FEDERAL CREDIT REFORM PROPOSAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89G00643R001000030041-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 35
• Document Creation Date: December 23, 2016
• Document Release Date: December 20, 2011
• Sequence Number: 41
• Publication Date: February 18, 1987
• Content Type: MISC

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ROUTING AND RECORD SHEET
STAT
SUBJECT: (Optional)
Federal Credit,Reform,Proposal.
7D24 Hqs-.-
EXA DDA
TO: '(Officer designation, room. number, and
building)
RECEIVED'.
STAT
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FORM 610 USE PREVIOUS
1.79 EDITIONS
FORWARDED
EXTENSION
OFFICER'S
WITIALS
ER 87-0862x
4 March 1987
COMMENTS (Number each comment to show from whom
.16. whom. Draw a line across column after each comment.)
FYI.
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, O.C. 20503
February 18, 1987
BULLETIN NO. 87-8
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Federal Credit Reform Proposal
1. Purpose. This Bulletin provides:
a. An explanation of the Administration's proposed
legislation to reform the budgetary treatment and financing of
Federal credit programs; and
b. Instructions for submitting to OMB the budget materials
and data necessary to support the proposal.
0MB will send the draft legislation itself to affected
agencies for review and comment through normal legislation review
channels.
2. Authority.
Section 1104 of Title 31 of the United States Code.
3. Background.
The President indicated in his budget message that the
Adinini.stration would ask the Congress to enact legislation
whereby the true cost to the economy of Federal credit programs
would be counted in the budget." (See page M-10, Budget of the
United States Government, 1983.) The proposal was escr ue3'ln
broad terms in Part 3b, "Fe eral Credit," of the Budget, where it
was indicated that account-level details would be sent to the
Congress in March.
4. Coverage.
Unless otherwise indicated by the agency's 0MB representa-
tive, these instructions apply to all Federal agencies that
conduct direct loan or loan guarantee programs as defined below.
(See Attachment A.)
5. Definitions.
Direct loan. A direct loan is: (1) a disbursement of funds
to a non-Federal entity by a Federal agency that is contracted to
be repaid, with or without interest; (2) a purchase of
non-Federal loans by a Federal agency through secondary market
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operations; and (3) a sale of Federal agency assets to a
non-Federal entity on credit terms of more than 90 days duration.
This definition is the same as the one included in section 33.2
of 0MB Circular No. A-11, which has been used for the Federal
credit budget, except that non-Federal loans acquired in
satisfaction of default on loan guarantees are not covered by the
proposal. Loans acquired by default will not be treated as new
direct loans under the proposal, because it will be assumed that
the subsidy estimate and payment to the Fund at the time the
guarantee was made included an amount for the default payment.
Direct loans for FY 1988 that would have been financed by the
Federal Financing Bank will be covered (see 7. Assumptions).
Federal Credit Revolving Fund. This fund will be established
by the propos ed legislation and managed by the Secretary of the
Treasury (referred to herein as the "Secretary.") as. the central
financing mechanism for Federal direct loans and a reserve
against defaults on guaranteed loans.,(-Referred to herein as the
"Fund".)
Guaranteed loan. A guaranteed loan is: (1) a non-Federal
debt.instrumento.n which an agency pledges to pay part or all of
the amount due to a lender or holder in the event of default by
the borrower; and (2) a direct Federal loan that an agency has
sold to the public under a guarantee, agreement to repurchase, or
other form of recourse. This is the same definition as the one
included in section 33.2 of 0MB Circular No. A-11, which has been
used for the Federal credit budget. The term does not include
the insurance of deposits, shares, or other withdrawable accounts
in financial institutions.
Market value. This is the amount received when a direct loan
is soldd to a private investor. Loans are to be sold promptly
after they are made, competitively, without recourse to the
Federal Government in the event of default, and with the buyers
assuming responsibility for servicing them. If the loan has not
been sold, the market value is the difference between the face
value and the estimated subsidy.
Subsidy. The subsidy is the measure of the benefit to the
borrower from having received Federal credit rather than private
credit. For a direct loan, the subsidy is the difference between
the face value of the loan and the market value. For guaranteed
loans, it is the net cost to the Government of reinsuring the
guarantee (including transfer of responsibility for all future
administration) with a private insurer plus the present value of
any interest subsidy paid by the Federal Government to the
lender. Some credit programs, particularly guarantee programs,
charge beneficiaries fees. Such fees reduce the Federal subsidy
and, therefore, will be taken into account in estimating. the
subsidy.
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For direct loans that have not been sold and guaranteed loans
that have not been reinsured,.the subsidy is the estimated
present value of the difference in cost to the borrower between
the Federal direct loan or guaranteed loan and alternative
private financing available to the same or a similar borrower for
the same or a similar purpose.
Subsidy account. This is a budget account for a subsidy
appropriation. In most cases, these will be general fund
appropriations accounts. (See "subsidy appropriation.")
Subsidy appropriation. This is an appropriation for the
payment credit subsidies by an agency to the Fund. In most
cases, such appropriations will be from the general fund and
provided annually in appropriations acts. 0MB will establish new
accounts on the Master Account Title (MAT) file of the Budget
Preparation System (BPS) for this purpose. However, where loans
or guarantees are from special or trust funds, the subsidy will
be paid from such funds. If the receipts of a special or trust
fund are available only as provided in annual appropriations, the
annual appropriation request will include a specified amount for
subsidy'payments. If the receipts of a special or trust'fund are
available without annual appropriation, language will be proposed
to be enacted in annual appropriations acts to limit the amount
available for subsidy payments. In the case of a few public
enterprise revolving funds, credit programs are incidental to the
principal activity of.the fund and income is derived primarily
from non-credit transactions. In such cases, the subsidy will be
paid out of the income of the revolving fund account, and
language will be proposed to be enacted in annual appropriations
acts to limit the amount available for subsidy payments:
6. General treatment under the proposed legislation.
The agencies will continue to operate credit programs under
their existing authorities; that is, they will arrange, approve,.
and service direct loans that have not been sold and loan
guarantees that have not been reinsured. However, the proposed
legislation will modify the means and the mechanisms by which
credit programs are financed beginning on October 1, 1987. Under
the proposal, the subsidy value of credit will be charged to
appropriations to the agencies for that purpose, and the market
value of credit will, in consultation with the agency, be
financed by the Fund.
While the Secretary will be responsible for determining the
subsidy value of the loans and guarantees made under various
programs, the agencies will continue to be responsible for
determining, subject to the usual review in the budget process,
the volume of credit to be extended. Therefore, the agencies
will recommend to ON the amount to be appropriated for subsidies
and limitations on direct loans and guaranteed loans to be
included in appropriations acts. The level of credit that may be
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extended will be the lesser of the specified limits or the level
supported by the resources available to pay subsidies.
The Fund will begin serving as a central financing mechanism
for new Federal direct loans obligated and loan guarantees
committed in FY 1988. With respect to such direct and guaranteed
loans:
o The Fund will make disbursements for direct loans, pay for
reinsurance for guaranteed loans, and pay default claims
on guaranteed loans that are not reinsured.
o The Fund will receive subsidy payments from Government
agencies.
o Government agencies will collect from the public on behalf
of the Fund, and credit directly to the Fund, all fees
charged for direct loans and loan guarantees, the interest
and repayments of principal on loans that are not sold,
and any collections on defaulted guaranteed loans.
o The Fund will receive the proceeds from the sales of
loans.
o The Fund will maintain reserves to cover payments for
defaults on any guaranteed loans that are not reinsured.
