Federal Entities With Treasury and Federal Financing Bank Borrowing Authority
AFMD-92-66FS: Published: Jul 22, 1992. Publicly Released: Aug 24, 1992.
Pursuant to a congressional request, GAO provided information on all government corporations and other federal entities which have borrowing authority with the Department of the Treasury and the Federal Financing Bank (FFB), to determine whether the growth in borrowing from Treasury and FFB by those entities exposes the federal government to a significant potential for loss.
GAO found that: (1) as of September 30, 1991, 66 government corporations, government-sponsored enterprises, and federal programs had outstanding borrowings from the Treasury totalling $252 billion, and from FFB totalling $194 billion; (2) it could not determine the total amount that could be borrowed from the Treasury and FFB, although each entity had either unlimited borrowing authority, a borrowing authority limitation contingent on certain criteria, or borrowing limits which changed with annual appropriation acts; (3) government corporations and other federal entities must have specific authority to borrow from the Treasury, although authority to borrow from FFB is generally available to any entity when it has authority to issue, sell, or guarantee obligations; and (4) beginning in fiscal year 1992, agencies with credit programs are financing direct and guaranteed loan activities by borrowing from the Treasury, which may increase for agencies with credit programs, while borrowing from FFB will decrease.