FAQ: $300 million to support agricultural trade between the U.S. and Southeast Asia in 2016

The U.S. Department of Agriculture announces the availability of the $300 million credit guarantees for sales of U.S. agricultural commodities for export to Southeast Asia in 2016.

The GSM-102 program provides credit guarantees to encourage financing of commercial exports of U.S. agricultural products. By reducing financial risk to lenders, credit guarantees encourage exports to buyers in countries — mainly developing countries — that have sufficient financial strength to have foreign exchange available for scheduled payments.

The program is available to U.S. exporters and Vietnam importers of:

  high-value, consumer-oriented, processed products such as frozen foods, fresh produce, meats, condiments, wine and beer;

  intermediate products such as hides, flour and paper products; and

•   bulk products such as grains, oilseeds and rice.

The GSM-102 program guarantees credit extended by the private financial sector in the United States (or, less commonly, by the U.S. exporter) to approved foreign financial institutions using dollar-denominated, irrevocable letters of credit for purchases of U.S. food and agricultural products by foreign importers. 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 to 18 months; maximum terms may vary by country.

Country/Region Announced Available

Geographical Area: Burma/Myanmar, Cambodia, Indonesia, Laos, Malaysia, Papua New Guinea, Philippines, Singapore, Taiwan, Thailand, Timor Leste, and Vietnam

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Eligible Commodities

Coverage is available to cover sales of any of the commodities specified in the GSM Eligible Commodities list.  Exporters’ contractual arrangements must call for exports no later than 365 days from the date of registration or Nov 30, 2016, whichever date is earlier.
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Eligible Banks in Vietnam

Any bank approved by CCC for Vietnam is eligible. For a complete list of eligible banks, refer to the CCC “GSM Program Foreign Bank Obligors” page. U.S. exporters are advised to obtain from their foreign buyer the name of the CCC‑approved foreign bank that will be opening the letter of credit. Below are eligible banks in Vietnam.

GSM-102 Approved Banks in Vietnam

http://www.fas.usda.gov/programs/export-credit-guarantee-program-gsm-102/gsm-102-approved-financial-institutions-southeast

GSM-102 Program Contacts in Washington DC

Vietnam – Michael Smith, (202) 720-1282 or Rita Carleton, (202) 720-9357

GSM-102 Country:Region

GSM-102 Southeast Asia

GSM-102 VietnamGSM-102 Branch Chiefs

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