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PRESS RELEASES
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OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANiA AVENUE, N.W.'. WASm~GTON, D.C .• 20220. (202) 622·2960
FOR IMMEDIATE RELEASE
June 13, 1995
STATEMENT OF TREASURY SECRETARY ROBERT E. RUBIN
I am pleased that President Clinton has acted upon my recommendation and
announced his intention to nominate Lawrence Summers to become Deputy Secretary of the
Treasury.
U.S. international economic policy has been of critical importance to this
Administration, and Larry Summers has provided essential leadership in this area. I have
known Larry for many years. His expertise in domestic economic affairs, as well as in the
international arena, is recognized throughout government and the worlds of economics and
finance. He will continue the strong leadership provided by Frank Newman, who has
decided to return to the private sector.
As Under Secretary of the Treasury for International Affairs from the beginning of
this Administration, Larry has had broad responsibility assisting former Treasury Secretary
Lloyd Bentsen and me on issues such as 0-7 policy coordination, trade and foreign
investment policy, exchange-rate policy, Russia and Mexico and U.S. participation in the
international financial institutions. He has made a major contribution in formulating and
setting forth this Administration's policies in all of these areas.
Summers served on the MIT faculty from 1979 to 1982 He became a full professor
of economics at Harvard at age 28 in 1983, and was Nathaniel Ropes professor of Political
Economy at Harvard from 1987 to 1993. He served from 1991-1993 as Vice President of
Development Economics and Chief Economist of the World Bank. In 1993, he was awarded
the John Bates Clark Medal given every two years to the outstanding American economist
under the age of 40.
I encourage the Senate to act quickly on his nomination.
-30RR-369
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DEPARTMENT
OF
THE
TREASURY
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .__
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLV'
A'VENUE,N~W.• WASHINGTON, D.C .• 20220. (202) 622-2960
ADY 1 P.M. EDT
Text as prepared for delivery
June 13, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
WHITE HOUSE CONFERENCE ON SMALL BUSINESS
I spent 26 years in the private sector. I ran a business, and while it was not small,
in many respects we had experiences in common.
I believe in free markets, and I believe that markets operate best with the least
government involvement possible. However, I also believe that government has an
essential role. From a purely economic perspective, there are critical needs that
markets, by their nature, will not meet. The job of government, as I see it from the
economic perspective, is to provide the tools -- education, training and the like -- that
enable individuals to succeed, to create the domestic and international conditions and
regulations the private sector needs to thrive, and to ensure the existence of a social
safety net.
The economic forces that I saw in private life are the same ones that affect the
fortunes of small businesses -- taxes, interest rates, health care costs, the availability of
capital, regulation, infrastructure, and finding enough well-educated, well-trained,
productive employees to make your business function more efficiently.
1'd like to discuss some of the specifics of programs now under way that benefit
small businesses, along the lines of the increased limit for capital investment expensing
that was enacted in 1993, and the 1993 targeted capital gains tax reduction for smaller
businesses. First, however, I want to discuss the broader economic issues -- such as the
debate over the federal budget and deficit reduction -- because they are just as critical to
your success as specific, tailored programs.
To start, the budget debate is not that much different than the issues you deal
with when you're planning out the next year or five years. What can we get rid of?
What can we not afford to lose? Where do we need to invest more to become more
productive?
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RR-370
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2
There are two choices with respect to the federal budget. I believe we should
chose a process that puts the budget on a path to being balanced based on policy
tradeoffs that best meet our economic objectives; the alternative is setting an arbitrary
deadline for balance and cutting programs to meet that deadline. I don't believe any of
you would do that in your business.
So far, we have already cut the deficit in half since this administration took office.
-- more than $500 billion in deficit reduction. And we have wrung the deficit premium
out of interest rates, which helps everyone. Going forward, the President is forcefully
committed to continued deficit reduction to reach balance, while at the same time
making the public investments absolutely critical for the nation's economic future -investments in education and training, in apprenticeship programs, child nutrition and
the like. Some may consider these purely social programs. I, and much more
importantly, the President, look at them through the prism of business, as common sense,
hard-headed long-term investments this nation must make for you to have the work force
you need and for the economy to be successful.
For the past two and one-half years the President has said that the key to
achieving a balanced budget is controlling federal health care expenditures, because that
is the only part of the budget growing faster than the rate of inflation. But that must be
accomplished through sensible reforms in the context of a careful, step-by-step process of
health care reform, and employer mandates clearly are not on the table. There should
not be the draconian and arbitrary cuts in Medicare and Medicaid that some budget
plans on capitol hill are forced to make to meet an arbitrary balance date. That will
result in severe beneficiary impacts and cost shifting and other distortions. So, once
again, the difference is between building a budget that goes to balance based on sound
policy choices, rather than building a budget based on arbitrary dates, regardless of the
policy effects.
Education is the best example of how we must prepare this nation to be
competitive in the years and decades ahead.
I was in Indonesia about two months ago at a meeting of finance ministers from
the Asia and Pacific region. Most of those nations were impoverished 15 or 20 years ago
and today have economies that are vastly improved and growing rapidly. It is an
amazing success story. And having spoken to these ministers, I can tell you that they
view a long-term, sustained investment in education as indispensable, and so should we.
With an information revolution changing the work place and placing greater
demands on the work force, it cannot possibly make economic sense to balance the
budget by cutting student loans, apprenticeship programs, worker training, school
nutrition programs, and incentives for education and education reform.
3
We must reduce the deficit and go to balance, but with policy choices that best
increase economic growth, jobs and standards of living over the long run, not choices
that simply satisfy an arbitrary date.
We have another major debate under way in the economic sphere I want to
mention just briefly. The issue of global engagement and leadership at first blush might
not seem like something that would automatically be on the radar screen for small
business owners. But it is vitally important to you and your economic interests, and I'm
pleased to see there's a trade section in your issues handbook.
I'm leaving for the G-7 summit in Halifax in two days. There, we'll be discussing
issues critically important to your economic future: how to deal as a global community
with problems that arise in the vast and rapidly moving global financial markets, how to
promote reform and growth in developing countries, how to encourage trade, how to
bring along the economies of former communist countries like Russia and Ukraine.
It's that second point I want to spend a moment on -- developing countries.
Developing nations have five-sixths the world's population and 53 percent of global
output. Forty percent of the exports of the United States go to developing countries, and
that translates to 4 million American jobs. Some $62 billion in exports last year went to
countries which were in the midst of or had completed economic reform programs with
World Bank support. Growth in developing nations will drive the global economy in the
coming years. It is in our self-interest -- your self interest -- to see to it that these
nations grow and prosper, and so provide bigger markets for us, increase jobs and
standards of living in our country.
The international financial institutions -- the World Bank, the development banks
and the International Monetary Fund -- are absolutely critical to encouraging reform and
growth in the developing world. But there is a new isolationism in the country which
must be countered because it is against your economic interests and against the country's
economic interests. There is talk of severely reducing or even eliminating our financial
support for these institutions. Our overall spending for international programs is less
than 1 percent of the federal budget, but the return is enormous. Refusing to meet our
commitments can harm American living standards, reduce our export opportunities, cost
American jobs and undermine our national security interests. Such reductions are
extremely short-sighted; they are strongly against your interests.
The legislation dealing with our international commitments is at the center of the
debate about reaching out to the world and embracing the global economy, leading and
taking advantage of its opportunities, or turning inward and retreating to isolationism.
4
I've spoken so far in the broad sense about designing an economic domestic and
international economic climate conducive to growth and job creation. I want to spend
the remainder of my time this afternoon discussing some things we have done and are
doing specifically to enable small business to prosper.
The President is absolutely right when he says the tax 'code is complicated and
could stand simplification. Obviously, that's an issue that will be the focus of debate in
the coming years, and the Treasury Department will be front and center. I would like to
discuss what we are doing now in the short term, how we are using technology to make
your lives simpler, how we're working to make it easier to deal with taxes and do it for
less money. Having said that, we recognize that much more needs to be done, and we
are committed to this effort.
Under a regulatory review the President requested in March, 1,240 pages of tax
regulations have been or will be eliminated or reformed for simplicity. Last Friday, as
part of our latest reinvention program, we announced the Simplified Tax and Wage
Reporting System that will eliminate the need to file W-2 data in multiple places. The
program also will enable an employer to file a single return electronically. Once this
program is fully in place, it should save employers nearly $1 billion in tax and wage
reporting costs.
We are making it easier for many of your employees -- the ones who use the
1040-EZ form, to file, by making it possible for them to send in their information on a
touch-tone telephone. Simplified tax forms have eliminated 46 million hours of
paperwork for 134 million taxpayers. For self-employed Americans, the 25 percent
deductibility of health insurance premiums has been extended. I already mentioned the
targeted capital gains reduction for small businesses when stock is held more than 5
years, and the increase to $17,500 in the capital investment deduction each year, permits
you to more rapidly deduct items that ihcrease your productivity -- office machinery,
computers, copiers and the like.
In addition, we intend to reduce your paperwork and legal costs by proposing that
you be allowed to elect to be treated as a tax partnership by simply checking a box on
your tax return, regardless of what entity you chose to create under state law. That will
replace a complicated set of criteria that had to be met in order to qualify for treatment
as a partnership. Since we announced this proposal we have had very favorable
comments from the business community because it means less paperwork, lower legal
bills, and not having to get a ruling from the IRS -- just a check-mark in the box.
We are acting on a number of other fronts, as well. You'll recall that at the very
outset of the administration there was a concerted effort to take a great deal of the red
tape out of lending regulations to ease the credit crunch. We also streamlined the
Community Reinvestment Act to make it easier for small banks to comply.
5
With our government reinvention effort, we're making Treasury more efficient,
and making it easier for you to do business with Treasury. We have put in place
important procurement reforms -- such as decentralizing much of our annual purchasing
down to the office level -- and we have made it far easier for small businesses to do
business with us by using electronic commerce. Several times a year now we hold events
to award or take bids on millions of dollars of contracts on the spot and sign up small
businesses for a database of suppliers we can quickly tap. Some 42 percent of our prime
procurement dollars are spent with small businesses -- over half a billion dollars.
The reinvention process at Treasury has allowed us to reduce the size of our work
force by nearly 4,700 positions. At the same time, last year we eliminated 22 percent of
the regulations on the books. Let me give you an example of what that means. The
Bureau of Alcohol, Tobacco and Firearms -- which not everyone realizes is part of
Treasury -- has reduced its reporting requirements for small brewers by over 70 percent,
and for small wine producers by over 60 percent. I mentioned the tax regulations that
are being changed or eliminated. The regulation review the President asked for means
that 57 percent of our non-tax regulations have been or will be eliminated or reformed.
So you're getting a smaller government, with fewer regulations.
As the Vice President noted at the Treasury Department last week, the Customs
Service, which is one of Treasury's bureaus, set up a program in Seattle that got rid of
the problem of shippers having to line up at a variety of government offices to clear
cargo in the country. Now, the ships heading for Seattle transmit their data before
reaching port, the agencies share the information, and shipments are clearing in minutes,
not days.
And just yesterday, as you're aware, the President announced a pension
simplification plan -- the National Employee Savings Trust, or NEST program -- which
will save you money in administrative costs, make pensions simple, and allow you to
provide yourselves and your employees tax-deferred retirement savings.
We realize there is much more to do, and we will focus with great intensity on a
number of ideas. But clearly, we have substantially reduced the size of government and
the burden it places on our private sector. And I believe that with your help, the
administration, working with Congress can continue this process.
I want to close with this observation: You are the single largest force in our
economy. You and the millions of other small business owners and self-employed
Americans are responsible for well over half the jobs in this country. You are
responsible for more than half the over 6 million jobs that have been created during the
last two years.
6
You are creating jobs and growing our economy. That's your job. Our job is to
create the conditions that allow you to continue doing yours -- by reducing the deficit,
eliminating unnecessary and burdensome regulations and making government easier to
deal with, by making the public investments that produce a well-educated and trained,
productive work force, and by engaging and leading in dealing with the challenges of the
global economy to create opportunities for you to increase jobs and standards of living,
and to protect our national security.
If you keep doing your job -- and we keep doing ours -- America will meet the
challenges of the global economy, lead and prosper.
Thank you.
-30-
DEPARTMENT
OF
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TREASURY
TREASURYUi(.+}lN E W
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA··
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Remarks as prepared for delivery
June 13, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
WHITE HOUSE G-7 BRIEFING
Halifax provides the opportunity to discuss the global economic challenges that
are absolutely critical to our economic future -- critical to creating jobs and improving
standards of living in this country. It is part of this administration's broader effort to
create the conditions that allow us to tap the potential available to us from global
growth. It is an ongoing process -- there was NAFTA and GATT and the WTO, our G7 involvement, our discussions with Latin and South American leaders about trade and
development, and similar discussions with the leaders of Asia and the Pacific.
I want to briefly review the challenges we face and the issues we will discuss:
First, dealing preventatively, not curatively, with the problems that can arise in the
vast and rapidly moving financial markets; second, integrating the developing and
transitioning world into a global economy in a manner that promotes reforms and
growth; and third, continuing trade liberalization.
I believe that in Halifax we will reach broad agreement on the principle of more
timely disclosure of national financial information. That is a primary lesson of the
problems that transpired in Mexico earlier this year. In conjunction with seeking greater
transparency, there will be a request to the IMF to develop an enhanced capacity for
economic surveillance.
In addition, I believe there will be general agreement on the requirement to
rapidly mobilize larger amounts of multilateral conditional financial assistance than is
now available, and from a broader array of countries. The United States clearly cannot
be the lender of last resort.
RR-371
(MORE)
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2
There will be discussion of a continuing exploration of methods for an orderly
working out of international debt crises, and broadening the class of creditors at the
table.
There also will be discussion of greater cooperation among financial regulators in
supervising financial institutions and financial instruments with respect to problems that
can arise from the markets.
There will be discussion of World Bank reforms, to continue the emphasis on
women's education, the environment, health, supporting the private sector, and continued
internal reforms and transparency.
Just one final note: With the president's leadership, we are going into this G-7
meeting with a strong two and one-half year economic record, despite the current
softening. Inflation is relatively low, the deficits our G-7 partners chided us over for so
many years are coming down. Our deficit-to-GDP ratio is the lowest in the G-7, and
we've had a good growth and job creation. I believe it is important that other nations
consider steps that would sustain their expansions. Meanwhile, we are continuing to
work on our budget deficits and the other factors critical to a healthy economy over the
long run, as the President will discuss in his budget address this evening, and the
president has forcefully committed to deficit reduction with the aim of reaching balance
in about 10 years.
•
Questions?
-30-
DEPARTMENT
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FOR RELEASE AT 2:30 P.M.
June 13, 1995
TREASURY
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CONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $28,400 million, to be issued June 22,
1995. This offering will result in a paydown for the Treasury of
about $14,450 million, as maturing bills total $42,856 million
(including the 38-day cash management bills issued May 15, 1995,
in the amount of $17,136 million).
Federal Reserve Banks hold $6,799 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $5,355 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable Treasury bills, notes, and
bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
RR-372
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HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED JUNE ~2, 1995
June 13, 1995
Offering Amount .
$14,200 million
$14,200 million
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
91-day bill
912794 T3 8
June 19, 1995
June 22, 1995
September 21, 1995
September 22, 1994
$29,426 million
$10,000
$ 1,000
182-day bill
912794 W2 6
June 19, 1995
June 22, 1995
December 21, 1995
June 22, 1995
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Daylight Saving time
on auction day
Prior to 1:00 p.m. Eastern Daylight Saving time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
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'l'HE PRESIDENT'S ECONOMIC PLAN:
A BALANCED BUDGET THAT PUTS PEOPLE FIRST
BALANCING THE BUDGET:
THE PRESIDENT'S ECONOMIC PLAN
DEFICITS, IN BILLIONS OF DOLLARS
350
I
PRESIDENTS 1993
ECONOMIC PLAN
300
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250
PRESIDENTS
10-YEAR BALANCED
BUDGET PLAN
200
150
100
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TIlE PRESIDENrS ECONOMIC PLAN:
REACHING BALANCE IN 2005
• In 1993. the President raced a deficit that was rising out of control -- from 5290 billion in
1992 to more than $600 billion early in the next century.
• The President's 1993 economic plan has cut the deficit dramatically -- from 5290 billion to
a projected $190 billion this year.
• More importantly, it cut the deficit as a percentage of the economy (GDP) - from 4.9
percent to 1992 to an estimated 2.7 percent this year and 2.1 percent by the end of the
decade.
• If not for interest on the debt accumulated between 1981 and 1993, the budget would be in
balance today.
• But. largely due to health care costs. the deficit wiiI begin to rise again -- gradually
reaching $266 billion In 2005.
• Now. the President proposes to finish the job -- to balance the budget by 2005 .
• [n 2005. the President proposes to save:
- $96 billion in entitlements:
Medicare. 567 billion
Medicaid. 519 billion
Poverty programs. 59 billion
Other entitlements. S1 billion
-- $92 billion
In
discretionary spending:
Defense, $27 billion
Non-defense. 565 billion
-- $6 billion in corporate subsidies.
-- $117 billion
10
interest savings .
• The President would target tax relief to average Americans. costing $26 billion in 2005 .
• All told. the President'S plan would bring the budget at least to balance by 2005.
THE PRESIDENT'S REALm REFORM INITIATIVE:
A SERIOUS STEP TO\VARD HEALTII CARE REFO~f
As the President has said, the key to 10ng-teJ}TI deficit reduction is controlling health
care costs through health care reform. Thus, in his pian to balance the budget by 2005, the
President presents a serious first step toward reform that:
• strengthens the Medicare Hospital Insurance rnD Trust Fund, ensuring Medicare
solvency until 2005;
• provides health security for 6 months for working families after a job loss;
• reforms Medicare to make quality managed care options more attractive while
preserving choice;
• improves Medicare with new benefits that (1) provide Alzheimer's respite care, and
(2) waive the copayment for women who need mammograms;
• provides home- and community-based care grants for disabled and elderly
Americans;
• maintains Medicaid as a safety net for low-income Americans while reforming it to
target funds more efficiently and increase state flexibility;
• reforms the insurance market to ensure that Americans can keep their coverage if
they change jobs, that they won't lose coverage if they get sick, and to improve the
availability and affordability of coverage for small businesses;
• gives small businesses voluntary pooling options, including access to Federal
Employees Health Benetits Program (FEHBP) plans;
• expands the self-employed tax deduction to 50 percent; and
• reduces the deficit by $271 billion over the next decade.
The President'S plan expands coverage, cuts the deficit with less than half the
Medicare savings and a third of the Medicaid savings that Republicans propose, and imposes
no new cost increases on Medicare beneficiaries.
By contrast, the Republican budget proposals threaten Medicare beneficiaries, reduce
Medicaid coverage for millions of children and elderly Americans, and endanger many
hospitals, including academic health centers. The Republicans' cuts (assuming a 50/50
beneficiary/provider split) would increase out-of-pocket costs for couples by $1,700 in 2002
alone (under the House budget resolution). Moreover, the Republicans do not reinvest one
penny into health care; instead. the Republicans use Medicare and Medicaid cuts to pay for
hundreds of billions of dollars of tax cuts for well-off Americans.
DETAILED EXPLANATION
1. Refonning the Insurance
~farket
Insurance refonns. based on proposals that both Republicans and Democrats
supponed in the last Congress. will improve the fairness and efficiency of the insurance
marketplace.
• Portability and Renewability of Coverage -- Insurers will be barred from denying,
coverage to Americans with pre-existing medical conditions, and plans will have to
renew coverage regardless of health status.
• Small Group Market Refonns - Insurers will be required to offer coverage to
small employers and their workers, regardless of health status, and companies will be
limited in their ability to vary or increase premiums on the basis of claims' history.
• Consumer Protections -- Insurers will be required to give consumers information
on benetIts and limitations of their health plans. including the identity, location, and
availability of parucipating providers; a summary of procedures used to control
utilization of services; and how weU the plan meets quality standards. In addition,
plans would have to provide prompt notice of claims denials and establish internal
grievance and appeals procedures.
