U.S. resumes GSM credit for Indonesia<\/p>\n
JAKARTA (JP): The U.S. Department of Agriculture (USDA) has
\nresumed its credit guarantee facilities for the importation of
\nagricultural products from the United States.<\/p>\n
The USDA announced on Thursday that the GSM-102 credit
\nprogram, which offers total guarantees of US$400 million for a
\nrange of 27 commodities including cotton, soybeans, wheat,
\nsoybean meal, wood, pulp and solid wood products is once again
\nbeing made available to Indonesian importers.<\/p>\n
Earlier reports said that Indonesian commodity importers
\nsuffered a trade financing crunch following suspension of the
\ncredit facility.<\/p>\n
The GSM-102 program, which covers U.S. agricultural exporters
\nagainst nonpayment by foreign buyers, was suspended after a
\nclosed Indonesian bank whose liabilities had been assumed by the
\nIndonesian Bank Restructuring Agency defaulted on a payment to a
\nU.S. exporter.<\/p>\n
The USDA said that the eligibility of the new credit program
\nhad been extended to 38 Indonesian banks.<\/p>\n
The credit terms cover letters of credit of 90 days to three
\nyears. Freight charges are also included in the guarantee
\ncoverage.<\/p>\n
The U.S. allocated $400 million for Indonesian trade under the
\nprogram in 1999, of which over one-quarter was used to purchase
\ncotton, soybeans, wheat and oilseeds.<\/p>\n
Many Indonesian exporters are dependent on imports of raw
\nmaterials for their products. Both exporters and importers have
\nbeen hit by difficulties in securing trade finance over the
\ncourse of the financial crisis in Indonesia.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-resumes-gsm-credit-for-indonesia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}