Aug. 9, 2023

DSCA Expanding Financing Options to FMS Customers

The Defense Security Cooperation Agency (DSCA) has codified the “Bank Letter of Credit” (BLOC), a new policy expanding the use of third-party funds for U.S. allies and partner nations. This policy broadens the range of financing options available for the U.S. Foreign Military Sales (FMS) program by allowing customers to use a letter of credit for their FMS cases. BLOC follows the Credit Assured Payment Schedules (CAPS) policy, codified in January 2023, and is part of a broader effort by the United States to furnish greater financing options to its allies and partner nations.