Loans to Refugees:

Status of Efforts To Improve Refugees' Transportation Loan Repayments

NSIAD-87-64: Published: Feb 27, 1987. Publicly Released: Feb 27, 1987.

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GAO reviewed Department of State efforts to improve the refugee transportation loan repayment program to determine if State implemented prior recommendations and to what extent it has improved refugee loan collections.

GAO found that: (1) as of December 1985, State disbursed more than $255 million in transportation loans, but only $58 million was repaid; (2) the low loan repayment rate resulted from a number of factors, including inefficient collection methods and the lack of enforcement of promissory notes; (3) State contributed about $30 million annually to the Intergovernmental Committee for Migration (ICM) revolving fund to supplement poor collection rates; (4) State has developed a revised promissory note which is more legally binding and provides for ICM to assign defaulted loans to State for collection; and (5) voluntary agencies have taken steps to improve loan collection procedures; however, there are problems locating delinquent refugees.

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