Opinion on Fiscal Year 1976 Financial Statements of the Export-Import Bank of the United States
ID-76-91: Published: Oct 1, 1976. Publicly Released: Oct 1, 1976.
- Full Report:
An examination was performed of the statement of financial condition of the Export-Import Bank (Eximbank) as of June 30, 1976.
Eximbank's reported net income, which had been declining in prior years, increased in fiscal year (FY) 1976. Reported net income was stated before provision for possible losses on loans, guarantees and insurance, but all accumulated net income, after dividends, was reserved as provision for future losses. Although an increased amount was added to the reserve in FY 1976, loan and loan interest delinquencies increased, the total risk of incurring possible losses continued to rise, and future losses continued to be unpredictable. No opinion was expressed on the adequacy of the reserve for contingencies and defaults. With the exception of this reserve, the financial statement was found to present fairly the financial position of Eximbank and the results of its operations, and to conform to accepted accounting principles.