WORLD TRADE
ORGANIZATIONG/AG/W/56
22 October 2002
(02-5771)
Committee on Agriculture Original:  English
IMPLEMENTATION OF ARTICLE 10.2 OF  THE AGREEMENT ON AGRICULTURE −
QUESTIONNAIRE ON AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE,
LOAN AND INSURANCE PROGRAMMES
Responses by Members
This document reproduces the responses received so far by the Secretariat to the questionnaire
on export credits and related facilities (Madagascar, New Zealand, Oman, United States and
Zimbabwe).
The questionnaire was circulated in the context of the discussion on the implementation of
Art. 10.2 of the Agreement on Agriculture at the regular Committee meeting on 28 June 2002, on the
basis that those Members which are in a position to do so were encouraged to complete and return the
questionnaire to the Secretariat at an early stage.
_______________G/AG/W/56
Page 2
MADAGASCAR
The Permanent Mission of the Republic of Madagascar to the United Nations Office and
Specialized Agencies at Geneva presents its compliments to the WTO Secretariat and, in reply to itsNotes of 3 July 2002 and 4 July 2002 on data on export credits and the agricultural export credit,
credit guarantee, loan and insurance programme questionnaire respectively, has the honour to inform
it that the Malagasy Government does not grant any agricultural export subsidies, guarantees or
insurance.G/AG/W/56
Page 3
NEW ZEALAND
AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE, LOAN AND INSURANCE
PROGRAM QUESTIONNAIRE
I. Institution Information
Name:   The New Zealand Export Credit Office
Function:   Officially-supported Export Credit Agency
Source of Lending:   N.A.
Ownership Structure (public/private/sovereign):   Sovereign
II. Program Information
Program Name:   NIL
Program Type (direct credit/credit guarantee/loan/insurance/other):
Program Description:
Program Product Coverage:
III. Program Terms and Conditions
Maximum repayment term-
Starting point of credit -
Repayment of principal-
Payment of interest-
Cash payment-
Risk sharing-G/AG/W/56
Page 4
NEW ZEALAND (cont'd)
Minimum interest rates-
Validity period for export credits-
Premiums-
Revolving credit-
Foreign Exchange Cover-
IV. State Trading Enterprises
State Trading Enterprises (STEs)-
V. Additional Information
Transparency-
National interest account administration-
Market windows-
Refinancing-
VI. Other Information and Practices
Please provide any additional information
relating to officially supported export
credits.G/AG/W/56
Page 5
OMAN
AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE, LOAN AND INSURANCE
PROGRAM QUESTIONNAIRE
I. Institution Information
Name:   Export Credit Guarantee Agency (S.A.O.C)
Function:   Export Credit Insurance Services and Guarantees
Source of Lending:   N.A.
Ownership Structure (public/private/sovereign):   Government
II. Program Information
Program Name:   Export Credit Insurance Scheme Cover
Program Type (direct credit/credit guarantee/loan/insurance/other):
Program Description:   Cover against commercial and non-commercial risks to exporters and
guarantees to commercial banks for providing working capital financing to exporters.
Program Product Coverage:
III. Program Terms and Conditions
Maximum repayment term- The maximum
allowable period for repayment of a loan.  The
maximum repayment term typically begins at
the starting point of credit and ends on thecontractual date of the final payment.Maximum credit insurance period is 180 days
(6 months)
Starting point of credit - The date on which
the credit period begins.  For most short-term
business, the starting point of credit is not later
than the acceptance of the goods by the buyer.From date of export
Repayment of principal-  The frequency at
which the principal is repaid.  Principal is
usually repaid in equal and regular installments
either semi-annually or annually based on thestarting point of credit.Not applicable.
Payment of interest-  The frequency at which
the interest is paid.  Interest is typically paid in
equal and regular installments semi-annually
based on the starting point of credit.Not applicable.G/AG/W/56
Page 6
OMAN (cont'd)
Cash payment-  A payment made directly by a
buyer at the time of the contract, at the latest byfinal delivery of the goods, before the credit
period begins.  Cash payments arise most
commonly in the context of medium- and long-
term credits or loans or in custom
manufactured products.Not applicable.
Risk sharing-  The percentage of risk not
covered by an institution or program.  There istypically a portion of the risk that is retained by
the exporter or financial institution in the
transaction.20% to exporters under credit insurance.
50% to banks under guarantee scheme.
