach the Secretariat no later than five days after the end of each month covered by this information. The Secretariat shall then inform immediately all Participants of the applicable rates and make them publicly available.

Any changes in the CIRRs shall enter into effect on the fifteenth day after the end of each month.

When market developments require the notification of an amendment to a CIRR during the course of a month, the amended rate shall be implemented 10 days after notification of this amendment has been received by the Secretariat.

The Participants shall charge premium, in addition to interest charges, to cover the risk of non-repayment of export credits.

CHAPTER III

PROCEDURES

• a) As soon as a Participant commits the official support which it has notified in accordance with the procedures in Article 26, it shall inform all other Participants accordingly by including the notification reference number on the relevant reporting form.

- b) In an exchange of information in accordance with Articles 28 to 30, a Participant shall inform the other Participants of the credit terms and conditions that it envisages supporting for a particular transaction and may request similar information from the other Participants.

• a) Before matching financial terms and conditions assumed to be offered by a Participant or a non-Participant pursuant to Article 14, a Participant shall make every reasonable effort, including as appropriate by use of the face to face consultations described in Article 30 to verify that these terms and conditions are officially supported and shall comply with the following:
• 1. The Participant shall notify all other Participants of the terms and conditions it intends to support following the same notification procedures required for the matched terms and conditions. In the case of matching a non-Participant, the matching Participant shall follow the same notification procedures that would have been required had the matched terms been offered by a Participant.
• 1. Notwithstanding subparagraph 1) above, if the applicable notification procedure would require the matching Participant to withhold its commitment beyond the final bid closing date, then the matching Participant shall give notice of its intention to match as early as possible.
• 1. If the initiating Participant moderates or withdraws its intention to support the notified terms and conditions, it shall immediately inform all other Participants accordingly.

- b) A Participant intending to offer identical financial terms and conditions to those notified according to Article 26 may do so once the waiting period stipulated therein has expired. This Participant shall give notification of its intention as early as possible.

• a) A Participant that has reasonable grounds to believe that financial terms and conditions offered by another Participant (the initiating Participant) are more generous than those provided for in this Sector Understanding shall inform the Secretariat; the Secretariat shall immediately make available such information.

• b) The initiating Participant shall clarify the financial terms and conditions of its offer within two working days following the issue of the information from the Secretariat.

• c) Following clarification by the initiating Participant, any Participant may request that a special consultation meeting of the Participants be organised by the Secretariat within five working days to discuss the issue.

- d) Pending the outcome of the special consultation meeting of the Participants, financial terms and conditions benefiting from official support shall not become effective.

• a) A Participant shall, in accordance with Appendix I, notify all other Participants at least ten calendar days before issuing any commitment with a credit value of greater than SDR 2 million if it intends to provide support in accordance with Article 10 e).

- b) If the initiating Participant moderates or withdraws its intention to provide support for such transaction, it shall immediately inform all other Participants.

All communications shall be made between the designated contact points in each country by means of instant communication, e.g. electronic mail, and shall be treated in confidence.

• a) A Participant may ask another Participant about the attitude it takes with respect to a third country, an institution in a third country or a particular method of doing business.

• b) A Participant that has received an application for official support may address an enquiry to another Participant, giving the most favourable credit terms and conditions that the enquiring Participant would be willing to support.

• c) If an enquiry is made to more than one Participant, it shall contain a list of addressees.

- d) A copy of all enquiries shall be sent to the Secretariat.

• a) The Participant to which an enquiry is addressed shall respond within seven calendar days and provide as much information as possible. The reply shall include the best indication that the Participant can give of the decision it is likely to take. If necessary, the full reply shall follow as soon as possible. Copies shall be sent to the other addressees of the enquiry and to the Secretariat.

- b) If an answer to an enquiry subsequently becomes invalid for any reason, because for example:

• — an application has been made, changed or withdrawn, or
• — other terms are being considered, a reply shall be made without delay and copied to all other addressees of the enquiry and to the Secretariat.

• a) A Participant shall agree within ten working days to requests for face-to-face consultations.

• b) A request for face-to-face consultations shall be made available to Participants and non-Participants. The consultations shall take place as soon as possible after the expiry of the ten working-day period.

- c) The Chairman of the Participants shall coordinate with the Secretariat on any necessary follow up action, e.g. a Common Line. The Secretariat shall promptly make available the outcome of the consultation.

