Examination of Financial Statements of the Overseas Private Investment Corporation, Fiscal Years 1976 and 1975
ID-77-24: Published: Sep 7, 1977. Publicly Released: Sep 7, 1977.
- Full Report:
In order to encourage the investment of U.S. capital and resources in developing countries, the Overseas Private Investment Corporation's (OPIC) Investment Insurance Program insures U.S. investors against political risks of loss from expropriation, inconvertibility of currency, and war, revolution, or insurrection.
As of June 30, 1976, the OPIC maximum contingent liability for insurance was $6.2 billion. The Corporation's management believes that a more accurate representation of its maximum potential exposure to insurance claims is $3.08 billion. At June 30, 1976, the Corporation's insurance reserve for losses amounted to $204.7 million. The potential charges against this reserve for claims filed totaled $395.5 million. As of June 30, 1976, OPIC also had outstanding guarantees totaling $157 million and outstanding loans totaling $22 million. Except for the adequacy of the amount reserved for losses, the financial statements present fairly the financial position of the OPIC at June 30, 1976 and 1975, and the results of its operations and changes in its capital and reserves and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles.