December 26, 1995
OMB NO, no Bulletin. 04-96
The length of the department EXECUTIVE
SUBJECT: New Requirements for Credit Program Credit Data
1 Purpose. This report, in 1996 the Ministry of Finance - Budget Law Post, tells the federal government data reporting requirements contained in the language of the new credit report and 52 PL 104. If the bad debt performance, both the language of the report, the administrator must provide an estimate of the two value of the portfolio of outstanding loans of the Government: (1) cash to be expected, the government (administrative costs along with a separate quote) flows into. And (2) expected cash flows, or to a private account holders for both the funding and liquidity (if the loan is sold) from the. The data collected to comply with the language of this report is used by OMB and Congress to determine whether it is worth pursuing the sale of loan assets it. These data are also included in the budget for fiscal year 1997.
. Ministry of Finance 1996 - Appropriations Act report language accompanying the post, OMB is "direct, in order to assess the value of these credit programs, including the cost of his annual management fee, the federal government involved in the credit program related organizations, in collaboration with the privatization of such credit programs directed to develop a plan [sic] to. "For purposes of this analysis," Outstanding portfolio, "30 September 1995 are defined as direct loans and loan guarantees outstanding at the date.
Zip / Ministry of Finance, the meeting, the private sector, we believe there are willing to pay significantly more than the expected value of its portfolio of government. See Also 60second loans . Language of the report states that "[U] was due to be handed over to the private sector if many of the federal credit program sing a conservative estimate, it may be able to achieve between $ 50 billion to $ 20 billion."
To allow comparison of the different types of loans, government agencies, the following two categories, and liquidation at September 30, 1995, and an excellent portfolio of accounts to split the funding You are prompted: Category (essentially run) and non-B category (- execute). Significant non-performing loans are defined as loans in arrears 90 days or less than today. See Also 6 months loans norman . Bad loans past due 90 days or more Dearimasu their loans. For international programs, the loan is included in Category B loans to countries that have plans and rescheduling by the Paris Club debt relief now.
3 Action is required. Provide the following information for each loan program. To support data collection, the Lotus spreadsheet ("Port _yal.wk3") sent in this report. The data on February 09, 1996, using this spreadsheet must be delivered to the OMB examiner with primary responsibility.
There are several examples of conditions specific to the individual loan programs:
Lotus spreadsheet that accompanies this guidance ("port_val.wk3") are included in the methodology: a unique methodology for projecting the general and administrative expenses or Method II: Government will use the method I You can. Method II is dependent on the cost per loan in 1995 to project the future management costs. If you are using method II, the agency must do.
(2) the growth of administrative expenses, net (increase in wages, increase productivity, it is necessary to consider other factors) projects, and
(3) non-executable so that each year, a substantial proportion of bad loans on September 30, 1995 (%) is expected to be. Check out also actuall lenders for loans .
Government agencies, September 30, 1995 in more precise, you can modify the method II reflect the expected annual cost of managing its outstanding portfolio.
(4) Comparison of cash flow forecast. Using the data provided by the agency, OMB, compare: administrative costs and the expected cash flows of the government to sell the loans to private sector net present (1) The net present value, (2) is expected If the loan is sold to the public value of expected cash flows, net earnings file. "Interest rates that apply to the quarter when a change occurs (yield). See Also 247 cash loans fast ." Modification cost of the loan (No. OMB Circular - 34, such as those defined in Section 65.3), consistent with the estimated cash flow of government For the purposes of this analysis are discounted in the computation of present value, assuming the government's loan portfolio was sold to the public on September 30, 1995. Calculating the value of the end of 1995, as the appropriate discount rate and the magnitude of such an outstanding portfolio, the underlying assumptions of this analysis can be minimized.
Deadline 5. Estimate is February 09, 1996, using this spreadsheet must be delivered to the OMB examiner with primary responsibility for credit accounts.
Director Alice M. Rivilin
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