Ericsson, Alcatel benefit from OECD loophole
Soft credits worth less than SDR 2 million are exempt from OECD regulations on mixed credits. Ericsson and Alcatel are making good use of this loophole to boost exports to China. (See DT 6-7/95)
Firms are purposefully splitting up large projects. The Swedish aid agency BITS has a special USD 45 million frame for telecom projects tailored for this OECD loophole. It is earmarked for Ericsson’s export to China.
In Norway, NORAD has turned down an application for soft financing of 12 Alcatel contracts for China, but the projects, each worth NOK 20 million, will be re-examined by Development Minister Kari Nordheim-Larsen.