RI's GSM credit suspended

RI's GSM credit suspended

WASHINGTON (Dow Jones): The U.S. Department of Agriculture has suspended Indonesia's US$400 million credit line for the purchase of U.S. commodities, a USDA aide said Thursday.

According to the latest figures from USDA, Indonesia was allocated $400 million in fiscal 1999 for the purchase of cotton, oilseeds, wheat, frozen or chilled meat and numerous other commodities.

The country purchased $120 worth of cotton, wheat and oilseeds, but USDA suspended Indonesia's credit line on Sept. 7 because of payment arrears, the aide said.

No new GSM credit has been extended to Indonesia for fiscal 2000, which began Oct. 1.

Under the GSM-102 program, U.S. banks may extend federally backed credit lines to foreign banks for the purchase of agricultural commodities.