What is covered by the FGP credit guarantee?
After the initial payment is deducted from the sales contact price, the FGP guarantee covers 95 percent of the facility base value (the value of goods and services to be exported less any discounts or allowances to the importer). A portion of the interest on the financing is also guaranteed. Interest coverage is the same as CCCs GSM-103 program and typically covers about 70 percent of the interest exposure on the credit extended by the U.S. bank to the importers bank.
