GSM Credit is a financing support scheme executed by U.S. Department of Agriculture Commodity Credit Corporation (CCC) to improve U.S. agricultural product exports.
Features of GSM Credit
- GSM credits are extended by the U.S. bank mediating the transaction, with trade and country risks insured by CCC.
- At credit utilization stage, a Sight Letter of Credit is opened for the importer, and following the loading, the U.S. intermediary bank opens a credit to our Bank and the payment is made to the exporter.
- Since the credit is actually extended to the Turkish importer although the transaction itself is credited to Türkiye Finans, our bank allocates loan to this company.
- The credit principal is repaid at the end of annual or (optionally) bi-annual periods.
- The maximum maturity under GSM scheme is 2 years.
- In GSM transactions, the total import amount is usually credited over FOB value, except certain type of goods, which are credited over CIF value.
- The credit scheme does not require payment in advance.
List of Products that You can Import with GSM Credit
- Wood products
- Wheat, wheat flour, semolina, rice, unshelled rice
- Feed seeds, animal feed products, protein nutrition
- Breeding livestock (including sperms and embryos), breeding fowls, fish
- Vegetable oil, seeds, tallow, oil, animal oil
- Dairy products, meats, feeder cattle
- Cotton, cotton yarn, cotton products, crop seeds
- Ethyl alcohol