All loans outstanding in 1982 had an interest rate of 55 percent. To calculate the benefit, we continued to straddle those loans that we had straddled in the last review. There was only one additional loan that had an interest payment during the period of review. We calculated the benefit from that loan based on the interest payment date as we did for new loans under Resolution 674. We preliminarily determine the benefit conferred by this program to be 0.19 percent ad valorem.
Eligible firms have access to a line of credit which can be drawn down to purchase goods for export.
The trading companies use the loan principal as advance payment for the goods purchased. These loans are subject to the same interest constraints as Resolution 674 loans. Normally, the term of the loan is not to exceed 180 days but the actual length varies, running from the date of receipt of the loan to the date of shipment of the goods. The interest is paid in full at the end of the loan term. During verification, we found that one firm received a loan under this program for the purchase of pig iron for export.