At the time an agency obligates the Government to make a
direct loan or commits the Government to guarantee a loan, it
will be required to record an obligation for the subsidy value of
the entire loan and to make payments to the Fund at least
annually that are equal to the estimated subsidy value of the
credit being disbursed by the Fund during that year. The
payments usually will be financed by appropriations from the
general fund, requested in the President's budget each year and
enacted in annual appropriations acts. For special and trust
funds and certain public enterprise revolving funds, the subsidy
will be paid from the non-credit income of those funds. For FY
1988, budget amendments to modify appropriations requested or to
provide limitations on the use of available resources in the FY
1988 Budget will be submitted with the proposed legislation.
Initially, the amount of the subsidy payments for a
particular credit program will be calculated, using the method
currently prescribed in 0MB Circular NO. A-70 (August 24, 1984),
"Policies and Guidelines for Federal Credit Programs." However,
the information learned from sales and reinsurance will be used
to improve the subsequent calculations of subsidy payments. Most
direct loans will be sold promptly after they are made, and most
guarantees will be reinsured as markets are developed, unless
specifically exempted by the Secretary. The proposed law will
authorize the Secretary to determine the subsidy. The Secretary
will base his determination on information that is provided by
the agencies and learned from sales and reinsurance. (However,
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for the purpose of this Bulletin, the agencies will calculate the
subsidy payments, which will be reviewed by OMB.) Unless an
exception is agreed to by the Secretary in advance, there will be
no retroactive adjustment to the subsidy payments, up or down, if
the actual subsidy, as determined by direct loan sales and loan
guarantee reinsurance, differs from the estimates; the gain or
loss will go to the Fund. However, retroactive adjustments to
the subsidy estimates will be made, and additional payments will
be required, if the agency decides to modify the terms of the
original loan or guarantee agreement (to increase forbearance,
for example).
7. Assumptions.
The proposal will apply to direct loans for which obligations
will be incurred and loan guarantees for which commitments will
be made in FY 1988 and beyond. Therefore, transactions related
to direct loans for which obligations were incurred or loan
guarantees for which commitments were made before FY 1988
(regardless of when disbursement occurs)will continue to be
carried out in the existing agency account or fund.
For some programs, the FY 1988 Budget shows direct loan
obligations in FY 1988 and beyond in existing agency accounts
that would be financed by the Federal Financing Bank. It should
be assumed for the purposes of this Bulletin that such loans will
be financed in the same manner as loans financed by other means;
that is, the market value will be financed by the Fund and the
subsidy value will be paid by the agency to the Fund.
The following assumptions apply to the sale of direct loans,
unless the agency arranges with its 0MB representative to use
different assumptions. For programs where direct loan
obligations are estimated to be $100 million or more per year, it
should be assumed that all of the direct loans will be sold and
that the sale of any loan will occur within 3 months of the time
of the final disbursement. For loan programs where obligations
are less than $100 million per fiscal year, it should be assumed
that the loans will not be sold.
Assumptions about the reinsurance of guaranteed loans will be
provided to the agency by its 0MB representative.
8. Materials and data required.
a. In eng eral. The following materials and data are
required or each existing account that finances direct loans or
guaranteed loans and for each proposed subsidy account:
(1) appropriation language changes;
(2) a program and financing (P&F) schedule;
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(3) credit schedules (status of direct loans and/or
status of guaranteed loans, as appropriate);
(4) revised supplementary source data (SSD) for the
Budget Preparation System (BPS).
These requirements are discussed in detail below. (The
following are not required: a justification of need, an
explanation of request, an object class schedule or data, or a
personnel summary.)
The required language revision sheets and the budget
Appendix schedules must be submitted using Standard Form 300 or a
facsimile. Facsimiles produced by computer spreadsheet programs
are acceptable.
The language pages and the Armppe~ndix- schedules will show
three columns for dollar amounts, each ror FY 1988. The amounts
shown on the language sheets should be in dollars, and the
amounts shown in the A endix schedules should be in thousands of
dollars. The left-hand column (labeled "Request pending") will
show the amounts included the FY 1988 column of the schedule
submitted with the Budget. The middle column (labeled "Proposed
amendment") will show net decreases or increases to amounts in
the left-hand column. The right-hand column (labeled "Revised
request") will show the sum of the amounts in the left-hand and
middle columns.
For the purpose of collecting budget data, 0MB will
create special appropriations account data (AAD) files.
Agencies will enter data into the BPS in the same mode as they
used for the'FY 1988 Budget. Agencies with access to the BPS
will enter data directly through their computer terminals, and
they may order copies of the AAD file by remote job entry.
Access will be restricted to accounts with credit programs.
Agencies that do not have access to the system will be provided
copies of the AAD file listing, which they will mark up and
submit to OMB.
The budget amendments proposed will not reflect any
changes other than those necessary to carry out the credit reform
proposal. Where items for later transmittal under proposed
legislation (transmittal codes 2 and 7 in the data base) were
included in the budget, and where they would be affected by the
credit reform proposal, a separate set of materials and data must
be submitted to show the effects of the proposal on.them. No
appropriations language is required.
Agencies will be notified by their 0MB representative
where the detailed instructions below must be modified for a
specific program. If an agency believes that it would be
appropriate to deviate from these instructions, it must obtain
approval from 0MB in advance of its submission.
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b. Existin accounts. For each account in the :FY 1988
budget w t estimates for new direct loan obligations or
guaranteed loan commitments in FY 1988 or beyond, the following
materials and data are required:
(1) Revisions to appropriations language must be
submitted in the format- of Attachment Referring to the,
language that was proposed for the account in the Appendix, the
revisions must reduce the appropriation requested by the amounts
that were included to fund new loan obligations and to finance
default payments, if any, related to loan guarantee commitments
made in FY 1988. The revisions also must delete credit
limitation language and substitute language that prohibits any
new direct loan obligations or guaranteed loan commitments.
(2) Program and financing (P&F) schedule. A schedule in
the format of -Attachment must be submitted.
The following changes, as appropriate, related to
direct loan obligations or loan guarantee commitments that would
have been made in FY 1988 will be reflected in the schedule:
o a reduction of new direct loan obligations (do
not reduce obligations for loans acquired by.
defaults related to loan guarantee commitments
made before FY 1988);
o a reduction of loan guarantee claim payments for
guarantees;
o a reduction in administrative expenses;
o a reduction in collections of interest, loan
repayments, proceeds from the sales of loans, and
credit transaction fees;
o an increase in the redemption of agency debt held
by the Treasury or the Federal Financing Bank;
o a reduction in budget authority; and
o resulting changes in unobligated balances,
obligations incurred, net, obligated balances,
and outlays.
In addition, a capital transfer of the amounts of
collections and balances that are in excess of the amounts
required to carry out the liquidation of outstanding loans and
guarantees and to redeem agency debt will be shown. The proposed
legislation will require such transfers.
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(3) Status of direct loan schedule. A schedule in the
format of Attachment D must be submitted.
The following transactions, as appropriate, related
to direct loan obligations or loan guarantee commitments that-
would nave been made, i n 1 8ff will be reflected in the
schedule:
o a reduction of new direct loan obligations
(subject to limitation or not) to zero (do not
reduce obligations for direct loans acquired by
defaults related to loan guarantee commitments
made before FY 1988);
o a reduction in direct loan disbursements;
o a reduction in repayments and prepayments;
o any changes in adjustments; and
o resulting changes in outstanding balance's.
(4) Status of guaranteed loan schedule. A schedule in
the format ofAttachment must be suubmitt~-
The following transactions, as appropriate, related
to direct loan obligations or loan guarantee commitments that
would h a v e been n made in FY 1 will be reflected in t e
schedule:
o a reduction in guaranteed loans (subject to
limitation or not) to zero;
o a reduction of disbursements of new guaranteed
loans;
o a reduction of repayments and prepayments;
o any changes in adjustments; and
o resulting changes in outstanding balances.
(5) Supplementary source data. Revised data,
corresponding to the changes refI-ected in the schedules, must be
provided for:
o SSD-A/D, budget authority and outlays (FY
1988-1992);
o SSD-B, current/prior outlays (FY 1988 only);.
0 SSD-C, character classification (FY 1988 only);
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o SSD-G/H, credit data (FY 1988-1992); and
o SSD-P, program and financing (FY 1988 only).
A sample AAD file listing is shown as Attachment F.
c. Subsid accounts. For each subsidy account, the
following materials and data are required:
(1) Direct and guaranteed loan subsidy data sheets,
prepared in accordance with section 33.7 of Circular No. A-11 and
in the format of Attachments G and H.
(2). New approriation language must be'submitted in the
format of Attichment B. The language shown in format B should be
used as a model in most cases; however, some variations (approved
by 0MB) may be needed to fit the specifics. of particular
programs. The language will include an appropriation amount
equal to the sum (in dollars) of the subsidy amounts calculated
for direct loans and guaranteed loans. The language will include
direct loan and guaranteed loan limitation anguage. asrescr~ibed
ni n sectfon -31.o circular No. (3) Program and financing (P&F) schedule. A schedule in
the format of tac ment must be submitted.
