(1)

The guidelines contained in the Arrangement on Officially Supported Export Credits (the ‘Arrangement’) has been transposed, and hence been made legally binding in the European Union by Regulation (EU) No 1233/2011 of the European Parliament and of the Council (1).

(2)

The Participants in the Arrangement (the ‘Participants’) are to decide, in a written procedure, on the European Union’s proposal for a Common Line in accordance with Chapter IV, Section 5 of the Arrangement to allow a temporary decrease of the minimum down payment required pursuant to Article 11 a) of the Arrangement (the ‘proposed Common Line’), in the light of the current COVID-19 economic downturn.

(3)

The proposed Common Line would allow public purchasers in low and middle income countries, that buy goods and services which are the subject of official export credit support, to make down payments of a minimum of 5 % of the export contract value for a period of 12 months, instead of 15 % as required by Article 11 a) of the Arrangement. This would in turn mean increasing the limit for maximum official support that the Participants may provide pursuant to Article 11 c) of the Arrangement, from a ceiling of 85 % up to 95 % of the export contract value, for the same time period.

(4)

This exceptional measure is necessary to react to the economic downturn resulting from the COVID-19 sanitary crisis and reduce the severe impact of the crisis on carrying out important projects in low and middle income countries by the Union’s industry.

(5)

It is appropriate to establish the position to be taken on the Union’s behalf regarding the proposed Common Line in the written procedure by the Participants, as the proposed Common Line, once agreed, will be capable of decisively influencing the content of Union law by virtue of Regulation (EU) No 1233/2011,