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F e d er a l R eser ve Ba n k DALLAS, TEXAS of Dallas 75222 Circular No. 70-72 March 20, 1970 1970 VOLUNTARY FOREIGN CREDIT RESTRAINT PROGRAM To the Banks, Nonbank Financial Institutions and Other Finns Addressed in the Eleventh Federal Reserve District: There is quoted below an amendment issued by the Board of Governors of the Federal Reserve System to the guidelines for the 1970 Voluntary Foreign Credit Restraint Program. This revision, which iseffectiveimmediately, amends the guidelines issued by this Bank onDecember 22,1969? Circular No. 69-309. Guideline provision II-A-3-b, which calls for a special restraint on certain loans to residents of developed countries of continental Western Europe, has been amended to read as follows: b . Restraint on new nonexport term loans. A bank should not make new term loans to such resi dents, except loans that finance U.S. exports. The amended language, "except loans that finance U.S. exports," replaces the narrower language, "except loans that quali fy as Export Term Loans." The amendment was made in order to rectify an inadvertent tightening last December of the restraint on certain credits to Western Europe. Under the pre-December 17 provision, export loans of any amount had been permissible although chargeable against a bank's ceiling; under the guidelines as revised on December 17, export loans of less than $250,000 each were not permissible since they did not meet the definition of export term loans. The amendment restores the previous provision. It is intended to include announcement of the amendment in a future issue of the Bulletin. Yours very truly, P. E. Coldwell President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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