Minimum interest rates-  The lowest rate  of
interest at which a financial institution orexport credit agency can offer financing.  It is
not less than the rate at which the institution or
program providing export credits pays for the
funds.Not applicable.
Validity period for export credits-  The period
for which the credit terms and conditions for an
individual export credit or line of credit arevalid.Maximum of 6 months from the date of
exports.
Premiums-  The sum paid by an insured party
to an export credit agency for its facilities.
Credit coverage will not usually be fullyeffective until the premium has been paid.
Premiums are normally calculated based on the
exposure, length of credit and the risk of doing
business in the buying country.Ranges from 0.240% to a maximum of 2.8%
depending on terms of payment and country
ratings.
Revolving credit-  A credit extended by a
lender with a clause that permits the borrower a
renewal of the credit for a specified periodunder certain conditions or the extension of a
line of credit up to a specified maximum
amount during a specified period.  The
customer may pay a commitment fee for a
revolving credit and can use and repay the
credit at will.Not applicable.  For credit units under credit
insurance, it is a revolving limit.
Foreign Exchange Cover-  Cover against
movements in exchange rates, whether or not
there are payment defaults.Not applicable.G/AG/W/56
Page 7
OMAN (cont'd)
IV. State Trading Enterprises
State Trading Enterprises (STEs)-  Export
STEs may employ many of the export credit
facilities offered by export credit agencies.
Some export STEs receive exclusive or special
privileges from their respective governments,
including access to low-cost, government-backed credit.Not applicable.
V. Additional Information
Transparency-  Transparency refers to the
extent to which the activities of an export credit
institution or program are clearly documented,
easily understood, and readily available.Clearly documented in the brochures and news
bulletins as well as at:  www.ecgaoman.com
National interest account administration-
Business for which an export credit agency
provides financial cover, even if it does notmeet the agency’s normal underwriting criteria
and standards, because the business is deemed
to be in the broader interest of the agency’s
home country.Not applicable.  Agency only insures
marketable risks and no cover without
reinsurance from private market.
Market windows-  A market window is a
government-owned or –directed financial
institution that seeks to break even financiallyby operating on a commercial basis providing
credits predominately to foreign buyers for
purchases of imported products or services.
Market window institutions claim not to be
subject to the OECD Arrangement on
Guidelines for Officially Supported Export
Credits for industrial goods because theirsupport is on "market" terms and/or not tied to
domestic content.  Although the credits are not
programmatically tied to domestic content,
they usually involve domestic content or are
linked to some form of national interest.Not applicable.G/AG/W/56
Page 8
OMAN (cont'd)
Refinancing-  The replacement of an existing
loan to a borrower (or a debtor countrygovernment) with a new source of finance.  In
a potential claims situation, this can be done by
either an export credit agency, its government,
or a bank under an export credit agency
guarantee, so that the borrower can continue toservice debt that the export credit agency has
insured.  Refinancing in effect exchanges one
insured debt for another, thus avoiding the need
for the export credit agency to pay a claim.  But
refinancing can also arise when a buyer or
borrower decides to change the source of its
finance for a project (e.g., to a different bank,or from a loan to a bond).Not applicable.
VI. Other Information and Practices
Please provide any additional information
relating to officially supported export credits.G/AG/W/56
Page 9
UNITED STATES
AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE, LOAN AND INSURANCE
PROGRAM QUESTIONNAIRE
I. Institution Information
Name:   Commodity Credit Corporation
Function:   To provide export credit guarantees for agricultural products
Source of Lending:   Commercial banks or exporters
Ownership Structure (public/private/sovereign):   100% sovereign
II. Program Information
Program Name:   Supplier Credit Guarantee Program (SCGP)
Program Type (direct credit/credit guarantee/loan/insurance/other):   Credit guarantee
Program Description:   The U.S. Department of Agriculture administers the Commodity Credit
Corporation's (CCC) Supplier Credit Guaran tee Program (SCGP), which underwrites credit
extended by a U.S. exporter directly to an importer for the purchase of U.S. agriculturalcommodities.  The importer must issue a dollar-de nominated promissory note in favor of the U.S.
exporter.  The CCC does not provide financing, but guarantees payments due from importers.
Program Product Coverage: All U.S. agricultural commodities or products.  A maximum of
10% foreign content is permitted for value-added products.
