RTB: Review of Rural Telephone Bank's 1993 Loan Interest Rate Calculation
(Letter Report, 11/18/93, GAO/AIMD-94-55).

GAO is required to review each year the interest rates charged to
borrowers, referred to as the cost of money rate, as set by the Rural
Telephone Bank for the preceding fiscal year.  The Rural Telephone Bank
now calculates the following two rates: (1) the interest rate used for
advances made during fiscal year 1993 on loans approved before fiscal
year 1992 (referred to as loans from the liquidating account) and (2)
the interest rate used for advances made during fiscal year 1993 on
loans approved on or after October 1, 1992 (referred to as loans from
the financing account). The Rural Telephone Bank's fiscal year 1993 cost
of money rates were pegged at 6.05 percent and 6.35 percent for advances
from the liquidating account and financing account, respectively.  GAO
found these rate determinations to be in accordance with the law.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-55
     TITLE:  RTB: Review of Rural Telephone Bank's 1993 Loan Interest 
             Rate Calculation
      DATE:  11/18/93
   SUBJECT:  Financial analysis
             Loan interest rates
             Credit
             Lending institutions
             Government guaranteed loans
             Telephone communications operations
             Federal corporations
             Electric utilities
             Off-budget federal entities

             
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