• a) Common Line proposals are addressed only to the Secretariat. A proposal for a Common Line shall be sent to all Participants. The identity of the initiator is not revealed on the Common Line Register on the electronic Bulletin Board maintained by the Secretariat on the OECD Network Environment. However, the Secretariat may orally reveal the identity of the initiator to a Participant on demand. The Secretariat shall keep a record of such requests.

• b) The Common Line proposal shall be dated and shall be in the following format:
• — Reference number, followed by ‘Common Line’.
• — Name of the importing country and buyer.
• — Name or description of the project as precise as possible to clearly identify the project.
• — Terms and conditions foreseen by the initiating country.
• — Common Line proposal.
• — Nationality and names of known competing bidders.
• — Commercial and financial bid closing date and tender number to the extent it is known.
• — Other relevant information, including reasons for proposing the Common Line, availability of studies of the project and/or special circumstances.

- c) The Secretariat shall make publicly available the agreed Common Lines.

• a) Responses shall be made within 20 calendar days, although the Participants are encouraged to respond to a Common Line proposal as quickly as possible.

• b) A response may be a request for additional information, acceptance, and rejection, a proposal for modification of the Common Line or an alternative Common Line proposal.

- c) A Participant that advises that it has no position because it has not been approached by an exporter, or by the authorities in the recipient country in case of aid for the project, shall be deemed to have accepted the Common Line proposal.

• a) After a period of 20 calendar days, the Secretariat shall inform all Participants of the status of the Common Line proposal. If not all Participants have accepted the Common Line, but no Participant has rejected it, the proposal shall be left open for a further period of eight calendar days.

• b) After this further period, a Participant that has not explicitly rejected the Common Line proposal shall be deemed to have accepted the Common Line. Nevertheless, a Participant, including the initiating Participant, may make its acceptance of the Common Line conditional on the explicit acceptance by one or more Participants.

• c) If a Participant does not accept one or more elements of a Common Line it implicitly accepts all other elements of the Common Line. It is understood that such a partial acceptance may lead other Participants to change their attitude towards a proposed Common Line. All Participants are free to offer or match terms and conditions not covered by a Common Line.

- d) A Common Line that has not been accepted may be reconsidered using the procedures in Articles 31 and 33. In these circumstances, the Participants are not bound by their original decision.

If the initiating Participant and a Participant which has proposed a modification or alternative cannot agree on a Common Line within the additional eight-calendar day period, this period can be extended by their mutual consent. The Secretariat shall inform all Participants of any such extension.

The Secretariat shall inform all Participants either that the Common Line will go into effect or that it has been rejected; the Common Line will take effect three calendar days after this announcement. The Secretariat shall make available on the electronic bulletin board a permanently updated record of all Common Lines that have been agreed or are undecided.

• a) A Common Line, once agreed, shall be valid for a period of two years from its effective date, unless the Secretariat is informed that it is no longer of interest, and that this is accepted by all Participants. A Common Line shall remain valid for a further two-year period if a Participant seeks an extension within 14 calendar days of the original date of expiry. Subsequent extensions may be agreed through the same procedure.

- b) The Secretariat shall monitor the status of Common Lines and shall keep the Participants informed accordingly, through the maintenance of the listing ‘The Status of Valid Common Lines’ on the electronic bulletin board. Accordingly, the Secretariat, inter alia, shall:

• — Add new Common Lines when these have been accepted by the Participants.
• — Update the expiry date when a Participant requests an extension.
• — Delete Common Lines that have expired.
• — Issue, on a quarterly basis, a list of Common Lines due to expire in the following quarter.

For the purpose of transparency each Participant shall, in addition to other transaction-level reporting requirements, provide annually information on its system for the provision of official support and of the means of implementation of this Sector Understanding, including the schemes in force.

• a) The Sector Understanding shall be reviewed annually or upon request by any Participant within the context of the Council Working Party on Shipbuilding (WP6), and a report made to the Participants to the Arrangement.

• b) To facilitate coherence and consistency between the Arrangement and this Sector Understanding and taking into account the nature of the shipbuilding industry, the Participants to this Sector Understanding and to the Arrangement will consult and coordinate as appropriate.

- c) The Participants shall review the minimum interest rates.

• — The Participants shall periodically review the system for setting CIRRs in order to ensure that the notified rates reflect current market conditions and meet the aims underlying the establishment of the rates in operation. Such reviews shall also cover the margin to be added when these rates are applied.
• — A Participant may submit to the Chairman of the Participants a substantiated request for an extraordinary review in case this Participant considers that the CIRR for one or more than one currency no longer reflect current market conditions.

