Iraq's Participation in the Commodity Credit Corporation's GSM-102/103 Export Credit Guarantee Programs

T-NSIAD-91-13: Published: Mar 14, 1991. Publicly Released: Mar 14, 1991.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed Iraq's participation in the Department of Agriculture's (USDA) Export Credit Guarantee and Intermediate Export Credit Guarantee (GSM) programs. GAO noted that: (1) export credit guarantees approved for Iraq under the programs increased from about $400 million in fiscal year (FY) 1983 to about $1.1 billion in FY 1988 and FY 1989, and $500 million in FY 1990; (2) USDA risk analysis documents for FY 1989 and FY 1990 rated Iraq as a high-risk market for granting substantial credit guarantees, yet USDA continued to approve credit guarantees through FY 1990; (3) Congress did not enact proposed sanctions against Iraq in 1988, partly due to foreign policy interests and pressure from U.S. agricultural groups; (4) although interagency deliberations on Iraq's participation in the program raised concerns about its creditworthiness and capacity to service additional debt, it continued to receive approved credit guarantees through FY 1990; (5) the Department of Justice's investigation into loan improprieties resulted in a 347-count indictment of 10 defendants, including Iraqi governments officials, for making fraudulent loans to Iraq totalling more than $4 million; and (6) GSM programs to Iraq were driven by foreign and agricultural trade objectives which exposed the U.S. government to substantial financial loss.

Sep 16, 2020

Sep 14, 2020

Aug 10, 2020

May 7, 2020

Apr 13, 2020

Dec 23, 2019

Dec 6, 2019

Nov 12, 2019

Oct 28, 2019

Sep 9, 2019

Looking for more? Browse all our products here