Rolnictwo i rynki · 19/07/1995

Commodity Credit Corporation Supplier Credit Guarantee Program

The Commodity Credit Corporation (CCC) proposes to establish as a new subpart D of 7 CFR Part 1493, the Supplier Credit Guarantee Program (SCGP), as a variant of the Export Credit Guarantee Program (GSM-102), which is provided for under subpart B of 7 CFR Part 1493. The SCGP is designed to assist exporters of U.S. agricultural commodities who wish to provide relatively short term (up to 180 days) credits to their importers. Under SCGP, CCC will guarantee payment of such credits by the importer, and the exporter may assign such guarantees to an eligible U.S. financial institution. The SCGP is designed to offer certain advantages to U.S. exporters and importers that are not available under standard GSM-102 terms. Specifically, under SCGP there will be no requirement of a foreign bank letter of credit to ensure payment of the export transaction. Instead, CCC will ensure payment of the obligation of the importer due the U.S. exporter. The importer will benefit by avoiding the cost of opening a bank letter of credit. In addition, there will be fewer delays associated with opening a letter of credit. Finally, because the importer, rather than a foreign bank, will be the borrower, the imp