The Defense Security Cooperation Agency has introduced a new policy that enables eligible foreign military sales customers to finance procurements using bank loans.
DSCA said Wednesday the Bank Letter of Credit policy provides financing options for arms customers by allowing them to use a letter of credit to make payments to the U.S. government.
A letter of credit may be used to make routine payments on an FMS deal, supplement national funds on existing letters of offer and acceptance and secure payment schedules on new LOAs.
FMS customers may secure loans from a U.S. bank with a minimum “A” credit rating or a foreign bank operating in the U.S. with a license from the Office of the Comptroller of the Currency.