There are sectoral examples where supporting ODA agencies have their own binding forms of transaction documents (e.g.B. all Airbus deliveries supported by the European Court have their own existing models). “Fast and standardised decisions – thanks to the large number of basic agreements with foreign banks.” Meanwhile, agreement on common approaches is full of gaps. For example, it states that projects supported by the European Court of Auditors should “in all cases” meet the standards of the World Bank, the Regional Development Bank and the host country, unless a COURT “deems it necessary” to apply lower standards. The lack of appropriate environmental and social policies and associated technical staff to exercise due diligence also leads to ECA projects that violate international environmental, human rights and other treaties and agreements in which these ECAs` own governments are involved. In any event, most ECAs are not willing to take a documentary risk and, therefore, supported lenders must be able to rely on the fact that the Court`s requirements have been met. It is important to note that the risk of documentation in transactions guaranteed by the European Court of Auditors is a lender`s risk, and the LMA has stressed that the new loan agreement is not intended to (and not) change that. The new LMA loan agreement, as always with the LMA, was developed by consensus and in working groups and anticipates certain provisions that borrowers are likely to apply. In recent years, ECAs have supported about $50-70 billion a year through “medium- and long-term transactions,” much of which are large industrial and infrastructure projects in developing countries. Many of these projects have very serious environmental and social impacts. For example, ECAs finance greenhouse gas-emitting power plants, large dams, mining projects, road development in virgin tropical forests, pipelines, chemical and industrial facilities, forestry and planting programmes, to name a few.
We are happy to answer your questions about basic contracts and provide you with further information on the countries and banks with which framework agreements are currently in force. It is worth noting that some provisions that can only be found in facilities supported by the Court have been included in the agreement, e.B. contains a derogation from the European Court of Auditors, which is a clause aimed at ensuring that the funding provisions are not contrary to the requirements and strategies of the European Court of Auditors, and an Isabella clause separating and thus guaranteeing the rights and obligations arising from the credit agreement from those arising from the contract for the export of the assets concerned; that the borrower`s repayment obligation is clean. regardless of disputes arising from the export contract. The fixed interest rate is valid for the entire duration of the financing and corresponds to the CIRR interest rate applicable on the date of signature of the loan agreement plus a margin. The current CIRR rate is valid from the 15th day of the first month to the 14th day of the following month and is announced by the OECD. Those provisions shall include, in particular, the general terms and conditions and the provisions of a loan agreement which do not depend on the specific characteristics of the export operations to be financed. Therefore, the individual credit agreement must contain the following elements: the new credit agreement has adopted the provisions of the LMA standard and made the appropriate changes for a transaction supported by the European Court of Auditors, including, for example, the possibility to require advances for repayment (i.e. if it has already paid the exporter) or to finance the ecA premium (in the context of the first use) – and to allow that the use is made for payment to the exporter, if the sequencing so requires.
AKA has concluded basic contracts with many foreign banks for the financing of exports in the medium and long term. .