Some or all, of the following changes related to
direct loans or loan guarantees that would have been made in FY
1988 may need to be reflected in the schedule:
o obligations for direct loan subsidy payments to
the Fund (subsidy payments for direct loans and
for guaranteed loans should be shown as separate
entries, and separate entries shoul.d be used to
show subsidies for different programs financed
within the account, usually on the sane basis as
is shown in the existing account);
o budget authority equal to the obligations for
subsidy payments;
o obligations incurred, net,.and outlays equal to
the appropriation for subsidy paymentsc
o obligated balances in the amount of'subsidy::.
payments obligated but not yet paid to the Fund;
and
o outlays for subsidy payments to the Fund at the
same rate as disbursements of the associated
direct or guaranteed loans.
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(4) Status of direct loan schedule. A schedule in the
format of Attachment J must be submitted.
The following transactions, although included in the
account of the Fund, should be reflected in the schedule:
o direct loan obligations (subject to limitation or
not);
o direct loan disbursements;
o repayments and prepayments;
o other adjustments, which should include the
difference (as a negative amount) between the.
face value and the proceeds from sale (market
value) of those loans that are sold; and
o resulting changes in outstanding balances..
(5) Status of guaranteed loan schedule. A :schedule-in
the format of ttac ment must be submitted.
The following transactions should be. reflected in
the schedule:
o guaranteed loan commitments (subject to
limitation or not);
disbursements of new guaranteed loans;
o repayments and prepayments;
o terminations for default for guaranteed loans
that are not reinsured;
o other adjustments, which should include the
amount of guaranteed loans that are reinsured;
and
o changes in outstanding balances.
(6) Supplementary source data. Revised data,
corresponding' to the changes reflected in the schedules, must be
provided for:
o SSD-A/D, budget authority and outlays (FY
1988-1992);
o SSD-B, current/prior outlays (FY 1988 only);
o SSD-C, character classification (FY 1988 only);
o SSD-G/H, credit data (FY 1988-1992); and
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o SSD-P, program and financing (FY 1988 only).
A sample AAD file listing is shown as Attachment L.
9. Timing.
All material and data must be received in 0MB not later that
Monday, February 23, 1987.
10. Contact.
Questions should be directed to the agency's 0MB
representative.
Attachments
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Attachment A
ACCOUNTS IN THE 1988 CREDIT BUDGET
AFFECTED BY THE CREDIT REFORM PROPOSAL
(in millions of dollars)
AGENCY/ACCOUNT
1988 ESTIMATES
--------------------------
DIRECT GUARANTEED
ACCOUNT ID LOANS LOANS
FUNDS APPROPRIATED TO THE PRESIDENT
Foreign military sales credit.... 11-1082-0-1-152 4,421.2 ---
Economic support fund............ 11-1037-0-1-152 175.6 ---
Func. dev'p asst. programs....... 11-1021-0-1-151 150.0 --
Housing credit guar. programs.... 72-4340-0-3-151 --- 100.0
Private sector revolving fund.... 72-4341-0-3-151 16.0 ---
Overseas Private Invest. Corp.... 71-4030-0-3-151 15.0 150.0
DEPARTMENT OF AGRICULTURE
Expenses, P. L. 480 .............. 12-2274-0-1-151 749.3 ---
Commodity Credit Corporation..... 12-4336-0-3-351 --- 5,500.0
Export guarantees ............. 12-4336-2-3-351 --- (2,000.0)
Rural elec/telephone rev, fund... 12-4230-0-3-271 290.0 ---
12-4230-2-3-271 --- 840.0
Rural telephone bank ............. 12-4231-0-3-452 93.0 ---
Agricultural credit ins. fund.... 12-4140-0-3-351
Real estate loans ............. 130.0 390.0
12-4140-2-3-351 (130.0) (390.0)
Operating ..................... 870.0 2,610.0
12-4140-2-3-351 130.0 (110.0)
Emergency disaster loans...... 600.0 ---
12-4140-2-3-351 (305.0)
DEPARTMENT OF EDUCATION
Guaranteed student loans......... 91-0230-0-1-502 --- 9,398.0
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health resources and services.... 75-0350-0-1-551 1.0 ---
Health prof. grad. student loans. 75-4305-0-3-553 --- 100.0
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Nonprofit sponsor assistance..... 86-4042-0-3-604 0.3 ---
Federal Housing Adm. fund........ .86-4070-0-3-371 82.6 79,260.5
86-4070-2-3-371 --- (9,260.5)
Housing for elderly/handicapped.. 86-4115-0-3-371 131.5 ---
GNMA, Guarantees of MBS.......... 86-4238-0-3-371 --- 100,000.0
DEPARTMENT OF THE INTERIOR
BuRec, Loan program .............. 14-0667-0-1-301 27.5 ---
BIA, Revolving fund for loans.... 14-4409-0-3-452 13.0 ---
BIA, Loan guaranty rev. fund..... 14-4410-0-3-452 0.1 33.5
DEPARTMENT OF LABOR
Pension Benefit Guaranty Corp.... 16-4204-0-3-601 3.1
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ACCOUNTS IN THE 1988 CREDIT BUDGET
AFFECTED BY THE CREDIT REFORM PROPOSAL
(in millions of dollars)
1988 ESTIMATES
DIRECT GUARANTEED
AGENCY/ACCOUNT ACCOUNT ID LOANS LOANS
DEPARTMENT OF STATE
Emergencies in diplomatic serv... 19-0522-0-1-153 0.7
DEPARTMENT OF TRANSPORTATION
MarAd, Fed'l ship financing fund.. 69-4301-0-3-403 5.0
SMALL BUSINESS ADMINISTRATION
Disaster loans ..... .... ... .... 73-4153-0-3-453 350.0
Business loan and investment..... 73-4154-0-3-376 20.0 3,510.0
VETERANS ADMINISTRATION
Direct loan revolving fund....... 36-4024-0-3-704
Loan guaranty revolving fund..... 36-4025-0-3-704
36-4025-2-3-704
Voc. rehab revolving fund........ 36-4114-0-3-702
Education loan fund .............. 36-4118-0-3-702
36-4118-2-3-702
OTHER INDEPENDENT AGENCIES
Export-Import Bank.. ............. 83-4027-0-3-155
Fed'l Savings and Loan (FSLIC)... 82-4037-0-3-371
NCUA, credit union share ins fund 25-4468-0-3-371
NCUA, Central liquidity facility. 25-4470-0-3-371
Tennessee Valley Authority....... 64-4110-0-3-999
Power loans ...................
2.3
880.2 29,400.0
(68.0) 0) (1,470.0)
8
1,000.0 10,000.0
25.0 300.0
5.0
72.0
Attachment A
(cont)
TOTAL LOANS SUBJECT TO CREDIT REFORM......... 9,828.1 228,362.5
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89G00643R001000030041-8
Attachment B
EXPORT-IMPORT BANK OF THE UNITED STATES
-1-9138-
Budget
Appendix
Page Heading
I-Z14 Limitation on program
activity
(Delete the appropria-
tion language under
the above heading
and insert in lieu
thereof the following:)
During fiscal year 1988,
no new direct loan
obligations shall be
made. During fiscal
year 1988, no new
commitments to
guarantee oans shall
e ma e.
NOTE: If a change in
budget authority is
required, the following
language should be used:
(In the appropriation
language under the
above heading delete
"$ " and
insert in lieu thereof
$ .)
