Business / Agriculture / Export Credit Guarantee Programs (GSM-102-103): The Commodity Credit Corporation finances export credit guarantee programs for commercial financing of U.S. agricultural exports. The programs finance the sale of exports to buyers in countries where credit is needed but where financing may not be available without CCC guarantees. Two programs back up credit extended by private banks in the United States (or in some instances by the U.S. exporter) to approved foreign banks using dollar-denominated letters of credit to pay for food and agricultural products sold to foreign buyers. The Export Credit Guarantee Program (GSM-102) guarantees credit terms up to 3 years. The Intermediate Export Credit Guarantee Program (GSM-103) guarantees longer term credits up to 10 years. Under these programs, the CCC does not provide financing, but guarantees payments due from foreign banks. Typically, 98% of principal and a portion of interest at an adjustable rate is covered. Because repayment is guaranteed, U.S. financial institutions can offer credit on competitive terms to foreign banks, usually with interest rates based on the London Inter-Bank Offered Rate (LIBOR).
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Credit Noun Synonyms: belief, faith, trust, credence
Credit Verb Synonyms: ascribe, acknowledge, attribute, assign, impute
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Guarantee Adjective Synonyms: guaranty, warranty, assurance, pledge, bond, obligation, promise, word (of honor), oath, undertaking
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Health / Health Insurance / Guaranteed Issue: An insurance policy provision under which all eligible persons who apply for insurance coverage and who meet certain conditions are automatically issued an insurance policy. MORE
Business / Loan / Guaranteed Loan: A pledge to cover the payment of debt or to perform some obligation if the person liable fails to perform. When a third party guarantees a loan, it promises to pay in the event of a default by the bor MORE
Business / Finance / Guaranteed Mortgage Certificates (GMC): A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the MORE