USDA Increases Funding for GSM-102 Programs in Key U.S. Export Markets

The USDA Foreign Agriculture Service announced this week that funding for the Commodity Credit Corporation's (CCC) Export Credit Guarantee Program (GSM-102) for fiscal year 2009 has been increased for a number of key export markets, highlighted by a 50 percent increase in funding for South Korea.

Exporting members should consult the USDA’s Foreign Agricultural Service’s Web site for amendments to the program for South America, Mexico, Jamaica, China, Central America and the Caribbean.

Among the key markets that are getting GSM-102 increases, the USDA is adding $300 million to the program for South Korea (making a total of $900 million) and $25 million to Mexico (a total of $125 million).

The GSM-102 program helps ensure that credit is available to finance commercial exports of U.S. agricultural products to developing countries, while providing competitive credit terms in these countries. Under this program, the CCC reduces the financial risk to lenders by guaranteeing payments due from approved foreign banks to exporters or financial institutions in the United States.

Exporters may apply for credit guarantees on a first-come, first-served basis. These guarantees are to cover sales of any of the commodities specified in the GSM list of commodities. The latest commodity list can be obtained by accessing the Foreign Agricultural Service (FAS) Web page. Applications will be accepted beginning at 9:00 a.m. Eastern Standard Time on April 6, 2009.

The allocation does not assign dollar amounts to any of the commodities specified in the GSM list of commodities, providing buyers and sellers maximum flexibility in arranging the size of their transactions within the scope of the overall allocation.

The USDA Foreign Agriculture Service announced this week that funding for the Commodity Credit Corporation's (CCC) Export Credit Guarantee Program (GSM-102) for fiscal year 2009 has been increased for a number of key export markets, highlighted by a 50 percent increase in funding for South Korea.

Exporting members should consult the USDA’s Foreign Agricultural Service’s Web site for amendments to the program for South America, Mexico, Jamaica, China, Central America and the Caribbean.

Among the key markets that are getting GSM-102 increases, the USDA is adding $300 million to the program for South Korea (making a total of $900 million) and $25 million to Mexico (a total of $125 million).

The GSM-102 program helps ensure that credit is available to finance commercial exports of U.S. agricultural products to developing countries, while providing competitive credit terms in these countries. Under this program, the CCC reduces the financial risk to lenders by guaranteeing payments due from approved foreign banks to exporters or financial institutions in the United States.

Exporters may apply for credit guarantees on a first-come, first-served basis. These guarantees are to cover sales of any of the commodities specified in the GSM list of commodities. The latest commodity list can be obtained by accessing the Foreign Agricultural Service (FAS) Web page. Applications will be accepted beginning at 9:00 a.m. Eastern Standard Time on April 6, 2009.

The allocation does not assign dollar amounts to any of the commodities specified in the GSM list of commodities, providing buyers and sellers maximum flexibility in arranging the size of their transactions within the scope of the overall allocation.