2. Helping Working Families Retain Insurance After a Job Loss
Families that lose their health insurance when they lose a job will be eligible for
premium subsidies for up to 6 months. The premium subsidies will be adequate to help
families purchase health insurance with benefits like the Blue Cross/Blue Shield standard
option plan available to Federal employees.
3. Helping Smail Businesses Afford Insurance
• Giving Small Employers Access to Group Purchasing Options: Smail employers
that lack access to a group purchasing option through voluntary state pools would get
that option through access to the Federal Employees Health Benefits Program
(FEHBP) plans. This would increase the purchasing power of smaller businesses and
make the small group insurance market more efficient. Small firms would get
coverage from plans that also provide coverage to Federal employees through
FEHBP, but the coverage would be separately rated in each state, leaving premiums
for Federal and state employees unaffected.
• Expanding the Self-Employed Tax Deduction: The President's plan provides a
fairer system for self-employed Americans who have health insurance. Self-employed
people would deduct 50 percent of the cost of their health insurance premiums, rather
than 25 percent as under current law.
4. Reforming and Strengthening Medicare
• Strengthening the Trust Fund: The President's plan would reduce spending in
Medicare's Pan A by $79 billion over 7 years to ensure the solvency of the Medicare
HI Trust Fund to 2005. The plan finds such savings by reducing provider cost
growth. nor raising beneficiary costs.
• Eliminating the CoPayment for Mammograms: Although coverage by Medicare
began in 1991. only 14 percent of eligible beneficiaries without supplemental
insurance tap this potentially lifesavIng benefit. One factor is the required 20 percent
copayment. To remove financial barriers to women seeking preventive
mammograms, the President's plan waives the Medicare copayment.
• Expanding Managed Care Choices: The President's plan expands the managed
care options available to beneficiaries to include preferred provider organizations
("PPOs") and point-of-service ("POS") plans. The plan also implements initiatives to
improve Medicare reimbursement of managed care plans. including a competitive
bidding demonstration proposal. Also included in his plan are important initiatives to
streamline regulation.
• Combatting Fraud and Abuse: "Operation Restore Trust" is a five-state
demonstration project that targets fraud and abuse in home health care, nursing home,
and durable medical equipment industries. The President'S budget increases funding
for these critical fraud and abuse activities.
5. Llng-Tenn Care
• Expanding Home and Community-Based Care: The President's plan provides
grants to states for home-and community-based services for disabled elderly
Americans. Each state. will receive funds for home-and community-based care based
on the number of severely disabled people in the state, the size of its low-income
population, and the cost of services in the state .
• Providing for a New Alzheimer's Respite Benefit within Medicare: The
President'S plan helps Medicare beneficiaries who suffer from Alzheimer's disease by
proVIding respite services for their famIlies for one week each year.
6. Refonning Medicaid
The President maintains Medicaid. expanding state flexibility, cutting costs, and
assuring Medicaid's ability to provide coverage to the vulnerable populations it now serves .
• Eliminating Unnecessary Federal Strings on States: To let states manage their
Medicaid programs more efficiently, the President's pian substantially reduces Federal
requirements.
-- States will be allowed to pursue managed care strategies and other service
delivery innovations without seeking Federal WaIvers; and
-- The "Boren Amendment" and other Federal requirements that set minimum
payments to health care providers will be repealed .
• Reducing Medicaid Costs: The President proposes a combination of policies to
reduce the growth of federal Medicaid spending, including expanding managed care,
reducing and better t:lrgeting Federal payments to StateS for hospitals that serve a high
proportion of low-income people, JJ1d limiting the growth in federal Medicaid
payments to states for each benericiary. Per-person limits. as opposed to a block
grant on total spending, promote efficiency while protecting coverage.
REPUBLICAN TAX CUTS REQUIRE
DEEP MEDICARE CUTS
DOLLARS IN BILLIONS
I
100
75
I
TAX CUTS
50
25
o
-25
1t\4
;t>
,::~;.w#~~:;
-$7
l!1!!!
-$15
-$37
-50
-75
MEDICARE CUTS
-$B6
-100
1996
1997
1998
1999
2000
2001
2002
MEDICARE SAVINGS
SEVEN YEARS
DOLLARS IN BILLIONS
350
i
REPUBLICANS
300
HOUSE
250
SENATE
200
PRESIDENT
CLINTON
150
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MEDICARE REFORM
IMPACT ON BENEFICIARIES IN 2002
Republican Proposals
I·
$1,700 CUT PER COUPLE]
• Additional Costs
-
Higher Co-Payments
Higher Premiums
Coercive Plan
2nd Class Health Care
System for Seniors
President's Proposal
,-. NO NEW BENEFIT CUTS
• Additional Benefits
- Home- and CommunityBased Care Grants
- Respite Benefits for
Alzheimer's Caretakers
- Preventive Health Benefits:
No Mammography
Co-Payment
I
MEDICAID SAVINGS
SEVEN YEARS
DOLLARS IN BILLIONS
225
REPUBLICANS
200
HOUSE
175
fYil:n'~
,
Ii:;';'! i~·
4liHi _\;"' ... ~",
It
;:"',
it:.' <.
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150
1.;1'"
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125
100
75
:
PRESIDENT
CLINTON
.,
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SENATE
TIlE PRESIDENT'S PLAN:
REW ARDING \VORK AND RESPONSmILITY
For low-income programs. the President would move people from welfare to work
through strict work requirements and investments in training and child care. He would
expand efforts to fight fraud and abuse, maintain the national nutrition safety net, ta.rg"et
suppon to the neediest, and protect poor children. These proposals would save $:18 billion
over 7 years, after accounting for investments in child care and work and training for welfare
recipients. Republican proposals would cut more than $100 billion over 7 years. tearing
apan the social safety net, imposing unattainable work requirements while slashing child
care, and putting millions of children at risk.
• For the Earned Income Tax Credit, the President proposes to continue the expansion of tax
relief for the working poor, save $3 billion over 7 years by improving error and fraud
control, and make sure illegal aliens who are not authorized to work in the U.S. do not
receive the EITC.
- By cutting the EITC by $21 billion over 7 years, Senate Republicans would raise
taxes on 10 million working famIlies with children and 4 million lOW-income workers
without children.
• For cash assistance and social services programs, the President would save $10 billion
over 7 years by tightening SS! eligibility, tightening rules for AFDC, encouraging recipients
to move from welfare to work, curtailing abuses, and investing in child care and work
programs.
- Republicans would drastically cut funding for cash assistance ($29-44 billion over 7
years), remove requirements that States contribute to program funding, place new
strings on States, and, in the House plan, ultimately deny cash to millions of children.
In addition. the House would eliminate SS! benefits for up to 170,000 disabled
children now receiving benetits and for as many as 550,000-850,000 who would
otherwise receive them over the next five years .
• For benefits to immigrants. the President would save $5 billion over 7 years by tightening
sponsorship and eligibility rules for non-citizens, thus forcing sponsors of legal immigrants to
bear greater responsibility for those whom they encourage to come to the U.S.
- Republicans would slash $27-$33 billion over 7 years by denying assistance to lowincome immigrants, including over I million legal immigrants now in the U.S .
• For food assistance, the PreSIdent would maintain the national nutrition safety net
programs while cutting mandatory spending by $20 billion over 7 years. He would protect
spending on \VlC and give 600.000 more women, infants and children access to WlC's
imponant health and nutrition benefits.
-- Republicans would eliminate the national nutrition safety net, slashing $33-$49
billion over 7 years, by capping Food Stamps and block granting the school lunch and
other child nutrition programs. In addition. Republicans would force up to 300,000
women, infants, and children off WIC in 1996.
THE PRESIDENT'S PLAN:
REFO RMING E.J.V!1TLEl\1ENT SPENDING
The President is proposing a series of reforms in entitlements and other mandatory
programs that will raise tens of billions of dollars by targeting benefits to those who need
them and ensuring that taxpayers get a fair return on public resources. Republicans would
cut too deeply into entitlements and threaten services and benefits on which milli~s of
Americans rely.
Veterans:
• The President proposes to protect pensions for poor veterans and compensation for
service-connect.ed disabled veterans.
- Republicans would restrict or eliminate compensation benefits for certain veterans,
and redefine and narrow eligibility for service-connected disabilities.
Fann Programs:
• The President proposes to save $4.2 billion over 7 years by allowing farmers to use more
acreage to plant what the market demands, reducing inequitable treatment of farmers by crop
and region, and targeting payments to smaller farmers.
-- Republicans would cut farm program spending 3-4 times as much -- the House by
$17 billion over 7 years, the Senate by $12 billion over 7 years -- without specifying
how.
Spectrum Auction:
• The President proposes to raise S 14.3 billion from 1996-2002 by expanding the Federal
Communications Commission's spectrum auctions to a variety of new wireless services.
- The House and Senate also would expand the Government's auction authority.
THE PRESIDENT'S PLAN:
INVESTING IN EDUCATION AND TRAINING
The President proposes to invest more in education and training, giving average
Americans the skills they need to get high-wage jobs in the new economy. He would
increase investment in education and training by $9.5 billion a year by 2002. The
President's plan increases education and training by $40 billion over the next 7 years;
Republicans would cut it by up to $43 billion over the same period.
• For National Service, the President would expand the Corporation for National and
Community Service, enabling nearly I million young Americans to serve their communities
and earn scholarships for higher education.
- The House would kill all national service programs.
• For the GI Bill for America's Workers (excluding Pell grants), the President consolidates
70 programs and add an additional $2.3 billion in 2002 for adult skill grants and youth
programs.
- Republicans would cut funding 25 percent below the 1995 level.
• For Head Start, the President would increase annual funding by $1.5 billion by 2002 to
reach another 50,000 children - for a total of 800,000 per-year - and to improve quality.
- House Republicans would cut up to 200,000 children, compared to 1995.
• For Goals 2000, the President would increase funding from $124 million in 1995 to $867
million in 2002, helping all States and school systems extend high academic standards, better
teaching, and better learning to 44 million children in over 85,000 schools.
-- House Republicans would kill support to help States raise education achievement.
• For Pell Grants. the President would increase annual funding by $3.4 billion by 2002 to
reach 960,000 more recipients (for a total of 4.8 million) and increase the maximum award
from S2,340 to $3,128.
- Republicans would freeze Pell at the 1995 level.
• For Safe and Drug-free Schools and Communities. the President would maintain funding
at $500 mIllion per year, to help nearly ever school district fight drug abuse and reduce
violence.
-- Republicans would turn the program into a block grant and cut funding 30 percent .
• The President would phase in Federal Direct Student L:>ans quicker, affecting $25 billion
in loans to 6 million people a year, at lower cost to government, schools, and students.
-- House Republicans would eliminate the in-school interest exemption for 4 million
financiallv needv borrowers. requiring a low-income college graduate who borroWed
the maxi~um a~ount to pay $3.150 more for loans than under the President's plan.
INVESTMENTS IN
EDUCATION AND TRAINING
DOLLARS IN BILLIONS
52
PRESIDENT'S PROPOSAL
48
'"
44
40
SENATE PROPOSAL
/
36
/
HOUSE PROPOSAL
32
~
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2002
TIlE PRESIDENTS PLAN:
PROTECTING THE ENVIRO~
The President proposes to protect the environment and our natural resources, but still
save money by focusing funds on legitimate Federal functions, cutting or eliminating lowerpriority programs. and increasing the use of user fees. Republicans would jeopardize the
environment by eliminating funds for constructing municipal wastewater and drinking water
facilities, ending the acquisition of land for national parks and forests, and cutting park and
forest budgets by 10 percent below 1995.
• The President proposes to consolidate the Clean Water and Safe Drinking Water State
Revolving Funds that make loans for municipal wastewater and water treatment construction,
giving States more flexibility in meeting local priorities. He would reduce funding over time
to $1.5 billion a year as States gain access, as a permanent source, to the repayments of
previous loans.
- The Senate would eliminate these programs by 1998; the House would provide less
funding than the President.
• The President proposes to increase funding by $265 million a year by 2002 for the
Environmental Protection Agency's operating program. the backbone of our efforts to protect
the environment. This increase comes after $150 million In savings due to streamlining and
decreased EPA oversight of State delegated programs. The operating program increases
address global climate change, promote development and export of environmental
technology, and protect sensitive ecosystems.
- Republicans would eliminate the program to develop environmental technologies
that improve the environment at lower cost while opening new export markets, and
terminate funding for programs that protect water quality and preserve habitat for
ducks and fish .
• The President proposes increases each year for National Park operations and rehabilitation
in order to maintain parks and their facilities.
- Republicans would cut national park construction by half, and park operations by
10 percent. the latter of which would strain the National Park Service's ability to kees
parks open and up to standards .
• The President proposes to phase-down spending on Federal land acquisitions to $100
million a year. focusing on high-pnority projects and the expanded use of land exchanges.
- Republicans would terminate Federal land acquisitions.
THE PRESIDENT'S PLAN:
CONTROLLING VIOLEJ.'IT CRIME
The President proposes to expand his vigorous fight against violent crime, providing a
$6.7 billion increase a year by 2002 for grants to States and localities; more resources for
Federal investigations, prosecutions. and imprisonment; and more support for the Federal
Judiciary to try and convict violent offenders; The President would spend $7.5 billion more
in 2002 than House Republicans and $200 million more than Senate Republicans.• The President proposes to fully fund the Violent Crime Reduction Trust Fund (VCRTF),
providing the full $30.2 billion authorized by the VCRTF from 1995-2000. In addition, for
2001-02 the President would add $8.5 billion, bringing total VCRTF funding to $38.7 billion
for 1995-2002.
- House Republicans would cut programs authorized by the VCRTF from 1995-2000.
• The President's proposal for the VCRTF would finance:
-- 100,000 cops for State and local police forces. fulfilling a major promise of the
President and adding almost 20 percent to State and local police forces;
- reimbursements to States which have paid to incarcerate criminal illegal aliens; and
- State and local grants to:
• bring new prison cells into service;
• confront the problems of violence against women; and
• finance "drug courts" which provide cost-effective ways to deal with firsttime, non-violent drug offenders.
• The President would provide an increase of $1.7 billion by 2002 for Justice Department
crime fighting programs. including heightened border enforcement. increased FBI and DEA
funding to address drug abuse. street crime. and terrorism; and increased resources for the
Federal Prison System for new prisons and costs tied to a growing population of violent
criminals.
- Republicans would not provide specific increases for these programs .
• The President would increase funding by $500 million a year by 2002 for the Federal
court system to adjudicate violent criminal cases.
-- Republicans would not provide any increases for the Federal JUdiciary .
• The President would terminate several unnecessary or redundant programs. such as the
State Justice Institute. the Administrative Conference of the U.S., and the U.S. Parole
Commission.
THE PRESIDENrS PLAN:
STRENGTHENING OUR COM:MITMENT TO SCIENCE AND TECHNOLOGY
The President proposes to significantly improve the Nation's global economic
competitiveness through a balanced mix of basic research. applied research. and technology
develop~e~t. much of it through cooperative projects with private industry. Republicans
would sIgnificantly reduce investments in basic research. applied research, and technology
development.
• The President proposes to add $2.5 billion a year by 2002 for biomedical and behavioral
research at the National Institute for Health.
- The House would cut biomedical and behavioral research at NIH by $542 million.
• The President proposes that the National Science Foundation's investments in basic
research and education programs keep pace with inflation, adding $500 million a year by
2002.
-- Republicans would invest significantly less. with the Senate cutting $100 million
and the House adding 5240 million.
• The President would provide $100 million more a year by 2002 for the science facilities
utilization initiative, ensuring more research time for scien-tists working on "cutting edge"
research facilities.
- Republicans would force many of these valuable facilities to close their doors .
• The President proposes to add at least $500 million a year by 2002 for NASA's
investments in basic research. including Mission to Planet Earth, which will provide the first
global study of the impact of man on the Earth's environment.
- Republicans would cut these imponant research programs significantly .
• The President is proposing to increase the Advanced Technology Program (ATP) million
and the Manufacturing Extension Partnership (MEP) by almost $500 million a year by 2002.
ATP invests in pannerships with industry to accelerate the development of high-risk
technologies with significant commercial potential. The MEP is a nationwide, locally
managed network of manufacturing centers to help the nation's 381,000 small manufacturers
adopt modem manufacturing technologies.
-- Republicans would eliminate both programs.
The President is proposing to increase funding by S 100 mIllion from 1996-2002 for the
Defense Depanment's DOD Technology Reinvestment Project (TRP), which invests in
pannerships with industry to accelerate the development of technologies that are critical to
national security but can also benefit civilian purposes (i.e .. dual use).
-- The House would eliminate it in the draft 1996 authorization bill.
THE PRESIDENTS PLAN:
TARGETING TAX RELIEF TO MIDDLE-INCOME AMERICANS
The President also proposes to raise living standards with a tax cut for middle-income
Americans. The President proposes to help average Americans to save, and to meet the cost
of raising and educating their children. Republicans would provide a huge tax cut wfiose
benerits flow disproportionately to wealthy people and corporations and whose coslS must be
offset by deep cuts in Medicare and other priorities.
• To assist families raising children, the President proposes a tax credit of up to $500 for
each child under age 13. The credit starts at $300 per child through 1998, and increases to
$500 in 1999. It is phased out between incomes of $65,000 and $75,000 per year.
- House Republicans also include a $500 child tax credit, but phase it out between
incomes of $200,000 and $250,000. Because Republicans propose a tax cut for
people of high incomes - about 6 times that of the typical family - they must cut
deeply into Medicare and other priorities.
• To help families meet the costs of education beyond high school, the President proposes a
deduction for post-secondary tuition and fees of up to $10,000 per year. The deduction
begins at $5,000 in 1996, rising to $10,000 in 1999. It is phased out at incomes between
$100,000 and $120,000 per year for married couples ($70:000 and $90,000 for other
taxpayers).
- Republicans have offered no such incentive for education.
• To help families save, the President proposes to expand Individual Retirement Accounts.
Income limits would double; couples with incomes up to $80,000 (and single persons with
incomes of $50,000) could make fully deductible contributions. The President would allow
penalty-free withdrawals for catastrophic medical expenses (including for parents and
grandparents), higher educanon costs, the purchase of a first home, and unemployment. The
PreSIdent proposes a new back-loaded IRA; contributions are not tax deductible, but
withdrawals after five years are tax free.
-- House Republican have a similar proposal but would allow back-loaded
contributions with no income limit -- again, forcing deep cuts in Medicare and other
priorities.
* • *
• House Republicans also have proposed enormous tax cuts for wealthy persons and
corporations, forcing them to cut deeply into Medicare and other priorities. The tax cuts
include: the virtual end of the altemauve minimum tax for large corporations. costing $35
billion over 10 vears: a liberalizatIOn of tax depreciation laws that would save large
corporations ov~r $150 billion between 1999 and 2005; a cut in estate taxes for persons with
at least $600,000 of accumulated wealth, costing 520 billion: and a capital gains tax cut,
costing 590 billion and proVIding 58 percent of its tax benetits to the 2.5 percent of taxpayers
with incomes over 5200,()(X) per year.
REACH TARGET BY 2005
(In billions of dollars)
10-Year
1995
1996
199Z
1~8
19~
2QQQ
2QQ1
2QQ2
2003
2illM
2005
Defense ........................
272
262
258
255
260
268
276
281
282
283
283
2,709
Non-Defense ................
280
285
287
286
284
281
286
293
297
303
308
2,911
Total discretionary ................
552
5~7
5·15
541
545
550
5G2
574
579
586
591
5,619
Medicare .................. ·
154
172
186
199
213
227
243
260
282
303
326
2,411
Medicaid ...................
88
92
100
109
117
127
lJ8
150
163
177
193
1,367
3
4
4
4
~
5
5
6
6
40
I QtiJl
Outlays:
Discretionary:
Mandatory:
Health:
Other ........................
Subtotal, health .............
243
264
290
312
334
358
386
415
450
486
524
3,818
Other ............................
