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USDA CHANGES ITS FEES TO RISK-BASED METHOD FOR THE GSM-102 AND SUPPLIER
CREDIT GUARANTEE PROGRAMS

WASHINGTON, June 30, 2005 -- The U.S. Department of Agriculture today
announced new guarantee fee rates to be charged for coverage under the
Commodity Credit Corporation's Export Credit Guarantee Program (GSM-102)
and the Supplier Credit Guarantee Program (SCGP). The guarantee fee on
applications for payment guarantees and amendment requests received on
or after July 1, 2005, 12:01 AM EDT, under these programs will be
calculated using the rates detailed in this notice.

The Commodity Credit Corporation (CCC) will use a risk-based fee
structure for the GSM-102 and SCGP programs. Fee rates will be based on
the country risk that CCC is undertaking, as well as the repayment term
(tenor) and repayment frequency (annual or semi-annual) under the
guarantee. For the GSM-102 program, country risk will be based on the
country of the foreign obligor (opening bank), as determined by the CCC.
For the SCGP, country risk will be based on the country of the foreign
obligor (importer), as determined by the CCC.

The listing of all eligible banks is available on the Internet at
[http://www.fsa.usda.gov](http://www.fsa.usda.gov/)/ccc/banks_foreign.htm.
The listing of all countries programmed and their CCC risk rating is
available on the Internet at
<http://www.fas.usda.gov/excredits/countryrisk.html>.

GSM-102 GUARANTEE FEE RATE SCHEDULE

Until further notice and in accordance with 7 C.F.R. Section 1493.70(a),
the following table shows the guarantee fee rates, in cents per \$100 of
coverage (based on guaranteed value), for the GSM-102 program.

GSM-102 (Premium per US \$100 of coverage)

Annual Payment of Principal

  -----------------------------------------------------------------------------------------------
              Risk                                                                   
              Category                                                               
  ----------- ---------- --------- --------- --------- --------- --------- --------- ------------
  Tenor       0          1         2         3         4         5         6         7

  9 Months^1^ \$0.290    \$0.315   \$0.340   \$0.377   \$0.452   \$0.526   \$0.563   Ineligible

  12          \$0.319    \$0.346   \$0.373   \$0.411   \$0.490   \$0.570   \$0.612   Ineligible
  Months^2^                                                                          

  15          \$0.348    \$0.376   \$0.406   \$0.446   \$0.529   \$0.614   \$0.660   Ineligible
  Months^3^                                                                          

  18          \$0.377    \$0.407   \$0.439   \$0.480   \$0.567   \$0.658   \$0.709   Ineligible
  Months^4^                                                                          

  24          \$0.435    \$0.469   \$0.505   \$0.550   \$0.645   \$0.747   \$0.806   Ineligible
  Months^5^                                                                          

  30          \$0.493    \$0.530   \$0.571   \$0.619   \$0.722   \$0.835   \$0.903   Ineligible
  Months^6^                                                                          

  36          \$0.551    \$0.592   \$0.637   \$0.688   \$0.799   \$0.924   \$1.000   Ineligible
  Months^7^                                                                          
  -----------------------------------------------------------------------------------------------

> ^1/^Full repayment at 9 months. ^2/^Full repayment at 12 months.
> ^3/^4/5 at 12 months, remaining 1/5 at 15 months. ^4/^2/3 at 12
> months, remaining 1/3 at 18 months. ^5/^1/2 at 12 months, remaining
> 1/2 at 24 months. 24-month fee rates also apply in case of the 720-day
> credit terms. ^6/^2/5 at 12 months, 2/5 at 24 months, remaining 1/5 at
> 30 months. ^7^1/3 at 12 months, 1/3 at 24 months, remaining 1/3 at 36
> months.

GSM-102 (Premium per US \$100 of coverage)

Semi-Annual Payment of Principal

  ------------------------------------------------------------------------------------------------
               Risk                                                                   
               Category                                                               
  ------------ ---------- --------- --------- --------- --------- --------- --------- ------------
  Tenor        0          1         2         3         4         5         6         7

  30 Days^8^   \$0.161    \$0.176   \$0.190   \$0.215   \$0.261   \$0.304   \$0.323   Ineligible

  60 Days^8^   \$0.166    \$0.181   \$0.196   \$0.220   \$0.267   \$0.311   \$0.331   Ineligible

  90 Days^8^   \$0.170    \$0.186   \$0.201   \$0.226   \$0.274   \$0.319   \$0.339   Ineligible

  4 Months^8^  \$0.175    \$0.191   \$0.206   \$0.231   \$0.280   \$0.326   \$0.347   Ineligible

  6 Months^8^  \$0.184    \$0.200   \$0.217   \$0.242   \$0.292   \$0.340   \$0.363   Ineligible

  9 Months^9^  \$0.212    \$0.230   \$0.248   \$0.275   \$0.330   \$0.384   \$0.411   Ineligible

  12           \$0.239    \$0.260   \$0.280   \$0.308   \$0.368   \$0.428   \$0.459   Ineligible
  Months^10^                                                                          

