SE Asia slow to use USDA export credit

SE Asia slow to use USDA export credit

WASHINGTON (Reuters): Southeast Asian nations - with the exception of Thailand - have been slow to use existing export credit guarantees to buy U.S. farm goods, despite the U.S. Agriculture Department's recent decision to more than double their allocation.

As of Tuesday, the Philippines had used none of an initial tranche of US$20 million in GSM-102 short export credit guarantee for fiscal 1998.

Similarly, Indonesia had used just $26 million of its initial GSM-102 allocation of $250 million.

However, that did not stop USDA on Monday from boosting the allocation for the Philippines to $100 million and for Indonesia to $400 million.

USDA also extended $100 million in GSM-102 credits to Malaysia, which did not previously have an fiscal 1998 allocation, and boosted the program for Thailand to $300 million, from $100 million.

Before that action, Thailand had used nearly half, or $45.5 million, of its initial allocation to buy oilseeds and a small amount of protein meal and cotton.

USDA also said Monday that it had increased its supplier credit program for Southeast Asia - the four nations listed above, plus Singapore - to $50 million, from $35 million.

However, Southeast Asia has not yet taken advantage of the program. In addition, the region used only $40,000 of a $35- million supplier credit package in fiscal 1997.

There also has been no activity yet under a $40-million facility credit program for Southeast Asia in fiscal 1998.