Appendix I

INFORMATION TO BE PROVIDED FOR NOTIFICATIONS

The information listed in a) to d) below shall be provided for all notifications made under this Sector Understanding. In addition, the information specified in e) shall be provided, as appropriate, in relation to the specific type of notification being made.

• 1.Notifying country

• 2.Date of notification

• 3.Notifying institution/authority/agency

• 4.ECA(s) extending official export credit support

• a. ECA providing insurance/guarantee support

• b. ECA providing finance support

• 5.Notification number

• 6.Identification codes (internal)

• 7.Credit line reference number (if relevant)

• 8.Status (e.g. original, revision, replacement)

• 9.Revision number (if relevant)

• 10.Article(s) of the Sector Understanding under which notification is being made

• 11.Reference number of notification matched (if relevant)

• 12.Description of support being matched (if relevant)

- 13.Destination country

• 14.Buyer name

• 15.Buyer country

• 16.Buyer location (if known)

• 17.Buyer status

• 18.Buyer type

• 19.Borrower name (if the borrower is not the buyer)

• 20.Borrower country (if the borrower is not the buyer)

• 21.Borrower location (if the borrower is not the buyer)

• 22.Borrower status (if the borrower is not the buyer)

• 23.Borrower type (if the borrower is not the buyer)

• 24.Guarantor name (if relevant)

• 25.Guarantor country (if relevant)

• 26.Guarantor location (if relevant)

• 27.Guarantor status (if relevant)

- 28.Guarantor type (if relevant)

• 29.Detailed description of the products and/or services being exported

• 30.Detailed description of the project (or sector) for which the exports are being provided

• 31.Suggested purpose code

• 32.Location of the project (if known)

• 33.Tender closing date (if relevant)

• 34.Expiry date of credit line (if relevant)

• 35.Value of contract(s) supported, according to the following scale in millions of SDRs:

Category	From	To
I:	0	1
II:	1	2
III:	2	3
IV:	3	5
V:	5	7
VI:	7	10
VII:	10	20
VIII:	20	40
IX:	40	80
X:	80	120
XI:	120	160
XII:	160	200
XIII:	200	240
XIV:	240	280
XV:	280	[^E0045]

Indicate the number of SDR 40 million multiples in excess of SDR 280 million, e.g. SDR 410 million would be notified as Category XV+3.

• 36.Value of contract(s) supported, actual amount (in contract currency)

- 37.Currency of contract(s)

The following information should be provided in respect of each tranche supported for transactions comprising multiple tranches with different financial terms and conditions.

• 38.Credit value, SDR scale

• 39.Credit value, actual amount (optional in lieu of item 38)

• 40.Credit currency

• 41.Cash payment (% export contract value)

• 42.SPOC normally at delivery determined according to (with reference to Appendix II definition j)

• 43.Length of the repayment period

• 44.Length of repayment period units

• 45.Interest rate base

• 46.Interest rate or margin above base

- 47.Comments, notes and/or explanations regarding the information provided in a) to d).

• 48.Repayment profile

• 49.Repayment frequency (principal)

• 50.Repayment frequency (interest)

• 51.First principal repayment after SPOC normally at delivery

• 52.Amount of interest capitalised before the SPOC normally at delivery

• 53.Capitalised interest currency

• 54.Weighted average life of the repayment period

• 55.Percentage principal repaid by mid-point of credit

• 56.Explanation of the reason for not providing support according to standard repayment structures

- 57.Comments, notes and/or explanations regarding the information provided in e).

Appendix II

LIST OF DEFINTIONS

For the purpose of this Understanding:

• a) Commitment: any statement, in whatever form, whereby the willingness or intention to provide official support is communicated to the recipient country, the buyer, the borrower, the exporter or the financial institution.

• b) Common Line: an understanding between the Participants to agree, for a given transaction or in special circumstances, on specific financial terms and conditions for official support. The rules of an agreed Common Line supersede the rules of the Understanding only for the transaction or in the circumstances specified in the Common Line.

• c) Export Contract Value: the total amount to be paid by or on behalf of the purchaser for goods and/or services exported, i.e. excluding local costs as defined hereafter; in the case of a lease, it excludes the portion of the lease payment that is equivalent to interest.

