84 



(Note: The U.S. has a higher productivity lead in food processing 

 over Germany and Japan than any other manufacturing industry.) 



Second, export credit guarantee programs must be made more flexible 

 and relevant to meet changing needs of buyers and markets. 



— Customers for GSM 102 used to be primarily state trading entities. 

 Now that private buyers are an increasing share of the importers, GSM 

 102 needs to adapt its terms and policies to meet their needs. 



For example, we should be providing terms more commercially relevant 

 and similar to those granted by the Export Import Bank (Exlm) . This 

 could include floating rate guarantee coverage, the ability of the 

 exporter to build into the cost of the product the uncovered portion 

 of the loan, as well as pricing the cash fee or payment into the 

 contract price. 



We should be developing programs for private buyers that have shorter 

 term maturities; we should be considering supplier credit guarantees; 

 and we should be considering multi-year revolving fund allocations to 

 buyers which would provide a more stable business environment. 



Third, it is time to re-target the intermediate — GSM 103 — credit 

 guarantee. GSM 103 should be re-focused as a credit guarantee program 

 directed to service "Economies in Transition" — be they states of the 

 former Soviet Union (FSU) or countries in Africa, Asia or Latin 

 America making the difficult conversion from state ownership to 

 private markets. 



