Wheat futures prices fell sharply on uncertainty over Soviet grain purchases and a stronger dollar.
The banks lent the money in the early 1970's, for construction projects and grain purchases.
In the last two years, the Bush Administration has extended a total of $3.75 billion in such guarantees for grain purchases.
Four European banks, under pressure from their governments, did participate in a pre-coup installment of $600 million in loans for grain purchases.
One line of inquiry involves the Commodity Credit Corporation program through which Iraq made grain purchases.
Wheat futures prices tumbled to a two-month low after the former Soviet republics made grain purchases.
A commission which will work evenings on grain purchases is meeting there.
The most important ban, on Indian grain purchases, have already been waived.
That's why Iraq still gets loan guarantees from us on grain purchases.
The rumors of a Soviet grain purchase were never confirmed during the day and traders took the opportunity to cash in.
