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Testimony of Eugene L. Bovee -5- 



June 23, 1994 



In the current situation it is worthwhile to look back in history at how these programs have 

 been utilized. Congress has essentially mandated $5 billion per year be made available for 

 GSM- 102 credits and $500 million per year for GSM- 103 credits. The CCC annually 

 approves allocations of these amounts to various countries. As exporters make sales, they 

 register for guarantees under these allocations. In only two years, 1991 and 1992, did the 

 allocations for the GSM- 102 program exceed the $5 billion mark, and only in 1992 did the 

 registrations exceed that when they approached $5,595 billion. In the years 1988-1992 there 

 was a high registration of guarantees relative to allocations. During this period of time, 

 approximately 90 percent of all dollar amounts allocated were registered as guarantees. The 

 following is a schedule which breaks out the year-to-year comparison of allocation and 

 registrations for both the 102 and 103 programs. 



