USDA Announces Separate GSM-102 Program for Jamaica

The USDA this week announced a $25 million Export Credit Guarantee Program (GSM-102) for Jamaica.

A separate program was also announced for the Caribbean region on March 30 for $75 million, bringing total announcements for this region to $275 million to date.

According to a USDA press release, applications for the program will be accepted beginning April 6, 2009, at 9:00 a.m. Eastern Standard Time.

Only Jamaican banks and Jamaican importers are eligible to use the credit guarantees under the GSM-102 program for Jamaica.

Since it has a separate GSM 102 status, Jamaica is no longer part of the Caribbean region GSM-102 program. Jamaican banks can no longer participate in the Caribbean region program, nor can exporters ship to Jamaican importers under the Caribbean region program.

GSM-102 covers credit terms up to three years. It underwrites credit extended by the private banking sector in the United States (or, less commonly, by the U.S. exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit to pay for food and agricultural products sold to foreign buyers. 

The USDA’s Commodity Credit Corporation administers the program. The guarantees encourage exports to buyers in countries where credit is necessary to maintain or increase U.S. sales, but where financing may not be available without guarantees.

The USDA this week announced a $25 million Export Credit Guarantee Program (GSM-102) for Jamaica.

A separate program was also announced for the Caribbean region on March 30 for $75 million, bringing total announcements for this region to $275 million to date.

According to a USDA press release, applications for the program will be accepted beginning April 6, 2009, at 9:00 a.m. Eastern Standard Time.

Only Jamaican banks and Jamaican importers are eligible to use the credit guarantees under the GSM-102 program for Jamaica.

Since it has a separate GSM 102 status, Jamaica is no longer part of the Caribbean region GSM-102 program. Jamaican banks can no longer participate in the Caribbean region program, nor can exporters ship to Jamaican importers under the Caribbean region program.

GSM-102 covers credit terms up to three years. It underwrites credit extended by the private banking sector in the United States (or, less commonly, by the U.S. exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit to pay for food and agricultural products sold to foreign buyers. 

The USDA’s Commodity Credit Corporation administers the program. The guarantees encourage exports to buyers in countries where credit is necessary to maintain or increase U.S. sales, but where financing may not be available without guarantees.