USDA raises exports credits

USDA raises exports credits

WASHINGTON (Reuter): The U.S. Agriculture Department on Wednesday said it increased by US$100 million the amount of credit guarantees available to U.S. exporters for sales of U.S. farm goods to Indonesia under the GSM-102 program.

The action raises the fiscal year 1997 allocation to Indonesia to $260 million from $160 million, USDA said.

Lynn Reish, head of USDA export credit programs for Africa, Asia and the Middle East, said the department acted due to concern Indonesia might otherwise exhaust the credit line.

"We thought that they were starting to use their line up very quickly. They were down to $21 million out of $160 million," Reish said.

She said USDA "went for the high end" on the $100 million increase to ensure it was covered and would not have to issue yet another tranche.

Reish said the credit line had been used mostly for soybeans and some cotton, as in past years.