19 at$
Budget 1988 1988
Request Proposed Revised
Pending Amendment Request
language
2
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89G00643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
Attachment B
(continued)
EXPORT-IMPORT BANK OF THE UNITED STATES
1988 1988
Budget Budget 1988 1988
Appendix Request Proposed Revised
Page Heading Pending Amendment Request
I-Z17 Export-Import Bank --- $333,600,000 $333,600,000
o the United tates,
Subsidy Account
(Insert the above
heading and the appro-
priation language that
follows immediately
after the material
under the heading
"Limitation on
administrative
expenses":)
For subsidy to be
paid to the e eral
Credit Revolving and
for the direct loan
and loan guarantee
activity of the
Export-Import ank,
$333,600,000 is
appropriated to be paid
to tie Federal Credit
Revolving Fun uring
fiscal year 1988, and
within a resources
and authority
gross obligations for
the pr ncipa amount
of direct loans shaTl
not exceed $1,000,000,000.
wring fiscal year ,
E-o-mmitments to guarantee
loans may be made only to
the extent that total-loan
principal, any part of
w e is to e guaranteed,
shall not exceed
$IO000 , 000 , 000
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
[SAMPLE: EXISTING CREDIT ACCOUNT] Attachment C
EXPORT-IMPORT BANK OF THE UNITED STATES
Export-Import Bank of the United States
Program and Financing (in thousands of dollars)
------------------------------------------------------------------------------------
Identification code 83-4027-0-3-155 1988 1988 1988
-----------------------------------------------------------------------------------
Request Proposed Revised
pending amendment request
Program by activities: ------- --------- -------
Direct program:
00.02 Interest expense - FFB........ 1,331,100 (1,800) 1,329,300
00.05 Insurance claims.............. 26,900 (1,000) 25,900
* 00.00 Other operating expenses...... 25,868 0 25,868
---------- ------------ ------------
01.92 Total operating expenses...... 1,383,868 (2,800) 1,381,068
Capital investment:
02.01 Loan obligations............ 1,000,000 (1,000,000) 0
02.02 Purchase of equipment....... 700 0 700
------------ ------------ ------------
02.91 Total capital investment...... 1,000,700 (1,000,000) 700
10.00 Total obligations 2,384,568 (1,002,800) 1,381,768
Financing:
Offsetting collections from:
Non-Federal sources:
14.00 Loans repaid ................ (3,154,093) 3,500 (3,150,593)
14.00 Interest and fee revenue
from loans ................ (753,103) 12,300 (740,803)
14.00 Guarantee and insurance
program fees and premiums. (35,900) 6,400 (29,500)
17.00 Recovery of prior year
obligations ............... (480,100) 0 (480,100)
21.47 Unobligated balance avail-
able, start of year......... (2,022,590) 0 (2,022,590)
24.47 Unobligated balance avail-
able, end of year........... 2,649,918 0 2,649,918
** 31.00 Redemption of debt........... 1,411,300 980,600 2,391,900
------------ ------------ ------------
39.00 Budget authority 0 0 0
Relation of obligations to outlays:
71.00 Obligations incurred, net.... (1,558,528) (980,600) (2,539,128)
Obligated balance, start of year:
72.47 Authority to borrow....... 2,296,879 0 2,296,879
72.98 Fund balance .............. 330,900 0 330,900
Obligated balance, end of year:
74.47 Authority to borrow....... (1,911,986) 910,500 (1,001,486
74.98 Fund balance .............. (240,700) 0 (240,700;
78.00 Adjust. in unexpired accounts. (480,100) 0 (480,100)
------------ ------------ ------------
90.00 Outlays ...................... (1,563,535) (70,100) (1,633,635)
------------------------------------------------------------------------------------
* Activity lines above "Total operating expenses" or "Total capital investment"
may be combined into a single "Other ... " entry where there are no changes.
** Decreases in obligations should result in a transfer to the general fund or increased
redemption of debt. It should not result in an increase of unobligated balances.
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89G00643R001000030041-8
[SAMPLE: EXISTING CREDIT ACCOUNT] Attachment D
EXPORT-IMPORT BANK OF THE UNITED STATES
Export-Import Bank of the United States
Status of Direct Loans (in thousands of dollars)
------------------------------------------------------------------------------------
Identification code 83-4027-0-3-155 1988 1988 1988
------------------------------------------------------------------------------------
Request
pending
Proposed
amendment
Revised
request
Position with respect to
appropriation act limitations
on obligations:
1111 Limitation on direct loans
to the public ................
1,000,000
(1,000,000)
0
* 1132 Obligations exempt from limi-
tation: Defaulted guaranteed
loan claims ..................
0
0
0
------
-------------
-------------
-------
1150 Total direct loan obligations.
1,000,000
(1,000,000)
0
Cumulative balance of
direct loans outstanding:
1210 Outstanding, start of year....
10,670,087
0
10,670,087
1231
Disbursements:
Direct loan disbursements....
693,200
(73,600)
619,600
*
1232
Disbursements for guarantee
l
i
a
c
ms ......................
Repayments:
0
0
1251
Repayments and prepayments...
(2,207,500)
3,500
(2,204,000)
1253
Loan asset sales to public...
(750,000)
0
(750,000)
1262
Adjustments:
Write-offs for default.......
0
0
0
1264
Other adjustments, net 1/....
(450,000)
0
(450,000)
-------------
-------------
-------------
1290 Outstanding, end of year...... 7,955,787
(70,100)
7,885,687
1/ Represents discount from face value on sale of loan assets.
* ExIm Bank does not have direct loan obligations and disbursements
for defaulted guarantee claims. Where appropriate, this data
will be included in these lines.
q
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89G00643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
[SAMPLE: EXISTING CREDIT ACCOUNT] Attachment E
EXPORT-IMPORT BANK OF THE UNITED STATES
Export-Import Bank of the United States
Status of Guaranteed Loans (in thousands of dollars)
------------------------------------------------------------------------------------
Identification code 83-4027-0-3-155 1988 1988 1988
------------------------------------------------------------------------------------
Request Proposed Revised
pending amendment request
------- --------- -------
Position with respect to
appropriation act limitations
on commitments:
2111 Limitation on guaranteed loans
made by private lenders...... 10,000,000 (10,000,000)
2150 Total guaranteed loan
commitments ................ 10,000,000 (10,000,000) 0
Cumulative balance of
guaranteed loans outstanding:
2210 Outstanding, start of year.... 5,487,888 0 5,487,888
2231 Disbursements of new
guaranteed loans............ 5,288,600 (2,598,100) 2,690,500
2251 Repayments and prepayments... (4,610,600) 1,291,600 (3,319,000)
Adjustments:
* 2261 Terminations for default
that result in direct loans 0 0 0
---------- ------------- -+-----------
2290 Outstanding, end of year...... 6,165,888 (1,306,500) 4,859,388
MEMORANDUM
2299 U.S. contingent liability for
guaranteed loans outstanding,
end of year .................. 6,165,888 (1,306,500) 4,859,388
* Use A-11 credit lines as appropriate.
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8 5
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
02/02/87 A A D - F I L E L I S T I N G (BPS.MSTR.AAD)
(10:50):*ssssssssss**sssss**ssssss:ssssss***ssssss*s*ssss*s*s::::ssssss:::*s**ssssssssssssssssssss**ssssss*sssssssssssssssssss
OMB ACCOUNT-ID: 30-48-4027-0-3-155
AGENCY: Other Independent Agencies
BUREAU: Export-Import Bank of the United States
ACCOUNT: Export-Import Bank of the United States
OMB DIVISION:
TEAM-ID:
LAST ACTIVITY:
IAD
'3
2/03/87
DOC COMP AUTH
CHAR-CL
LINE

ACTIVITY A R
ACCOUNT-ID ID FCT . OUT
LINE NO
0/I N/S G/N
SN
--DATE-- C T
(1-11) 14 (15-17) 18
(19-24)
25 26 27
(28-29)
(30-39)
(40-49)
(50-59)
(60-69)
70 80
* SSD-D (PLANNING)
-------
-------------
--
--
--------------
83-4027-0-3-155
D
155
9000
N N
01
-1,187,400
-1,214,800
-996,000
-586,100
( ) 1
D
155
9441
0'
21,145
21,541
21,870
22,114
( ) i
D
155
9541
0'
21,145
21,541
21,870
22,114
( ) 1
?
SSD-A
(BUDGET)
-------
-------------
--
----------
-----
--------------
A
155
9000
N N
01
-1,633,635
( ) 1
A
155
9441
20,668
( ) 1
A
155
954'
20,668
( ) 1
?
SSD-B
-------
----------
----------
----------
----------
B
155
3130
01
-1,633,635
( )
?