• d) Final Commitment: for an export credit transaction (either in the form of a single transaction or a line of credit), a final commitment exists when the Participant commits to precise and complete financial terms and conditions, either through a reciprocal agreement or by a unilateral act.

• e) Interest Rate Support: an arrangement between a government and banks or other financial institutions which allows the provision of fixed rate export finance at or above the CIRR.

• f) Line of Credit: a framework, in whatever form, for export credits that covers a series of transactions which may or may not be linked to a specific project.

• g) Local Costs: expenditure for goods and services in the buyer’s country that are necessary either for executing the exporter’s contract or for completing the project of which the exporter’s contract forms a part. These exclude commission payable to the exporter’s agent in the buying country.

• h) Pure Cover: official support provided by or on behalf of a government by way of export credit guarantee or insurance only, i.e. which does not benefit from official financing support.

• i) Repayment Term: the period beginning at the starting point of credit normally at delivery, as defined in this Appendix, and ending on the contractual date of the final repayment of principal.

• j) Starting Point of Credit:
• 1. Parts or components (intermediate goods) including related services: in the case of parts or components, the starting point of credit is not later than the actual date of acceptance of the goods or the weighted mean date of acceptance of the goods (including services, if applicable) by the buyer or, for services, the date of the submission of the invoices to the client or acceptance of services by the client.
• 1. Quasi-capital goods, including related services – machinery or equipment, generally of relatively low unit value, intended to be used in an industrial process or for productive or commercial use: in the case of quasi-capital goods, the starting point of credit is not later than the actual date of acceptance of the goods or the weighted mean date of acceptance of the goods by the buyer or, if the exporter has responsibilities for commissioning, then the latest starting point is at commissioning, or for services, the date of the submission of the invoices to the client or acceptance of the service by the client. In the case of a contract for the supply of services where the supplier has responsibility for commissioning, the latest starting point is commissioning.
• 1. Capital goods and project services – machinery or equipment of high value intended to be used in an industrial process or for productive or commercial use:
• — In the case of a contract for the sale of capital goods consisting of individual items usable in themselves, the latest starting point is the actual date when the buyer takes physical possession of the goods, or the weighted mean date when the buyer takes physical possession of the goods.
• — In the case of a contract for the sale of capital equipment for complete plant or factories where the supplier has no responsibility for commissioning, the latest starting point is the date at which the buyer is to take physical possession of the entire equipment (excluding spare parts) supplied under the contract.
• — If the exporter has responsibility for commissioning, the latest starting point is at commissioning.
• — For services, the latest starting point of credit is the date of the submission of the invoices to the client or acceptance of service by the client. In the case of a contract for the supply of services where the supplier has responsibility for commissioning, the latest starting point is commissioning.
• 1. Complete plants or factories – complete productive units of high value requiring the use of capital goods:
• — In the case of a contract for the sale of capital equipment for complete plant or factories where the supplier has no responsibility for commissioning, the latest starting point of credit is the date when the buyer takes physical possession of the entire equipment (excluding spare parts) supplied under the contract.
• — In case of construction contracts where the contractor has no responsibility for commissioning, the latest starting point is the date when construction has been completed.
• — In the case of any contract where the supplier or contractor has a contractual responsibility for commissioning, the latest starting point is the date when it has completed installation or construction and preliminary tests to ensure it is ready for operation. This applies whether or not it is handed over to the buyer at that time in accordance with the terms of the contract and irrespective of any continuing commitment which the supplier or contractor may have, e.g. for guaranteeing its effective functioning or training local personnel.
• — Where the contract involves the separate execution of individual parts of a project, the date of the latest starting point is the date of the starting point for each separate part, or the mean date of those starting points, or, where the supplier has a contract, not for the whole project but for an essential part of it, the starting point may be that appropriate to the project as a whole.
• — For services, the latest starting point of credit is the date of the submission of the invoices to the client or the acceptance of service by the client. In the case of a contract for the supply of services where the supplier has responsibility for commissioning, the latest starting point is commissioning.

- k) Weighted Average Life of the Repayment Period: the time that it takes to retire one-half of the principal of a credit. This is calculated as the sum of time (in years) between the starting point of credit normally at delivery and each principal repayment weighted by the portion of principal repaid at each repayment date.

ATTACHMENT: COMMITMENTS FOR FUTURE WORK

The Participants to this Sector Understanding agree:

• a) To develop an illustrative list of types of ships which are generally considered non-commercially viable, taking into account the disciplines on tied aid set out in the Arrangement.