508
533
566
594
626
659
690
718
754
791
830
6,760
Subtotal, mandatory .............
751
796
856
906
960
1,017
1,075
1,133
1,203
1,277
1,355
10,579
Net interest ......................... ·
234
256
266
272
277
280
282
282
279
277
273
2,745
Total, outlays ........................... · 1,537
1,599
1,667
1,719
1,782
1,847
1,919
1,989
2,062
2,139
2,219
18,943
1,346
1,416
1,473
1,550
1,626
1,712
1,804
1,904
2,007
2,119
2,236
17,849
1~Jn
1fll
19·1
169
156
135
116
85
54
21
-18
1,094
Receipts ................... ················
lklll It
Year-by-Year Savings
(In billions of dollars)
J996
.199Z
J998
J999
2QQQ
2QQ1
2QQ2
2QQ3
2QQ1
2005
Baseline deficit .............................
201
218
209
221
229
235
240
248
255
266
Entitlements ..................................
-11
-16
-22
-26
-35
-46
-62
-70
-82
-95
Medicare savings ......................
-4
-6
-10
-16
-23
-30
-39
-45
-55
-67
Medicaid savings ......................
-4
-4
-6
-7
-9
-11
-13
-15
-17
-19
Reform of poverty programs .....
-2
-4
-5
-6
-6
-7
-8
-8
-8
-9
Other. .......................................
-2
-2
-1
3
3
3
-2
-2
-2
-1
Discretionary .................................
-8
-11
-16
-28
-41
-45
-51
-65
-77
-92
-3
-10
-18
-27
Defense ....................................
Nondefense ..............................
-8
-11
-16
-28
-41
-45
-48
-54
-59
-65
Interest. ........................................
-1
-5
-12
-22
-35
-47
-62
-79
-97
-117
Corporate Subsidies .....................
-1
-2
-3
-4
-5
-5
-5
-6
-6
-6
Revenue changes ........................
3
11
12
16
21
23
25
26
28
26
Deficit or surplus ...........................
183
194
169
156
135
116
85
54
21
-18
A COMPARISON OF DEFICIT REDUCTION PLANS
(Seven year totals compared to OMB capped baseline, in billions of dollars)
Spending:
Discretionary .............................
Defense ................................
Nondefense ..........................
Mandatory ................................
Medicare:
Extenders .........................
Additional savings .............
Medicaid ...............................
Health reform (net) ..............
Farm .................................... ·
Veterans ...............................
Civil service ..........................
Poverty .................................
Spectrum ........................... ·..
Other. ........................... ·.. ·· .. ·
Net interest ............................. ·
Revenues ................................ ·····
Corporate subsidies ......................
'96 Budget
House
Senate
President's
Plan
-198
·463
43
-506
-669
·522
·24
-497
-626
-200
-3
-197
-216
-28
-258
-187
-28
-226
-176
-17
-6
-3
-131
·15
-23
-272
340
-25
-12
-10
-7
-116
-25
-27
-346
-9
-28
-99
-54
(-125)
-4
-6
-198
-44
-28
1
-3
-6
-4
-8
4
-27
96
-38
-15
3
-172
96
-25
11 President's plan includes major increases in key education and training programs.
~NEWS
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622·2960
FOR RELEASE AT 10:00 A.M.
June 15, 1995
STATEMENT OF
LESLIE B. SAMUELS
ASSISTANT SECRETARY (TAX POLICY)
DEPARTMENT OF THE TREASURY
BEFORE THE
SUBCOMMITTEES ON OVERSIGHT AND HUMAN RESOU RCES
COMMITTEE ON WA YS AND MEANS
UNITED STATES HOUSE OF REPRESENTATIVES
Chairman Johnson, Chairman Shaw, and Members of the Subcommittees:
I am pleased to have the opportunity to discuss the targeting and labor market effects of
the earned in!=ome tax credit (EITC), as well as steps that are being taken to improve the credit.
While I will briefly touch upon compliance issues, Commissioner Richardson's test! mony will
address administrative matters more completely.
The Administration is strongly committed to the goals of the EITC which are to make
work pay and to lift workers out of poverty in the most efficient and administrable manner
possible. Since the EITC was created in 1975, bipartisan support for the tax credit and its goals
has been growing. With its message of "work pays," the EITC helps reduce dependency on
welfare and increase reliance on jobs. Prior to 1993. Congress voted to signiticantly I:!xpand the
EITC in the Tax Reform Act of 1986 and the Omnibus Budget Reconci Iiation Act of 1990.
This Administration's commitment to the EITC has been demonstrated through a number
of legislative and administrative actions since early 1993. In February 1993, we proposed an
expansion of the EITC in order to improve its effectiveness in encouraging work and increasing
the disposable income of working families. With certain 1110ditications. Congress enacted the
Administration's proposals as part of the Omnibus Budget Reconciliation Act of 1993 (OBRA
1993). The EITC is growing as it was designe~ to grow pursuant to the three expansions signed
into law by Presidents Reagan, Bush, and Clinton respectively. As soon as those expansions are
fully phased in, the EITC costs will grow at a slower rate than gross domestic product (Figure
1).
Since the passage of OBRA \993, we have proposed further legislative changes to
RR:r373
-2improve the administration and targeting of the EITC, while reducing its costs. Four of these
proposals were included in the Uruguay Round Agreement Act of 1994 (URAA). As a
consequence of that leaislation
b
, the EITC is denied to nonresident aliens and prisoners, taxpayers
are required to provide a taxpayer identification number for each EITC qualifying child
regardless of age, and the Department of Defense is required to report to both the IRS and
military personnel the non-taxable earned income. used in computing the EITC.
In this year's budget, we proposed that the EITC be denied to taxpayers with $2,500 or
more of interest and dividend income. A similar, but modified, provision was included in H.R.
831, which extended and expanded the 25 percent deduction for health insurance costs incurred
by self-employed individuals.
We have also made several proposals which are still pending final legislative action. This
year's budget includes proposals to deny the EITC to undocumented workers and to provide the
IRS with the authority to use simpler and more efficient procedures when taxpayers fail to
supply a valid social security number. In addition, the Administration proposed legislation last
year that would permit demonstration projects to test alternative methods of administering
advance payments of the EITe. We hope that Congress will act on these outstanding proposals.
As Commissioner Richardson will testify, the Administration has taken other significant
actions to strengthen the integrity of the EITe. We have expanded our. outreach efforts to
ensure that eligible low-income individuals are aware of the EITC and the advance payment
option. We have also conducted studies of EITC compliance and the broader issue of
problematic refunds. Last spring, then-Secretary Bentsen appointed a Task Force to conduct an
independent investigation of the refund fraud, and Under Secretary Noble presented their interim
findings and call for aggressive action to the Ways and Means Oversight Subcommittee last
October.· This year, we have intensified our scrutiny of returns claiming the EITC in oreler to
prevent erroneous refunds from being paid to ineligible inClividuals.
While the House budget resolution does not assume reductions in the EITC, we
understand that members of the Subcommittees are concerned about the effectiveness of this tax
provision. Moreover, the Senate has assumed that the EITC would be reduced in its budget
resolutions. We are concerned that many of the proposals that have been discussed in the Senate
to change the EITC, though described as compliance measures, would not reduce error rates.
Rather, these proposals would simply raise taxes on low and moderate-income working families.
In fact, some alternative proposals to redesign the EITC would actually cause both noncompliance and work disincentives to increase. Before considering significant changes to this
important tax credit which rewards work, we would urge the Congress to wait, as is assumed
in the House budget resolution, until we have had time to observe the effects of both recent
legislation and our enhanced compliance efforts.
In the remainder of my testimony, I will discuss in some detail the goals of the EITC and
the actions taken by the Administration to strengthen the effectiveness of the EITC, as well as
our views regarding proposals for possible modifications to the EITe.
-3-
Description of Earned Income Tax Credit for Low-Income Workers
The EITC is a refundable tax credit that is available only to low and moderate income
workers who have earned income and meet certain adjusted gross income (AGI) thresholds. To
be eligible for the EITC, a taxpayer must reside in the United States for over six months.
Nonresident aliens are not entitled to the EITC beginning in 1995.
The amount of the credit increases significantly if an individual has one or two qualifying
children. A child qualifies a filer for a larger EITC by meeting relationship, residency, and age
tests. To meet the relationship test, the individual must be a child, stepchild, descendent of a
child, or foster child of the taxpayer. The child must generally reside with the taxpayer in the
United States for over half the year. For foster children, the residency test is extended to the
full year. A qualifying child must be under the age of 19 (24 if a full-ti me student) or be
permanently and totally disabled. By tax year 1997, a taxpayer must provide a taxpayer
identification number (TIN) for each qualifying child.
Computation of the Credit. The credit is determined by multiplying an individual's
earned income by a credit percentage. For a family with only one qualifying child, the credit
percentage for 1995 is 34 percent. The credit amount increases as income increases, up to a
maximum income threshold. For 1995, the income threshold is $6,160. Therefore, if there is
only one qualifying child, the maximum credit for 1995 is $2,094 (34 percent of $6,160).
The credit is reduced andteventually phased out once AGI (or, if greater, earned income)
exceeds a certain phase-out threshold. For 1995, the phase-out threshold is $11,290. The
phase-out is accomplished by reducing the credit by a phase-out percentage. In 1995, for a
family with only one qualifying child, the credit is reduced by an amount equal to 15.98 percent
of the excess of AGI (or, if greater, earned income) over $11,290. The credit is completely
phased out and is no longer available to taxpayers with incomes above the end of the phase-out
range. In 1995, this income level is $24,396. The income thresholds for both the phase-in and
phase-out ranges are adjusted for changes in the cost of living.
If there are two or more qualifying children, the credit percentage, income thresholds,
and phase-out percentage are higher. For 1995, the credit percentage for families with two or
more children is 36 percent of the first $8,640 of earned income. Filers with earnings between
$8,640 and $11,290 are entitled to the maximum credit of $3,110 (36 percent of $8,640).
The phase-out percentage for these families is 20.22 percent. As in the case of the credit
for families with one child, the credit is phased out starting at $11,290. However, the phase-out
range for families with two or more children extends to $26,673.
In 1996, the credit percentage for families with two or more children will increase to 40
percent of the first $8,900 of earnings. Filers with earnings between $8,900 and $11,620 will
be entitled to the maximum credit of $3,560 (40 percent of $8,900). The phase-ollt percentage
-4-
will also increase to 21.06 percent, and the phase-out range will extend to $28,524. Thereafter,
the income thresholds for both the phase-in and phase-out ranges will be adjusted for changes
in the cost of living. (The dollar amounts shown for 1996 are estimates.)
Workers who do not reside with qualifying children may claim the EITC if they are
between 25 and 64 years of age and are not claimed as a dependent on another taxpayer's return.
For these workers, the basic credit is 7.65 percent of the first $4,100 of earned income for a
maximum credit of $314. In 1995, the phase-out range for these workers is between $5,130 and
$9,230 of AGI (or, if greater, earned income). The phase-out percentage is also 7.65 percent.
The income thresholds for both the phase-in and phase-out ranges are adjusted for changes in
the cost of living.
Figures 2 and 3 show the EITC credit structure for 1995 and 1996, respectively.
Advance Payments of the EITC. There are two ways to receive 'the EITC. Individuals
can claim the credit by completing a Schedule EIC when-filing their tax return at the end of the
year. Alternatively, individuals with qualifying children may elect to receive a portion of their
EITC in advance by filing a Form W-5 with their employer. These individuals are entitled to
receive on an advance basis up to 60 percent of the credit allowable for a family with one
qualifying child. The employer is not required to verify a person's eligibility for the credit.
At the end of the year, the employer notifies both the IRS and workers of the actual
amounts of advance credits paid to individual workers on the Form W-2. When filing tax
returns at the end of the year, these workers reduce the amount of EITC claimed by the amount
of advance payments received.
Questionable Claims: The IRS must follow normal deficiency procedures when
investigating questionable EITC claims. First, contact letters requesting additional information
are sent to the taxpayer. If the necessary information is not provided by the taxpayer, a
statutory notice of deficiency is sent by certified mail, notifying the taxpayer that the adjustment
will be assessed unless the taxpayer files a petition in Tax Court within 90 days. If a petition
is not filed within that time and there is no other response to the statutory notice, an assessment
is made in which the EITC is denied.
Refundable Nature of Credit: The EITC offsets Federal taxes paid by low and moderateincome families. In recent discussions, there has been some confusion regarding the refundable
nature of the EITC. In large part, this confusion appears to stem from the distinction between
Congressional intent and budgeting conventions. Under conventional budget accounting
practices, the EITC is shown in the budget as a reduction in taxes only to the extent to which
it offsets a taxpayer's liability for taxes paid through the income tax system. Tliis is because
the EITC is claimed through the income tax system and as a practical matter, the credit can be
most easily measured as an offset against the taxes paid through this system. Thus, under these
conventions, about 23 percent of EITC costs in FY 1995 are shown in the budget as a reduction
in Federal income- taxes and other taxes paid through the income system, including self-
-5employment taxes (SECA). About half of EITC recipients have an income or SECA tax liability
prior to the receipt of the EITC.
Given that the EITC was created to offset the tax burden of low and moderate~income
families, the EITC should not simply be measured as an offset to income and SECA taxes.
When the reduction in the employee and employer portions of all social security taxes are
included in the calculation, about 78 percent of EITC costs offset individual income and payroll
taxes paid by recipients. Nearly all EITC recipients are subject to either individual income or
social security taxes before qualifying for the EITC. Even this measure does not take into
account other taxes which are offset by the EITC. During the consideration of both OBRA 1990
and 1993, the EITC expansions were also viewed as a way of offsetting the burden of increases
in excise taxes, particularly the increases in the gasoline tax.
There has also been some confusion about the fact that most EITC recipients choose to
claim the credit at the end of the year as a lump-sum payment rather than by adjusting their
~ithholding or by taking advantage of the advance payment option.
In that regard, EITC
recipients are not very different from the majority of taxpayers who choose to receive a refund
at the end of the year, rather than reduce their income tax withholding during the year. About
70 percent of non-EITC recipients receive an average refund of $1,150 at the end of the year.
Goals of the EITC
In developing the Administration's agenda for the EITC, we have been guided by the
three basic principles of tax policy: efficiency, fairness, and simplicity. Specifically, we have
sought expansions and modifications to the EITC in order to achieve the following four goals:
(1)
(2)
(3)
(4)
to make work pay for those who might otherwise be on welfare:
to ensure that an individual who works full time throughollt the year will not live
in poverty;
to target benefits to those with the greatest needs whlle minimizing distortions;
and
to make it easier for eligible individuals to claim the credit and for the IRS to
verify their eligibility.
I would like to address each of these four goals in more detail.
For low-income families, the EITC makes work pay in two ways. Unlike many
assistance programs for low-income families, the EITC is limited to working families.
Moreover, the credit amount initially increases -- rather than decreases -- for each additional
dollar of earnings. As a consequence, the EITC is different from low-income assistance
programs that are characterized by a reduction in benefits for each additional dollar of earnings.
The EITC significantly increases the marginal return from working for both those who do not
-6-
work at all and those who work less than full-time at minimum-wage jobs throughout the year.
As Figure 4 shows, these would include both individuals who currently do not have earnings as
well as those in the "phase-in" region of the EITC.
The positive link between the EITC and work also helps offset the work disincentives
created by other tax and transfer programs. Between 1983 and 1990, payroll taxes increased
five times. Currently, workers are taxed at the combined employer and employee rates of 15.3
percent on the first dollar of earnings for the old-age, survivors, disability and health insurance
(OASDHI) programs. Beyond a relatively low income threshold, food stamp benefits are
reduced by 24 cents for each additional dollar of earnings. The EITC, with its positive credit
rate on low earnings, is the only benefit designed to help offset the marginal tax rates imposed
by these other programs.
A person who works at a full-time job for the entire year should not live in poverty. As
the EITC has increased in recent years, the minimum wage and other benefits received by lowincome working families have declined in real value. Without an increase in the minimum
wage, its real value in 1996 will decline to its lowest value in forty years. In addition, AFDC
benefits are no longer provided for most families in which a mother works at least half-time.
In the early 1970s, most states provided AFDC benefits as a wage supplement to a mother with
two children whose earnings equaled 75 percent of the poverty level. Currently, only three
states provide comparable benefits. In order to ensure that a family of four dependent on a fulltime worker earning the minimum wage is lifted out of poverty, it would require a combination
of food stamps, enactment of the President's proposal to increase the minimum wage, and
implementation of the expanded EITC.
The benefits of the EITC should be targeted to families with the greatest needs and to
those who can be best served by the positive incentives associated with the EITC. As a
consequence, the credit rate is highest at very low earning levels, thus reaching individuals who
are often making the critical step from welfare to work. Because larger families have greater
needs than smaller families, taxpayers with two or more children are entitled to a larger EITC
than taxpayers with one or no children.
Families with incomes slightly above the poverty level also require assistance. Wages
have stagnated for many workers and declined markedly for low-wage workers. Between 1973
and 1993, real hourly wages of full-time male workers at the tenth percentile (that is. those
whose wages arejust above those of the lowest-paid 10 percent of workers) declined 16 percent.
while real hourly wages at the median fell 12 percent. By providing the EITC to families with
incomes of up to $28,524 in 1996, the tax provision provides a cushion to protect moderateincome families from the effects of wage stagnation.
The EITC is designed to target assistance to the very neediest working families. We
cannot target assistance to low-income families without causing marginal tax rates to increase
for families with slightly higher income. However, we can seek to minimize sllch distortions.
-7-
The fourth goal of the EITC is simplicity and verification. If eligibility rules are simple,
taxpayers can more accurately claim the EITC and avoid costly errors. With simple and
verifiable eligibility rules, the IRS can also better ensure that the EITC is paid only to taxpayers
who are eligible for the credit.
Simplicity is particularly important, because eligible individuals can claim the EITC
directly when they file their tax return. It is likely that this simple application process has
contributed to high participation rates among families eligible for the EITC. It has been
estimated that between 80 and 86 percent of eligible persons claimed the EITC in 1990.
From the IRS's perspective, it is easier to verify eligibility for the EITC if the rules are
simple. Moreover, because the IRS does not ordinarily interview EITC claimants, it is
important that eligibility be based on criteria which can be veri tied as quickly as 'possible
through independent reporting sources. Simplicity and verification prior to the payment of the
EITC are key to the successful operation of the tax credit.
The Ways and Means Committee recognized the importance of the need for Silllplicity
during consideration of OBRA 1990. At that time, data from the 1985 Taxpayer Compliance
Measurement Program (TCMP) became available, showing an unacceptable number of erroneous
EITC claims. In response, the tax-writing committees worked with the Bush Administration to
address this problem. The simplification provisions contained in OBRA 1990 were a first step
toward reducing EITC error rates. As described below, additional steps have been taken since
1990 to further reduce EITC error rates.
Legislative and Administrative Actions in 1993 and 1994
As I outlined in the beginning of my testimony, the Administration ane! Congress have
taken a number of important legislative and administrative actions during the past two years in
order to improve the effectiveness and administration of the EITC. I would like to review with
you our accomplishments during this period.
OBRA 1993. OBRA 1993 expands the EITC and makes the tax credit more effective in
achieving its policy objectives.
First, OBRA 1993 increased the returns frOln working for those outside the workforce
and for other very low-wage workers. (See Figure 4.) For very low-wage workers without
qualifying children, the EITC offsets the employee portion of the OASDHI tax. During the past
decades, these workers had borne the full burden of increases in OASDHI taxes because they
were not entitled to the EITC. For a family with one child, the credit rate for those with low
earnings was increased by II percentage points from 23 percent to 34 percent. For a family
with two or more children, the credit rate for those with earnings below $8,900 in 1996 was
increased by 15 percentage points from 25 percent to 40 percent. For low-wage workers with
two or more children, the EITC will fully offset the combined employee and employer portions
-8-
of the OASDHI taxes and the food stamp benefit reduction formula.
