The OECD has changed the terms and conditions regarding repayment of principal and payment of interest.
OECD ECAs were previously able to cover project risks with different repayment plans. Now this option is available to other transactions as well, this in turn can facilitate matters for exporters and banks.
The previous set of OECD regulations stated that repayment of principal should be made in equal semi-annual instalments. Payment of interest was also to be made at least every six months.
OECD ECAs can now offer cover for transactions with other repayment schedules. The provision of such support shall be explained by an imbalance in the timing of the funds available to the buyer, a temporary problem with in and outgoing payments.
These conditions serve to ensure that the buyer can repay their investments using their own cashflow.