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34PACIFICFISHERIESREVIEWspecialsupplementtoJuLY2012Fishermenx19snewsnorWAylikemostnationshasanexportcreditsystemacilitatingimportsoNorwegiantechnologycapitalgoodsandservicestotheUS.FromJuly12012thistaskwillbeundertakenbyacompanywhollyownedbytheNorwegianGovernmentcalledx18ExportCreditNorwayASx19ECNtakingovertherolehithertoheldbythecompanyEksportfnansASA.ExportCreditNorwaywillorallpracticalpurposescontinuetheservicesren-deredbyEksportfnansandorNorwegiansuppliersandoreignbuyerstheshitoinstitutionwillnothaveanysignifcantex2ect.ECNwillox2erlong-termfxedratefnancingbasedonaprogramdevisedbytheOECDtowhichtheUSEximbankadheres.AprospectivedeliveryromaNorwegiansuppliereligibleorfnancingmaythusbeox2eredwithalongtermfxed-rateloanasanadditionalbeneftorthebuyerinadditiontoexcel-lenttechnologyreasonablepriceandacceptabledeliveryperiod.Virtuallyallproductsoutsideothedefnitionoconsumergoodsorrawmaterialsareeligibleorfnancingincludingconsultancyservicessotwareandengineeringaswellascapitalgoodsoallkindsromsmallmachinerytovesselslargehydropowerturbinesortopsidestobeinstalledonoilrigs.IntheollowingIwillpredominantlyconcentrateonOECDfnancingoshipequipmentandrelatedtechnologytobeinstalledandincorporatedinvesselsbeingbuiltintheUSorAmericanowners.OECDFinancingTeOECDhasdevisedasystemwherebythemembercountriesareintheposi-tiontolendundsinthevariouscurrenciesotheOECDatafxedratewhichisdeter-minedbytheOECDeverymonthonthe15thandwhichlooselyollowsthevariousLongTermFinancingofNorwegianExportsByLarsHasleBUSINESSANDFINANCEcentralbankratesotherespectivecur-renciesactuallythepriceogovernmentbondsplusapredeterminedspread.AswearenowseeinghistoricallylowCentralBankratesinthemostcommoncurrenciesrelevanthereUSDEURNOKtheattractivenessotheseundsarehighandrepresentaverypositivecontributionwhenabuyerdecideswheretotakehisbusiness.TeOECDhavetwocategoriesoexportsnamelycapitalgoodsservicesandvesselsandthesetwocategoriesaretreateddix2erentlyForcapitalgoodsandservicestheOECDallowsorupto85percentfnancingothecontractvaluewithatermoupto8.5yearsdepen-dentonsizeotheloanorfnancingtotheUS.Vesselsasopposedtocapitalgoodsmaybefnancedupto80percentothecontractvaluewithatermoupto12years.TestructureotheloanisfxedandnotnegotiableSemiannualequalinstall-mentsoverthelieotheloan.Tereisathirdcategorynamelyfnancingocapitalgoodstotherenew-ableindustrywhichhavemoregeneroustermswhichwewonx19taddresshere.APracticalScenarioAssuminganAmericanownercon-tractsavesselatanAmericanyardandwantstoincludeNorwegianequipmentinthevesselthisequipmentmaybefnanced85percentothecontractpriceupto8.5yearsandithetransactionwereconsummatedtodayJune2012theborrowertheownerwouldpayafxedrateointerestat2.09percentannuallyinUSD.ItheNorwegianequipmentwerevaluedatabout30percentothevalueoLARSB.hASLEisalawyerbytrainingandgraduatedx16romtheUniversityox16Oslo.HehasworkedwithEksportfnansasalawyersince1979inallfeldsox16fnancingandonallsixcontinents.Sincetheyear2000Larshasconcentratedonthelendingactivityox16thecompanypredominantlyinthefeldsox16shippingrenewableenergyandgeneralbusinessdevelopment.Hehasaparticularinterestinandresponsibilityx16ordevelopingthefnancingexportsx16romNorwaytotwodiversemarketsnamelytheUSandIndia.