Examination of the Export-Import Bank's Financial Statements for FY's Ended September 30, 1982 and 1981
ID-83-38: Published: Jun 10, 1983. Publicly Released: Jun 10, 1983.
- Full Report:
GAO examined the statements of the financial condition of the Export-Import Bank of the United States as of September 30, 1982 and 1981, the related statements of defaults, and changes in financial position for the years then ended.
GAO found that the Bank retains accumulated net income after dividend payments as a reserve for losses that may be sustained on loans, guarantees, and insurance. Due to a net loss in fiscal year 1982, the reserve decreased, and the risk that the Bank will incur further reductions in the reserve from possible future losses increased because of: (1) increased loan purchases, outstanding purchase agreements, and principal and interest delinquencies; (2) losses the Bank may incur on purchases of defaulted commercial loans covered by Bank guarantees or insurance and rescheduled under countrywide debt consolidations that are chargeable against the reserve; and (3) the fact that the reserve is subject to impairment because the Bank's current funding rates are higher than its lending rates. GAO was not able to express an opinion on the adequacy of the reserve. However, subject to the effects on the financial statements of the amount reserved for contingencies and defaults, GAO stated that the financial statements present fairly the financial position of the Bank at September 30, 1982 and 1981, and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.