CIRR

Government supported loans are offered with a fixed interest rate set by the OECD - CIRR (Commercial Interest Reference Rate). The CIRR is based on government bonds for the currency in question and is fixed for 120 days from the date of proposal, at which time the proposal has to be accepted. This implies that the Borrower can secure an attractive fixed rate in 120 days, and the interest rate option is free of charge for the borrower. Interest rates are set on the 15th of each month and remain valid until the 14th of the following month.

CIRR rates per 15/08 -14/09 2010
Tenor:	<5 years	5,5-8,5 years	9-12 years
NOK	3,81	3,81	3,81
USD	2,18	2,96	3,63
EUR	2,36	3,05	3,63
GBP	2,63	3,43	4,05

The above rates are valid for up to 120 days in the negotiation period before the contract is signed, and include a 0,20% margin (pre-contract). Eksportfinans can offer loans in most convertible currencies after evaluating the project.

To be considered eligible for CIRR, the contract must contain a substantial part of Norwegian goods. There should be no more than 50 per cent foreign content, but this amount is negotiated on a project basis. The exporter's local cost in receiving country, e.g. foundations/groundwork, etc, can not exceed 30 per cent.

The loan is disbursed directly to the Norwegian exporter as settlement for the sale. Disbursement is carried out at the same pace as deliveries and in accordence with the commercial contract. Loans are to be repaid in equal semi-annual instalments, with the first instalment due 6 months after the final disbursement.

OECD - CIRR-rates for projects related to renewable energy and water
The OECD agreement for renewable energy and waterprosjects allows re-payment periods up to 18 years as well as more flexible re-payment structures than the ordinary OCED terms. If you have any questions, please do not hesitate to contact Lars Børre Hasle at +47 22 01 22 42.

OECD - CIRR-rates renewable energy and waterprojects OECD - Concensus Agreement OECD - Historical CIRR