SSD-C
-------
----------
----------
----------
----------
--------------
C
155 0
1100-04
') 1
-1,183.635
( ) 1
C
155 0
3300-04
0'
-450,000
?
SSD-H
(PLANNING)
-------
----------
----------
----------
----------
H
155
1210
7,885,687
6,687,087
5,338,187
3,917,087
( ) 1
H
155
1231
453,900
317,600
250,600
207,300
( )
H
155
1251
0'
-652,500
-666,500
-671,700
-678,000
( ) 1
H
155
1253
-525,000
-475,000
-425,000
-375,000
( ) 1
H
155
1264
U'
-475,000
-525,000
-575,000
-625.000
( ) 1
H
155
1290
01
6,687,087
5,338,187
3,917.087
2,446,387
( ) 1
H
155
2210
01
4,859,388
4,859,388
4,859.388
4,859,388
( ) 1
H
155
2231
01
1,300,000
1,300,000
1,300.000
1,300,000
( ) 1
H
155
2251
01
-1,300,000
-1,300,000
-1,300,000
-1,300.000
( ) 1
H
155
2290
01
4,859,388
4,859,388
4,859,388
4,859.388
( ) 1
H
155
2299
01
4,859,388
4,859,388
4,859.388
4,859.388
?
SSD-G
(BUDGET)
-------
----------
----------
----------
----------
G
155
1210
01
10,670,087
( ) 1
G
155
1231
01
619,600
( ) 1
G
155
1251
01
-2,204,000
( ) 1
G
155
1253
01
-750,000
( ) 1
G
155
1264
01
-450,000
( ) 1
G
155
1290
01
7,885,687
( ) 1
G
155
2210
01
5,487,888
( ) 1
G
155
2231
01
2,690,500
( ) 1
G
155
2251
01
-3,319.000
( ) 1
G
155
2290
01
4,859,388
( )
G
155
2299
01
4,859.388
( ) 1
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
BPS0300D********ss*********************************#***#i*********ss*****s***********s*sss##iii##******s**####isis#si######iiiii*sii
02/02/87 A A D - F I L E L I S T I N G (BPS.MSTR.AAD)
10:50)**#ii#iiiiiiit#i*****kit**#i**iii#ki##ii*#######**#i#ii*ik###ii#*#i#*******#i##iiiiiii*i#ii*#i#####i##iiiii##i#*i##*ti*# 2
DOC COMP AUTH CHAR-CL LINE < ------------ AMOUNTS IN THOUSANDS ------------ > ACTIVITY A R
ACCOUNT-ID ID FCT OUT LINE NO D/I N/S G/N SN --DATE-- C T
(1-11) 14 (15-17) 18 (19-24) 25 26 27 (28-29) (30-39) (40-49) (50-59) (60-69) 70 80
* P&F -------
P 0001
P 0002
P 0003
P 0004
P 0005
P 0006
P 0091
P 0101
P ... 0192
P 0291
P 1000
P 1400
P 1400
P 1400
P 1700
P 2147
P 2447
P 3100
P 3900
P 7100
P 7247
P 7298
P 7447
P 7498
P 7800
P 9000
13
1,329,300
5,084
25,900
20,668
1,380,068
103
1,381,068
700
1,381,768
-3,150,593
-740,803
-29,500
-480,100
-2,022,590
2,649,918
2,391,900
-2,539,128
2,296,879
330,900
-1,001,486
-240,700
-480,100
-1,633,635
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
Attachment G
FY 1988
TENS OF FEDERAL AND (CMPARIBLE PRIVATE MARKET: DIRECT LOANS
Agency: Export-Import Bank
Program: Direct loans
1988 1/
1989 1/
1990 1
1991 1/
1992 1/
Direct loan obligations
(millions of dollars) ................
1,000
900
900
900
900
Federal program terms:
Interest rate .......................
7.05
6.75
6.05
5.55
5.05
Loan term (in years) ................
8.5
8.5
8.5
8.5
8.5
Grace period (in years) .............
2.5
2.5
2.5
2.5
2.5
Upfront fee (in percent)............
2.0
2.0
2.0
2.0
2.0
Annual fee (in percent per annum)...
0.5*
0.5*
0.5*
0.5*
0.5*
Comparable private terms:
Interest rate..... ...............
9.10
8.80
8.10
7.60
7.10
Loan term (in years) ................
8.5
8.5
8.5
8.5
8.5
Grace period in years) .............
2.5
2.5
2.5
2.5
2.5
Upfront fee (in percent)............
2.0
2.0
2.0
2.0
2.0
Annual fee (in percent per annum)...
0.5*
0.5*
0.5*
0.5*
0.5*
Present value of subsidy (in
percent) ..............................
9.8
9.9
10.2
10.3
10.5
Present value of subsidy (in millions
of dollars) ..........................
98.0
89.1
91.8
92.7
94.5
1/ Use latest economic assumption for interest rates.
Basis of Federal loan terms: (Examples: (1) Set in legislation at rate for Treasury
securities of similar maturity; or (2) set in legislation at 5%; or (3) administrative
discretion.)
Basis of interest calculation: (Examples: (1) mortgage basis (equal payments of principal
and interest); or (2) outstanding loan basis (equal payments of principal only).
Outstanding loan basis.
Frequency of payments: Semiannual.
Source or justification of comparable private market terms: Treasury long-term bonds plus
premium for country risk.
* Ch undisbursed amount of obligation.
11:84
February 5, 1987
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
Attachment H
FY 1988
TERMS OF FEDERAL AND PARABLE PRIVATE MANCET: GUARANTEED IAANS
Agency: Export - Import Bank
Program: Financial Guarantees
1988 1
1989 1/
1990 1
1991 1/
1992 1/
Guaranteed loan commitments
(millions of dollars) ..................
2,700
2,700
2,700
2,700
2,700
Federal program terms:
Interest rate .........................
4.65
4.35
3.75
3.15
2.65
Loan term (in years) ..................
5.0
5.0
5.0
5.0
5.0
Grace period (in years) ...............
0.5
0.5
0.5
0.5
0.5
TJpfront fee (in percent)
..............
Annual fee (in percent per annum).....
0.5
0.5
0.5
0.5
0.5
Commitment fee (in percent per annum).
0.125
0.125
0.125
0.125
0.125
Flat fees (in dollars) ................
-
--
--
-
.r
Other fees (describe below)...........
-
--
-~
-
-
Comparable private terms:
Interest rate .........................
6.65
6.35
5.75
5.15
4.65
Loan term (in years) ..................
5.0
5.0
5.0
5.0
5.0
Grace period (in years) ...............
0.5
0.5
0.5
0.5
0.5
Upfront fee (in percent) ..............
--
--
-
-
Annual fee (in percent per annum).....
0.5
0.5
0.5
0.5
0.5
Commitment fee (in percent per annum).
0.125
0.125
0.125
0.125
0.125
Flat fees (in dollars) ................
-
--
--
Other fees (describe below)...........
-
--
-
-
-
Present value of subsidy (in
percent ................................
4.4
4.4
4.5
4.5
4.6
Percent value of subsidy (in millions
of dollars) ............................
118.8
118.8
121.5
121.5
124.2
1/ Use latest economic assumption for interest rates.
Basis of, Federal loan terms: (Examples: (1) Set in legislation at rate for Treasury
securities of similar maturity; or (2) set in legislation at 5%; or (3) administrative
discretion.)
LIBOR plus premium.
Basis of interest calculation: (Examples: (1) mortgage basis (equal payments of principal
and interest ; or 2 outstanding loan basis (equal payments of principal only).
Outstanding loan basis.
Frequency of payments: Semiannual.
Source or justification of comparable private market terms: Federal rate plus 200 basis
points.
Description of other fees: N.A.