The OBRA 1993 expansion was also a critical step toward achieving the goal that a fulltime worker should not live in poverty if he or she works throughout the year. In combination,
a minimum wage job, food stamp benetits, and the EITC can lift a single parent with one or two
children out of poverty. But, the income (including the EITC and food stamps and subtracting
the employee portion of OASDHI taxes) of a family of four with only one full-time, minimum
wage worker falls below the official poverty threshold. Prior to the passage of OBRA 1993, the
poverty gap for a family of four would have been $2,435 in 1996. The OBRA 1993 expansion
significantly closes that gap. However, since the minimum wage has not kept pace with
inflation, the job is not completed yet. This is why the President has proposed that the minimum
wage be increased over two years by 90 cents.
OBRA 1993 reduced the poverty gap for minimum wage workers by increasing the
maximum benefits by nearly $1,500 in 1996 for a family with two or more children. For these
families, this' increase in the maximum credit, without a change in the phase-out range, would
have resulted in a phase-out rate of 30 percent. In OBRA 199J, we tried to find a balance
between the goals of providing low-income families with sufficient income support, while
minimizing the marginal tax rates placed on families with higher, but still modest, levels of
Income.
Thus, the increases in the maximum credit were accompanied by changes in the income
thresholds. For all families with children, the beginning of the phase-out range was lowered by
about $1,600. As a consequence, the phase-out rate actually fell slightly for a family with one
child since the end of the phase-out range was left unchanged. To reduce marginal tax rates
among families in the phase-out range, eligibility for the EITC was extended to families with
two or more children that have incomes in 1996 of up to $28.524 (or about $J,OOO above the
prior level). The combination of these factors increased the phase-ollt rate fWIll 17.86 percent
to 21.06 percent, rather than 30 percent.
While the effect of OBRA 1993 can not be measured yet, we believe that the legislation
will, on net, increase work effort. While some workers with larger families will face slightly
higher marginal tax rates, they are unlikely to change their behavior much in response. These
are individuals who are already very attached to the work force. They cannot easily adjust their
hours of work in response to a small change in tax rates; they need both their jobs and the EITC
to meet their day-to-day needs. and most employers wi II not allow them the discretion to work
fewer hours. The effect of the higher marginal tax rates on some workers in the phase-ollt range
will likely be far outweighed by the effect of the increase in the credit rate. By making work
pay, the OBRA 1993 increase in the credit rate will encourage non-workers to enter the
workforce and other low-income part-time workers to increase their hours of work.
Finally, OBRA 1993 simplified the eligibility criteria for the EITC beginning in 1994 by
eliminating the two supplemental credits for health insurance coverage and for taxpayers with
children under 1 year of age. These two supplemental provisions added several paragraphs to
-9the instructions, 10 additional Jines on the Schedule EIC, and two additional look-up tables. The
IRS could not easily verify eligibility for the supplemental credits because it did not receive
independent verification of taxpayers' eligibility for them. These changes should improve
compliance by reducing errors and improving verification.
URAA. URAA contains several provisions to improve the targeting of the EITC to those
with the greatest need. Under this legislation, nonresident aliens are denied the EITC beginning
in 1995. Under prior law, nonresident aliens could receive the EITC based on their earnings
in the United States, even though they were not required to report their world-wide income to
the IRS. Thus, it was possible for a wealthy foreign student to obtain the EITC based on his
or her earnings as a teaching assistant at an American university.
In addition, prisoners will not be eligible for the EITC based on their earnings while
incarcerated. In the past, prisoners generally would not have been able to clai m the EITC
because they did not reside with a qualifying child for over half the year. When the EITC was
made available to workers without children in 1994, it became possible for prisoners to receive
the EITC based on their earnings at prison jobs. Because this provision was made effective for
tax year 1994, the EITC will not be paid to these individuals.
URAA also contained two provisions to improve the administration of the EITC. By
1997, taxpayers will be required to provide TINs for all dependents and EITC qualifying
children, regardless of their age. By requiring EITC claimants to provide the TINs of all
children, regardless of age, URAA improves the ability of the IRS to verify the eligibility of a
taxpayer for the EITC.
Under the legislation, the Department of Defense is required to provide military
personnel and the IRS with information regarding basic hOllsing ane! subsistence allowances (or
in-kind equivalents) and income excluded by reason of service in a combat zone. These changes
will not increase their taxable income but will improve accuracy in reporting and verification
of earned income. The savings from this provision are somewhat offset by another provision
which extends EITC eligibility to military personnel stationed abroad.
Administrative Actions. The Administration has taken a number of steps to ensure that
eligible individuals know about the EITC and the advance payment option. While many eligible
persons receive the EITC, fewer than I percent of EITC claimants receive the credit through
advance payments. The reasons for the low utilization rate are not fully known. One possible
explanation is that workers simply do not know that they have the option of clai ming the credit
in advance. A General Accounting Office study in 1992 provided some support for this theory
when investigators found widespread ignorance about the advance payment option among lowincome workers. I
•
I U.S. General Accounting Office. Earned Income Tax Credit: Advance Payment Option
is Not Widely Known or Understood by the Public. (GAO/GGD-92-26, February 19, 1992).
-10The Administration has intensified its efforts to alert taxpay~rs of their eligibility for
advanced payments. As one of the first steps, President Clinton announced a Federal campaign
in 1994 to enroll eligible government workers in the advanced payment system. The Treasury
Department and a group of business executives have also joined forces to encourage privatesector employers to notify their workers about the advanced payment option. As required by
OBRA 1993, the IRS sends out notices to EITC claimants after the filing season, informing them
about the advance payment option and (although not required by the 1993 legislation) also
supplying a Form W-5 for their use.
As Commissioner Richardson will explain, the Administration has also taken steps to
ensure that those who are not eligible for the EITC do not receive it. During a two-week period
in January, 1994, the IRS conducted a pilot study to determine what additional enforcement tools
might be necessary to detect and prevent erroneous refunds during the remainder of the 1994
filing season. The results of the pilot compliance study, drawn from a sample of over 1,000
taxpayers who filed electronically during a two-week period in January, 1994, founel that about
26 percent of every dollar claimed in the EITC was in excess of the actual amount oweel to the
taxpayer.
The results of this pilot study are not representative of the EITC filing popUlation as a
whole. Nonetheless, the IRS has taken a number of responsible and needed steps to limit the
EITC to those who are entitled to the credit. Beginning this year, the IRS is validating the
social security numbers on all tax returns claiming the EITC. Refunds on returns with incorrect
or missing numbers are being delayed while the IRS checks the accuracy of the refunds claimed.
We estimate that the effects of the social security validation tests, along with conventional
enforcement activities and the repeal of the complicated supplemental credits. should reduce the
error rate to 19 percent.
Using the results of the pilot study and other information. the IRS is also increasing its
screening and review of all returns to ensure that only those taxpayers entitled to refunds receive
them. As a consequence, refunds may be delayed on other questionable returns. Moreover,
other legislative steps, described above, are still being implemented over the nex t several years
(e.g., the requirement that taxpayers provide a taxpayer identitication number for all children
regardless of age). Finally, Congressional action on the Administration's remaining legislative
proposals, described below, should further reduce error rates. In combination, implementation
of these additional enforcement procedures and legislative actions will make it more difficult for
taxpayers to erroneously claim the EITC and further reduce error rates.
Finally, the IRS stopped providing Direct Deposit Indicators in the 1995 filing season to
lenders who were providing refund anticipation loans. This action is also expected to reduce
compliance problems that were associated with refund anticipation loans. The IRS' s actions this
filing season have been applauded as both responsible and necessary by Ways and Means
Oversight Subcommittee Chairman Johnson and Ranking Member Matsui in a recent "Dear
Colleague" letter to House members.
-11-
FY 1996 Budget Proposals
The Administration included several proposals to improve the targeting and administration
of the EITC in this year's budget submission. We are ready to work with the Congress on those
proposals which have not yet been enacted.
Deny EITC to taxpayers having more than $2,500 of taxable interest and dividends.
Under this proposal, the EITC would be denied to taxpayers having more than $2,500 of taxable
interest and dividends beginning in 1996. This threshold would be indexed for intlation
thereafter.
This proposal would improve the targeting of the EITC to the families with the greatest
need. Under current law, a taxpayer may have relatively low earned income and be eligible for
the EITC, even though he or she has significant interest and dividend income. Most EITC
recipients do not have significant resources and must rely on their earnings in order to meet their
day-to-dayexpenses, but taxpayers with significant interest and dividend income can draw upon
the resources that produce this income to meet family needs.
This proposal, with some modification, was included in H. R. 831, which extended and
expanded the 25 percent health insurance deduction for self-employed individuals. H. R. 831
lowered the asset income threshold to $2,350 and expanded the categories of income subject to
the threshold to include tax-exempt interest and net positive rents and royalties. The asset
income threshold is not indexed.
In developing the Administration'S proposal, we considered a broader list of asset income
subject to the cap. We recognized that a broader list might increase equity, by treating the
recipients of certain other types of asset income in the same manner as those who receive
interest and dividend income. An expanded list would also reduce the incentive to choose a
particular type of investment based on its tax or refund consequences. However, we were also
concerned because the inclusion of net positive rents and royalties would add complexity to the
determination of the EITC. These items are not reported separately on the Form 1040. We did
not include the broader list of asset items because we were also concerned that low-income
taxpayers could not convert real estate holdings and other types of assets into cash as easily as
savings accounts and stocks in a time of need.
While we did not oppose the inclusion of tax-exempt interest and net rents and royalties
in H.R. 831, we are very concerned about the asset income threshold not being indexed. We
believe that the asset income threshold should be indexed in the same manner as all other income
parameters for the EITC. Without indexation, the number of persons affected by this provision
will increase over time. By 2000, the threshold would be equal to about $2,075 in 1996 dollars
and would increase the number of affected taxpayers from about 550,000 to 650,000.
EITC Compliance Proposals. Under this budget proposal, only individuals who are
authorized to work in the United States would be eligible for the EITC beginning in 1996.
-12Taxpayers claiming the EITC would be required to provide a valid social security number for
themselves, their spouses, and their qualifying children. Social security numbers would have
to be valid for employment purposes in the United States. Thus, eligible individuals would
include U.S" citizens and lawful permanent residents. Taxpayers residing in the United States
illegally would not be eligible for the credit.
In addition, the IRS would be authorized to use simplified procedures to resolve questions
about the validity of a social security number. Under this approach, taxpayers would have 60
days in which they could either provide a correct social security number or request that the IRS
follow the current-law deficiency procedures. If a taxpayer failed to respond within this period,
he or she would be required to refile with correct social security numbers in order to obtain the
EITC.
In combination, these provisions would strengthen the IRS's ability to detect and prevent
erroneous refunds from being paid out. In addition, the proposals would improve the targeting
of the EITC by providing the credit only to individuals who were authorized to work in the
United States.
Tax Systems Modernization. The budget submission for the IRS contains funding for the
continuation of its tax systems modernization (TSM). We urge the Congress to continue to fund
TSM. TSM is vital to the long-run efficiency of the IRS's collection functions. TSM will also
enhance the IRS's ability to detect erroneous EITC claims.
Demonstration Projects Pl'oposal
.
In June 1994, the Administration introduced the Work and Responsibility Act (H.R.
4605). One of the provisions in H.R. 4605 would provide additional tlexihility to States with
respect to the EITC. We continue to support this proposal.
The proposal would allow four demonstration projects to determine the effects of
alternative methods of delivering advance payments of the EITC. States would apply to the
Department of the Treasury to provide advance payments of the EITC directly to eligible
residents through a State agency. Such agencies could include food stamp offices, Employment
Services, and State revenue departments. State plans would be required to speci fy how payment
of the EITC would be administered. To finance these payments, States would reduce payments
of withholding taxes (for both income and payroll taxes) from their own employees by the
amount of the advance payments made during the prior quarter. The fO~lr selected projects could
operate for three years beginning in 1996.
This pilot program is designed to determine whether another approach would be more
effective for delivering advance payments than the current employer-based system. For
example, a State could choose to allow all eligible EITC recipients to apply for advance
payments. By receiving the credit as they earn wages, workers would observe the direct link
-13between work effort and the EITC. Through a State program, individuals could have a choice
of receiving the credit from a neutral third-party, without fear of the consequences of noti fying
their employers of their eligibility for the EITC. Moreover, they could receive assistance in
determining the appropriate amount of the EITC to claim in advance.
A State could instead choose to target the advance payments of the EITC to welfare
recipients -- as a way of driving home the message that "work pays." These individuals may
not know about the EITC, and how it can "make work pay," because they do not have to file
a tax return if their adjusted gross incomes are below the tax thresholds (which are generally less
than the poverty thresholds).
If the legislation passes, we will evaluate these demonstration projects in order to
understand better how individuals respond to receiving advance payments of the EITC. We will
pay careful attention to whether the use of State agencies can increase both utilization of the
advance payment system and labor force participation by non-workers.
States also have the resources to verify many of the eligibility criteria for the credit better
than employers, reducing the risk of erroneous payments being made to ineligible persons. This
option would also allow for an evaluation of alternative delivery systems on compliance.
Other Suggestions
The Administration evaluates other proposals to modify the EITC by the same criteria
we apply to our own proposals:
(1)
(2)
(3)
(4)
Does the proposal make work more attractive to those olltside the workforce and
to others with minimal ties to the workforce?
Does the proposal reduce the poverty gap for full-time workers'?
Does the proposal improve the targeting of the EITC to the neediest individuals
and families in the least distortionary manner? and
Does the proposal make it easier for eligible taxpayers to accurately claim the
EITC and for the IRS to verify their eligibility before refunds are paid out'?
We are concerned that many of the options that may be considered by the Subcommittees do not
meet these criteria.
I. Senate Budget Committee Resolution
The Senate budget resolution assumes that the Senate Finance Committee will reduce the
EITC by $13 billion between FY 1996 and 2000 and $21 billion between FY 1996 and 2002.
The resolution further assumes that these savings can be achievecl by repealing the EITC for
workers without qualifying children,' reducing the EITC rates for families with children, ane!
adopting the Administration's EITC compliance proposals from the FY 1996 budget. Under the
-14-
resolution, the credit rate for a family with two or more children would be reduced from !ts
1995 level of 36 percent to 35 percent. In addition, the credit rate for families with one chIld
would be reduced from 34 percent to 30.15 percent. According to Treasury's estimates, the
EITC proposals in the Senate budget resolution would reduce the EITC by $16.6 billion over
the next five years and $25.6 billion over the next seven years. The Senate budget resolutIon
would reduce the EITC for 14 million working families, on average, by about $239.
These proposals would generally limit the effectiveness of the EITC in reducing poverty.
For example, in 1996, the maximum EITC for families with two or more children is scheduled
to increase from $3,110 to $3,560. This is the level necessary, in combination with a 90 cent
increase in the minimum wage, to close the poverty gap for a full-time minimum wage worker
who supports a family of four. Under the Senate budget resolution, the maximulll credit would
be $445 less than current law.
By lowering the credit rate for families with children, the proposal also reduces the
effectiveness of the credit for encouraging work effort. Under the proposal, many EITC
recipients with earnings of less than $8,900 could receive a smaller EITC than in 1995. The
reductions in the credit rate would also adversely affect those who are currently outside the
workforce, but who are choosing between work and welfare.
The Treasury Department estimates that 14 million EITC recipients would have their
taxes raised by these proposals. Of these 14 million, 10 million would be workers with
children. About 8 million EITC recipients with two or more children would lose, on average,
$305 in 1996. About 2 million very low-wage workers with only one child would lose, on
average, $137 relative to current law. (See Figure 5 and attached table.)
The budget resolution also assumes the repeal of the EITC for 4 mi II ion very low-wage
workers who do not reside with qualifying children. The OBRA 1993 expansion of the EITC
for these workers was designed to help offset the work disincentive effects of the social security
tax. If repealed, these workers will lose up to $324 in 1996. At the poverty level ($8,200 in
1996 for a single individual under age 65), a single taxpayer would have a combined income and
social security tax liability of $1,394 (including $240 of income tax liability prior to the receipt
of the EITC and including both the employee and employer portions of social security taxes).
Under the proposal, this taxpayer's tax liability would increase by $10 I. On average, low-wage
workers who do not reside with qualifying children would incur a tax increase of about $173 in
1996.
2. S. 899
Last week, Senators Roth, Nickles, and Pressler introduced a bill (S. 899) to reduce the
EITC. S. 899 adopts many of the proposals assumed in the Senate budget resolution. However,
it would reduce the EITC far more deeply than was considered in the resolution. According to
Treasury estimates, S. 899 would reduce the EITC by $37 billion between FY 11.)1.)6 and 2000
and $66 billion between FY 1996 and 2002.
-15Under S. 899, indexation of the EITC would be repealed. As a consequence of the
repeal of indexation and the lowering of the credit rates, EITC recipients would be entitled to
a maximum tax credit of $3,024 in 1996, a reduction of $536 relative to current law. The
maximum tax credit amount would not change after 1996. By 2000, the maximum credit
amount would be reduced by $1,016 -- or 25 percent -- relative to current law.
Indexation is necessary to ensure that taxpayers do not lose eligibility for the EITC.
Under current law, an estimated 16.7 million taxpayers with children will claim the EITC in
1996. If benefit thresholds are not adjusted for inflation, participation would shrink to 14.8
million by 2000.
Eliminating indexation does not address the issue of non-compliance at all. Instead, it
denies eligibility and reduces the EITC for millions of taxpayers who work hard, pay their taxes,
and play by the rules. A number of tax provisions are indexed for intlation each year. These
include the personal exemption, standard deduction amount, the width of the income tax
brackets, the phase-out ranges for the personal exemption and deduction amounts, and the social
security earnings ceiling. It is inappropriate to suspend indexation on the one provision which
is solely targeted to low-income taxpayers.
S. 899 would also limit eligibility for the EITC by adding new restnctlons on the
amounts and types of income held by recipients. The investment income cap would be lowered
from $2,350 to $1,000. Net capital gains and passive partnership and estate income would also
be added to the investment income cap. We would have serious reservations about lowering the
investment income cap from $2,350 to $1,000.
The bill's sponsors argue that at prevailing interest rates, it is inappropriate to provide
the EITC to taxpayers with assets which can generate a $1,000 of investment income. While
we agree that taxpayers with large amounts of assets should not receive the EITC, we view the
$1,000 investment income cap as too restrictive. Low and moderate-income families should be
encouraged to save for down-payments on homes, start-up capital for businesses of their own,
their children's education or their own retraining. For example, the median price for a home
purchased in 1994 by a first-time homeowner was $125,000, with an average downpayment of
13.7 percent of the price (or $17,125), while the costs of a four-year education at a typical state
university exceeded $25,000. Under the proposal, the EITC would be denied to many families
saving for these investments in their futures unless they liquidated their savings or shifted their
investments to exempted assets.
S. 899 would also restrict eligibility for the EITC by expanding the definition of income.
For purposes of determining eligibility for the EITC, adjusted gross income would be expanded
to include non-taxable social security benefits, child support payments, non-taxable pension
income, and tax-exempt interest. We are very concerned about proposals to expand aclj usted
gross income to include these items.
S. 899 would effectively impose an additional tax on social security benefits of taxpayers
-16who qualify for the EITe. The EITC would be reduced by up to 20 cents for each additional
dollar of social security benefits. Low-income elderly workers with children could be subject
to higher taxes on social security benefits than some of their better-off neighbors. In part, a
portion' of workers' social secllTity benefi ts (as well as non-taxable pension income) represent
the return of their own contributions from previously taxed income. The proposal could affect
non-elderly workers with young children, too. The EITC would be reduced or eliminated for
a low-wage worker whose disabled spouse receives disability insurance benefits. Reducing the
EITC benefits of social security recipients could also compound the work disincentives already
present in the social security programs.
