Export Guarantee Program

The U.S.

Department of Agriculture"s (USDA) Export Credit guarantee Program (GSM-102) provides credit guarantees to encourage financing of commercial exports of U.S.

agricultural products, while providing competitive credit terms to buyers.

By reducing financial risk to lenders,
credit guarantees encourage exports to buyers in countires-mailnly developing countries- that have sufficient financial strenght to have foreign exchange available for scheduled payments.

The program guarantess credit extended by the private banking sector in the U.S.

(or, less commonly, by the U.S.

exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit for purchases of U.S.

food and agricultural products by foreign buyers.

USDA"s Foreign Agricultural Service (FAS) administers the program on behalf of the Commodity Credit Corporation (CCC), which issues the credit guarantees.

GSM 102 covers credit terms of up tot hree year; maximum terms may vary by country.

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - See Regional Agency Offices.

For more information, contact:
Director, Credit Programs Division, Office of Trade programs
FAS/USDA, Stop 1025, 1400 Independence Ave SW Washington DC 20250-1025.