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Order Code 98-567
Updated May 22, 2008
a CRS Reort for Congress
The Overseas Private Investment Corporation:
Background and Legislative Issues
Danielle Langton
Analyst in International Trade and Finance
Foreign Affairs, Defense, and Trade Division
Summary
The Overseas Private Investment Corporation (OPIC) was established in 1969 and
began operations in 1971 to promote and assist U.S. business investment in developing
nations. OPIC is a U.S. government agency that provides project financing, investment
insurance, and other services for U.S. businesses in 154 developing nations and
emerging economies. OPIC's authorization expired on April 1, 2008, after it was
temporarily extended in the Consolidated Appropriations Act of 2008 (P.L. 110-161).
On July 23, 2007, the House approved H.R. 2798 to reauthorize OPIC through 2011 and
make other changes. The Senate Committee on Foreign Relations reported this bill with
an amendment on March 4, 2008. The Consolidated Appropriations Act of 2008
provides $47.5 million for OPIC's FY2008 administrative expenses and allows a
transfer of $20 million from OPIC' s non-credit account to fund its credit program. This
report will be updated as events warrant.
Background
Structured like a private corporation, OPIC operates on a self-sustaining basis and
has recorded a positive net income for every year of operation, with reserves now totaling
more than $3 billion. OPIC was established in 1969 amid an atmosphere of congressional
disillusionment overall with U.S. aid programs, especially large infrastructure projects.
In his first message to Congress on aid, President Nixon recommended the creation of
OPIC to assume the investment guaranty and promotion functions that were being
conducted by the Agency for International Development (AID). President Nixon also
directed that OPIC would provide businesslike management of investment incentives
to contribute to the economic and social progress of developing nations.2
1 For additional information, see OPIC's Internet address: [http://www.opic.gov/].
2 Public Papers of the Presidents: Richard Nixon. Washington, U.S. Govt. Print. Off., 1969.
p. 412.
Congressional Research Service The Library of Congress
Prepared for Members and Committees of Congress](ViewImageLocal?handle=hein.crs/crsuntaaaav0001&div=1&collection=&method=preview&ext=.png&size=3)