The tax system does not count child support as income to the custodial parent because
child support payments are a continuation of the other parent's obligation to support his or her
child. Custodial parents should be encouraged to seek child support, rather than being penalized
for obtaining it. As a result, we have serious reservations about this provision as well. This
provision would also add complexity to the determination of EITC eligibi lity and would be
difficult to verify. In particular, the IRS does not currently receive information about child
support payments.
In combination, these proposals would raise taxes on 19 million taxpayers, on average,
by $602 in 2000 (measured at 1996 income levels). Taxpayers with two or more chi Idren would
be most adversely affected by these provisions. For eight million taxpayers with two or more
children, the EITC would be reduced, on average, by $886 in 2000 (measured at 1996 income
levels).
The Administration is committed to improving compliance with the EITC rules. Its
actions in the last two years are clear evidence of this commitment. The compliance problems
which the Administration is addressing should not be used as 'an excuse to eliminate or reduce
the EITC to all low-income working people. Consequently, the Administration strongly opposes
proposals to eliminate indexation or to add complexity to the EITC eligibility criteria.
3. New Initiatives
The Administration is committed to taking additional steps to improve the administration
of the EITC beyond the steps which have been taken or proposed in this year's budget. We
would be particularly interested in exploring with Congress legislative proposals to Improve the
ability of the IRS to verify eligibility for the EITe.
First, we are announcing our intention to send to Congress a new legislative proposal
which would provide the IRS with additional authority to prevent the payment of problematic
refunds. We will propose that the IRS be authorized to use simplified procedures to reduce the
amount of a taxpayer's EITC by the amount of unpaid self-employment taxes shown, either
directly or indirectly, as being due with the return. Under this approach. taxpayers would have
60 days in which they could either demonstrate that they did not owe social security taxes on
reported income or request that the IRS follow the current-law deficiency procedures. If a
-17-
taxpayer failed to respond within this period, he or she would be required to refile with correct
information on earnings and social security tax liabilities in order to obtain the EITC.
This proposal will ensure that taxpayers pay social security taxes on self-employment
income which is also applicable toward their EITC. This proposal would reduce the incentive
for taxpayers to over-state income in order to appear eligible for a larger EITC. While there
is no conclusive evidence at this time of widespread EITC abuse by self-employed taxpayers,
we recognize that the credit structure could lead to such problems in the future. This proposal
is designed to deter this potential problem. We will also continue to carefully monitor this issue
to determine the scope and nature of any potential or actual abuse.
Second, we are beginning a study to examine the benetits and costs of improving
information-sharing between the IRS and States. The study will build on existing IRS efforts
to improve information-sharing with State agencies. For example, during the past year, the IRS
has been working with the State of California to determine whether wage data from the
unemployment compensation system can assist the I·RS in validating EITC claims. The new
study will examine whether information from State welfare agencies would be useful in
determining whether an EITC qualifying child was claimed by the appropriate taxpayer. The
study will determine if State data can be made available to the IRS in a timely ane! consistent
manner, and whether changes in disclosure laws are required to facilitate data exchange.
We would also like to explore with the Subcommittees other options for improving the
administration of the EITC. For example, reporting requirements for non-taxable earned
income, which is used in the calculation of the EITC, could be enhanced.
* ** * *
This concludes my remarks. Thank you once again for providing me with the opportunity
to testify. I would be pleased to answer any questions that the Subcommittees Illay have.
Figure 1: Growth in the EITC and GOP *
1997 - 2002
Growth Rate
10~i- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - .
81--
GDP
61--
4 r
EITC
2
0
1997
1998
1999
2000
Calendar Year
*Under current law and Administration's January budget assumptions
2001
2002
Figure 2: The Earned Income Tax Credit, 1995
Credit Amounts
4,000 ~I----------------------------------------------------------~
Two or More Children
3,500
$3,110
,,_ ... _- _---" , ,
One Child
....
3,000
I
2,500
,,
,,
,,
I
I
..
$2,094
2,000
1,500
1,000
500
o oIt··
I
... ......
$314
......
,,
,,
,,
,,
,,
No Children
,,
,,
,
,,
,
,,
,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,,
,
...
5,000
........ .
"
10,000
15,000
20,000
Earned Income or Adjusted Gross Income
", , ,
"25,000
30,000
Figure 3: The Earned Income Tax Credit, 1996
Credit Amounts
4,000
i
$3,560
,- ... _- ....
3,500
I
,
I
,
I
,
'
I
3,000
,
I
I
2,500
,
,,
,,
I
2,000
,,
,,
,,
,,
One Child
,,
., , ,
,
., .
,
I
,,
,
,
Two or More Children
---- ...
$2,156
I
1,500
No Children
.,
,
., ,
,,
,,
., , ,
,,
,
., ,
., ,
., .,
1,000
,,
,,
., , ,
$324
500
o V.··
o
.., ,
...............
............
5,000
I
10,000
15,000
20,000
Earned Income or Adjusted Gross Income
,
., .,
~
25,000
., ,
,,
",
30,000
Figure 4: The Earned Income Tax Credit Under
OBRA 1990 and OBRA 1993, Fully Phased In
Workers with Two or More' Children, 1996 Dollars
Credit Amounts
4,000 ~I
---------------------------------------------------------,
$3,560
3,500
OBRA 1993
OBRA 1990
3,000
2,500
$2,109
................................
2,000
1,500
.'
1,000
500
o
"
'I
!{
o
5,000
10,000
15,000
20,000
Earned Income or Adjusted Gross Income
25,000
"'
30,000
Effect of Senate Proposals on EITG Recipients
1996 Income Levels
Senate
Budget
Resolution
1996
14 million
19 million
19 million
$239
$311
$602
8 million
8 million
8 million
$305
$516
$886
2 million
7 million
7 million
$137
$166
$563
4 Million
4 Million
4 Million
$173
$173
$173
S.899
2000
*
Totali:ITC Recipients
Number of Affected Taxpayers
Average Tax Increase
I§~Qaye~§
with Two or Mor~Oualifyif!gC!lildref!
Number of Affected Taxpayers
Average Tax Increase
Ta)(Peyer~ ~i!b OQ~_QuC!UfYlrlg
Qbj!g
Number of Affected Taxpayers
Average Tax Increase
Taxpayers without Qualifying Child
Number of Affected Taxpayers
Average Tax Increase
Department of the Treasury
Office of Tax Analysis
* Estimate reflects effects of deindexation by the year 2000, estimated at 1996 ir:lcome levels.
June 12, 1995
Figure 5: Effect of Senate Proposals on EITe Recipients with Two or
More Children
Average Tax Increase, 1996 Dollars
1,000
r - ,-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$886
800
600
$516
400
200
o
< - - - I-
Senate Budget
Resolution
S.899
1996
S.899
2000*
* Estimate reflects effects of deindexation by the year 2000, estimated at 1996 income levels.
-
-
,
DEPARTMENT
OF
THE
TREASURY
1I1I"~~1I1I"""11""""""""""~~'][7~~~~.~1~1I"""""""""""""""11""..I
OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.• 20220. (202) 622-2960
FOR DELIVERY AT 10:00 A.M.
Iune 15, 1995
ORAL STATEMENT OF
LESUE B. SAMUELS
ASSISTANT SECRETARY (TAX POUCy)
DEPARTMENT OF THE TREASURY
BEFORE THE
SUBCOMMrrrEES ON OVERSIGHT AND HUMAN RESOURCES
UNITED STATES HOUSE OF REPRESENTATIVES
Chairman Iohnson. Chainnan Shaw, and Members of the Subcommittees:
I am pleased today to discuss the targeting of the earned income tax credit (EITC), as
well as steps that are being taken to improve the EITC. Commissioner Richardson's
testimony will address administrative matters more completely.
The Administiation is strongly committed to the goals of the EITC. which are to
make work pay and to lift workers out of poverty in the most efficient and administrable
manner possible. With its message of ·work pays,· the EITC helps ~ dependency on
welfare and increase reliance on jobs. This is why the EITC has been supported on a
bipartisan basis during its 20-year history. During the 7-year period between 1986 and 1993.
Congress voted to significantly expand the EITC in three major pieces of legislation under
three Presidents - the Tax Reform Act of 1986, OaRA 1990, and OBRA 1993.
In connection with developing the OBRA 1993 changes to the EITC. this
Administration became aware of serious compliance problems with the EITC and committed
itself to do everything in our power to improve compliance. That commitment has been
aggressively demonstrated in both legislative proposals and unprecedented administrative
actions. On the legislative side. OBRA 1993 repealed the two supplemental credits that
added a great deal of complexity and were extremely difficult for the Internal Revenue
Service to verify. Last year's. Uruguay Round legislation contained a number of
Administration proposals, including extending to gil children the requirement that they be
identified by their social security number (SSN) for EITC purposes. That legislation also
denied the EITC to nonresident aliens and required the Defense Department to include on w2s amounts of nontaxable earned income.
In addition, the IRS has taken bold administrative steps to address compliance issues.
Commissioner Richardson will describe the more significant of these actions.
Early indications suggest that the steps we have taken in the last two years are
working to reduce significantly mC-related errors. Yet, there is more to be done. and our
commitment to do so remains unwavering.
Several proposals to improve the targeting and administration of the EITC were
included in the President's FY 1996 budget:
RR-174
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
-2-
•
The proposal to deny the EITC to taxpayers having more than $2,500 of taxable
interest and dividends was included, in modified form, in H.R. 831.
•
Under a second budget proposal, only individuals who are authorized to work in the
United States would be eligible for the EITC beginning in 1996.
•
A third proposal would authorize the IRS to use simplified procedures to resolve
questions about the validity of an SSN. Under this approach, taxpayers would have
60 days in which to either provide a correct SSN or request that the IRS follow the
more labor intensive, current-law deficiency procedures. If a taxpayer failed to
respond within this period, he or she would be required to refile with correct SSNs in
order to obtain the EITC.
Today, we are proposing an additional change that would extend those simplified
procedures to reducing EITC claims by self-employed individuals who fail to satisfy their
self-employment tax liability. We welcome the opportunity to work with the Subcommittees
to adores's areas of EITC noncompliance, just as we would like to work on addressing error
rates in other areas that contribute to the overall tax gap.
.
During the past several months, some observers have suggested that the EITC is
growing uncontrollably. To the contrary, the increases in the EITC have resulted from
carefuHy considered actions by Congress to gradually phase in the 1990 and 1993 expansions
over a period of years. Once the 1993 expansion is fully phased in in 1996, future growth
will be slightly less than projected growth of gross domestic product.
Some claim that an appropriate response to compliance concerns is substantial acrossthe-board reductions in the EITC. While the House budget resolution does not assume
reductions in the EITC, the Senate budget resolution assumes the EITC would be reduced,
and tax burdens increased, for over 14 million working families. Working families with two
or more children would be hit the hardest, with an average tax increase of $305 per year.
Another proposal introduced in the Senate last week would result in even greater tax
increases. We do not believe that raising taxes on millions of low-income working
Americans is an appropriate response to the compliance concerns.
The Administration's commitment to improving the EITC has been demonstrated
through more than a dozen legislative and administrative actions since early 1993. In taking
these actions, we have been guided by the following four key goals:
(1)
to make work pay for those who might otherwise be on welfare;
(2)
to ensure that an individual who works full time throughout the year will not
live in poverty;
(3)
to target benefits to those with the greatest needs while minimizing distortions;
and
-3-
(4)
to make it easier for eligible individuals to claim the credit and for the IRS to
verify their eligibility.
The design of the EITe under current law reflects a balance among these four goals. I
would like to address briefly each of them individually.
First, for low-income families, the EITe makes work pay in two ways. Unlike many
other assistance programs for low-income families, the EITe is limited to working families.
Moreover, the credit amount initially increases -- rather than decreases -- for each additional
dollar of earnings.
The positive link between the EITe and work can help offset the work disincentives
created by other tax and transfer programs, such as social security taxes and food stamp
benefits. The EITe, with its positive credit rate on low earnings, is the only program
designed to help offset the marginal tax rates imposed by these other programs.
The expansion of the EITe in OBRA 1993 was designed to increase the effectiveness
of the EITe as a work incentive. The increase in the credit rate will encourage non-workers
to enter the workforce and other low-income workers to increase their hours of work. While
the overall effect of the OBRA 1993 expansion cannot be measured yet, we believe that the
legislation will, on net; increase work effort. Some workers with larger families will face .
slightly higher marginal rates as a result of OBRA 1993. However, they are unlikely to
change their behavior much in response. These are individuals who are already very
attached to the work force. They cannot easily adjust their hours of work in response to a
small change in tax rates; they need both their jobs and the EITe to meet their day-to-day
needs. and most employers will not allow them the discretion to work fewer hours. The
effect of the higher marginal tax rates on some workers in the phase-out range will likely be
far outweighed by the effect of the increase in the credit rate.
A second goal is to ensure that a person who works at a full-time job for the entire
year will not live in poverty. To lift a family of four dependent on a full-time worker
earning the minimum wage out of poverty would require a combination of food stamps,
enactment of the President's proposal to increase the minimum wage, and the EITe.
Third, the benefits of the EITe should be targeted to families with the greatest needs
and to those who can be best served by the positive incentives associated with the EITe.
The credit rate is highest at very low earning levels where individuals are often making the
critical step from welfare to work. Because larger families have greater needs than smaller
families, taxpayers with two or more children are entitled to a larger EITe than taxpayers
with one or no children. Also, by providing the EITe to families with incomes of up to
$28,524 in 1996, the program provides modest relief from the effects of wage stagnation.
We believe OBRA 1993 strikes an appropriate balance between encouraging increased work
effort and minimizing the distortions resulting from the phase-out of the credit.
The fourth goal of the EITe is simplicity and verification. If eligibility rules are
simple, taxpayers can more accurately claim the EITe and avoid costly errors. With simple
-4-
and verifiable eligibility rules, the IRS can also better ensure that the EITC is paid only to
taxpayers who are eligible for the credit. Consequently, we strongly urge that simplification
be given great weight in evaluating any proposal.
The Administration evaluates other proposals to modify the EITC by the same criteria
we apply to our own proposals. We are concerned that many of the options that may be
considered in the coming months will not meet these criteria.
Under the Senate budget resolution, (1) the EITC for workers without qualifying
children would be repealed, (2) the OBRA 1993 increases in the credit for families with
children would be scaled back, and (3) the Administration's EITC compliance proposals from
the FY 1996 budget would be adopted. We estimate that 14 million working Americans
would be adversely affected. EITC recipients with two or more children would lose, on
average, $305 in 1996.
A bill, S. 899, has been introduced in the Senate that would result in even more
severe reductions of the EITC for millions of working families. In addition to the changes
anticipated by the Senate budget resolution, the bill would repeal indexation of the EITC and
would further limit eligibility for the EITC by adding new restrictions on the amounts and
types of income received by claimants.
The combined effect of S. 899, once fully phased in in the year 2000, would be to
reduce the EITC for 19 million taxpayers by $602 on average. The effects of both S. 899
and the Senate budget resolution are illustrated in the attached graph and table.
Indexation is necessary to ensure that taxpayers do not lose eligibility for the EITC.
Under current law, an estimated 16.7 million taxpayers with children will claim the EITC in
1996. If benefit thresholds are not adjusted for inflation, participation would shrink to 14.8
million by 2000. Moreover, eliminating indexation does not address noncompliance· issues.
Consequently, the Administration strongly opposes proposals to eliminate indexation.
S. 899 would also limit eligibility for the EITC by adding new restrictions on the
amounts and types of income held by recipients. For example, the investment income cap
would be lowered from $2,350 to $1,000. We have serious reservations about this proposal
since it discourages savings. Also, its complexity will increase error rates.
The bill would also restrict eligibility for the EITC by expanding the definition of
income to include non-taxable social security benefits, child support payments, non-taxable
pension income, and tax-exempt interest. We would have serious concerns about imposing
an additional tax on social security benefits of taxpayers who qualify for the EITC. Lowincome elderly workers with children could be subject to higher taxes on social security
benefits than some of their better-off neighbors. The proposal could affect non-elderly
workers with young children, too. The EITC would be reduced or eliminated for a lowwage worker whose disabled spouse receives disability insurance benefits.
-5The tax system does not count child support as income to the custodial parent because
child support payments are a continuation of the other parent's obligation to support his or
her child. Custodial parents should be encouraged to seek child support, rather than being
penalized for obtaining it. Moreover, this change would be extremely difficult for the IRS to
administer because it does not currently receive information about child support payments.
The Administration is committed to improving compliance with the EITC rules. Its
significant actions in the last two years are clear evidence of this strong commitment. The
compliance problems which the Administration is addressing should not be used as an excuse
to eliminate or reduce the EITC benefits to millions of low-income working Americans who
are playing by the rules.
Finally, my written statement contains additional areas of possible improvement we
would like explore with the Subcommittees.
****
This concludes my remarks. I would be pleased to answer any questions that the
Committee may have.
Effect of Senate Proposals on EITC Recipients with Two or More Children
Average Tax Increase, 1996 Dollars
1,000 ...--,- - - - - - - - - - - - - - - - - - - - - - - - ,
$886
800
600
400
$516
$305
200
O'L-
Senate Budget
Resolution
S.899
1996
S.899
2000*
* Estimate reflects effects of deindexation by the year 2000, estimated at 1996 income levels.
Effect of Senate Proposals on EITC Recipients
1996 Income Levels
__ '_" r_____
.~~.
Senate
Budget
Resolution
1996
14 million
19 million
19 million
$239
$311
$602
8 million
8 million
8 million
$305
$516
$886
2 million
7 million
7 million
$137
$166
$563
4 Million
4 Million
4 Million
$173
$173
$173
S.899
2000
*
____
Tgtat ~nC Reciments
Number of Affected Taxpayers
Average Tax Increase
T~~R~Yt:m~ ~ith Two or Mor~ Q~§lih1r!g_Children
Number of Affected Taxpayers
Average Tax Increase
TClxp~Yl?r~ ~i!h O!1~ Q~a!ifyi!1g Qhi!c:i
Number of Affected Taxpayers
Average Tax Increase
Taxpayers without qualifying Child
Number of Affected Taxpayers
Average Tax Increase
Department of the Treasury
Office of Tax Analysis
* Estimate reflects effects of deindexation by the year 2000. estimated at 1996 income levels.
June 12. 1995
D EPA R T MEN T
O}<'
THE
T REA SUR Y
NEWS
ornCE OF PUBUC AFFAIRS .1!'iOO PENNSnVANIAAVENUE, N.W •• WASHINGTON, D.C .• 20220. (202) 622·2960
Contact:
FOR IMMEDIATE RELEASE
June 15, 1995
Scott Dykema
(202) 622-2960
MEDIA ADVISORY.
A Treasury Department district-by-district study showing how the Senate budget plan
woulu raise taxes on working families is now available. The stuuy, "Tax Increases un
Working Families Based on EITC Changes in the Senate Budget Re,lwlution." analyzes the
Senate budget plan to reduce the Earned Income Tax Credit (EITC) claimed by 14 million
working Americans over the next seven years. The study may be obtained at the Department
uf the Treasury courier window at the 15th Street entrance or by calling the Office of Public
Affairs at (202) 622-2960.
-30-
RR-375
For press releas~, speeches, public schedules and official biographies, call our 24.Jwur fax line at (202) 622-2040
..
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Tax IncreaSQS1,pn
Working Families
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Based On EITC Changes in the
Senate Budget Resolution
June 15, 1995
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Table of Contents
Section I:
Background
Section II:
State-by-State Analysis
Section III:
District-by-District Analysis
Section I:
Background
The Earned-Income Tax Credit
Program Description
•
The EITC is a refundable tax credit provided only to those who work. By
providing direct refunds from the IRS to working families, it is a nonbureaucratic way of encouraging work over welfare.
•
By providing a tax credit to low and modest-income working families, the EITC
helps ensure that those who work hard and play by the rules are not penalized.
•
Under current law, in 1996 for every dollar a worker earns up to a limit,
between 7 and 40 cents will be provided as a tax credit. Above a given level,
the size of the tax credit is gradually reduced.
•
Since the beginning, the EITC has had bipartisan support as a way to offset the
tax burdens of low and modest-incomes families. Both President Reagan in
1986 and President Bush in 1990 expanded the credit.
