80 



-25- 



About $110 million of that $525 million remains unused because of the 

 suspension of the availability of additional credit guarantees in connection 

 with sales to Russia. In addition, a further $275 million was scheduled to be 

 made operational in January, 



Although Russia has repaid nearly $900 million towards CCC-guaranteed export 

 credits, approximately $4.2 billion in combined debt of the FSU countries 

 remains to be paid and will come due over the next two and a half years. In 

 December 1992, Russia began to default on repayments for guaranteed export 

 credit, and the availability of additional credits in connection with sales to 

 Russia had to be suspended. The availability of additional guarantees will 

 remain suspended until arrearages are paid, the debt is rescheduled, or a 

 combination of the two. 



We recognize that this is an extremely serious problem. We are looking at 

 every possible alternative to search for a solution to both the arrearages issue 

 and to how we can continue to export to this important market. 



As of March 25, total arrears of Russia and the former Soviet Union were 

 more than $596 million and USDA has paid out about $180 million in claims. 

 Russia made several million dollars of payments in early March, but not enough 

 to remedy the situation. 