III. Program Terms and Conditions
Maximum repayment term- The maximum
allowable period for repayment of a loan.  The
maximum repayment term typically begins at
the starting point of credit and ends on thecontractual date of the final payment.The Supplier Credit Guarantee Program
(SCGP) covers credit terms of up to 180 days.
Starting point of credit - The date on which
the credit period begins.  For most short-term
business, the starting point of credit is not later
than the acceptance of the goods by the buyer.In general, the credit period begins upon the
date of export.
Repayment of principal-  The frequency at
which the principal is repaid.  Principal is
usually repaid in equal and regular installments
either semi-annually or annually based on thestarting point of credit.Not applicable – the maximum repayment term
under the SCGP is six months for full
repayment of credit extended.G/AG/W/56
Page 10
UNITED STATES - SCGP (cont'd)
Payment of interest-  The frequency at which
the interest is paid.  Interest is typically paid inequal and regular installments semi-annually
based on the starting point of credit.CCC provides no specific interest coverage
under the SCGP.  However, interest accruedduring the credit period extended can be
included in the sale price of the commodity.
Cash payment-  A payment made directly by a
buyer at the time of the contract, at the latest byfinal delivery of the goods, before the credit
period begins.  Cash payments arise most
commonly in the context of medium- and long-
term credits or loans or in custom
manufactured products.No cash payment required.
Risk sharing-  The percentage of risk not
covered by an institution or program.  There istypically a portion of the risk that is retained by
the exporter or financial institution in the
transaction.Typically, 35 percent of principal and interest
exposure between the exporter and importer isnot covered by the SCGP.  If interest is
separate from price, 100% of interest exposure
is not covered.
Minimum interest rates-  The lowest rate of
interest at which a financial institution orexport credit agency can offer financing.  It is
not less than the rate at which the institution or
program providing export credits pays for the
funds.The SCGP does not set a minimum interest
rate.  Exporters extending loans guaranteed bySCGP do so at commercial market rates of
interest.
Validity period for export credits-  The period
for which the credit terms and conditions for an
individual export credit or line of credit arevalid.The validity period is a maximum of 180 days
from the date of export.
Premiums-  The sum paid by an insured party
to an export credit agency for its facilities.
Credit coverage will not usually be fullyeffective until the premium has been paid.
Premiums are normally calculated based on the
exposure, length of credit and the risk of doing
business in the buying country.Guarantee fee rates are reflected in cents per
$100 of coverage, based on the guarantee
value. Guarantee fee rates are $0.45 for creditterms up to 90 days, and $0.90 for credit terms
up to 180 days.  Coverage is currently 65%.
Revolving credit-  A credit extended by a
lender with a clause that permits the borrower a
renewal of the credit for a specified period
under certain conditions or the extension of a
line of credit up to a specified maximumamount during a specified period.  The
customer may pay a commitment fee for a
revolving credit and can use and repay the
credit at will.CCC does not currently have a mechanism for
providing revolving credit.
Foreign Exchange Cover-  Cover against
movements in exchange rates, whether or not
there are payment defaults.CCC does not provide cover for foreign
exchange rate risk.G/AG/W/56
Page 11
UNITED STATES - SCGP (cont'd)
IV. State Trading Enterprises
State Trading Enterprises (STEs)-  Export
STEs may employ many of the export credit
facilities offered by export credit agencies.Some export STEs receive exclusive or special
privileges from their respective governments,
including access to low-cost, government-
backed credit.The CCC is notified under the WTO as a state
trading enterprise.
V. Additional Information
Transparency-  Transparency refers to the
extent to which the activities of an export credit
institution or program are clearly documented,
easily understood, and readily available.CCC provides monthly public reports on
program activity.  Program information,
including the specific terms for individual
countries, is available on our website and by
request.  (http://www.fas.usda.gov)
National interest account administration-
Business for which an export credit agency
provides financial cover, even if it does not
meet the agency's normal underwriting criteria
and standards, because the business is deemed
to be in the broader interest of the agency's
home country.US law (7 USC  5622 (e)) prohibits export
credit guarantees from being used for foreignaid, foreign policy, or debt rescheduling
purposes.  Further, CCC is prohibited from
making credit guarantees available in
connection with sales of agricultural
commodities to any country that the Secretaryof Agriculture determines cannot adequately
service the debt associated with such sales.
Market windows-  A market window is a
government-owned or –directed financial
institution that seeks to break even financially
by operating on a commercial basis providing
credits predominately to foreign buyers forpurchases of imported products or services.