10:84
February 5, 1987
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
Attachment H
(continued)
FY 1988
TERMS OF FEDERAL AND COr1PARABtE PRIVATE MARKET: GUARANTEED LOANS
Agency: Export - Import Bank
Program: Other Guarantees and Insurance
1988 1/ 1989 1/ 1990 1/ 1991 1/ 1992 1/
Guaranteed loan commitments
(millions of dollars) .................. 7,300 7,300 7,300 7,300 7,300
Federal program terms:
(Interest rate .......................... 4.65 4.35 3.75 3.15 2.65
Loan term (in years) .................. 1.5 1.5 1.5 1.5 1.5
Grace period (in years) ............... 0.5 0.5 0.5 0.5 0.5
Upfront fee (in percent) .............. -- -- --
Annual fee (in percent per annum)..... - -- -
Commitment fee (in percent per annum). - - -
Flat fees (in dollars) ................ - -
Other fees (describe below)........... - - -
Comparable private terms:
Interest rate ......................... 6.65 6.35 5.75 5.15 4.65
Loan term (in years) .................. 1.5 1.5 1.5 1.5 1.5
Grace period (in years) ............... 0.5 0.5 0.5 0.5 0.5
Upfront fee (in percent) .............. - - - -- -
Annual fee (in percent per annum)..... - - - - -
Commitment fee (in percent per annum). - - -- - -
Flat fees (in dollars) ................ - -- -- -- ---
Other fees (describe below)........... - -- - -- -
Present value of subsidy (in
percent ................................ 1.6 1.6 1.6 1.6 1.6
Percent value of subsidy (in millions
of dollars) ............................ 116.8 116.8 116.8 116.8 116.8
1/ Use latest economic assumption for interest rates.
Basis of Federal loan terms: (Examples: (1) Set in legislation at rate for Treasury
securities of similar maturity; or (2)'set in legislation at 5%; or (3) administrative
discretion.)
LIBOR plus premium.
Basis of interest calculation: (Examples: (1) mortgage basis (equal payments of principal
and interest ; or (2) outstanding loan basis (equal payments of principal only).
!outstanding loan basis.
Frequency of payments: Semiannual.
Source or justification of comparable private market terms: Federal rate plus 200 basis
points.
Description of other fees: N.A.
7:84
"o Flebruary 5, 1987
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
[SAMPLE: NEW SUBSIDY ACCOUNT] Attachment I
EXPORT-IMPORT BANK OF THE UNITED STATES
Export-Import Loan Subsidies
Program and Financing (in thousands of dollars)
------------------------------------------------------------------------------------
Identification code 83-xxxx-0-1-155 1988 1988 1988
------------------------------------------------------------------------------------
Request Proposed Revised
pending amendment request
Program by activities:
Direct program:
* 00.01 Direct loans... ............ 0 98,000 98,000
* 00.02 Financial guarantees......... 0 118,800 118,800
* 00.03 Other guarantees & insurance. 0 116,800 116,800
10.00 Total obligations............. 0 333,600 333,600
Financing:
40.00 Budget authority
(appropriation) ............. 0 333,600 333,600
Relation of obligations to outlays:
71.00 Obligations incurred, net...
333,600 333,600
74.40 Obligated balance,
end of year ............... 0 (265,132) (265,132)
------------ ------------ ------------
** 90.00 Outlays .....................
68,468 68,468
* The obligations represent the subsidy estimate calculated according
to A-70 submissions. (See attachments G and H.)
** Outlays are charged to the subsidy account proportionately
as the loan is disbursed.
G
Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
[SAMPLE: NEW SUBSIDY ACCOUNT] Attachment J
EXPORT-IMPORT BANK OF THE UNITED STATES
Export-Import Loan Subsidies
Status of Direct Loans (in thousands of dollars)
------------------------------------------------------------------------------------
Identification code 83-xxxx-0-1-155 1988 1988 1988
------------------------------------------------------------------------------------
Request
pending
Proposed
amendment
Revised
request
Position with respect to
appropriation act limitations
on obligations:
1111 Limitation on direct loans
to the public ................
0
1,000,000
1,000,000
1150 Total direct loan obligations.
0
1,000,000
1,000,000
Cumulative balance of
direct loans outstanding:
1210 Outstanding, start of year....
1231 Disbursements: Direct loan
disbursements ...............
0
73,600
73,600
1251
Repayments:
Repayments and prepayments...
(3,500)
- (3,500)
1253
Loan asset sales to the
public 1/ ....................
1264 Adjustments: Other
adjustments, net 2/.......... 0
0
0
-------------
-------------
--------------
1290 Outstanding, end of year...... 0
70,100 70,100
1/ Use this line to reflect loan asset sales under the Credit Reform Plan.
In general, loans will not be sold until fully disbursed.
2/ Represents discount from face value on loans sold to the public.
10
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
[SAMPLE: NEW SUBSIDY ACCOUNT] Attachment K
EXPORT-IMPORT BANK OF THE UNITED STATES
Export-Import Loan Subsidies
Status of Guaranteed Loans (in thousands of dollars)
------------------------------------------------------------------------------------
Identification code 83-xxxx-0-1-155 1988 1988 1988
------------------------------------------------------------------------------------
Request
pending
Proposed
amendment
Revised
request
Position with respect to
appropriation act limitations
on commitments:
2111 Limitation on guaranteed loans
made by private lenders......
0
10,000,000
10,000,000
2150 Total guaranteed loan
commitments ................
0
10,000,000
10,000,000
Cumulative balance of
guaranteed loans outstanding:
2210 Outstanding, start of year....
0
0
0
2231 Disbursements of new
guaranteed loans............
0
2,598,100
2,598,100
2251 Repayments and prepayments....
0
(1,291,600)
(1,291,600)
Adjustments:
2261 Terminations for default
that result in direct loans.
0
0
0
2264 Other adjustments, net 1/....
0
0
0
2290 Outstanding, end of year......
0
1,306,500
1,306,500
MEMORANDUM
2299 U.S. contingent liability for
guaranteed loans outstanding,
end of year ..................
0
1,306,500
1,306,500
------------------------------------------------------------------------------------
1/ This line should be used to show reinsurance of loan guarantees.
However, in most cases (including Eximbank), the reinsurance will not
occur until the loan is fully disbursed by the lender.
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
02/02/87 A A D- F I L E L I S T I N G (BPS.MSTR.AAD)
(10:50)ssssssssssssssssssssrsssssssrrrssss**ssssssssssstssssssssssssssss*r*sssssssssssss*srassrrrsss**ssssrrssssssssssss*srrss
OMB ACCOUNT-ID: 30-48-xxxx-0-1-155 OMB DIVISION: IAD
AGENCY: Other Independent Agencies TEAM-ID: 13
BUREAU: Export-Import Bank of the United States LAST ACTIVITY: 2/03/87
ACCOUNT: Export-Import Loan Subsidies
DOC
COMP AUTH
CHAR-CL
LINE

ACTIVITY A R
ACCOUNT-ID
ID
FCT OUT
LINE NO
D/I N/S G/N
SN

--DATE-- C T
(1-11)
14 (15-17) 18
(19-24)
25 26 27
(28-29)
(30-39)
(40-49)
(50-59)
(60-69)
70 80
*
SSD-D
(PLANNING)
-------
-------------
----------
----------
----------
----------
--------------
83-xxxx--0-1-155
D
155
4000
N N
01
324,700
330,100
331,000
335,500
( ) 1
D
155
9000
N N
01
137,000
242,000
269,000
294,000
( ) 1
D
155
9447
01
900,000
900,000
900,000
900,000
( ) 1
D
155
9448
01
10,000,000
10,000,000
10,000,000
10,000,000
( ) 1
*
SSD-A
(BUDGET)
-------
-------------
----------
----------
----------
----------
--------------
A
155
4000
N N
01
333,600
( ) 1
A
155
9000
N N
01
68,468
1
A
155
9447
01
1,000,000
( ) 1
A
155
9448
01
10,000,000
( ) i
*
SSD-B
-------
-------------
--------------
B
155
01
*
SSD-C
-------------
C
155 0
01
*
SSD-H
(PLANNING)
-------------
H
155
1111
01
900,000
900,000
900,000
3,917,087
( ) 1
H
155
1150
01
900,000
900,000
5,338,187
3,917,087
( ) 1
H
155
1210
01
70,100
293,700
617,600
963,700
( ) 1
H
155
1231
01
246,100
382,400
449,400
492,700
( ) 1
H
155
1251
01
-22,500
-58,500
-103,300
-147,000
( ) 1
H
155
1290
01
293,700
617,600
963,700
1,309,400
( ) 1
H
155
2210
01
1,306,500
2,989,500
4,381,700
5,528,900
( ) 1
H
155
2231
01
4,422,800
5,016,500
5,278,600
5.422,100
( ) 1
H
155
2251
01
-2,739,800
-3,623,900
-4.131,400
-4,440,600
( ) 1
H
155
2290
01
2,989,500
4,381,700
5,528,900
6,510,400
( ) 1
H
155
2299
01
2,989,500
4,381,700
5,528,900
6,510,400
( ) 1
*
SSD-G
(BUDGET)
-------
--------------
--
----------
----------
--------------
G
155
1111
01
1,000,000
( ) 1
G
155
1150
01
1,000,000
( ) 1
G
155
1210
01
( ) 1
G
155
1231
01
73,600
( ) 1
G
155
1251
01
-3,500
( ) 1
G
155
1290
01
70.100
( ) 1
G
155
2111
01
10,000,000
( ) 1
G
155
2150
01
10,000,000
( ) 1
G
155
2210
01
( ) 1
G
155
2231
01
2,598,100
( ) 1
G
155
2251
01
-1,291,600
( ) 1
G
155
2290
01
1,306,500
( ) 1
G
155
2299
01
1.306.500
( ) 1
*
P&F
-------
-----------
--------------
P
0001
01
98,000
( ) 1
P
0002
01
118,800
( ) 1
P
0003
01
116,800
( ) 1
P
1000
01
333,600
( ) 1
P
4000
01
333,600
( ) 1
P
7100
01
333,600
( ) 1
P
7440
01
-265,132
( ) 1
P
9000
01
68,468
( ) 1
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
February 18, 1987
BULLETIN NO. 87-8 , SUPPLEMENT NO. 1
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Federal Credit Reform Proposal
1. Purpose. This Bulletin serves as a supplement to Bulletin No. 87-8 dated
February 18 , and provides instructions for submitting additional data to
support the Administration's Federal credit reform proposal.
