Loan Guarantees: Export Credit Guarantee Programs' Costs are High
GGD-93-45
Published: Dec 22, 1992. Publicly Released: Jan 21, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed the program costs of the Commodity Credit Corporation's (CCC) general sales manager (GSM) 102/103 programs, focusing on the programs': (1) estimated costs; and (2) effect on U.S. exports worldwide.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may wish to consider whether to limit future program cost increases, since: (1) the additional cost of increasing loan guarantee exposure to existing participants or adding new participants to the programs is high; and (2) program officials were unable to provide GAO with any evidence demonstrating worldwide additionality. One simple way to limit future program cost increases is to restrict most future GSM-102/103 guarantees to current participants at existing levels. |
Closed – Implemented
|
The Federal Agriculture Improvement and Reform Act became law on April 4, 1996. The agricultural trade title (Title II) of the act is generally responsive to GAO's recommendation about limiting increased costs of the Export Credit Guarantee Program. It authorizes considerable discretion by the Secretary of Agriculture in the management of the program. |
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Topics
Agricultural programsExportingForeign aid programsForeign economic development creditForeign loansGovernment guaranteed loansInternational economic relationsInternational relationsLoan defaultsLoan repayments