progress report. First, the repayment term was defined as the period between the starting
point of credit and the contractual date of the final payment. It was proposed that the
maximum length of repayment of export credits used for most agricultural products
should not exceed 180 days11. Second, the starting point of an export credit was defined
as a date no later than the weighted mean date or actual date of arrival of the agricultural
goods in the recipient country for a contract under which shipments are made in any
consecutive six-month period. Third, for any export credit contract, the duration of
which is one year or longer, the repayment of principal is defined as the principal sum of
the export credit12. Fourth, for any export credit contract which has a duration of one
year or longer, the payment of interest should not be capitalized during the repayment
period and should be paid with a frequency of no less than every six months. Further, the
first payment should be made no later than six months from the starting point of the
export credit. Fifth, any purchaser of exported agricultural products is required to make a
minimum cash payment of 15% of the total value of the export contract from his/her own
resources at or before the starting point of credit. Sixth, in terms of risk sharing, any case
in which no cash payment is imposed, an OECD member should not cover 100% of the
export value of a transaction. Seventh, if the repayment term is two years or greater, the
minimum interest rate should be determined based on the CIRR system 13. Finally, when
the repayment term exceeds 180 days, credit terms and conditions for an individual
11 In some exceptions, such as those for breeding cattle, cotton, agricultural vegetable reproduction
materials, cereals and cereal preparations, and oilseeds and oilseed products, their repayment can exceed
180 days but cannot be longer than the durable life of the products.
12 It should be repaid in equal and regular installments no less frequent than every six months, and the first
installment should be made no later than six months after the starting point of the export credit.
13 The minimum interest rate with the repayment term less than two years will be developed later by the
OECD Participants.
12
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