WASHINGTON, March 7, 2008– The U.S. Department of Agriculture today announced the availability of the following credit guarantees for sales of U.S. agricultural commodities under the Commodity Credit Corporation's Export Credit Guarantee Program (GSM-102) for fiscal year 2008: 

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 Commodity Credit Corporation (CCC) reduces the financial risk to lenders by guaranteeing payments due from approved foreign banks to exporters or financial institutions in the United States.

This program announcement is issued in accordance with title 7, section 1493.10(d), of the Code of Federal Regulations.

COMMODITY ALLOCATIONS

TERMS OF COVERAGE

In accordance with section 1493.20(v)(1), this announcement offers coverage on a free-alongside-ship or free-on-board basis. If commodities are sold on a cost-and-freight or cost-insurance-and-freight basis, coverage on a cost-and-freight basis to point of ocean transportation or international air carrier discharge is also available in accordance with section 1493.20(v)(2).  Coverage is not available under this announcement for insurance costs.

Coverage of up to 98 percent of the principal is offered on credit terms from 30 days to three years.  Adjustable interest coverage is also offered in accordance with FAS program announcement PR 0105-05 issued July 15, 2005, or as superseded.

ELIGIBLE BANKS IN THE PHILIPPINES

Any bank approved by CCC for this country is eligible.  For a complete list of eligible banks, refer to the CCC "GSM Program Foreign Bank Obligors" Web page located at http://www.fas.usda.gov/excredits/foreignbanks.html.  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.

APPROVED BUYER

            The approved buyer is the National Food Authority.

GUARANTEE FEE RATES

Pursuant to section 1493.70, for a complete list of fees refer to the CCC "GSM-102 Guarantee Fee Rate Schedule" Web page located at http://www.fas.usda.gov/excredits/gsm102fees.html.  These fees are listed by risk category.  A complete list of countries and their associated risk category is available on the CCC "Country Risk Category" Web page located at http://www.fas.usda.gov/excredits/countryrisk.html.

SPECIAL TERMS AND CONDITIONS

Sales must be registered with CCC by March 15, 2008.  Exporters' contractual arrangements must call for exports no later than Nov. 30, 2008.

POINTS OF CONTACT

For further information, contact the Registrations and Operations Branch of FAS at (202) 720-3224, or by e-mail at GSM.Registrations@fas.usda.gov.

For the latest updates on FAS programs and activities, go to the FAS Web page at http://www.fas.usda.gov.

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PR 0045-08