Examination of Financial Statements of the Overseas Private Investment Corporation for Fiscal Year Ended September 30, 1977, and Transition Quarter Ended September 30, 1976

ID-78-36: Published: Jun 7, 1978. Publicly Released: Jun 7, 1978.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

The financial statements of the Overseas Private Investment Corporation (OPIC) were examined in accordance with generally accepted auditing standards, including tests of accounting records and other auditing procedures. OPIC insures and guarantees U.S. investors against loss of their overseas investments due to expropriation; currency inconvertibility; and war, revolution, or insurrection.

As of September 30, 1977, the OPIC insurance reserve for such losses amounted to $229.9 million. Potential charges against this reserve for claims filed totaled $302.3 million. During the fiscal year 1977, OPIC paid approximately $36 million on its direct liabilities related to claim settlements without reducing its insurance reserve. It made the payment from the proceeds of Chilean notes sold with recourse to the Federal Financing Bank. This transaction reduced direct liabilities related to claim settlements and increased contingent liabilities for claim settlement guarantees. If claim settlements exceed available reserves, OPIC will be required to either borrow funds from the U.S. Treasury or request supplementary funds from Congress to pay the claims. Because of uncertainties about such claims and those affecting liabilities on other insurance and guaranty contracts, GAO could not express an opinion on the adequacy of reserves for losses due to such contracts. Except for the adequacy of these reserves, the financial statements presented fairly the financial position of OPIC and changes in capital, reserves, and financial position for the periods examined.

Sep 20, 2016

Sep 6, 2016

Aug 19, 2016

Aug 12, 2016

Jul 29, 2016

Jul 28, 2016

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Looking for more? Browse all our products here