United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1998-12-21 monographic deposited born digital 22 p. GA 1.13:NSIAD-99-30 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-99-30 P0b002ee18037cfcf f:ns99030 DGPO 2010-08-12 2011-03-28 GAOREPORTS-NSIAD-99-30 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-99-30 NSIAD-99-30 Foreign loans Foreign governments Foreign military assistance International economic relations Comparative analysis Government guaranteed loans Foreign military sales Foreign trade policies DOD Defense Export Loan Guarantee Program Foreign Military Sales Program F/A-18 Aircraft DOD Foreign Military Financing Program Romania Thailand Letter Report NSIAD

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) Defense Export Loan Guarantee (DELG) Program, focusing on: (1) the level of program activity to date; (2) the program's financial status; (3) other sources of financing available to borrowing countries; (4) comparing DELG Program characteristics with other U.S. government export financing programs; and (5) examining issues related to the planned fiscal year 1999 transfer of DELG Program responsibilities within DOD.<p/>GAO noted that: (1) since its implementation in 1996, the DELG Program has guaranteed one loan and has not generated enough revenue in fees to cover its operations; (2) the program's ability to attract future activity to generate sufficient revenue for continued operations is uncertain, since countries have other sources that offer financing at a lower lost; (3) further, the availability of loan guarantees is one of numerous factors that affect a country's decision to purchase U.S. defense exports; (4) unlike the DELG Program, other U.S. government-administered programs that offer direct loans or guarantees for defense-related items are designed to operate with U.S. government subsidies, which reduce financing costs to the purchasing countries; (5) decisions on the scope and nature of continued DELG operations pose a challenge to DOD; (6) a report on program operations and any recommended changes has not been submitted to Congress, as required by law; (7) in addition, the DELG Program has not been transferred within DOD as originally planned under the Defense Reform Initiative; and (8) uncertainty about future program responsibility may also be hampering day-to-day operations. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-99-30/html/GAOREPORTS-NSIAD-99-30.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-99-30/pdf/GAOREPORTS-NSIAD-99-30.pdf GAO/NSIAD-99-30 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-99-30 Letter Report GAO/NSIAD-99-30; Defense Trade: Status of the Defense Export Loan Guarantee Program; Foreign loans Foreign governments Foreign military assistance International economic relations Comparative analysis Government guaranteed loans Foreign military sales Foreign trade policies DOD Defense Export Loan Guarantee Program Foreign Military Sales Program F/A-18 Aircraft DOD Foreign Military Financing Program Romania Thailand Title 10 Section 2540(a) Title 10 Section 2540(b) 10 U.S.C. 2540(a) 10 U.S.C. 2540(b) Public Law 103-428 Public Law 105-121