Improving Governmental Support for the Export Credit of Foreign Trade in the Eurasian Space

The development of common approaches to the provision of governmental support to export credit within the Eurasian Economic Space streamlines the entry of national producers into foreign markets and the development of foreign trade. The paper aims to justify the need to harmonize the rules according to which the government provides support to foreign trade within the Eurasian Economic Union (EAEU). We analyze principles for determining the minimum rates on export credits (CIRR, Commercial Interest Reference Rates) in national currencies, describe a methodology for determining the value of CIRR and calculating the minimum premium for credit risks adopted by the OECD, and define basic conditions for the provision of related export financing in the OECD. The novelty of our research consists in the fact that we calculate CIRR for EAEU member states in their national currencies in accordance with the provisions of the OECD Arrangement on Export Credits. The calculation technique that we propose contributes to the establishment of harmonized conditions to support the export of industrial products within the EAEU. We use research methods such as analysis, synthesis, generalization, and comparison. We identify risk zones of the export credit system and measures to reduce the cost of funding for the EAEU member states that do not issue freely convertible (reserve) currencies. We substantiate the expediency of developing and approving CIRR calculation techniques within the EAEU. We point out the advantages of supplementing the state support of export crediting with the mechanism of linked export financing. We reveal the barriers to establishing a unified and standardized system of export support in the Eurasian Space. We substantiate the ways to streamline the mechanisms of export policy at the level of the EAEU. Practical significance of our research consists in the fact that we develop an algorithm for calculating the minimum allowable rates of export credits denominated in the national currencies of EAEU member states (Russian ruble, Belarusian ruble, Kazakhstani tenge, Armenian Dram, and Kyrgyzstani som) on the basis of agreements and practices of state financial support (subsidies) for OECD export credits to stimulate mutual foreign trade within the EAEU.