Reciprocal Interest Adjustment Contract
This is a financial instrument that resembles a certain type of interest, which aims to promote Spanish exports, encouraging the granting of fixed-interest loans by financial institutions.
Type of credit accepted by CARI: credit granted by a financial entity with a repayment term of more than two years and fixed interest rate determined in accordance with the rules agreed in the so-called OECD Consensus.
Submission and processing of a CARI application: the Financial Institution granting the export credit will submit to all documentation that the ICO requires of it, together with the application form.
Who the reciprocal interest adjustment is carried out: by calculating the difference between the real return that the Financial Institution obtains from the export credit that it granted at the Consensus Rate (CIRR) and the cost of financing on the interbank market in the currency in which the credit is denominated, plus a management margin. According to this result, a payment from ICO to the institution, or from the institution to ICO, is generated.
Advantages for the debtor and for the exporter: the former reduces its risk of financing, eliminating the uncertainty linked to changes in the interest rate, and the latter has advanced knowledge of the cost of borrowing that it will offer its potential buyers, in addition to finding itself in the same conditions as its competitors in other countries.