Market window institutions claim not to be
subject to the OECD Arrangement on
Guidelines for Officially Supported Export
Credits for industrial goods because theirsupport is on "market" terms and/or not tied to
domestic content.  Although the credits are not
programmatically tied to domestic content,
they usually involve domestic content or are
linked to some form of national interest.The SCGP is a guarantee program rather than a
direct financing program.  CCC has not used its
direct financing authority to support export
sales since 1984.  When direct financing was
provided, commercial rates of interest appliedto such sales.
VI. Other Information and Practices
Please provide any additional informationrelating to officially supported export credits.G/AG/W/56
Page 12
UNITED STATES
AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE, LOAN AND INSURANCE
PROGRAM QUESTIONNAIRE
I. Institution Information
Name:   Commodity Credit Corporation
Function:   To provide export credit guarantees for agricultural products
Source of Lending:   Commercial banks or exporters
Ownership Structure (public/private/sovereign):   100% sovereign
II. Program Information
Program Name:   Export Credit Guarantee Program (GSM-102)
Program Type (direct credit/credit guarantee/loan/insurance/other):   Export credit guarantee
Program Description:   The U.S. Department of Agriculture administers the Commodity Credit
Corporation's (CCC) Export Credit Guarantee Program (GSM-102) which underwrites credit
extended by the private banking sector in the United States (or, less commonly, by the U.S.exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit to pay
for agricultural commodities or products sold to foreign buyers. The CCC does not provide
financing, but guarantees payments due from foreign banks.
Program Product Coverage:   All U.S. agricultural commodities or products.  A maximum of
10% foreign content is permitted for value-added products.
III. Program Terms and Conditions
Maximum repayment term- The maximum
allowable period for repayment of a loan.  Themaximum repayment term typically begins at
the starting point of credit and ends on the
contractual date of the final payment.The Export Credit Guarantee Program (GSM-
102) covers credit terms up to three years.
Starting point of credit - The date on which
the credit period begins.  For most short-term
business, the starting point of credit is not later
than the acceptance of the goods by the buyer.In general, the credit period begins upon the
date of export.
Repayment of principal-  The frequency at
which the principal is repaid.  Principal isusually repaid in equal and regular installments
either semi-annually or annually based on the
starting point of credit.Repayment of principal can be annual or semi-
annual.G/AG/W/56
Page 13
UNITED STATES – GSM-102 (cont'd)
Payment of interest-  The frequency at which
the interest is paid.  Interest is typically paid inequal and regular installments semi-annually
based on the starting point of credit.Repayment of interest is semi-annual.
Cash payment-  A payment made directly by a
buyer at the time of the contract, at the latest byfinal delivery of the goods, before the credit
period begins.  Cash payments arise most
commonly in the context of medium- and long-
term credits or loans or in custom
manufactured products.No cash payment required.
Risk sharing-  The percentage of risk not
covered by an institution or program.  There istypically a portion of the risk that is retained by
the exporter or financial institution in the
transaction.Typically, 2 percent of principal and about
50% of the interest exposure between the U.S.and foreign bank is not covered by the GSM-
102 program.
Minimum interest rates-  The lowest rate  of
interest at which a financial institution orexport credit agency can offer financing.  It is
not less than the rate at which the institution or
program providing export credits pays for the
funds.The GSM-102 program does not set a
minimum interest rate.  Financial institutionsextending loans guaranteed by GSM-102 do so
at commercial market rates of interest.
Typically banks lend at LIBOR (London
Interbank Offer Rate) plus 25-75 basis points.
Eligible interest coverage under the GSM-102
program shall not exceed 55 percent of the
average investment rate of the most recent 26-
week Treasury bill auction announced by the
U.S. Department of Treasury prior to the date
the rate used to calculate eligible interest is
established or adjusted.
Validity period for export credits-  The period
for which the credit terms and conditions for anindividual export credit or line of credit are
valid.The validity period is a maximum of three
years from the date of export.
Premiums-  The sum paid by an insured party
to an export credit agency for its facilities.Credit coverage will not usually be fully
effective until the premium has been paid.