2. Authority. Same as Bulletin No. 87-8
3. Background. Bulletin No. 87-8 instructed agencies to submit budget
mater als and data necessary, to quantify changes resulting from the credit
reform proposal to the President's FY 1988 Budget submission on a current
policy basis. In addition, 0MB must collect the information necessary to
quantify changes to the current services estimates.
4. Coverage. The proprams listed in Attachment A of Bulletin No. 87-8 also
are covered by this supplement. In addition, credit programs that were
proposed in the President's FY 1988 Budget to be terminated in FY 1988 are
covered for the purpose of this supplement only. (See Attachment A, Parts 1
and 2 of this supplement).
5. Definitions. Refer to Part 5 of Bulletin 87-8 for definitions of the
relevant termiT
6. Additional data.re uired. In addition to the materials and data requested
in guTTetin 87- , Subsidy data for current services estimates of direct
loans and loan guarantees are needed. The subsidy data sheets should be
prepared in accordance with section 33.7 of Circular No. A-11. An exhibit, in
the format of Attachments B (direct loans) and C (guaranteed loans), should be
prepared for each loan program.
The estimates for current services for direct loan obligations and
guaranteed loan commitments were collected in the President's budget data base
as SSD-Y/Z data. Calculations of subsidies should be based on the same
concepts. Therefore, they should not be based on changes in interest rates,
112
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fees, or program mix proposed in the 1988 Budget. Under credit reform, the
FFB would no longer be in operation. However, the subsidy should be estimated
as if the FFB would still exist (use the Treasury rate + 1/8 percent as the
interest rate).
In many cases, the subsidy estimate (in percent) will be the same as for
the policy; only the loan volume and subsidy estimate (in millions of dollars)
wiII change. In other cases, the subsidy estimate (in percent) will also
change.
7. Timing. All data must be received in OMB not later than Wednesday,
February 5, 1987.
8. Contact. Questions should be directed to the agency's OMB representative.
Attachments
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
ACCOUNTS IN THE CREDIT BUDGET
AFFECTED BY THE CREDIT REFORM PROPOSAL
(in millions of dollars)
PART 1. ACCOUNTS WITH NEW ACTIVITY IN 1988
1988 ESTIMATES
CURRENT SERVICES
---------------------------
DIRECT GUARANTEED
AGENCY/ACCOUNT ACCOUNT ID LOANS LOANS
FUNDS APPROPRIATED TO THE PRESIDENT
Foreign military'sales credit.... 11-1082-0-1-152 4,181.9 Economic support fund............ 11-1037-0-1-152 181.7 ---
Func. dev'p asst. programs....... 11-1021-0-1-151 150.0 ---
Housing credit guar. programs.... 72-4340-0-3-151 --- 150.6
Private sector revolving fund.... 72-4341-0-3-151 16.0 ---
Overseas Private Invest. Corp.... 71-4030-0-3-151 23.8 207.0
DEPARTMENT OF AGRICULTURE
Expenses, P. L. 480............... 12-2274-0-1-151 847.9
Commodity Credit Corporation..... 12-4336-0-3-351 Rural elec/telephone rev. fund... 12-4230-0-3-271 2,230.9
Rural telephone bank ............. 12-4231-0-3-452 183.2
Agricultural credit ins. fund.... 12-4140-0-3-351 1,880.8
DEPARTMENT OF EDUCATION
Guaranteed student loans ......... 91-0230-0-1-502
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health resources and services.... 75-0350-0-1-551 1.0
Health prof. grad. student loans. 75-4305-0?-3-553 ---
5,500.0
2,585.4
9,355.0
305.0
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Nonprofit sponsor assistance..... 86-4042-0-3-604 1.0 ---
Federal Housing Adm. fund........ 86-4070-0-3-371 82.6 79,260.5
Housing for elderly/handicapped 86-4115-0-3-371 612.0 ---
GNMA, Guarantees of MBS........ .. 86-4238-0-3-371 305.8 112,500.0
DEPARTMENT OF THE INTERIOR
BuRec, Loan program .............. 14-0667-0-1-301 27.5 ---
BIA, Revolving fund for loans.... 14-4409-0-3-452 16.9 ---
BIA, Loan guaranty rev. fund..... 14-441`0-0-3-452 2.0 41.4
DEPARTMENT OF STATE
Emergencies in diplomatic serv... 19-0522-0-1-153 0.7
DEPARTMENT OF TRANSPORTATION
MarAd, Fed'1 ship financing fund. 69-4301-0-3-403 5.0
SMALL BUSINESS ADMINISTRATION
Disaster loans ... ..... ......... 73-4153-0-3-453 336.0 ---
Business loan and investment..... 73-4154-0-3-376 124.0 3,691.0
Iq
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89G00643R001000030041-8 .
Attachment A, cont.,
1988 ESTIMATES
CURRENT SERVICES
DIRECT GUARANTEED
LOANS LOANS
VETERANS ADMINISTRATION
Direct loan revolving fund....... 36-4024-0-3-704 2.3 ---
Loan guaranty revolving fund..... 36-4025-0-3-704 880.2 29,400.0
Voc. rehab revolving fund........ 36-4114-0-3-702 0.9 -- -
*
Education loan fund .............. 36-4118-0-3-702
OTHER INDEPENDENT AGENCIES
Export-Import Bank ............... 83-4027-0-3-155 931.5 11,355.0
Fed'l Savings and Loan (FSLIC)... 82-4037-0-3-371 25.0 300.0
NCUA, credit union share ins fund 25-4468-0-3-371 5.0 0.5
NCUA, Central liquidity facility. 25-4470-0-3-371 600.0
Tennessee Valley Authority....... 64-400-0-3-999
Power loans ...................
71.0
DEPARTMENT OF LABOR
Pension Benefit Guarantee Corp... 16-4204-0-3-601 3.1
TOTAL LOANS SUBJECT TO CREDIT REFORM.......... 13,729.7.. 254,651.4
(EXCLUDES DIRECT LOAN OBLIGATIONS
FOR DEFAULTED GUARANTEES)
2. ACCOUNTS PROPOSED FOR TERMINATION IN 1988
DEPARTMENT OF AGRICULTURE
REA, FFB direct loans ............
12-4230-0-3-271
2,230.9
Rural-housing insurance fund.....
12-4141-0-3-371
2,104.2
Rural development insurance fund.
