USDA announced last week that its Foreign Agricultural Service has launched a new online fee calculator for participants in the General Sales Manager (GSM-102) export credit guarantee program. Summit helped build the calculator and its underlying econometric model, which calculates the expected loss given default for each guarantee registration.
The calculator’s fee structure is built on applicant risk characteristics such as obligor country, foreign financial institution, tenor, and repayment terms. The web-based tool helps program participants determine the appropriate fees that apply to their transactions. Fees are calculated so as to offset the expected costs and losses of the GSM-102 program.
Learn more about this engagement by reading our case study: Forecasting at the USDA’s Foreign Agriculture Service Division.