Premiums are normally calculated based on the
exposure, length of credit and the risk of doing
business in the buying country.The payment guarantee fee rates are based
upon the length of the tenor and the frequencyof repayment for principal and interest.  The
guarantee fee is computed by multiplying the
guarantee value by the guarantee fee rate.  (See
attached fee schedule.)G/AG/W/56
Page 14
UNITED STATES – GSM-102 (cont'd)
Revolving credit-  A credit extended by a
lender with a clause that permits the borrower arenewal of the credit for a specified period
under certain conditions or the extension of a
line of credit up to a specified maximum
amount during a specified period.  The
customer may pay a commitment fee for arevolving credit and can use and repay the
credit at will.CCC does not currently have a mechanism for
providing revolving credit.
Foreign Exchange Cover-  Cover against
movements in exchange rates, whether or not
there are payment defaults.CCC does not provide cover for foreign
exchange rate risk.
IV. State Trading Enterprises
State Trading Enterprises (STEs)-  Export
STEs may employ many of the export credit
facilities offered by export credit agencies.
Some export STEs receive exclusive or special
privileges from their respective governments,
including access to low-cost, government-backed credit.The CCC is notified under the WTO as a state
trading enterprise.
V. Additional Information
Transparency-  Transparency refers to the
extent to which the activities of an export creditinstitution or program are clearly documented,
easily understood, and readily available.CCC provides monthly public reports on
program activity.  Program information,including the specific terms for individual
countries, is available on our website and by
request.  (http://www.fas.usda.gov)G/AG/W/56
Page 15
UNITED STATES – GSM-102 (cont'd)
National interest account administration-
Business for which an export credit agency
provides financial cover, even if it does not
meet the agency’s normal underwriting criteria
and standards, because the business is deemed
to be in the broader interest of the agency’s
home country.US law (7 USC  5622 (e)) prohibits export
credit guarantees from being used for foreignaid, foreign policy, or debt rescheduling
purposes.  Further, CCC is prohibited from
making credit guarantees available in
connection with sales of agricultural
commodities to any country that the Secretaryof Agriculture determines cannot adequately
service the debt associated with such sales.
Market windows-  A market window is a
government-owned or –directed financial
institution that seeks to break even financially
by operating on a commercial basis providing
credits predominately to foreign buyers forpurchases of imported products or services.
Market window institutions claim not to be
subject to the OECD Arrangement on
Guidelines for Officially Supported Export
Credits for industrial goods because their
support is on “market” terms and/or not tied to
domestic content.  Although the credits are notprogrammatically tied to domestic content,
they usually involve domestic content or are
linked to some form of national interest.The GSM-102 program is a guarantee program
rather than a direct financing program.  CCC
has not used its direct financing authority to
support export sales since 1984.  When direct
financing was provided, commercial rates ofinterest applied to such sales.
Refinancing-  The replacement of an existing
loan to a borrower (or a debtor country
government) with a new source of finance.  In
a potential claims situation, this can be done byeither an export credit agency, its government,
or a bank under an export credit agency
guarantee, so that the borrower can continue to
service debt that the export credit agency has
insured.  Refinancing in effect exchanges oneinsured debt for another, thus avoiding the need
for the export credit agency to pay a claim.  But
refinancing can also arise when a buyer or
borrower decides to change the source of its
finance for a project (e.g., to a different bank,or from a loan to a bond).
VI. Other Information and Practices
Please provide any additional informationrelating to officially supported export credits.See attached fee schedule.G/AG/W/56
Page 16
Attachment
GSM-102 Guarantee Fee Rate Schedule
Until further notice and in accordance with 7 C.F.R. 1493.70(a), the following table shows the
guarantee fee rates, in cents per $100 dollars of coverage (based on guaranteed value), for theGSM-102 Program.  These fee rates include a charge to provide adjustable per annum eligible
interest.
