Defense Trade; Status of the Defense Export Loan Guarantee Program.
Abstract
The National Defense Authorization Act for Fiscal Year 1996 directed the Secretary of Defense to establish a loan guarantee program for the sale or long-term lease of defense articles and services to eligible foreign governments. The legislation required the Secretary of Defense to charge fees to cover administrative costs and potential U.S. liability in the event of default on loan payments. Consistent with congressional intent, the Department of Defense (DOD) established the Defense Export Loan Guarantee (DELG) Program in November 1996 and designed it to operate at no cost to the government. The authorizing legislation also required the President to submit a report to Congress by February 1998 that included an analysis of the costs and benefits of the DELG Program and any recommendations for modification of the program that the President considers appropriate. In response to your request, we determined the status of the program. Specifically, we reviewed the level of program activity to date, the program's financial status, and other sources of financing available to borrowing countries. As agreed with your offices, we also compared DELG Program characteristics with other U.S. government export financing programs and examined issues related to the planned fiscal year 1999 transfer of DELG Program responsibilities within DOD.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1998
- Accession Number
- ADA358958
Entities
Organizations
- United States Government Accountability Office