•
As part of the budget agreement of 1993, the EITC was expanded and
simplified in order to bolster the incomes of families moving from welfare to
work. The credit for very low-income working families with children was
increased by 15 cents to 40 cents per dollar, effective in 1996. Additionally,
the maximum credit was raised by nearly $1,500 and the EITC was extended to
families with two or more children that have incomes under $28,524. Finally, a
small tax credit was granted for the first time to very low-wage workers without
qualifying children in order to offset the employee portion of Social Security
taxes and thus make work more rewarding.
•
In 1996, the EITC will assist over 21 million workers and their families by
providing a tax credit averaging nearly $1,400. Working families with earnings
of up to $28,524 per year may be eligible for the EITC.
•
Some have cited the issue of error rates to justify deep cuts in the EITC. These
statements are incorrect. The data usually used by those claiming
extraordinarily high error rates are outdated and often misinterpreted. The
Administration recognizes the potential problem that error rates can pose and
has acted aggressively to reduce them.
The Earned-Income Tax Credit
Proposed Senate Tax Increase on Working Families
•
The Senate budget resolution assumes that the EITC would be reduced by $21
billion between FY 1996 and FY 2002. In fact, Treasury finds that the Senate
plan would result in $25 billion of reductions over the next seven years.
•
The proposal repeals the final phase of the OBRA 1993 expansion, which is
scheduled to occur on January 1, 1996. It also repeals the credit for workers
who do not reside with qualifying children. Additionally, it reduces the credit
rate for families with children.
•
The resolution assumes enactment of the Administration s proposals to deny the
EITC to undocumented workers and to allow the IRS to use simpler procedures
when taxpayers fail to provide a valid Social Security number.
•
About 10.0 million families with children and 4.4 million families without
children would pay higher taxes as a result of this proposal.
•
Families with two or more children would be the hardest hit. For example, the
maximum credit would be reduced from current law by $445 in 1996. These
recipients would lose on average $305 in 1996 alone.
•
On average, the Senate budget resolution would reduce the EITC credit by $239
for 14.4 million families.
I
Estimated Distribution for Congressional Districts
of EITC Cbanges in Senate Budget Proposal
This state-by-state and district-by-district analysis provides an estimate of tax
increases on working families that would result from changes in the Earned Income Tax
Credit (EITC), as recently passed by the Senate.
The distributions of recipients and amounts were derived as follows:
1.
The Office of Tax Analysis, Department of the Treasury, estimated that for the United
States as a whole 7.8 million families with two or more children, 2.2 million one-child
families, and 4.4 million childless workers would be affected by the proposed changes.
2.
For the seven-year period FY 1996 through FY 2002, the increase in tax liability was
estimated as $22.8 billion for all EITC families, including $17.8 billion for families
with children ($15.7 billion for families with two or more children) and $5.0 billion
for childless workers. For FY 1996, the estimates were $3.4 billion for all EITC
families, $2.7 billion for families with children ($2.4 billion for families with two or
more children), and $0.8 billion for childless workers.
3.
Both the number of returns and dollar amounts for childless workers were allocated
across states according to the distributions of total EITC returns in tax year 1993, as
reported in the Internal Revenue Service's Statistics of Income Bulletin. For families
with children, the numbers of affected returns were allocated according to the same
1993 distribution of returns, and the dollar amounts were allocated according to the
1993 state distribution ofEITC amounts.
4.
The state totals were distributed across Congressional districts according to the
proportion of the state's nonelderly (householder under 65) households with incomes
under $25,000 residing in each district (as reported in the 1990 Census). District
boundaries reflect redistricting changes for the 104th Congress.
Caveats:
The results do not reflect provisions in the proposal which deny EITC benefits
to undocumented workers and which simplify Internal Revenue Service
procedures. These provisions are estimated to save an additional $2.9 billion
over seven years.
State and district distributions of EITC tax increases are based on 1990
Census and 1993 tax return distributions, and so do not reflect subsequent
differences in population and income growth rates.
The estimates ofEITC families by Congressional district somewhat overstate
the number of recipients in metropolitan districts and understate the number
in rural districts. This is because the proportion of poor households with
earnings is higher in rural areas.
The Earned Income Tax Credit, 1996
4,000
I i- - - - - - - - - - - - - - - - - - - - - - - -
$3,560
Two or More Children
3,500
One Child
3,000
No Children
en
"E
2,500
:J
$2,156
o
«E 2,000
~
"C
~
() 1,500
1,000
,
,
,
,
,
,
,
,
,
.
.
..
.
500
$324
,'.....................................................
0
!C••
o
1
'.1
5000
15000
20000
10000
Earned Income or Adjusted Gross Income
..
01
25000
'"
30000
Earned Income Tax Credit Parameters
1996
Plateau
Credit
Rate
Beginning
Point
End Point
Maximum
Credit
Phase-Out
Rate
Income
Cut-Off
Families With One Child
34.0%
$6,340
$11,620
$2,156
15.98%
$25,109
Families With Two or More Children.
40.0%
$8,900
$11,620
$3,560
21.06%
$28,524
Workers Without Children
7.65%
$4,230
$5,280
$324
7.65%
$9,510
30.15%
$7,150
$11,620
$2,156
15.98%
$25,109
35.0%
$8,900
19.38%
$27,693
CURRENT LAW
REVISED SENATE BUDGET RESOLUTION
Families With One Child
Families With Two or More Children
-
Department of the Treasury
Office of Tax Analysis
--_
..... _...
_-
--...
$11,620
~
... --------
~--
$3,115
L~_~
-
June 2,1995
Section II:
State-by-State Analysis
United States
Amount per Taxpayer
1996
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Families
Facing EITC
Tax Increase
365,109
18,350
253,967
192,736
2,045,255
165,022
79,861
35,468
48,005
863,418
517,292
37,256
60,481
584,258
265,332
109,818
109,568
217,386
377,394
54,607
236,772
168,653
372,556
149,851
295,841
276,512
44,574
Tax Increase
1996-2002
(millions)
$618
26
408
312
3,319
254
115
56
77
1,398
847
54
94
911
410
164
165
336
619
81
367
248
551
222
503
428
67
All
Families
$256
203
242
244
245
233
217
237
241
244
247
217
235
235
233
226
228
233
248
224
235
222
223
224
257
233
228
Two-Child
Families
$332
246
310
313
315
294
269
302
309
314
319
269
299
299
295
284
286
296
319
280
299
277
279
280
334
296
288
United States
Amount per Taxpayer
1996
State
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Total
Families
Facing EITC
Tax Increase
Tax Increase
(millions)
All
Families
Two-Child
Families
72,451
78,518
37,909
350,656
126,688
848,073
508,628
26,521
471,341
202,241
144,128
462,314
37,532
293,588
36,641
358,464
1,451,419
80,257
23,791
319,789
210,948
95,270
178,656
22,938
$110
121
57
546
199
1,309
826
40
710
315
222
691
57
485
56
570
2,361
125
35
509
317
146
269
35
$230
232
226
235
237
233
245
228
227
235
233
225
230
249
232
240
245
234
221
240
227
231
227
229
$290
294
284
299
302
295
315
287
286
299
295
283
290
322
294
307
316
297
275
307
285
292
286
288
14,400,000
22,782
239
305
1996-2002
Section III:
District-by-District Analysis
Alabama
•
•
The Senate EITC proposal would increase taxes for
365,109 working families in Alabama by an average
of $256 in 1996.
For 197,083 families with two or more children, the
average tax increase in 1996 would be $332.
District Representative
1
2
3
4
5
6
7
Total
Sonny Callahan
Terry Everett
Glen Browder
Tom Bevill
Bud Cramer
Spencer Bachus
Earl F. Hilliard
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
52,502
50,517
56,263
59,401
44,225
37,299
64.901
$89
86
95
101
75
63
110
365,109
618
Alaska
•
The Senate EITC proposal would increase taxes for
18,350 working families in Alaska by an average of
$203 in 1996.
•
For 9,905 families with two or more children, the
average tax increase in 1996 would be $246.
District Representative
Don Young
Families
FaCing EITe
Tax Increase
18,350
Tax Increase
1996-2002
(millions)
$25
Arizona
•
•
The Senate EITe proposal would increase taxes for
253,967 working families in Arizona by an average of
$242 in 1996.
For 137,089 families with two or more children, the
average tax increase in 1996 would be $310.
District Representative
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
Matt Salmon
Ed Pastor
Bob Stump
John Shadegg
Jim Kolbe
J.D. Hayworth
42,550
54,192
36,036
35,660
45,002
40.526
$68
87
58
57
72
65
253,967
408
1
2
3
4
5
6
Total
Arkansas
•
•
The Senate EITC proposal would increase taxes for
192,736 working families in Arkansas by an average
of $244 in 1996.
For 104,037 families with two or more children, the
average tax increase in 1996 would be $313.
District Representative
1
2
3
4
Totsl
Blanche Lambert Lincoln
Ray Thomton
Tim Hutchinson
Jay Dickey
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
54,230
41,838
47,876
48,792
$88
68
77
192,736
312
n
California
•
•
The Senate EITC proposal would increase taxes for
2,045,255 working families in California by an
average of $245 in 1996.
For 1,104,012 families with two or more children, the
average tax increase in 1996 would be $315.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Frank Riggs
Wally Herger
Vic Fazio
John T. Doolittle
Robert T. Matsui
Lynn Woolsey
George Miller
Nancy Pelosi
Ronald V. Dellums
Bill Baker
Richard W. Pombo
Tom Lantos
Fortney Pete Stark
Anna G. Eshoo
Norman Y. Mineta
Zoe Lofgren
Sam Farr
Gary A. Condit
George P. Radanovich
Calvin M. Dooley
William M. Thomas
Andrea H. Seastrand
Elton Gallegly
Anthony C. Bellenson
Howard P. (Buck) McKeon
Howard L. Berman
Carlos J. Moorhead
David Dreier
Henry A. Waxman
Xavier Becerra
Families
Facing EITC
Tax Increase
Tax Increase
49,035
63,869
51,630
36,567
57,317
31,679
34,271
58,547
60,906
15,708
43,888
20,106
23,045
20,510
18,392
26,894
38,263
51,161
53,187
61,931
51,110
41,171
23,305
22,168
21,267
42,250
39,444
23,098
56,670
66,011
$80
104
84
59
93
51
56
95
99
25
71
33
37
33
30
44
62
83
86
100
83
67
38
36
35
69
64
37
92
107
1996·2002
(millions)
California
District Representative
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Total
Matthew G. Martinez
Julian C. Dixon
Lucille Roybal-Allard
Esteban Edward Torres
Maxine Waters
Jane Harman
Walter R. Tucker III
Steve Hom
Ed Royce
Jerry Lewis
Jay Kim
George E. Brown, Jr.
Ken Calvert
Sonny Bono
Dana Rohrabacher
Robert K. Dornan
Christopher Cox
Ron Packard
Brian P. Bllbray
Bob Fllner
Randy (Duke) Cunningham
Duncan Hunter
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
40,252
59,510
60,569
27,549
57,881
24,851
46,837
43,634
18,697
49,203
26,024
41,226
32,453
45,991
25,971
30,332
18,124
26,073
50,783
51,350
22,478
42.069
$65
97
98
45
94
40
76
71
30
80
42
67
53
75
42
49
29
42
82
83
36
68
2,045,255
3,319
Colorado
•
•
The Senate EITC proposal would increase taxes for
165,022 working families in Colorado by an average
of $233 in 1996.
For 89,077 families with two or more children, the
average tax increase in 1996 would be $294.
District Representative
1
2
3
4
5
6
Total
Patricia Schroeder
David E. Skaggs
Scott Mcinnis
Wayne Allard
Joel Hefley
Dan Schaefer
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
38,442
21,845
32,994
30,115
22,898
18.729
$59
34
51
46
35
29
185,022
254
Connecticut
•
The Senate EITC proposal would increase taxes for
79,861 working families in Connecticut by an
average of $217 in 1996.
•
For 43,108 families with two or more children, the
average tax increase in 1996 would be $269.
District Representative
1
2
3
4
5
6
Total
Barbara B. Kennelly
Sam Gejdenson
Rosa L. Delaura
Christopher Shays
Gary A. Franks
Nancy L. Johnson
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
15,597
15,339
14,528
11,379
12,132
10.885
22
22
21
16
17
11
79,861
115
Delaware
•
The Senate EITC proposal would increase taxes for
35,468 working families in Delaware by an average
of $237 in 1996.
•
For 19,146 families with two or more children, the
average tax increase in 1996 would be $302.
District Representative
Michael N. Castle
Families
Facing EITC
Tax Increase
35,468
Tax Increase
1996-2002
(millions)
$56
District of Columbia
•
The Senate EITC proposal would increase taxes for
48,005 working families in the District of Columbia
by an average of $241 in 1996.
•
For 25,913 families with two or more children, the
average tax increase in 1996 would be $309.
District Representative
Eleanor Holmes Norton
Families
Facing EITC
Tax Increase
48,005
Tax Increase
1996-2002
(millions)
$77
Florida
•
•
The Senate EITe proposal would increase taxes for
863,418 working families in Florida by an average of
$244 in 1996.
For 466,066 families with two or more children, the
average tax increase in 1996 would be $314.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Total
Joe Scarborough
Pete Peterson
Corrine Brown
Tillie K. Fowler
Karen L. Thurman
Cliff Steams
John L. Mica
Bill McCollum
Michael Bilirakis
C.W. Bill Young
Sam Gibbons
Charles T. Canady
Dan Miller
Porter J. Goss
Dave Weldon
Mark Adam foley
Carrie P. Meek
Ileana Ros-Lehtlnen
Harry A. Johnston
Peter Deutsch
Lincoln Dlaz-Balart
E. Clay Shaw, Jr.
Alcee L. Hastings
families
facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
43,494
48,755
53,247
31,856
49,258
37,122
30,822
33,669
32,518
45,837
47,411
39,534
30,863
25,762
30,636
26,716
46,540
42,458
20,428
25,075
30,096
43,101
48,219
$70
79
86
52
80
60
50
55
53
74
77
64
50
42
50
43
75
69
33
41
49
70
78
863,418
1,398
Georgia
•
•
The Senate EITC proposal would increase taxes for
517,292 working families in Georgia by an average of
$247 in 1996.
For 279,230 families with two or more children, the
average tax increase in 1996 would be $319.
District Representative
1
2
3
4
5
6
7
8
9
10
11
Totsl
Jack Kingston
Sanford Bishop
Mac Collins
John Linder
John Lewis
Newt Gingrich
Bob Barr
Saxby Chambliss
Nathan Deal
Charlie Norwood
Cynthia A. McKinney
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
52,193
65,070
38,482
32,200
60,224
24.223
43,829
51,301
47.788
48,717
53,265
$86
107
63
53
99
40
72
84
78
80
517,292
847
11
Hawaii
•
The Senate EITC proposal would increase taxes for
37,256 working families in Hawaii by an average of
$217 in 1996.
•
For 20,110 families with two or more children, the
average tax increase in 1996 would be $269.
District Representative
1
2
Total
Neil Abercrombie
Patsy T. Mink
Families
Facing EITe
Tax Increase
Tax Increase
1996~2002
(millions)
17,614
19.641
$25
37,256
54
21
Idaho
•
The Senate EITC proposal would increase taxes for
60,481 working families in Idaho by an average of
$235 in 1996.
•
For 32,647 families with two or more children, the
average tax increase in 1996 would be $299.
District Representative
1
2
Total
Helen Chenoweth
Michael D. Crapo
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
31,076
29,405
$48
46
60,481
94
Illinois
•
The Senate EITC proposal would increase taxes for
584,258 working families in Illinois by an average of
$235 in 1996.
•
For 315,378 families with two or more children, the
average tax increase in 1996 would be $299.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Bobby L. Rush
Mel Reynolds
William O. Lipinski
Luis V. Gutierrez
Michael Patrick Flanagan
Henry J. Hyde
Cardlss Collins
Philip M. Crane
Sidney R. Yates
John Edward Porter
Jerry Weller
Jerry F. Costello
Harris W. Fawell
J. Dennis Hastert
Thomas W. Ewing
Donald Manzullo
Lane Evans
Ray laHood
Glenn Poshard
Richard J. Durbin
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
40,598
28,502
17,572
39,322
30,146
11,241
42,026
11,204
34,895
11,092
23,761
41,857
9,238
18,660
39,472
25,189
41,428
32,962
45,575
39.519
$63
44
27
61
47
18
66
17
54
17
37
65
14
29
62
39
65
51
71
62
584,258
911
Indiana
•
The Senate EITC proposal would increase taxes for
265,332 working families in Indiana by an average of
$233 in 1996.
•
For 143,224 families with two or more children, the
average tax increase in 1996 would be $295.
District Representative
1
2
3
4
5
6
7
8
9
10
Total
Peter J. Visclosky
David M. Mcintosh
Timothy J. Roemer
Mark E. Souder
Steve Buyer
Dan Burton
John T. Myers
John N. Hostettler
Lee H. Hamilton
Andrew Jacobs, Jr.
Families
Facing EITe
Tax Increase
Tax Increase
1996·2002
(millions)
22,173
30,328
24,677
22,977
26,294
15,590
26,883
32,180
28,524
35,706
$34
47
38
35
41
24
42
50
44
285,332
410
~
Iowa
•
The Senate EITC proposal would increase taxes for
109,818 working families in Iowa by an average of
$226 in 1996.
•
For 59,279 families with.two or more children, the
average tax increase in 1996 would be $284.
District Representative
1
2
3
4
5
Total
James A. Leach
Jim Nussle
Jim Lightfoot
Greg Ganske
Tom Latham
Families
FaCing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
19,806
22,550
23,525
20,345
23.592
$30
34
35
30
35
109,818
164
Kansas
•
The Senate EITe proposal would increase taxes for
109,568 working families in Kansas by an average of
$228 in 1996.
•
For 59.144 families with two or more children. the
average tax increase in 1996 would be $286.
District Representative
1
2
3
4
Total
Pat Roberts
Sam Brownback
Jan Meyers
Todd Tlahrt
Families
Facing EITe
Tax Increase
Tax Increase
1996·2002
(millions)
32,667
30,021
20,494
26,386
$49
109,588
185
45
31
40
Kentucky
•
The Senate EITe proposal would increase taxes for
217,386 working families in Kentucky by an average
of $233 in 1996.
•
For 117,343 families with two or more children, the
average tax increase in 1996 would be $296.
District Representative
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
Ed Whitfield
Ron Lewis
Mike Ward
Jim Bunning
Harold Rogers
Scotty Baesler
39,355
35,071
31,707
29,802
47,738
33,713
$61
54
49
46
74
52
217,386
336
1
2
3
4
5
6
Tota'
Louisiana
•
The Senate EITC proposal would increase taxes for
377,394 working families in Louisiana by an average
of $248 in 1996.
•
For 203,714 families with two or more children. the
average tax increase in 1996 would be $319.
District Representative
1
2
3
4
5
6
7
Total
Bob Livingston
William J. Jefferson
W.J. (Billy) Tauzin
Cleo Fields
Jim McCrery
Richard H. Baker
James A. Hayes
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
43,645
63,644
49,729
62,846
52,879
48,455
56,196
$72
104
82
103
87
80
92
377,394
619
Maine
•
The Senate EITC proposal would increase taxes for
54,607 working families in Maine by an average of
$224 in 1996.
•
For 29,477 families with two or more children, the
average tax increase in 1996 would be $280.
District Representative
1
2
Total
James B. Longley. Jr.
John Elias Baldacci
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
23,489
31,118
$35
46
54,607
81
Maryland
•
•
The Senate EITC proposal would increase taxes for
235,772 working families in Maryland by an average
of $235 in 1996.
For 127,268 families with two or more children, the
average tax increase in 1996 would be $299.
District Representative
1
2
3
4
5
6
7
8
Total
Wayne T. Gilchrest
Robert L. Ehrlich, Jr.