PRINCIPAL REPAYMENT INTERVALS
LENGTH (TERM)
OF COVERAGESEMI-ANNUAL ANNUAL
90 Days 15.3 1/ N/A
4 Months 15.3 2/ N/A
6 Months 15.3 3/ N/A
7 Months 15.3 4/ N/A
9 Months 17.4 5/ 20.9 6/
12 Months 22.9 31.5
15 Months 25.7 7/ 36.7 8/
18 Months 30.8 36.8 9/
24 months 10/ 38.8 48.0
30 Months 47.0 54.4 11/
36 Months 55.6 66.3
1/ Full repayment at 90 days. 2/ Full repayment at 4 months. 3/ Full repayment at 6 months. 4/ Full
repayment at 7 months. 5/ 2/3 at 6 months; 1/3 at 9 months. 6/ Full repayment at 9 months. 7/ 2/5 at 6
months; 2/5 at 12 months; 1/5 at 15 months.  8/ 4/5 at 12 months; 1/5 at 15 months. 9/ 2/3 at 12
months; 1/3 at 18 months. 10/ 24-month fee rates also apply in case of 720-day credit terms. 11/ 2/5 at
12 months; 2/5 at 24 months; 1/5 at 30 months.G/AG/W/56
Page 17
UNITED STATES
AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE, LOAN AND INSURANCE
PROGRAM QUESTIONNAIRE
I. Institution Information
Name:   Commodity Credit Corporation
Function:   To provide export credit guarantees for agricultural products
Source of Lending:   Commercial banks or exporters
Ownership Structure (public/private/sovereign):   100% sovereign
II. Program Information
Program Name:   Intermediate Export Credit Guarantee Program (GSM-103)
Program Type (direct credit/credit guarantee/loan/insurance/other):  Credit guarantee
Program Description:   The U.S. Department of Agriculture administers the Commodity Credit
Corporation's (CCC) Intermediate Export Cr edit Guarantee Program (GSM-103) which
underwrites credit extended by the private banking sector in the United States (or, less commonly,
by the U.S. exporter) to approved foreign banks using dollar-denominated, irrevocable letters of
credit to pay for agricultural commodities or products sold to foreign buyers.  The CCC does notprovide financing, but guarantees payments due from foreign banks.
Program Product Coverage:  All U.S. agricultural commodities or products.  A maximum of
10% foreign content is permitted for value-added products.
III. Program Terms and Conditions
Maximum repayment term- The maximum
allowable period for repayment of a loan.  Themaximum repayment term typically begins at
the starting point of credit and ends on the
contractual date of the final payment.The Intermediate Export Credit Guarantee
Program (GSM-103) covers credit terms ofmore than three years and up to ten years.
Starting point of credit - The date on which
the credit period begins.  For most short-term
business, the starting point of credit is not later
than the acceptance of the goods by the buyer.In general, the credit period begins upon the
date of export.
Repayment of principal-  The frequency at
which the principal is repaid.  Principal isusually repaid in equal and regular installments
either semi-annually or annually based on the
starting point of credit.Repayment of principal can be annual or semi-
annual.G/AG/W/56
Page 18
UNITED STATES – GSM-103 (cont'd)
Payment of interest-  The frequency at which
the interest is paid.  Interest is typically paid inequal and regular installments semi-annually
based on the starting point of credit.Repayment of interest is semi-annual.
Cash payment-  A payment made directly by a
buyer at the time of the contract, at the latest byfinal delivery of the goods, before the credit
period begins.  Cash payments arise most
commonly in the context of medium- and long-
term credits or loans or in custom
manufactured products.No cash payment required.
Risk sharing-  The percentage of risk not
covered by an institution or program.  There istypically a portion of the risk that is retained by
the exporter or financial institution in the
transaction.Typically, two percent of principal and about
45% of the interest exposure between the U.S.and foreign bank is not covered by the GSM-
103 program.
Minimum interest rates-  The lowest rate  of
interest at which a financial institution orexport credit agency can offer financing.  It is
not less than the rate at which the institution or
program providing export credits pays for the
funds.The GSM-103 program does not set a
minimum interest rate.  Financial institutionsextending loans guaranteed by GSM-103 do so
at commercial market rates of interest.
Typically banks lend at LIBOR (London
Interbank Offer Rate) plus 25-75 basis points.
Eligible interest coverage under the GSM-103
program shall not exceed 80 percent of the
average investment rate of the most recent 26-
week Treasury bill auction announced by the
U.S. Department of Treasury prior to the date
the rate used to calculate eligible interest is
established or adjusted.
Validity period for export credits-  The period
for which the credit terms and conditions for anindividual export credit or line of credit are
valid.The validity period is a maximum of ten years
from the date of export.
Premiums-  The sum paid by an insured party
to an export credit agency for its facilities.Credit coverage will not usually be fully
effective until the premium has been paid.
Premiums are normally calculated based on the
exposure, length of credit and the risk of doing
business in the buying country.The payment guarantee fee rates are based
upon the length of the tenor and the frequencyof repayment for principal and interest.  The
guarantee fee is computed by multiplying the
guarantee value by the guarantee fee rate.  (See
attached fee schedule.)G/AG/W/56
Page 19
UNITED STATES – GSM-103 (cont'd)
Revolving credit-  A credit extended by a
lender with a clause that permits the borrower arenewal of the credit for a specified period
under certain conditions or the extension of a
line of credit up to a specified maximum
amount during a specified period.  The
customer may pay a commitment fee for arevolving credit and can use and repay the
credit at will.CCC does not currently have a mechanism for
providing revolving credit.
