Export Financing Guarantees Act
The Export Financing Scheme is operated pursuant to the Export Financing Guarantees Act.
According to the Export Financing Guarantees Act, the Minister of Finance is authorised to issue unconditional guarantees of the Republic of Austria for the payment of principal and interest on borrowings incurred by OeKB for the purpose of financing export transactions or for the purpose of refinancing such borrowings.
Guarantee from the Republic of Austria
The Republic of Austria via the Federal Minister of Finance is authorised to issue unconditional guarantees according to the Export Financing Guarantees Act for OeKB's borrowings. All international bonds and loans as well as money market instruments, such as commercial paper, are eligible for such a guarantee.
Summary of Guarantee
"Austria will unconditionally guarantee the due and punctual payment of principal of and interest and Additional Interest, if any, on the Guaranteed Debt Securities under the Export Financing Guarantees Act of 1981, as amended. Such Guarantees will be general obligations of Austria and the full faith and credit of Austria will be pledged for the performance thereof. The Act authorises Austria to guarantee the Guaranteed Debt Securities if they meet certain conditions relating to, among other things, the maximum principal amount of the Guaranteed Debt Securities which may be issued at any time and the maximum interest rate."
Extracted from the US Prospectus 2015, p. 21.
Export Guarantees Act
The administration of export guarantees is in turn carried out by OeKB as Agent of the Republic of Austria pursuant to the provisions of the Export Guarantees Act and the Export Guarantees Decree 1981, issued by the Federal Minister of Finance to regulate the implementation of the Act. The beneficiaries and the underlying contracts are specified in the legal framework. The contractual relations between the guarantor and the guarantee holders are set forth in the "General Business Conditions" for guarantees of the Republic of Austria under the Export Guarantees Act as well as in the individual guarantees.