• b) To review the provisions of the Arrangement in relation to minimum premium benchmarks with a view to incorporating them into this Sector Understanding.

• c) To discuss, subject to the developments in relevant international negotiations, the inclusion of other disciplines on minimum interest rates including a special CIRR and floating rates.

• d) To review the applicability to this Sector Understanding of provisions of the Arrangement in relation to Project Finance.

- e) To discuss whether:

• — the date of the first instalment of principal;
• — the Weighted Average Life concept may be used in relation to the repayment profile contained in Article 10 of this Sector Understanding.

ANNEX V

INFORMATION TO BE PROVIDED FOR NOTIFICATIONS

The information listed in Section I below shall be provided for all notifications made under the Arrangement (including its Annexes). In addition, the information specified in Section II shall be provided, as appropriate, in relation to the specific type of notification being made.

I. INFORMATION TO BE PROVIDED FOR ALL NOTIFICATIONS

• 1.Notifying country

• 2.Date of notification

• 3.Notifying institution/authority/agency

• 4.ECA(s) extending official export credit support

• a. ECA providing insurance/guarantee support

• b. ECA providing finance support

• 5.Notification number

• 6.Identification codes (internal)

• 7.Credit line reference number (if relevant)

• 8.Status (e.g. original, revision, replacement)

• 9.Revision number (if relevant)

• 10.Arrangement Article(s) under which notification is being made

• 11.Reference number of notification matched (if relevant)

• 12.Description of support being matched (if relevant)

- 13.Destination country

• 14.Buyer name

• 15.Buyer country

• 16.Buyer location (if known)

• 17.Buyer status

• 18.Buyer type

• 19.Borrower name (if the borrower is not the buyer)

• 20.Borrower country (if the borrower is not the buyer)

• 21.Borrower location (if the borrower is not the buyer)

• 22.Borrower status (if the borrower is not the buyer)

• 23.Borrower type (if the borrower is not the buyer)

• 24.Guarantor name (if relevant)

• 25.Guarantor country (if relevant)

• 26.Guarantor location (if relevant)

• 27.Guarantor status (if relevant)

- 28.Guarantor type (if relevant)

• 29.Detailed description of the products and/or services being exported

• 30.Detailed description of the project (or sector) for which the exports are being provided

• 31.Suggested purpose code

• 32.Location of the project (if known)

• 33.Tender closing date (if relevant)

• 34.Expiry date of credit line (if relevant)

• 35.Value of contract(s) supported, according to the following scale in millions of SDRs:

Category	From	To
I:	0	1
II:	1	2
III:	2	3
IV:	3	5
V:	5	7
VI:	7	10
VII:	10	20
VIII:	20	40
IX:	40	80
X:	80	120
XI:	120	160
XII:	160	200
XIII:	200	240
XIV:	240	280
XV:	280	[^E0046]

Indicate the number of SDR 40 million multiples in excess of SDR 280 million, e.g. SDR 410 million would be notified as Category XV+3.

• 36.Value of contract(s) supported, actual amount (in contract currency)

- 37.Currency of contract(s)

The following information should be provided in respect of each tranche supported for transactions comprising multiple tranches with different financial terms and conditions.

• 38.Credit value, SDR scale

• 39.Credit value, actual amount (optional in lieu of item 38)

• 40.Credit currency

• 41.Down payment (% export contract value)

• 42.Local Costs (% export contract value)

• 43.SPOC determined according to (with reference to Annex XIII definition u)

• 44.Length of the repayment term

• 45.Length of repayment term units

• 46.Interest rate base

• 47.Interest rate or margin above base

- 48.Comments, notes and/or explanations regarding the information provided in Section I

II.   ADDITIONAL INFORMATION TO BE PROVIDED, AS APPROPRIATE, FOR NOTIFICATIONS MADE IN RELATION TO SPECIFIC PROVISIONS

The following information should be provided in respect of each tranche supported for transactions comprising multiple tranches with different financial terms and conditions.

• 49.Type of local costs supported

• 50.Nature of local costs supported: Capital equipment?

• 51.Nature of local costs supported: Deliveries from local subsidiaries and/or affiliates?

• 52.Nature of local costs supported: Local construction or installation costs?

• 53.Nature of local costs supported: VAT, import duties, other taxes?

• 54.Nature of local costs supported: Other?

• 55.Description of "other" local costs

- 56.Comments, notes and/or explanations regarding the information provided in Section II a).

