[Query Concerning Financial Assistance Provided by Eximbank]
B-212857: Published: Nov 8, 1983. Publicly Released: May 21, 1984.
- Full Report:
In response to a congressional request, GAO gave its legal opinion concerning $2 billion in financial assistance which the Export-Import Bank (Eximbank) is proposing to provide to the Governments of Brazil and Mexico. GAO was asked to determine whether Eximbank could charge the entire amount of guarantees and insurance against the loan guarantee ceiling in effect for fiscal year (FY) 1983, even though the individual export transactions that would be financed by these guarantees and insurance could not be determined before the end of FY 1983. Legislation authorizes Eximbank to make commitments to guarantee loans of up to $9 billion in FY 1983. Eximbank has a long-standing practice of charging a guarantee as of the date of its authorization. Moreover, Eximbank's commitment to the Governments of Brazil and Mexico is legal and binding. Since final approval occurred on September 30, 1983, the amount can properly be charged against the FY 1983 loan guarantee ceiling. GAO did not believe that the absence of more specific information as to the repayment terms of each individual transaction precluded the bank from charging the guarantees and insurance authorized against its FY 1983 ceiling.