Washington, DC
August 14, 2003

The U.S. Department of Agriculture has authorized $85 million in credit guarantees for sales of U.S. wheat to Pakistan under the Commodity Credit Corporation's Export Credit Guarantee Program (GSM-102) for fiscal year 2003.

This program announcement is issued in accordance with 7 C.F.R. 1493.10(d).

COMMODITY ALLOCATIONS

Exporters may apply for credit guarantees on a first-come, first-served basis to cover sales of wheat only! .

TERMS OF COVERAGE

In accordance with section 1493.20(v)(1), this announcement offers coverage on an f.a.s. or f.o.b. basis. If commodities are sold on a C&F or C.I.F. basis, coverage on a C&F basis to point of ocean transportation or international air carrier discharge is also available in accordance with section 1493.20(v)(2). Coverage is not available under this announcement for insurance costs.

Coverage of up to 98 percent of the principal is offered on credit terms from 30 days to three years. Adjustable interest coverage is also offered in accordance with FAS program announcement PR 0264-01, issued Sept. 4, 2001, or as superseded. In any case where the credit period exceeds 6 months, principal repayments are due at 6-month intervals.

ELIGIBLE BANKS

Any bank approved by CCC for Pakistan is eligible. For a complete list of eligible banks, refer to the CCC AGSM Program Foreign Bank Obligors@ Web page located at http://www.fsa.usda.gov/dam/fmd/banks/banks.htm. 

Exporters are advised to obtain from their foreign buyer the name of the CCC?approved foreign bank that will be opening the letter of credit.

GUARANTEE FEE RATES

Pursuant to section 1493.70, fees are as! stated in FAS program announcement PR 0347-02, issued Sept. 24, 2002, or as superseded.

SPECIAL TERMS AND CONDITION

Sales must be registered with CCC by Sept. 30, 2003, and exporters' contractual arrangements must call for exports no later than Nov. 30, 2003.

POINTS OF CONTACT

FAS news releases are available on the Internet at http://www.fas.usda.gov. For additional information about Web access, contact FAS Public Affairs Division at (20! 2) 720-7115.

In the event of any discrepancy between the FAS Online home page version of this release and the standard FAS release (available in hard copy from FAS), the standard release shall prevail as establishing terms and conditions of any CCC payment guarantees issued pursuant to this release.