Benjamin L. Cardin
Albert R. Wynn
Steny H. Hoyer
Roscoe G. Bartlett
Kwelsl Mfume
Constance A. Morella
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
35,021
23,081
35,830
26,956
16,673
31,996
57,989
U2§
$55
36
56
42
26
50
90
13
235,772
367
Massachusetts
•
•
The Senate EITe proposal would increase taxes for
168,653 working families in Massachusetts by an
average of $222 in 1996•
For 91,038 families with two or more children, the
average tax increase in 1996 would be $277.
District Representative
1
2
3
4
5
6
7
8
9
10
Total
John W. Olver
Richard E. Neal
Peter I. Blute
Barney Frank
Martin T. Meehan
Peter G. Torkildsen
Edward J. Markey
Joseph P. Kennedy II
John Joseph Moakley
Gerry E. Studds
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
20,828
18,670
16,099
15,520
13,223
13,828
12,649
27,799
15,486
14.552
$31
27
24
23
19
20
19
41
23
168,853
248
2.1
Michigan
•
The Senate EITC proposal would increase taxes for
372,556 working families in Michigan by an average
of $223 in 1996.
•
For 201,102 families with two or more children, the
average tax increase in 1996 would be $279.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Total
Bart Stupak
Peter Hoekstra
Vernon J. Ehlers
Dave Camp
James A. Barcia
Fred Upton
Nick Smith
Dick Chrysler
Dale E. Klldee
David E. Bonior
Joe Knollenberg
Sander M. Levin
Lynn N. Rivers
John Conyers Jr.
Barbara-Rose Collins
John D. Dingell
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
33,206
24,041
21,500
28,346
28,476
26,714
23,556
19,464
22,546
15,706
6,985
13,797
19,274
29,624
42,530
16,792
$49
36
32
42
42
39
35
29
33
23
10
20
28
44
63
372,556
551
~
Minnesota
•
The Senate EITC proposal would increase taxes for
149,851 working families in Minnesota by an average
of $224 in 1996.
•
For 80,889 families with two or more children, the
average tax increase in 1996 would be $280.
District Representative
1
2
3
4
5
6
7
8
Total
Gil Gutknecht
David Minge
Jim Ramstad
Bruce F. Vento
Martin Olav Sabo
William P. Luther
Collin C. Peterson
James L. Oberstar
Families
Facing EITC
Tax Increase
Tax Increase
1996·2002
(millions)
19,039
18,836
11,062
19,309
25,409
10,445
23,491
22,260
$28
28
16
29
38
15
35
33
149,851
222
Mississippi
•
The Senate EITC proposal would increase taxes for
295,841 working families in Mississippi by an
average of $257 in 1996.
•
For 159,693 families with two or more children, the
average tax increase in 1996 would be $334.
District Representative
1
2
3
4
5
Total
Roger F. Wicker
Bennie G. Thompson
G.V. Montgomery
Mike Parker
Gene Taylor
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
59,242
62,999
56,602
59,943
57,055
$101
107
96
102
97
295,841
503
Missouri
•
•
District
1
2
3
4
5
6
7
8
9
Total
The Senate EITe proposal would increase taxes for
276,512 working families in Missouri by an average
of $233 in 1996.
For 149,259 families with two or more children, the
average tax increase in 1996 would be $296.
Re~resentatlve
William Clay
James M. Talent
Richard A. Gephardt
Ike Skelton
Karen McCarthy
Pat Danner
Mel Hancock
Bill Emerson
Harold L. Volkmer
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
{millions)
33,118
10,734
24,290
34,778
31,885
29,094
38,977
42,962
30.673
$51
17
38
54
49
45
60
66
276,512
428
~
Montana
•
The Senate EITC proposal would increase taxes for
44,574 working families in Montana by an average of
$228 in 1996.
•
For 24,061 families with two or more children, the
average tax increase in 1996 would be $288.
District Representative
Pat Williams
Families
Facing ElTe
Tax Increase
44.574
Tax Increase
1996-2002
(millions)
$67
Nebraska
•
•
District
1
2
3
Total
The Senate EITC proposal would increase taxes for
72,451 working families in Nebraska by an average
of $230 in 1996.
For 39,108 families with two or more children, the
average tax increase in 1996 would be $290.
Re~resentatlve
Doug Bereuter
Jon Christensen
Bill Barrett
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions}
24,471
19,986
27,994
$37
30
43
72,451
110
Nevada
•
The Senate EITC proposal would increase taxes for
78,518 working families in Nevada by an average of
$232 in 1996.
•
For 42,384 families with two or more children, the
average tax increase in 1996 would be $294.
District Representative
1
2
Total
John E. Ensign
Barbara F. Vucanovich
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
42,405
36,113
$65
56
78,518
121
New Hampshire
•
The Senate EITC proposal would increase taxes for
37,909 working families in New Hampshire by an
average of $226 in 1996•
•
For 20,463 families with two or more children, the
average tax increase in 1996 would be $284.
District Representative
1
2
Total
Bill Zell"
Charles F. Bass
Families
Facing Elle
Tax Increase
lax Increase
1996-2002
(millions)
18,948
18.960
$28
37,909
57
2..8
New Jersey
•
The Senate EITe proposal would increase taxes for
350,656 working families in New Jersey by an
average of $235 in 1996.
•
For 189,281 families with two or more children, the
average tax increase in 1996 would be $299.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
Total
Robert E. Andrews
Frank A. LoBiondo
Jim Saxton
Christopher H. Smith
Marge Roukema
Frank Pallone Jr.
Bob Franks
William J. Martini
Robert G. Torricelli
Donald M. Payne
Rodney P. Frellnghuysen
Dick Zimmer
Robert Menendez
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
35,800
40,016
19,470
30,760
10,868
23,556
9,664
28,064
26,843
53,247
7,939
9,923
54.506
$56
62
30
48
17
37
15
350,656
546
44
42
83
12
15
85
New Mexico
•
The Senate EITC proposal would increase taxes for
126,688 working families in New Mexico by an
average of $237 in 1996.
•
For 68,385 families with two or more children, the
average tax increase in 1996 would be $302.
District Representative
1
2
3
Total
Steven H. Schiff
Joe Skeen
Bill Richardson
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
~,224
$63
71
41,633
~
128,688
199
39,831
New York
•
•
The Senate EITe proposal would increase taxes for
848,073 working families in New York by an average
of $233 in 1996.
For 457,783 families with two or more children, the
average tax increase in 1996 would be $295.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Total
Michael P. Forbes
Rick A. Lazlo
Peter T. King
Daniel Frisa
Gary L. Ackerman
Floyd H. Flake
Thomas J. Manton
Jerrold Nadler
Charles E. Schumer
Edolphus Towns
Major R. Owens
Nydia M. Ve"zquez
Susan Molinari
Carolyn B. Maloney
Charles B. Rangel
Jos6 E. Serrano
Eliot L. Engel
Nita M. Lowey
Sue W. Kelly
Benjamin A. Gilman
Michael R. McNulty
Gerald B. H. Solomon
Sherwood L. Boehlert
John M. McHugh
James T. Walsh
Maurice D. Hinchey
Bill Paxon
Louise M. Slaughter
John J. laFalce
Jack Quinn
Amo Houghton
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
12,288
7,612
2,355
5,337
9,140
18,419
31,972
39,665
24,622
41,990
38,139
44,357
21,068
29,456
51,277
54,811
36,667
14,546
10,686
12,139
29,219
24,324
34,583
36,595
29,489
30,449
22,436
28,438
32,452
35,819
37,721
$19
12
4
8
14
28
49
61
38
65
59
68
33
45
79
85
57
22
16
19
45
38
53
56
46
47
35
44
50
55
58
848,073
1,309
North Carolina
•
The Senate EITC proposal would increase taxes for
508,628 working families in North Carolina by an
average of $245 in 1996.
•
For 274,553 families with two or more children, the
average tax increase in 1996 would be $315.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
Totsl
Eva Clayton
David Funderburk
Walter B. Jones, Jr.
Fred Heineman
Richard Burr
Howard Coble
Charlie Rose
W.G. Hefner
Sue Myrick
Cass Ballenger
Charles H. Taylor
Melvin L. Watt
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
57,416
40,548
46,116
33,819
45,759
35,070
42,879
41,310
28,806
38,123
47,455
51.326
$93
66
75
55
74
57
70
67
47
62
77
83
508,628
826
North Dakota
•
The Senate EITe proposal would increase taxes for
26,521 working families in North Dakota by an
average of $228 in 1996.
•
For 14,316 families with two or more children, the
average tax increase in 1996 would be $287.
District Representative
Earl Pomeroy
Families
Facing EITe
Tax Increase
26,521
Tax Increase
1996-2002
(millions)
$40
Ohio
•
•
The Senate EITC proposal would increase taxes for
471,341 working families in Ohio by an average of
$227 in 1996 .
For 254,426 families with two or more children, the
average tax increase in 1996 would be $286.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Total
Steve Chabot
Rob Portman
Tony P. Hall
Michael G. Oxley
Paul E. Gillmor
Frank A. Cremeans
David L. Hobson
John A. Boehner
Marcy Kaptur
Martin R. Hoke
Louis Stokes
John R. Kaslch
Sherrod Brown
Thomas C. Sawyer
Deborah Pryce
Ralph Regula
James A. Traficant, Jr.
Robert W. Ney
Steven C. laTourette
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
31,349
18,696
24,698
25,352
21,291
33,667
22,219
21,016
25,096
23,006
33,794
25,236
16,265
25,390
24,674
24,510
27,195
31,973
15.914
$47
28
37
38
32
51
33
32
38
35
51
38
25
38
37
37
41
48
471,341
710
~
Oklahoma
•
The Senate EITe proposal would increase taxes for
202,241 working families in Oklahoma by an average
of $235 in 1996.
•
For 109,168 families with two or more children, the
average tax increase in 1996 would be $299.
District
1
2
3
4
5
6
Tota'
Representativ~ . - - - - -
Steve La rgent
TomA. Coburn
Bill K. Brewster
J.C. WaHs, Jr.
Ernest J. Istook, Jr.
Frank D. Lucas
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
30,437
35,983
40,187
30,966
28,644
36,025
$47
202,241
315
56
63
48
45
56
Oregon
•
The Senate EITe proposal would increase taxes for
144,128 working families in Oregon by an average of
$233 in 1996.
•
For 77,799 families with two or more children, the
average tax increase in 1996 would be $295.
District Representative
1
2
3
4
5
Total
Elizabeth Furse
Wes Cooley
Ron Wyden
Peter A. DeFazio
Jim Bunn
Families
Facing EIIC
Tax Increase
lax Increase
1996-2002
(millions)
23,367
32,423
30,335
32,511
25.493
$36
50
47
50
39
144,128
222
Pennsylvania
•
•
The Senate EITC proposal would increase taxes for
462,314 working families in Pennsylvania by an
average of $225 in 1996.
For 249,553 families with two or more children, the
average tax increase in 1996 would be $283.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Total
Thomas M. Foglietta
Chaka Fattah
Robert A. Borski
Ron Klink
William F. Clinger, Jr.
Tim Holden
Curt Weldon
James C. Greenwood
Bud Shuster
Joseph M. McDade
Paul E. Kanjorskl
John P. Murtha
Jon D. Fox
William J. Coyne
Paul McHale
Robert S. Walker
George W. Gekas
Michael F. Doyle
William F. Goodling
Frank Mascara
Phil English
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
32,460
29,455
20,961
23,774
29,025
22,031
9,187
8,559
28,458
25,604
26,963
30,281
7,474
29,402
16,899
13,119
19,153
21,755
17,580
24,592
25.583
$48
462,314
691
44
31
36
43
33
14
13
43
38
40
45
11
44
25
20
29
32
26
37
38
Rhode Island
•
•
The Senate EITC proposal would increase taxes for
37,532 working families in Rhode Island by an
average of $230 in 1996.
For 20,260 families with two or more children, the
average tax increase in 1996 would be $290.
District Representative
1
2
Total
Patrick J. Kennedy
Jack Reed
Families
Facing EITe
Tax Increase
Tax Increase
19,575
17.957
$30
Z1
37,532
57
1996-2002
(millions)
South Carolina
•
The Senate EITC proposal would increase taxes for
293,588 working families in South Carolina by an
average of $249 in 1996.
•
For 158,477 families with two or more children, the
average tax increase in 1996 would be $322.
District Representative
1
2
3
4
5
6
Total
Marshall (Mark) Sanford
Floyd Spence
Lindsey O. Graham
Bob Inglis
John M. Spratt, Jr.
James E. Clyburn
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
48,814
43,558
47,805
45,914
48,245
59.252
$81
72
79
76
80
98
293,588
485
South Dakota
•
The Senate EITC proposal would increase taxes for
36,641 working families in South Dakota by an
average of $232 in 1996.
•
For 19,779 families with two or more children, the
average tax increase in 1996 would be $294.
District Representative
Tim Johnson
Families
Facing EITe
Tax Increase
36,641
Tax Increase
1996-2002
(millions)
$56
Tennessee
•
The Senate EITC proposal would increase taxes for
358,464 working families in Tennessee by an
average of $240 in 1996.
•
For 193,496 families with two or more children, the
average tax increase in 1996 would be $307.
District Representative
1
2
3
.
5
6
7
8
9
Tots'
James H. Quillen
John J. Duncan, Jr.
Zach Wamp
Van Hilleary
Bob Clement
Bart Gordon
Ed Bryant
John S. Tanner
Harold E. Ford
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
44,889
39,866
39,513
"6,370
37,-'56
32,012
32,870
"1,663
"3,826
571
63
63
7"
60
51
52
66
358,464
570
10
Texas
•
•
The Senate EITe proposal would increase taxes for
1,451,419 working families in Texas by an average of
$245 in 1996.
For 783,464 families with two or more children, the
average tax increase in 1996 would be $316.
District Representative
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Total
Jim Chapman
Charles Wilson
Sam Johnson
Ralph M. Hall
John Bryant
Joe Barton
Bill Archer
Jack Fields
Steve Stockman
Lloyd Doggett
Chet Edwards
Pete Geren
William M. (Mac) Thornberry
Greg Laughlin
E (Kika) de la Garza
Ronald D. Coleman
Charles W. Stenholm
Sheila Jackson-Lee
larry Combest
Henry B. Gonzalez
Lamar S. Smith
Tom Delay
Henry Bonilla
Martin Frost
Ken Bentsen
Richard K. Armey
Solomon P. Ortiz
Frank Tejeda
Gene Green
Eddie Bernice Johnson
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
57,876
56,829
20,127
46,818
55,085
25,932
28,913
36,957
44,278
60,067
57,503
46,365
62,664
51,620
55,590
49,392
58,329
61,381
48,714
56,828
37,197
27,872
51,996
46,100
46,447
31,305
51,385
55,727
58,640
63,482
$94
92
33
76
90
42
47
60
72
98
94
75
102
84
90
80
95
100
79
92
61
45
85
75
76
51
84
91
95
103
1,451,419
2,361
Utah
•
The Senate EITe proposal would increase taxes for
80,257 working families in Utah by an average of
$234 in 1996.
•
For 43,322 families with two or more children, the
average tax increase in 1996 would be $297.
District Representative
1
2
3
Totsl
James V. Hansen
Enid G. Waldholtz
Bill Orton
Families
Facing EITe
Tax Increase
Tax Increase
23,559
27,129
29,569
$37
80,257
125
1996-2002
(millions)
42
~
Vermont
•
The Senate EITe proposal would increase taxes for
23,791 working families in Vermont by an average of
$221 in 1996 .
•
For 12,842 families with two or more children, the
average tax increase in 1996 would be $275.
District Representative
Bernard Sanders
Families
Facing EITe
Tax Increase
23,791
Tax Increase
1996-2002
(millions)
$35
Virginia
•
The Senate EITe proposal would increase taxes for
319,789 working families in Virginia by an average of
$240 in 1996•
•
For 172,620 families with two or more children, the
average tax increase in 1996 would be $307.
District Representative
1
2
3
4
5
6
7
8
9
10
11
Total
Herbert H. Bateman
Owen B. Pickett
Robert C. Scott
Norman Sisisky
Lewis F. Payne, Jr.
Bob Goodlatte
Thomas J. BUley, Jr.
James P. Moran
Rick Boucher
Frank R. Wolf
Thomas M. Davis
Families
Facing EITC
Tax Increase
Tax Increase
1996-2002
(millions)
26,425
30,257
46,229
29,582
37,932
34,734
22,618
18,108
46,421
16,341
11,143
$42
48
74
47
60
55
36
29
74
26
18
319,789
509
Washington
•
•
The Senate EITC proposal would increase taxes for
210,948 working families in Washington by an
average of $227 in 1996.
For 113,868 families with two or more children, the
average tax increase in 1996 would be $285.
District Representative
1
2
3
4
5
6
7
8
9
Total
Rick White
Jack Metcalf
Linda Smith
Richard (Doc) Hastings
George R. Nethercutt, Jr.
Norman D. Dicks
Jim McDermott
Jennifer Dunn
Randy Tate
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
13,025
21,790
25,276
29,663
31,191
26,737
29,976
11,608
21,682
$20
33
38
45
47
40
45
17
33
210,948
317
West Virginia
•
The Senate EITC proposal would increase taxes for
95,270 working families in West Virginia by an
average of $231 in 1996.
•
For 51,426 families with two or more children, the
average tax increase in 1996 would be $292.
District Representative
1
2
3
Totsl
Alan B. Mollohan
Robert E. Wise, Jr.
Nick J. Rahalill
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions)
30,276
30,094
34,899
$46
46
95,270
148
~
Wisconsin
•
The Senate EITC proposal would increase taxes for
178,656 working families in Wisconsin by an average
of $227 in 1996 .
•
For 96,437 families with two or more children, the
average tax increase in 1996 would b~ $286.
District Representative
1
2
3
4
5
6
7
8
9
Tota'
Mark W. Neumann
Scott L. Klug
Steve Gunderson
Gerald D. Kleczka
Thomas M. Barrett
Thomas E. Petri
David R. Obey
Toby Roth
F. James Sensenbrenner, Jr.
Families
Facing EITe
Tax Increase
Tax Increase
1996-2002
(millions,
17,442
20,204
23,309
16,706
25,224
19,998
23,759
20,963
11,050
$26
30
35
25
38
30
36
32
178,656
269
11
Wyoming
•
The Senate EITC proposal would increase taxes for
22,938 working families in Wyoming by an average
of $229 in 1996.
•
For 12,382 families with two or more children, the
average tax increase in 1996 would be $288.
District Representative
Barbara Cubln
Facing EITC
Tax Increase
22.938
1996-2002
(millions)
$35
DEPARTMENT
OF
THE
TREASURY
NEWS
FOR IMMEDIATE RELEASE
June 15, 1995
Contact: Scott Dykema
(202) 622-2960
SENATE BUDGET PLAN TO HIKE TAXES $25 BILLION, STUDY SAYS
The Senate budget package now before Congress will raise taxes on some 14
million working Americans by over $25 billion during the next seven years, according to
a Treasury Department analysis.
The study -- on the impact of the tax hike on working families -- found that
thousands of families in every congressional district in America would get a tax increase
under the Senate budget.
The fiscal 1996 Senate budget plan increases taxes an average of $239 a year for
14.4 million families beginning in 1996 by reducing the Earned Income Tax Credit
(EITC). One in six, or 21.1 million, American taxpayers will benefit in 1996 from the
current program, which is designed to bolster the incomes of families moving off welfare
to work.
"As the President emphasized Tuesday night, this administration has made and
continues to make deficit reduction a major priority. But there are good ways and bad
ways to achieve this goal," said Treasury Secretary Robert Rubin in releasing the study.
"It is a bad idea to increase taxes on lower-income working families as a means
for reducing the deficit. We should support the EITC, a tax incentive for workers who
choose work over welfare," Rubin said.
The Senate budget resolution is now being considered by a conference committee
with the House.
