Contact: Amy Slusher, 202.720.0775, Amy.Slusher@fas.usda.gov
WASHINGTON, Oct. 30, 2014 – The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) today announced a new fee structure and pending new guarantee fee rates to be charged for coverage under the Commodity Credit Corporation’s Export Credit Guarantee Program (GSM-102). The new guarantee fee rates will apply to applications for payment guarantees and amendment requests received on or after Friday, Oct. 31, 2014, 12:01 a.m. (EDT).
Under the new fee structure, guarantee fees will be based on the following factors:
- Obligor country
- Foreign financial institution
- Repayment terms
To assist participants in determining the appropriate fee for each transaction, FAS today launched an online fee calculator available at www.fas.usda.gov/programs/export-credit-gurantee-program-gsm-102/gsm-fee.... Participants may select an obligor country and foreign financial institution using the calculator’s drop-down menus to generate a set of fees for each eligible tenor and repayment term.
The new guarantee fee rates reflect historical program performance, country risk (including current and expected individual country macroeconomic performance), and individual foreign obligor risk, and are designed to offset the risk of each individual GSM-102 program transaction. Rates are also calculated to cover the GSM-102 program’s long-term operating costs and losses. They are issued in accordance with Title 7 CFR, Section 1493.70(a) and will be in effect beginning Oct. 31, 2014.
Program participants are advised that guarantee fee rates may change at any time. Updates will be made to the online fee calculator at approximately 9 a.m. Eastern time on the day new rates are effective. Participants should access the fee calculator to verify the appropriate fee rate for each transaction prior to submitting an application for a payment guarantee.
Contact the FAS Registrations and Operations Branch at (202) 720-3224 or email@example.com for additional information.
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