Contact: Amy Slusher, 202.720.0775 Amy.Slusher@fas.usda.gov
WASHINGTON, Nov. 18, 2014 – The U.S. Department of Agriculture (USDA) today announced the final rule for the Export Credit Guarantee (GSM-102) Program. The final rule represents a rewrite of the credit guarantee program’s regulations to meet modern needs.
Credit guarantees are an important part of U.S. efforts to build and maintain new export markets. The guarantees reduce the financial risk to lenders, while facilitating exports to buyers in countries where credit is necessary to sustain and increase U.S. sales.
In Fiscal Year 2014, U.S. Agricultural exports reached a record $152.5 billion (up from last year’s record $141.1 billion). The Export Credit Guarantee Program financed more than $2 billion of that in sales of U.S. food and agricultural products.
The final rule, effective Dec. 18, 2014, represents operational changes that reflect current agricultural trade practices and new U.S. government requirements such as electronic bills of lading, and government-wide suspension and debarment requirements. The modifications, which incorporate changes to financial documentation and participant certifications to help improve financial management of the program, will help improve program efficiency, and enhance overall program clarity and integrity. These changes will also increase program availability to participants.
The rule will apply to payment guarantee applications received on or after Dec. 18, 2014. Applications received prior to Dec. 18, 2014, are subject to the provisions of the previous rule. Beginning Dec. 18, 2014, program participants must provide the information and certifications found in certain final rule provisions. Participants should review the final rule for more information about these provisions.
For a copy of the final rule, visit https://federalregister.gov/a/2014-27129. If you have questions or need more information, please contact Amy Slusher, Deputy Director, Credit Programs Division, at 202-720-6211 or at Amy.Slusher@fas.usda.gov.
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