  15           \$0.271    \$0.292   \$0.316   \$0.347   \$0.411   \$0.478   \$0.513   Ineligible
  Months^11^                                                                          

  18           \$0.302    \$0.326   \$0.351   \$0.384   \$0.454   \$0.526   \$0.567   Ineligible
  Months^12^                                                                          

  24           \$0.363    \$0.391   \$0.421   \$0.458   \$0.538   \$0.623   \$0.672   Ineligible
  Months^13^                                                                          

  30           \$0.423    \$0.454   \$0.489   \$0.531   \$0.619   \$0.716   \$0.774   Ineligible
  Months^14^                                                                          

  36           \$0.482    \$0.518   \$0.557   \$0.602   \$0.699   \$0.809   \$0.876   Ineligible
  Months^15^                                                                          
  ------------------------------------------------------------------------------------------------

> ^8/^Full repayment at 30, 60 or 90 days and 4, 6 months. ^9/^2/3 at 6
> months, remaining 1/3 at 9 months. ^10/^1/2 at 6 months, remaining 1/2
> at 12 months. ^11**/**^2/5 at 6 months, 2/5 at 12 months, remaining
> 1/5 at 15 months. ^12**/**^1/3 at 6 months, 1/3 at 12 months,
> remaining 1/3 at 18 months. ^13/^1/4 at 6 months, 1/4 at 12 months,
> 1/4 at 18 months, remaining 1/4 at 24 months. 24-month fee rates also
> apply in case of the 720-day credit terms. ^14/^1/5 at 6 months, 1/5
> at 12 months, 1/5 at 18 months, 1/5 at 24 months, remaining 1/5 at 30
> months. ^15/^1/6 at 6 months, 1/6 at 12 months, 1/6 at 18 months, 1/6
> at 24 months, 1/6 at 30 months, remaining 1/6 at 36 months.

SCGP GUARANTEE FEE RATE SCHEDULE

Until further notice and in accordance with 7 C.F.R. Section
1493.460(a), the following table shows the guarantee fee rates, in cents
per \$100 of coverage (based on guaranteed value), for the SCGP.

SCGP (Premium per US \$100)

  -------------------------------------------------------------------------------------------
          Risk                                                                   
          Category                                                               
  ------- ---------- --------- --------- --------- --------- --------- --------- ------------
  Tenor   0          1         2         3         4         5         6         7

  15 Days \$0.350    \$0.363   \$0.390   \$0.428   \$0.480   \$0.546   \$0.626   Ineligible

  30 Days \$0.380    \$0.393   \$0.420   \$0.460   \$0.513   \$0.580   \$0.660   Ineligible

  45 Days \$0.410    \$0.423   \$0.450   \$0.492   \$0.546   \$0.614   \$0.694   Ineligible

  60 Days \$0.440    \$0.453   \$0.481   \$0.525   \$0.580   \$0.648   \$0.729   Ineligible

  90 Days \$0.500    \$0.514   \$0.542   \$0.589   \$0.646   \$0.716   \$0.798   Ineligible

  120     \$0.560    \$0.574   \$0.602   \$0.654   \$0.713   \$0.783   \$0.866   Ineligible
  Days                                                                           

  150     \$0.620    \$0.635   \$0.663   \$0.718   \$0.779   \$0.851   \$0.935   Ineligible
  Days                                                                           

  180     \$0.680    \$0.695   \$0.724   \$0.783   \$0.846   \$0.919   \$1.000   Ineligible
  Days                                                                           
  -------------------------------------------------------------------------------------------

The rates stated in this notice are applicable to the GSM-102 and SCGP
programs unless otherwise stated in a country or regional program
announcement. This notice supersedes PR# 0347-02, issued Sept. 24, 2002,
for the GSM-102 program and all fees rates specified in each country and
regional program announcement under the SCGP.

POINTS OF CONTACT

For further information, contact the Contract and Registration Branch of
FAS at (202) 720-3224, or by e-mail at <AskGSM@fas.usda.gov>.

FAS news releases are available on the Internet at
[http://www.fas.usda.gov](http://www.fas.usda.gov/).

\#

PR 0093-05