Review of Certain Aspects of the Federal Ship Financing Program--Title XI
CED-77-68: Published: May 16, 1977. Publicly Released: May 16, 1977.
- Full Report:
Certain management weaknesses and other aspects of the Maritime Administration's administration of the Title XI Federal Ship Financing Program need attention.
Program income is being reduced because of late guarantee fee collection. Required annual recertification that vessel owners and operators are U.S. citizens are not always submitted. Refinancing grantees are limited by budget ceiling to only a reasonable amount of new ship construction or where refinancing is necessary for applicant's financial viability. Processing delays cause applicants excess interest costs and preclude title XI's full contribution to the Merchant Marine Act. Documentation requirements need improvement and are a disincentive to applicants.
Matter for Congressional Consideration
Comments: Please call 202/512-6100 for additional information.
Matter: The Secretary of Commerce should: have the Maritime Administration assess a penalty for overdue payments; comply with the citizenship verification requirement of title XI; inform Congress that the authorized $7 billion ceiling is inadequate to cover all guarantee demands and therefore the Agency has to restrict refinancing applications; and shorten the application process.