Foreign Exchange Cover-  Cover against
movements in exchange rates, whether or not
there are payment defaults.CCC does not provide cover for foreign
exchange rate risk.
IV. State Trading Enterprises
State Trading Enterprises (STEs)-  Export
STEs may employ many of the export creditfacilities offered by export credit agencies.
Some export STEs receive exclusive or special
privileges from their respective governments,
including access to low-cost, government-
backed credit.The CCC is notified under the WTO as a state
trading enterprise.
V. Additional Information
Transparency-  Transparency refers to the
extent to which the activities of an export credit
institution or program are clearly documented,
easily understood, and readily available.CCC provides monthly public reports on
program activity.  Program information,
including the specific terms for individual
countries, is available on our website and byrequest.  (http://www.fas.usda.gov)
National interest account administration-
Business for which an export credit agency
provides financial cover, even if it does not
meet the agency's normal underwriting criteria
and standards, because the business is deemed
to be in the broader interest of the agency'shome country.US law (7 USC  5622 (e)) prohibits export
credit guarantees from being used for foreign
aid, foreign policy, or debt rescheduling
purposes.  Further, CCC is prohibited from
making credit guarantees available in
connection with sales of agriculturalcommodities to any country that the Secretary
of Agriculture determines cannot adequately
service the debt associated with such sales.G/AG/W/56
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UNITED STATES – GSM-103 (cont'd)
Market windows-  A market window is a
government-owned or –directed financialinstitution that seeks to break even financially
by operating on a commercial basis providing
credits predominately to foreign buyers for
purchases of imported products or services.
Market window institutions claim not to besubject to the OECD Arrangement on
Guidelines for Officially Supported Export
Credits for industrial goods because their
support is on "market" terms and/or not tied to
domestic content.  Although the credits are not
programmatically tied to domestic content,
they usually involve domestic content or arelinked to some form of national interest.The GSM-103 program is a guarantee program
rather than a direct financing program.  CCChas not used its direct financing authority to
support export sales since 1984.  When direct
financing was provided, commercial rates of
interest applied to such sales.
VI. Other Information and Practices
Please provide any additional information
relating to officially supported export credits.The GSM-103 program comprises a very small
percentage of total CCC export credit
guarantees.  In fiscal year 2001, GSM-103
guarantees accounted for only 1.3% of total
CCC guarantees.
Attachment
GSM-103 Guarantee Fee Rate Schedule
Until further notice and in accordance with 7 C.F. R. 1493.70(a), the following table shows guarantee
fee rates, in cents per $100 dollars of coverage (based on guaranteed value), for the GSM-103
Program.  These fee rates include a charge to provide adjustable per annum eligible interest.
PRINCIPAL REPAYMENT INTERVALS LENGTH (TERM)
OF COVERAGE SEMI-ANNUAL ANNUAL
48 Months 1.17 1.50
60 Months 1.67 2.00
72 Months 2.17 2.50
84 Months 2.67 3.00
96 Months 3.34 3.67
108 Months 4.00 4.33
120 Months 4.67 5.00G/AG/W/56
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ZIMBABWE
AGRICULTURAL EXPORT CREDIT, CREDIT GUARANTEE, LOAN AND INSURANCE
PROGRAM QUESTIONNAIRE
Below is the duly completed questionnaire on export credit, credit guarantee, loan and
insurance programmes.  The Government of Zimbabwe does not provide any agricultural export
credit.  Export credits are provided by the private sector.
I. Institution Information
Name:   Export Credit Guarantee Corporation of Zimbabwe (Private) Limited
Function:   To provide Export Credit Insurance to Exporters and Banks
Source of Lending:   Non-funded products and services
Ownership Structure (public/private/sovereign):   Private Limited Company – currently wholly
owned by the Central Bank
II. Program Information
Program Name:   Export Credit Insurance
Program Type (direct credit/credit guarantee/loan/insurance/other):   Export Payment
Insurance Policy
Program Description:   Insurance against Commercial Risk
Program Product Coverage:  Includes Transit Policy
III. Program Terms and Conditions
Maximum repayment term- The maximum
allowable period for repayment of a loan.  The
maximum repayment term typically begins atthe starting point of credit and ends on the
contractual date of the final payment.Export credit of up to 180 days.
