GAO performed a loan-by-loan reconciliation of the databases which the Department of the Treasury and certain agencies keep on debts owed to the United States. The databases are used for reporting to Congress on the value of U.S. foreign assistance loans and guarantees outstanding by category and country and for making debt-service projections. The projections are also used by agencies to analyze the economic situation in various countries, make economic forecasts, develop policy options, and prepare budget estimates and congressional presentations.
Recommendations for Executive Action
|Department of the Treasury||The Secretary of the Treasury should develop and implement procedures that remove rescheduled interest and amortization payments and roll these payments into a rescheduled loan at the same time the administering agencies adjust their own projections for debt rescheduling. Special procedures should be developed for debt-service projections.|
|Department of the Treasury||The Department of the Treasury should furnish the database to reporting agencies for annual verification and reconciliation.|
|Department of the Treasury||The Secretary of the Treasury should require reporting agencies to update annually the projected interest rates.|