An audit was made of the Export-Import Bank's financial statements for fiscal year 1976.

During this fiscal year, the bank authorized new loans totaling $3.1 billion; authorized guarantees totaling $1.7 billion; and issued insurance policies totaling $3.5 billion. The bank has recognized that its expansion of reserves has not kept pace with its expansion of operations, and that this situation, if it continues, will lead to an undesirable ration of resources to potential losses. Consequently, it has taken steps to improve its income and the quality of its loan portfolio. In fiscal year 1976, the bank reversed the decline in net income, which had begun in fiscal year 1973, and reversed the decline in annual income as a percent of the increase in outstanding loans, guarantees, and insurance. While the reserve for potential losses continued to decline in relation to outstanding loans, guarantees, and insurance, the rate of decline was reduced considerably.