• 57.Repayment profile

• 58.Repayment frequency (principal)

• 59.Repayment frequency (interest)

• 60.First principal repayment after SPOC

• 61.First principal repayment after SPOC units

• 62.Amount of interest capitalised before the SPOC

• 63.Capitalised interest currency

• 64.Weighted average life of the repayment period

• 65.Percentage principal repaid by mid-point of credit

• 66.maximum single instalment (% of credit)

• 67.Explanation of the reasons why there is an imbalance between the timing of funds available to the obligor and the debt service profile permitted according to either (as relevant) Articles 13 a) and 13 b), Articles 3 a) and 3 b) of Annex II, or Articles 5 a) and 5 b) of Annex IV.

• 68.For transactions with a repayment profile that does not match the free cash flow, a detailed and adequate justification of the repayment profile supported.

- 69.Comments, notes and/or explanations regarding the information provided in Section II b).

• 70.Country risk classification of the obligor’s country

• 71.Application of an offshore future flow structure combined with an offshore escrow account? (Categories 1-7 only)

• 72.The applicable country and buyer risk categories are related to the (buyer, borrower, guarantor, project, transaction)

• 73.Applicable country risk classification

• 74.Applicable buyer risk category

• 75.Does the entity indicated in item 72 have a foreign currency rating from an accredited credit rating agency (CRA)?

• 76.Most favourable accredited CRA foreign currency rating for the entity indicated in item 72

• 77.Accredited CRA providing the rating reported in item 76

• 78.Basis for applicable Minimum Premium Rate (MPR)

• 79.Basis for actual premium rate charged

• 80.Comments, notes and/or explanations regarding the basis for the actual premium rate charged

• 81.Length of the drawdown period

• 82.Length of drawdown period units

• 83.Percentage of cover for political (country) risk

• 84.Percentage of cover for commercial (buyer) risk

• 85.Official export credit product

• 86.Interest covered during claims waiting period?

• 87.MPR (based on item 78) country risk mitigation or buyer risk credit enhancements

• 88.Local currency financing? (Cat 1-7 MPRs only)

• 89.Local currency factor (LCF) applied

• 90.Buyer risk credit enhancements?

• 91.Total credit enhancement factor (CEF) applied

• 92.Applicable MPR (based on item 78) after any country risk mitigation or buyer risk credit enhancements

• 93.Actual premium rate charged

- 94.Comments, notes and/or explanations regarding the information provided in Section II c).

- 95.Explanation of the characteristics of the obligor against the criteria for Buyer Risk Category CC0 in Annex X of the Arrangement

- 96.Rationale for buyer risk category better than accredited CRA rating

• 97.Type of name-specific or related entity debt instrument used to set premium

• 98.Name of the debt instrument entity

• 99.Detailed description and key characteristics of the debt instrument and the methodology used to derive the pricing, including (but not limited to) information about the tenor, credit profile, liquidity and currency of the instrument

• 100.Relationship between the transaction obligor/guarantor and the related entity

• 101.Does the transaction obligor/guarantor have the same issuer CRA rating as the related entity?

• 102.Does the related entity meet all of the criteria listed in Annex XIII (definition "s") of the Arrangement?

- 103.Detailed explanation of how the criteria that define a related entity have been met

• 104.Justification for the buyer risk classification

• 105.Best accredited CRA foreign currency rating for the sovereign in the obligor’s/guarantor’s domicile (If the applicable buyer risk category is more favourable than the best accredited CRA rating of the sovereign in the obligor’s/guarantor’s domicile for an unrated obligor)

- 106.Accredited CRA providing the rating reported in item104

• 107.Is syndicated loan package structured as either an asset-backed or project finance transaction?

• 108.Do commercial market loans/guarantees without any bilateral or multilateral support comprise at least 25 % of the syndicate?

• 109.Are all parties to the financing on pari passu terms on all financial terms and conditions, including the security package?

• 110.Are the financial terms and conditions of the transaction fully compliant with the Arrangement, as modified by the provisions for Market Benchmark pricing in syndicated loans/guarantees transactions?

• 111.Detailed description of the methodology used to derive the premium (or all-in cost for direct lending) reported in item 93

- 112.Comments, notes and/or explanations regarding the information provided in Section II h).

• 113.Does the guarantee cover the entire duration of the debt?

• 114.Is the guarantee irrevocable, unconditional and available on demand?