About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

ID-83-5 1 (1983-01-19)

handle is hein.gao/gaobabdva0001 and id is 1 raw text is: BY THE COMPTROLLER GENERAL Report To The Congress OF THE UNITED STATES Unrealistic Use Of Loans To Support Foreign Military Sales To finance foreign military sales, the United States has shifted from an on-budget grant and low-interest direct loan program to an off-budget high-interest loan program. This shift is not entirely realistic because --off-budget loans do not show the total expenditure for foreign military assistance and require the United States to charge the recipient a high interest rate; --some countries cannot afford the high interest charges associated with these off-budget loans; --the Guaranty Reserve Fund used to guarantee these off-budget loans (financed through the Federal Financing Bank) is under- capitalized in relationship to the risks undertaken so that a future Congress may need to appropriate billions of dollars to fund a program authorized by a prior Congress; and --loans only delay rather than resolve the question of how to fund military imports for less developed countries. GAO recommends that the foreign military sales program be put on- budget; financing programs be tailored to the ability of countries to repay their loans; and the funding levels of the Guaranty Reserve Fund be commensurate with the size and nature of its contingent liability. t)STI 120389 GAO/ID-83-5 JANUARY 19, 1983

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most