Starting point of credit - The date on which
the credit period begins.  For most short-term
business, the starting point of credit is not later
than the acceptance of the goods by the buyer.From date of shipment to the payment due date.
Repayment of principal- The frequency at
which the principal is repaid.  Principal is
usually repaid in equal and regular installmentseither semi-annually or annually, based on the
starting point of credit.Not applicable.G/AG/W/56
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ZIMBABWE (cont'd)
Payment of interest- The frequency at which
the interest is paid.  Interest is typically paid inequal and regular installments semi-annually,
based on the starting point of credit.Not applicable.
Cash payment-  A payment made directly by a
buyer at the time of the contract, at the latest byfinal delivery of the goods, before the credit
period begins.  Cash payments arise most
commonly in the context of medium- and long-
term credits or loans or in custom
manufactured products.Not applicable.
Risk sharing- The percentage of risk not
covered by an institution or program.  There istypically a portion of the risk that is retained by
the exporter or financial institution in the
transaction.10% is risk portion taken by the insured.
Minimum interest rates- The lowest rate of
interest at which a financial institution orexport credit agency can offer financing.  It is
not less than the rate at which the institution or
program providing export credits pays for the
funds.Not applicable.
Validity period for export credits- The period
for which the credit terms and conditions for an
individual export credit or line of credit arevalid.From the date of shipment to the due date of
payment.
Premiums- The sum paid by an insured party
to an export credit agency for its facilities.
Credit coverage will not usually be fullyeffective until the premium has been paid.
Premiums are normally calculated based on the
exposure, length of credit and the risk of doing
business in the buying country.Yes.
Revolving credit- A credit extended by a
lender with a clause that permits the borrower a
renewal of the credit for a specified period
under certain conditions, or the extension of a
line of credit up to a specified maximumamount during a specified period.  The
customer may pay a commitment fee for a
revolving credit and can use and repay the
credit at will.Not applicable.
Foreign Exchange Cover- Cover against
movements in exchange rates, whether or not
there are payment defaults.Cover is given in local currency at the ruling
exchange rate at shipment date, i.e. there is no
cover against exchange rate risk.G/AG/W/56
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ZIMBABWE (cont'd)
IV. State Trading Enterprises
State Trading Enterprises (STEs)- Export
STEs may employ many of the export credit
facilities offered by export credit agencies.Some export STEs receive exclusive or special
privileges from their respective governments,
including access to low-cost, government-
backed credit.Not applicable.
V. Additional Information
Transparency- Transparency refers to the
extent to which the activities of an export credit
institution or program are clearly documented,
easily understood, and readily available.The policy document sets out the terms and
conditions of the policy.
National interest account administration-
Business for which an export credit agency
provides financial cover, even if it does notmeet the agency's normal underwriting criteria
and standards, because the business is deemed
to be in the broader interest of the agency's
home country.Business coverage is limited to capacity of the
Corporation.  Political risk is covered by the
government.
Market windows- A market window is a
government-owned or –directed financial
institution that seeks to break even financiallyby operating on a commercial basis providing
credits predominately to foreign buyers for
purchases of imported products and services.
Market window institutions claim not to be
subject to the OECD Arrangement onGuidelines for Officially Supported Export
Credits for industrial goods because their
support is on "market" terms and/or not tied to
domestic content.  Although the credits are not
programmatically tied to domestic content, orare linked to some form of national interest.Government has an export credit reinsurance
fund through which insurers reinsure political
risks in full.  Insurers collect premium and passit on to the government.G/AG/W/56
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ZIMBABWE (cont'd)
Refinancing-  The replacement of an existing
loan to a borrower (or a debtor countrygovernment) with a new source of finance.  In
a potential claims situation, this can be done by
either an export credit agency, its government,
or a bank under an export credit agency
guarantee, so that the borrower can continue toservice debt that the export credit agency has
insured.  Refinancing in effect exchanges one
insured debt for another, thus avoiding the need
for the export credit agency to pay a claim.  But
refinancing can also arise when a buyer or
borrower decides to change the source of its
finance for a project (e.g. to a different bank, offrom a loan to a bond).Not applicable.
VI. Other Information and Practices
Please provide any additional information
relating to officially supported export
credits.Not applicable.
__________