A quick comparison of USDA's Export Credit Programs

AgExporter, June, 2002

A Quick Comparison of USDA's Export Credit Programs

GSM-102                             GSM-103

The GSM-102 Export Credit           The GSM-103 Intermediate Export
Guarantee Program guarantees        Credit Guarantee Program guarantees
credit extended by U.S. banks       credit extended by U.S. banks to
to approved foreign banks.          approved foreign banks.

Terms: Up to 3 years                Terms: 3 to 10 years

Financing Instrument:               Financing Instrument:
U.S. dollar-denominated             U.S. dollar-denominated letter
letter of credit                    of credit

Coverage:                           Coverage:
98% of principal and some interest  98% of principal and some interest

Application:                        Application:
Most U.S. agricultural products     U.S. livestock and genetics;
                                    occasionally used for bulk
                                    grains for specific countries

GSM-102                             SCGP

The GSM-102 Export Credit           The Supplier Credit Guarantee
Guarantee Program guarantees        Program guarantees short-term credit
credit extended by U.S. banks       extended by U.S. exporters directly
to approved foreign banks.          to their overseas customers.

Terms: Up to 3 years                Terms: Up to 180 days *

Financing Instrument:               Financing Instrument:
U.S. dollar-denominated             Importer's promissory note
letter of credit

Coverage:                           Coverage:
98% of principal and some interest  65% of principal and interest

Application:                        Application:
Most U.S. agricultural products     Most U.S. agricultural products



* The 2002 farm law authorizes appropriations to cover repayment of
credit up to 360 days.

USDA will implement this change in individual markets on a case-by-case

basis.