An OECD decision to make terms and conditions permanent for project finance has been requested by exporters and banks in a number of OECD countries.
The new OECD terms and conditions for project financing were applicable from July 1.
For maximum repayment terms: the maximum repayment term is 14 years; for projects in high income OECD countries, the maximum repayment term is 10 years – unless the part which is supported by official export credit is less than 35%, when the maximum repayment term is 14 years.
For repayment of principal and payment of interest: the average weighted life of the repayment period shall not exceed 7.25 years (ie, seven years and three months; for projects in high income OECD countries the maximum average weighted life is 5.25 years – except if the part supported by official export credit is less than 35 %, when the maximum average weighted life is 7.25 years.