12-4155-0-3-452
440.1
118.6
Self-help housing land dev'p fund
12-4222-0-3-371
DEPARTMENT OF COMMERCE
Economic dev'p asst. programs....
13-2050-0-1-452
22.6
NOAA, Fed'l ship financing fund..
13-4417-0-3-376
0.0
DEPARTMENT OF EDUCATION
College housing loans............
91-4250-0-3-502
60.0
DEPARTMENT OF HOUSING AND URBAN DEVEL
Community development grants .....
OPMENT
86-0162-0-1-451
155.6
Rehabilitation loan fund.........
86-4036-0-3-451
85.0
ENVIRONMENTAL PROTECTION AGENCY
Abatement, control & compliance..
68-0108-0-1-304
37.1
SMALL BUSINESS ADMINISTRATION
Pollution control guarantees.....
73-4147-0-3-376
BLIF, Sec. 503 FFB direct loans..
73-4154-0-3-376
45.0
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89G00643R001000030041-8
FY 1988 - QJRRFBn' SERVICES
TERMS OF FEDERAL AND CXMPARAffiE PRIVATE MARKED: DIRECT LOANS
Agency: Export-Import Bank
Program: Direct Loans
1988 1/ 1989 1/ 1990 1/ 1991 1/ 1992 1/
Direct loan obligations, current
services estimates (millions of
dollars) ............................. 931.5 964.1 995.9 1024.8 1049.4
Federal program terms:
Interest rate..... ............... 7.05 6.75 6.05 5.55 5.05
Loan term (in years) ................ 8.5 8.5 8.5 8.5 8.5
Grace period (in years) ............ 2.5 2.5 2.5 2.5 2.5
Upfront fee (in percent)............ 2.0 2.0 2.0 2.0 2.0
Annual fee (in percent per annum)... 0.5* 0.5* 0.5* 0.5* 0.5*
Comparable private terms:
Interest rate ....................... 9.10 8.80 8.10 7.60 7.10
Loan term (in years) ................ 8.5 8.5 8.5 8.5 8.5
Grace period (in years) ............. 2.5 2.5 2.5 2.5 2.5
Upfront fee (in percent)....... .. 2.0 2.0 2.0 2.0 2.0
Annual fee (in percent per annum)... 0.5* 0.5* 0.5* 0.5* 0.5*
Present value of subsidy (in
percent) .............................. 9.8 9.9 10.2 10.3 10.5
Present value of subsidy (in millions
of dollars) .......................... 91.3 95.4 101.6 105.6 110.2
1/ Use latest economic assumption for interest rates.
Basis of Federal loan terms: (Fxcamples: (1) Set in legislation at rate for Treasury
securities of similar maturity; or (2) set in legislation at 5%; or (3) administrative
discretion.)
Basis of interest calculation: (Examples: (1) mortgage basis (equal payments of principal
and interest ; or (2) outstanding loan basis (equal payments of principal only).
Outstanding loan basis.
Frequency of payments: Semiannual.
Source or justification of comparable private market terms: Treasury long-term bonds plus
premium for country risk.
* Cn undisbursed amount of obligation.
21:84
February 12, 1987
r
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
FY 1988 - QJRRIIM SERVICES
TFMS OF FEDERAL AND COMPARABLE:, PRIVATE MARKET: GUARANTEED LOANS
Agency: F,cport - Import Bank
Program: Financial Guarantees
1988 1
1989 1/
1990 1/
1991 1/
1992 1/
Guaranteed loan commitments, current
services estimates (millions of
dollars) .................................
.3065.9
3065.9
3065.9
3065.9
3065.9
Federal program terms:
Interest r_ate ..................0......
4.65
4.35
3.75
3.15
2.65
Loan term (in years) ............ :......
5.0
5.0
5.0
5.0
5.0
Grace period (in years) ...............
0.5
0.5
0.5
0.5
0.5
U
f
t f
(i
t)
n percen
..............
p
ron
ee
Annual fee (in percent per annum).....
0.5
0.5
0.5
0.5
Commitment fee (in percent per annum).
.0.125.
.0.125
0.125
0.125
0.125
d
)
Fl
t f
(i
ll
---
ars
.. ...............
a
ees
n
o
---
Other fees (describe below)
......
--
---
.....
11
Comparable private terms:
Interest rate..........................
6.65
6.35
5.75
5.15
4.65
Loan term (in years) ..................
5.0
5.0
5.0
5.0
5.0
Grace period (in years) ............ :....
0.5
0.5 .
0.5
0.5
0.5
Upfront fee (in percent) ............
Annual fee (in percent per annum).....
--
---
0.5
-
0.5
0.5
0.5
0.5
Commitment fee (in percent per annum).
0.125
0.125
0.125
0.125
0.125
(in dollars)
Fl
t fe
--
---
--
--
................
a
es
Other fees (describe below)...........
---
---
---
---
--
Present value of subsidy (in
percent ................................
4.4
4.4
4.5
4.5
4.6
Percent value of subsidy (in millions
of dollars).......... 4-: .........
134.9
134.9
134.9
134.9
134.9
1/ Use latest economic assumption for interest. rates..
Ras.is of Federal loan terms: (Examples: (1). Set. in legislation at rate for Treasury
secure tires of similar maturity;' or?(2) set in. legislation at 5%; or (3) administrative
discretion.)
LIBOR plus premium.
Basis of interest calculation=:; .(Examples:. (1)-mortgage basis (equal payments of principal
and , in erest ; or outstanding loan basis :(equal payments of principal only).
Outstanding loan basis.
Frequency of payments: Semiannual.
Source or justification of-- comparable private market terms: Federal rate plus 200 basis
points.
Description of other fees: N.A.
19:84
February 12, 1987 r(0
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/20: CIA-RDP89GO0643R001000030041-8
FY 1988 CLWU W SERVICES
TERMS OF FFI)ERAiJ ALGID CONIPARNIZ PRIVATE MAIEFTP: GUARANTEED LOANS
Agency: Export - Import Bank
Program: Other Guarantees and Insurance
1988 1/
1989 1/
1990 1/
1991 1/
1992 1/
Guaranteed loan cotmnitments, current
services estimates (millions of
dollars) ...............................
8289.1
8289.1
8289.1
8289.1
8289.1
Federal program terms:
(Interest rate ..........................
4.65
4.35
3.75
3.15
2.65
Loan term (in years) ..................
1.5
1.5
1.5
1.5
1.5
Grace period (in years) ................
0.5
0.5
0.5
0.5
0.5
f
(i
)
..............
n percent
Up
ront fee
--
t
)
f
(i
.....
n percen
per annum
Annual
ee
nt
f
(i
i
)
--
n perce
per annum
.
ee
Comm
tment
d
f
l
)
(i
................
ees
n
ol
ars
Flat
?-~
(d
ib
b
l
)
f
...........
ees
escr
ow
Other
e
e
Comparable private terms:
Interest rate .........................
6.65
6.35
5.75
5.15
4.65
Loan term (in years) ..................
1.5
1.5
1.5.
1.5
1.5
Grace period (in years) ...............
0.5
0.5
0.5
0.5
0.5
(i
t)
f
f
..:...........
ee
n percen
Up
ront
)
(i
t
l f
n percen
per annum
Annua
ee
.....
t
i
f
(i
)
Comm
tment
ee
n percen
per annum
.
d
(i
ll
f
)
................
ees
n
o
ars
Flat
b
(d
ib
l
)
f
ow
...........
Other
ees
escr
e
e
Present value of subsidy (in
percent ................................
1.6
1.6
1.6
1.6
1.6
Percent value of subsidy (in millions
of dollars) ........................... ..'.
'132.6
132.6
132.6
132.6
132.6
1/ Use latest economic assumption for interest rates.
Basis of Federal loan terms: (Examples: (1) Set in legislation at rate for Treasury
securities of similar maturity; or (2) -set in legislation at 5%; or (3) administrative
discretion.)
LIBOR plus premium.
Basis of interest calculation: (Examples:' (1) mortgage basis (equal payments of principal
and nterest ; or (2) outst inq loan,basis (equal payments of principal only).
Outstanding loan basis.
Frequency of payments: Semiannual.
Source or justification of comparable private-market terms:' Federal rate plus 200 basis
points.
Description of other fees: N.A.
20:84
February 12, 1987
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