Finnish Export Credit Ltd applies OECD's CIRR interest rates to indications, offers and contracts for financing export credits and interest rate equalization. CIRR rates are published monthly by the OECD and are valid from the 15th of each month to the 14th of the following month. Current CIRR rates can be found on the OECD website.
Options for CIRR rates (excluding ship financing):
- Contract rate on the day of the credit agreement
- Offer rate on the day of the offer
The interest option is selected during the application phase, but at the latest before the FEC offer is made.
The contract rate on export credits is primarily locked when the credit agreement is signed. The contract rate on the day of the credit agreement is determined according to the date on which the credit agreement was signed.
The offer rate on the day of the offer is given in connection with the FEC offer when a margin (20–44 bps) in accordance with the duration of the offer period (1–12 months) is added to the fixed CIRR rate as per the OECD terms. The final interest rate is determined when the credit agreement is signed.
Options for CIRR rates (ship financing):
- Offer rate on the day of application
- Contract rate on the day of the export contract +20 bp p.a.
The interest option is selected during the application phase. Typically, the interest rate on export credits is locked to the CIRR rate on the day of the export contract (Contract rate).
The interest rate selection is valid for 120 days, during which time it is not possible to switch between the offer rate and contract rate. If the export contract is not signed within 120 days, the applicant can change the selected interest rate when renewing the offer.
The CIRR rates can be found on the OECD website.