ANNOUNCEMENT 24 Oct 2012

On 24 October 2012, the US government approved funding to support an export operation carried out by Archer-Daniels-Midland Company.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

USAspending.gov. Award page. Export Guarantee Program. Archer-Daniels-Midland Company.
https://www.usaspending.gov/award/ASST_NON_12632998_12D3

USDA Foreign Agricultural Service, "Export Credit Guarantee Program (GSM-102)" (retrieved on 15/07/2021). Available at: https://www.fas.usda.gov/programs/export-credit-guarantee-program-gsm-102

Inception date: 24 Oct 2012 | Removal date: open ended

Trade finance

On 24 October 2012, the Department of Agriculture approved funding to support an export operation carried out by Archer-Daniels-Midland Company. The total amount granted was USD 17 million. The operation was located in United States of America. The support was granted through the Export Guarantee Program programme.

The Export Credit Guarantee Program (GSM-102) provides credit guarantees to encourage financing of commercial exports of U.S. agricultural products. By reducing financial risk to lenders, credit guarantees encourage exports to buyers in countries, mainly developing countries that have sufficient financial strength to have foreign exchange available for scheduled payments. The program guarantees credit extended by the private banking sector in the U.S. (or, less commonly, by the U.S. exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit for purchases of U.S. food and agricultural products by foreign buyers. USDA Foreign Agricultural Service (FAS) administers the program on behalf of the Commodity Credit Corporation (CCC), which issues the credit guarantees.

AFFECTED SECTORS