(As
of December 6, 2011)
Under
Commodity Credit Corporation's (CCC's) Export
Credit Guarantee Program (GSM-102), CCC will consider
only foreign financial institutions which are capable
of effecting payment in one of the two following
ways:
-
An
irrevocable foreign bank letter of credit, issued
in favor of the exporter, specifically stating
the deferred payment terms under which the foreign
bank is obligated to make payments in U.S. dollars
as such payments become due; or
-
An
irrevocable foreign bank letter of credit, issued
in favor of the exporter, that is supported
by a related obligation specifically stating
the deferred payment terms under which the foreign
bank is obliged to make payment to the exporter,
or the exporter's assignee, in U.S. dollars
as such payments become due.
These
eligibility requirements are contained in the Rules
and Regulations, 7
CFR Part 1493, published in the Federal Register
(59 FR 52866), on November 18, 1994.
CCC
Evaluation Criteria
The
following information, generally provided by the
foreign bank, will enable CCC to evaluate the eligibility
of financial institutions to assume payment obligations
in connection with the GSM Export Credit Guarantee
Programs:
-
Legal
name and address of financial institution
- Three
most recent annual reports or related documents
which include the following:
-
Audited
balance sheet
-
Off-balance
sheet contingencies
-
Audited
income statement
-
Audited
cash flow statement or statement of sources
and uses of funds
-
Related
notes to financial statement
-
Statement
of internal accounting practices
-
Description
of internal controls employed to reduce risk associated
with the bank's lending and other operations
-
Breakdown
of bank ownership provided in the following format:
-
Individual
shareholder ownership by percentage
-
Percent
of government ownership
-
Identify
entity or person with ultimate control or
decision making authority, if different from
majority shareholder
-
Organizational
structure; i.e. independent or a subsidiary, affiliate,
or branch of another bank.
-
Names
and profiles of chief executive officer, chairman
of the board, executive vice presidents, vice
presidents, etc.
-
Percentage
breakdown of loan portfolio by industrial sector
-
Total
loans receivable 90 days or more past due
-
Breakdown
of other assets (if amount exceeds ten percent
of total assets) and contingent liabilities
-
Breakdown
of amounts of loss reserves to cover losses on
loans, other assets, and contingent liabilities
-
Breakdown
of amounts and types of collateral to cover losses
on loans, other assets, and contingent liabilities
-
Description
of asset-liability and foreign exchange management
strategies
-
Name
of regulatory entity which governs the bank
-
List
of correspondent banks in the U.S., including
contact names, telephone, and fax numbers
-
Any
other relevant quantitative or qualitative data
which could assist CCC in fully evaluating the
bank
Off
Balance Sheet ActivitiesDisclosure
of the kinds and outstanding amounts of derivatives
(including futures, options, swaps), and other off
balance sheet interest rate sensitive instruments
(including repurchase and reverse repurchase transactions).
- How
are these instruments utilized? Describe any methods
used for setting limits on these transactions.
- Description
of how the performance of the above instruments
is managed. How is the market value of contracts
monitored? Describe the types of pricing models
employed.
- How
long has the bank utilized derivatives? Describe
any losses incurred
- Description
of how credit risk, legal, and documentation risk
is managed. Disclosure of who is authorized to
develop derivatives contracts.
Participation
Limits
Upon
approval of eligibility as a foreign bank under
the GSM-102 Program, CCC will establish a participation
limit. To find out a particular foreign bank's participation
limit, contact the appropriate bank analyst by the
method described under "CCC Contact" in
the section below.
CCC
Contact
If
you would like to inquire as to a foreign bank's
eligibility under the GSM-102 program, please
contact the bank analyst associated with the country
or regions of interest. To do so:
- Go
to the Foreign Bank
Obligors page;
- Select
the country or region to find the appropriate
bank analyst. The bank analyst's name, telephone
number, and e-mail address are listed at the end
of each country or regional listing of banks.
- If
you have general questions about the eligibility
of foreign banks for the GSM-102 program,
please e-mail
Rita
Carleton phone number (202) 720-9357;
Nestor Gregory phone number: (202) 720-9843;
Michael
Smith phone number: (202) 720-1282;
Hal Taylor
phone number: (202) 690-1267;
Eli Fleminger
phone number: (202) 401-2575;
Miguel
Parkins phone number: (202) 720-3092;
Scott
Kim phone number (202) 401-0218;
Tim
Hunt phone number (202) 720-1376;
Michelle Zissimos phone number: (202) 690-1249;
or
Teri Ryan
phone number (202) 720-0663.
-
Please send faxes to (202) 401-0114
