November 15, 2000

USDA has authorized $10 million in supplier credit guarantees for sales of U.S. agricultural commodities to Russia under the Commodity Credit Corporation's Supplier Credit Guarantee Program (SCGP) for fiscal year 2001. According to Richard Fritz, general sales manager for USDA's Foreign Agricultural Service, exporters may apply for credit guarantees on a first-come, first-served basis to cover sales of any of the commodities specified in the GSM list of commodities published in FAS program announcement PR 0240-00, issued June 12 or as superseded.

The allocation does not assign dollar amounts to any of the commodities specified in the GSM list of commodities, providing buyers and sellers maximum flexibility in arranging the size of their transactions within the scope of the overall allocation, according to FAS. The announcement offers coverage on an f.a.s. or f.o.b. basis. Coverage is not available under this announcement for insurance costs.

Coverage up to 65% of the principal is offered on credit terms of 15, 20, 30, 45, 60, 90, 120, 150, and 180 days. No interest coverage is offered under this announcement. Sales must be registered with CCC by Sept. 30, 2001, and exporters' contractual arrangements must call for exports no later than Nov. 30, 2001. Guarantee fee rates are $0.45 for credit terms up to 90 days, and $0.90 for credit terms up to 180 days. The guarantee fee rates are reflected in cents per $100 of coverage, based on the guarantee value.

Importers must use one or the other of two Russia promissory note forms as evidence of their obligation to pay for the U.S. agricultural commodities exported under the SCGP. These two forms, and the instructions for completing them, are available on the FAS Internet site at the listing for Russia Promissory Note Forms.

The forms may also be obtained by contacting the Contract and Registration Branch, Export Credits, FAS-USDA, Room 4503, Stop 1035, 1400 Independence Ave. SW, Washington, DC 20250-1035; telephone (202) 720-3224; fax (202) 720-2949.