Long-term capital loans authorized during calendar year 1965-Continued Mr. PASSMAN. What is the average interest rate and the average length of maturity for these long-term loans? Mr. LINDER. I would have to approximate that. The average interest rate is very simple. It is 512 percent. Mr. PASSMAN. What is the average term? What is the maximum term? Mr. LINDER. I have known loans to be as long as 22 years, but the average term, I would think, does not exceed 11 years. Mr. PASSMAN. Is that under what you call your long terms? Mr. LINDER. Yes, it is. Some of those long terms are 7 and 8 years, and some of them are 15 years. SHORT-TERM LOANS Mr. PASSMAN. What do you consider a short-term loan? Mr. LINDER. A short-term loan is up to 180 days. A medium-term loan, generally speaking, is between 180 days and 5 years. Generally speaking, long-term loans are beyond 5 years. (Off the record.) Mr. LINDER. May I point out for the record, when we say 11 years or 20 years, we mean that is the final maturity. Everything is paid on equal semiannual or annual installments, so the life is even less than 11 years. Mr. PASSMAN. I think we agreed previously that the Bank has a good record, but the only way you can ever prove you have had a profitable operation is if you should decide to liquidate and then ascertain how many loan accounts we cannot collect. Do you remember that? Mr. LINDER. I remember that well, sir. Mr. PASSMAN. I think as a businessman and a banker, we agree that is so. It looks good at this time, and I have never been critical of your operation. I remember a church party I attended one time, the theme of which was something about help, aid, and assist your neighbors. Finally the pastor indicated that "help," "aid," and "assist" meant the same thing. I do not know whether it does or not. Would you agree that aid to a foreign nation and assistance to a foreign nation could mean the same thing? Mr. LINDER. I would think it could mean the same thing. Mr. PASSMAN. That is a completely fair answer. I have never been critical of all the help we have given, but at least it is assistance. You might be surprised to know that some people come before the committee and say these are loans; these are no longer grants. You ought to see them polish that apple when they are defending these things as being loans. Then when you get down in the short rows, they begin to say of course it operates differently in the Export-Import Bank. Finally, they admit that aid and assistance are the same thing. So, if you are making a person a $250 million loan under your longterm policy of 22 years, that is assistance, even though we sell them commodities. Mr. LINDER. We frequently speak of it as that. Mr. PASSMAN. That is wonderful. We are in agreement again. I have always thought it was assistance. I have always thought it would be a lot better to let the Bank handle them than it would be to let some of these others where they have the right possibly to negotiate a zero settlement. LATIN AMERICAN LOANS Mr. President, would you furnish for the record a list of the longterm loans in Latin America? Mr. LINDER. Yes, sir. You mean that are outstanding now? Mr. PASSMAN. Outstanding, and the year that you made the longterm loans. Mr. LINDER. Yes, sir. (The requested information follows:) |