Date: 2025-07-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Council Decision (EU) 2025/1436 of 8 July 2025 on the position to be taken on behalf of the European Union as regards the adoption of a decision of the Participants to the Arrangement on Officially Supported Export Credits on interest rate provisions
## Policy Summary: Council Decision (EU) 2025/1436 Regarding Export Credit Interest Rate Provisions
This Council Decision (EU) 2025/1436, adopted on July 8, 2025, establishes the European Union's position concerning amendments to interest rate provisions within the Arrangement on Officially Supported Export Credits (the Arrangement). The Arrangement, developed within the OECD framework, is legally binding in the EU through Regulation (EU) No 1233/2011.
The core issue addressed is the establishment of Commercial Interest Reference Rates (CIRRs), which are minimum fixed interest rates for government-backed export finance. Historically, CIRR margins were calculated using the London Interbank Offered Rate (LIBOR) as a benchmark. Following LIBOR's discontinuation in 2021, temporary solutions were implemented.
This decision outlines the EU's support for a decision by the Participants to the Arrangement, via written procedure, on amendments to the provisions regarding the establishment of CIRR margins. The EU's position, as defined in Article 1, is to support a decision based on the draft text attached to this Council Decision. This position is deemed necessary as the Participants' decision will be binding on the Union and capable of decisively influencing Union law, according to Article 1 of Regulation (EU) No 1233/2011.
The Decision entered into force on July 8, 2025.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
Council of the European Union: A component of the EU's legislative branch where government ministers from each EU country meet to discuss, amend and adopt laws, and coordinate policies.
Arrangement on Officially Supported Export Credits: An agreement developed within the OECD that sets guidelines for officially supported export credits.
Organisation for Economic Co-operation and Development (OECD): An international organisation that works to stimulate economic progress and world trade.
Regulation EU No 1233/2011: A European Union regulation regarding officially supported export credits.
Commercial Interest Reference Rate (CIRR): A fixed minimum interest rate that can be offered as part of a government-backed export finance contract.
London Interbank Offered Rate (LIBOR): A benchmark interest rate that was formerly used to calculate CIRR margins.
Brussels: The location where the decision was adopted.
Official Journal EN
of the European Union L series
2025/1436 17.7.2025
COUNCIL DECISION (EU) 2025/1436
of 8 July 2025
on the position to be taken on behalf of the European Union as regards the adoption of a decision of
the Participants to the Arrangement on Officially Supported Export Credits on interest rate
provisions
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(4), first subparagraph,
in conjunction with Article 218(9) thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) The guidelines contained in the Arrangement on Officially Supported Export Credits (the ‘Arrangement’), developed
within the framework of the Organisation for Economic Cooperation and Development (OECD), have been
transposed and thus made legally binding in the Union by virtue of Regulation (EU) No 1233/2011 of the European
Parliament and of the Council(1).
(2) In accordance with Annex XII to the Arrangement, a Commercial Interest Reference Rate (‘CIRR’) is established for
the currency of each Participant to the Arrangement. A CIRR, which is a fixed minimum interest rate that can be
offered as part of a government-backed export finance contract, is composed of a base rate and a margin.
(3) The Participants to the Arrangement (the ‘Participants’) used the London Interbank Offered Rate (‘LIBOR’) as
a benchmark to calculate the CIRR margin. Following the discontinuation of LIBOR in 2021, the Participants agreed
on temporary solutions for the establishment of CIRR margins.
(4) The Participants are to agree by written procedure on amendments to the provisions of the Arrangement on the
establishment of CIRR margins.
(5) It is appropriate to establish the position to be taken on the Union’s behalf in the written procedure of the
Participants, as the decision of the Participants will be binding on the Union and capable of decisively influencing
the content of Union law, by virtue of Article 1 of Regulation (EU) No 1233/2011,
HAS ADOPTED THIS DECISION:
Article 1
The position to be taken on the Union’s behalf in the written procedure of the Participants to the Arrangement on Officially
Supported Export Credits as regards the adoption of a decision on amendments to the interest rate provisions of that
Arrangement shall be to support a decision based on the draft text attached to this Decision.
Article 2
This Decision shall enter into force on the date of its adoption.
Done at Brussels, 8 July 2025.
For the Council
The President
S. LOSE
(1) Regulation (EU) No 1233/2011 of the European Parliament and of the Council of 16 November 2011 on the application of certain
guidelines in the field of officially supported export credits and repealing Council Decisions 2001/76/EC and 2001/77/EC (OJ L 326,
8.12.2011, p. 45, ELI: http://data.europa.eu/eli/reg/2011/1233/oj).
ELI: http://data.europa.eu/eli/dec/2025/1436/oj 1/1