Some 66,000 families in California's 30th congressional district -- the largest
number in the nation -- would see their taxes rise by $107 million over the next seven
years, according to the study. In Georgia's 2nd congressional district, more than 65,000
(more)
RR-376
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
-2-
families -- the second largest number in the nation -- also face a $107 million tax hike
over the next seven years.
On average, families in Mississippi would face the largest tax increase of $257 a
year -- $334 for a family with two children -- under the Senate plan. One in three
Mississippians claim the credit on their tax returns. Most of those claiming the credit
would see it reduced under the Senate budget resolution.
In California, the average tax hike would be $245 a year and $315 for a family
with two children. One in five Californians claim the credit and most beneficiaries
would face a cutback.
In Georgia, the average tax increase would be $247 a year and $319 for twochildren families. One in four Georgia families claim the credit and most beneficiaries
face a reduction.
Copies of the study, "Tax Increases on Working Families Based on EITC Changes
in the Senate Budget Resolution," are available by writing the U.S. Treasury Department,
Office of Public Affairs, Room 2315, Washington D.C. 20220 or by calling (202) 6222960.
-30-
Summary Of
Tax Increases on Working Families
From EITC Changes in Senate Budget Proposal
State
Total
Taxpayers
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
1,843,423
367,041
1,787,719
1,042,023
13,843,278
1,768,212
1,626,131
346,447
303,041
6,579,108
3,165,840
582,326
490,502
5,559,656
2,669,304
1,315,837
1,161,032
1,622,651
1,779,992
574,525
2,415,690
2,915,119
4,337,705
2,158,377
1,106,636
2,390,955
393,629
- Number of taxpayers based on 1996 estimates.
EITC Families
Share of
State
Number Taxpayers
534,986
26,888
372,132
282,412
2,996,867
241,802
117,018
51,971
70,341
1,265,147
757,977
54,590
88,621
856,101
388,785
160,913
160,548
318,531
552,987
80,015
345,471
247,124
545,898
219,574
433,490
405,168
65,313
29.0%
7.3%
20.8%
27.1%
21.6%
13.7%
7.2%
15.0%
23.2%
19.2%
23.9%
9.4%
18.1%
15.4%
14.6%
12.2%
13.8%
19.6%
31.1%
13.9%
14.3%
8.5%
12.6%
10.2%
39.2%
16.9%
16.6%
EITC Families Facing
Tax Increase
Share of
State
Number Taxpayers
365,109
18,350
253,967
192,736
2,045,255
165,022
79,861
35,468
48,005
863,418
517,292
37,256
60,481
584,258
265,332
109,818
109,568
217,386
377,394
54,607
235,772
168,653
372,556
149,851
295,841
276,512
44,574
19.8%
5.0%
14.2%
18.5%
14.8%
9.3%
4.9%
10.2%
15.8%
13.1%
16.3%
6.4%
12.3%
10.5%
9.9%
8.3%
9.4%
13.4%
21.2%
9.5%
9.8%
5.8%
8.6%
6.9%
26.7%
11.6%
11.3%
Amount per Taxpayer
1996
Tax Increase
1996·2002
(millions)
All
Families
Two-Child
Families
$618
$25
$408
$312
$3,319
$254
$115
$56
$77
$1,398
$847
$54
$94
$911
$410
$164
$165
$336
$619
$81
$367
$248
$551
$222
$503
$428
$67
$256
$203
$242
$244
$245
$233
$217
$237
$241
$244
$247
$217
$235
$235
$233
$226
$228
$233
$248
$224
$235
$222
$223
$224
$257
$233
$228
$332
$246
$310
$313
$315
$294
$269
$302
$309
$314
$31P
$269
$299
$299
$295
$284
$286
. $296
$319
$280
$299
$277
$279
$280
$334
$296
$288
Summary Of
Tax Increases on Working Families
From EITC Changes in Senate Budget Proposal
State
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Total
Total
Taxpayers
EITC Families
Share of
State
Number Tax~a~ers
775,845
716,405
561,933
3,937,360
731,953
8,215,013
3,314,855
297,173
5,342,292
1,391,750
1,421,446
5,632,574
467,738
1,656,009
336,001
2,360,257
8,079,880
782,979
276,843
3,079,147
2,514,672
728,169
2,402,575
224,241
106,161
115,051
55,547
513,808
185,634
1,242,663
745,281
38,861
690,646
296,340
211,188
677,419
54,995
430,188
53,689
525,250
2,126,732
117,598
34,860
468,580
309,097
139,597
261,780
33,611
13.7%
16.1%
9.9%
13.0%
25.4%
15.1%
22.5%
13.1%
12.9%
21.3%
14.9%
12.0%
11.8%
26.0%
16.0%
22.3%
26.3%
15.0%
12.6%
15.2%
12.3%
19.2%
10.9%
15.0%
120,500,000
21,100,000
17.5%
- Number of taxpayers based on 1996 estimates.
EITC Families Facing
Tax Increase
Share of
State
Number Tax~a~ers
Amount per Taxpayer
1996
Tax Increase
1996-2002
(millions)
All
Families
Two-Child
Families
350,656
126,688
848,073
508,628
26,521
471,341
202,241
144,128
462,314
37,532
293,588
36,641
358,464
1,451,419
80,257
23,791
319,789
210,948
95,270
178,656
22,938
9.3%
11.0%
6.7%
8.9%
17.3%
10.3%
15.3%
8.9%
8.8%
14.5%
10.1%
8.2%
8.0%
17.7%
10.9%
15.2%
18.0%
10.3%
8.6%
10.4%
8.4%
13.1%
7.4%
10.2%
$110
$121
$57
$546
$199
$1,309
$826
$40
$710
$315
$222
$691
$57
$485
$56
$570
$2,361
$125
$35
$509
$317
$146
$269
535
$230
$232
$226
$235
$237
$233
$245
$228
$227
$235
$233
$225
$230
$249
$232
$240
$245
$234
$221
$240
$227
$231
$227
1m
$290
$294
$284
$299
$302
$295
$315
$287
$286
$299
$295
$283
$290
$322
$294
$307
$316
$297
$275
$307
$285
$292
$286
5288.
14,400,000
12.0%
$22,782
$239
$305
72,451
78,518
~7,909
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'.-
I
-
PENSIONS
PRESIDENT BILL CLINTON
VICE PRESIDENT AL GORE
> -
•
JUNE
u
1995
-
TABLE OF CONTENTS
OVERVIEW
Introduction
Highlights of the High Priority Actions
Offer the "National Employee Savings Trust" - NEST - A
simplified pension plan for small businesses
Provide a simplified, design-based alternative for 401 (k) defined
contribution plans, for all employers
Repeal the family aggregation rule and the combined limits on
contributions and benefits for those with multiple plans, and
eliminate or simplify other unnecessary or overlapping
requirements
Streamline Form 5500 reporting for all pension plans
Simplify and expedite the prohibited transaction exemption
process
Expand the Pension Benefit Guaranty Corporation's missing
participant program to enable more of those promised a
pension to get it, even if their company goes out of
business
7
HIGH PRIORITY ACTIONS
8
SIMPLIFY PENSION PLANS FOR SMALL BUSINESS
1.
The NEST -- A Simplified Plan for Small Business
2.
Repeal the Family Aggregation Rule
3.
Eliminate Special Restrictions on Plans Maintained by the
Self-Employed
4.
Simplify Substantial Owner Rules Relating to Plan
Terminations
IMPROVE AND EXPAND 401 (k) PLANS
5.
Eliminate Uncertainty and Monitoring of Contributions
Through Design-Based Safe Harbors
6.
Facilitate Testing by Using Prior Year Data
7.
Improve Fairness of Corrective Distribution Rules
8.
Permit Tax-Exempt Organizations to Maintain 401 (k) Plans
9.
Conform 401 (k) Distribution Rules for Rural Cooperatives
Simplifying Pensions
1
1
3
3
5
5
6
6
8
8
10
11
12
13
13
15
16
17
18
SIMPLIFY PENSION RULES
10.
Eliminate Excessive Testing By Simplifying the Definition of
"Highly Compensated Employee"
11.
Exempt Defined Contribution Plans from the Minimum
Participation Rule
12.
Eliminate Special Vesting Schedule for Multiemployer Plans
13.
Allow Triennial Actuarial Valuations for Multiemployer Plans
14.
Eliminate Partial Termination Rules for Multiemployer Plans
15.
Eliminate the Combined Plan Limit on Contributions and
Benefits (Section 415(e))
16.
Simplify Contributions and Benefits Limits for Governmental
Plans and Multiemployer Plans
17.
Allow Tax-exempt Organizations to Provide Excess Benefit
Plans
Simplify Deduction Rules for Multiemployer Plans
18.
19.
Repeal Rule Requiring Employer Plans to Commence
Minimum Distributions Before Retirement
20.
Simplify Taxation of Annuity Distributions
19
19
21
22
23
24
25
27
28
29
30
31
IMPROVE ADMINISTRATION OF PROHIBITED TRANSACTION RULES
21 .
Simplify Prohibited Transaction Exemption Procedures
22.
Simplify Prohibited Transaction Exemptions for SelfDirected ERISA Plans
32
32
STREAMLINE PENSION PLAN REPORTING AND DISCLOSURE
23.
Streamline ERISA Annual Report (Form 5500 Series)
24.
Provide Uniform Information Reporting Penalties
25.
Simplify ERISA Advance Notice of Benefit Reductions
26.
Streamline the ERISA Summary Plan Description Filing
Requirements
34
34
36
37
38
PREVENT LOSS OF BENEFITS
27.
Expand PBGC's Missing Participant Program
39
39
OTHER PROPOSALS
28.
Miscellaneous Simplification Provisions
Elimination of Half-Year Requirements
Provide Consistent Treatment for Disabled Employees
Eliminate Unintended Cost of Reversions for Government
Contractors
Allow IRS to Determine Church Plan Status Under ERISA
Extend Date for Adoption of Plan Amendments
Simplifying Pensions
33
40
40
40
40
40
41
42
ii
OVERVIEW
The most important job of our government in this new
era is to empower the American people to succeed in
the global economy. We've got to have a government
that can be a real partner in making this new economy
work for all of our people. We ought to foster more
savings and personal responsibility.
II
II
President Clinton -- January 24, 1995
Introduction
In the twenty years since Congress enacted the Employee Retirement Income
Security Act of 1974 (ERISA) to protect the pension promises made to employees, the
pension laws and regulations have become extremely complicated. There are many
reasons: the desire of employers to have a high degree of flexibility in designing plans
that best suit their work force; policy decisions to try to ensure that all employees
receive similar tax and savings benefits from retirement plans as are available to
highly compensated employees and business owners; the need to prevent specific
tax-shelter abuses; and limitations on pension accumulations to raise revenue.
While each of these may be good causes, and the private sector pension system has
been greatly strengthened as a result of ERISA, the cumulative result -- together with
virtually annual legislative changes -- had been to raise compliance and
administrative costs to a level where many small employers, in particular, feel they
cannot offer retirement plans to their employees. For example, while 73% of full-time
workers in private firms with 1000 or more workers were covered by retirement plans
in 1993, only 24% of those in firms with fewer than 100 employees were covered.
It is time to cut through complex rules that are outmoded, redundant, or no longer
necessary to achieve policy goals. With these changes, more employers, both large
and small, can make the smart decision: to provide their employees with a simple,
tax-advantaged way to save for retirement. And, by reducing administrative
expenses, more of the money spent by employers to maintain pension plans can go to
benefits, rather than to lawyers, accountants, consultants and actuaries.
Simplifying Pensions
1
We can do this without opening the system to abuses or breaking the bank:
•
We can tell employers with 401 (k) plans that if they make a meaningful
contribution on behalf of each employee, or provide a smaller
contribution plus a significant match, we'll give them a safe harbor from
antidiscrimination testing that is so complex and expensive that the
federal government exempted its own pension plan from the
requirements.
•
We can make life even simpler for the smallest employers -- those with
100 or fewer employees. We can let them combine the advantages of
both IRAs and 401 (k) plans to provide a new, simple plan -- we call it
the National Employee Savings Trust or NEST -- where no
discrimination testing is required, there are simple limits on contributions,
and employees manage their own accounts.
•
We can stop treating family employees like mere appendages of a
business owner, letting wives and husbands, and sons and daughters
who work hard in family businesses earn pension benefits of their own.
•
We can turn the seven-part definition of "highly compensated employee"
into a two-part definition that's so easy an employer could figure it out
without a lawyer or accountant.
•
We can get rid of a limit on contributions and benefits for employees who
have two types of plans with the same employer, leaving in place a
simpler rule enacted in 1986 to replace it. The limit is so complicated
that virtually no one computes it correctly.
•
We can reduce the application to defined contribution plans of rules
meant primarily for defined benefit plans. And we can reduce the
application to multiemployer plans of rules meant primarily for single
employer plans.
•
We can give employees of tax-exempt organizations the opportunity to
participate in the 401 (k) defined contribution plans available to other
employers.
•
We can make sure that all participants in pension plans will get the
ben~fits they have earned when their retire, even if their employer
terminates the plan -- or even goes out of business -- and the
employee has years to retirement.
Simplifying Pensions
2
•
We can repeal a provision of ERISA that requires employers to send us
copies of plan documents we simply warehouse -- only to have us ask
them for another copy when an employee asks us for one!
These changes, and most of the other proposals in this report will require legislation.
However, over the years there has been strong bipartisan support in Congress for
pension simplification, and we are hopeful that our sensible, cost-effective proposal will
be adopted.
But there is simplification that we can do administratively too:
•
We can significantly simplify both the content and the means of filing the
annual report that pension and health and welfare plans file with the
government to enable us to check compliance with the law.
•
We can make it much easier for plans to get permission to enter into
transactions that are in the best interest of the plan but that technically
are prohibited transactions.
•
We can make certain that employers don't have to send employees
duplicative notices or notices of plan changes that don't affect them.
Increasing the retirement income security of American workers is important, and
increasing retirement plan coverage and benefits is a logical and effective way for the
public and private sectors to work together with individual workers to achieve this goal.
The package we are presenting today is a cost-effective beginning. We intend to
continue to work with all concerned parties and with the Congress to ensure greater
simplification of our pension system and greater retirement income security for all
American workers.
Highlights of the High Priority Actions
Although this report proposes 28 High Priority Actions for pension simplification, six of
these actions are of particular importance in achieving the goals of simplification.
•
Offer the "National Employee Savings Trust" - NEST - A simplified pension
plan for small businesses
Small businesses are least able to deal with the complexity of current law, and
their employees are the least likely to be covered by a retirement plan today.
Therefore, we propose a new, simple retirement plan for employers with 100 or
fewer employees. As many as 15 million workers who have no employer
Simplifying Pensions
3
retirement plan could become eligible for the new plan, which would be known
as the National Employee Savings Trust, or "NEST."
The NEST would operate through individual IRA accounts for employees, and
would incorporate the most attractive features of .the 401 (k) plan, the fastest
growing employer retirement plan in America today. By eliminating or greatly
simplifying many of the rules that apply to other qualified retirement plans,
including 401 (k)s, the NEST would remove the key obstacles that currently
deter many small employers from setting up retirement plans.
For example, for purposes of the NEST, this proposal would eliminate:
•
the special nondiscrimination test that applies to employees' 401 (k)
salary reduction contributions;
•
the special nondiscrimination test that applies to an employer's matching
contributions;
•
the top-heavy rules;
•
the limit on profit-sharing plan deductions; and
•
employers' reporting requirements.
The proposal would simplify:
•
the limits on contributions;
•
the rules governing employees' eligibility to participate; and
•
employers' disclosure requirements.
A NEST could provide for employer contributions and for 401 (k)-type taxfavored employee contributions by salary reduction. And employers could use
their contributions to encourage each of their employees to contribute by
offering to "match" employees' salary reduction contributions dollar-for-dollar
for the first 3% of employee compensation and at least 50 cents on each
contributed dollar for the next 2% of employee compensation. All NEST
contributions would be made to an IRA established for each participating
employee, and employers would contribute according to either of two "safe
harbor" formulas.
Simplifying Pensions
4
•
Provide a simplified, design-based alternative for 401 (k) defined
contribution plans, for all employers
The 401 (k) plan generally allows employees to contribute toward their
retirement savings on a tax-favored, salary reduction basis. These plans often
provide for the employer to make contributions that "match" the employee
contributions. Yet in order to ensure that lower paid workers get reasonable
contributions compared to those received by the highly paid, extensive and
often costly nondiscrimination tests apply.
We propose two important simplifications to the complex nondiscrimination tests
that apply to 401 (k) plans. In addition, we would allow employers (regardless of
size) that sponsor 401 (k) plans to avoid the nondiscrimination tests altogether
by making the same type of safe harbor contributions that would apply to the
NEST.
•
Repeal the famify aggregation rule and the combined limits on
contributions and benefits for those with multiple plans, and eliminate or
simplify other unnecessary or overlapping requirements
Repeal the family aggregation rule. We propose to repeal the so-called family
aggregation rule. Currently. multiple family members employed by the same
firm are penalized if one of them either owns 5% or more of the firm, or is one
of the ten highest paid employees. This unfairly prevents the family members
from receiving the full retirement benefits they could have if they were unrelated
employees. In addition, the family aggregation rule greatly complicates
nondiscrimination testing, particularly for family-owned or operated businesses.
Repeal the combined limit. We propose to repeal the excessively complex
"combined limit" that currently applies to an employee's contributions and
benefits when an employee participates in both a defined contribution plan and
a defined benefit plan of the same employer. The calculation of this limit -often referred to as section 415(e) of the Internal Revenue Code -- is
exceedingly cumbersome. It requires information concerning a plan
participant's entire work history. and it is commonly performed incorrectly. The
goals of the combined limit are already adequately met by an excise tax
enacted by Congress in 1986.
Simplify the definition of "highly compensated employee" to ease plan
administration. We also propose to simplify radically the definition of "highly
compensated employee." Virtually every nondiscrimination test for penSion
plans (and health and welfare plans) involves identifying the employer's highly
compensated employees. This term is currently defined by reference to a
Simplifying Pensions
5
complicated seven-part test that considers pay for bot~ the c.urrent and
preceding year. In addition, this test classifies many mlddle.-I.ncome worke~s. as
"highly compensated employees" who are, as a result, prohibited from receiving
better benefits.
Our proposal replaces the seven-part test with a simple two-part test: a highly
compensated employee would be anyone who either owns more than 5% of an
employer or is paid more than $80,000, based on pay in the prior year. The
$80,000 threshold would save many middle-income Americans from being
disadvantaged by nondiscrimination rules that were originally meant to help
them.
Exempt defined contribution plans from the minimum participation requirement.
Every qualified defined benefit plan and defined contribution plan currently must
cover at least 50 employees or, in smaller companies, 40% of all employees of
the employer. This minimum participation rule was generally intended to
prevent the use of individual defined benefit plans to give high paid employees
better benefits than those provided to others under a separate plan. Because
the abuses addressed by the rule are unlikely to arise in the context of defined
contribution plans, the rule adds unnecessary administrative burden and
complexity for those plans. We would repeal the requirement for defined
contribution plans.
•
Streamline Form 5500 reporting for all pension plans
Each year, over 750,000 pension and welfare benefit plans are required to file
the Form 5500 with the Internal Revenue Service (IRS). The form provides
detailed information concerning a plan's financial condition, funding, investments
and operations, and allows the pension enforcement agencies to evaluate
compliance with the complex pension rules. The form is filed and processed as
if it were a tax return, although it is an annual information report. In accordance
with a National Performance Review (NPR) recommendation, we propose to
significantly simplify and shorten the form and to develop software that will allow
plans to file the form electronically, using a self-editing program. The new form
will be available for public comment before the end of 1995 and completed
early in 1996. The revised filing system will be implemented for 1996 plan
years, for which returns must be filed in July 1997.
•
Simplify and expedite the prohibited transaction exemption process
A "prohibited transaction" is generally any transaction between a plan and a
person who is considered a "party in interest" or a "disqualified person."
Prohibited transactions may trigger an excise tax and civil and criminal liability.
Simplifying Pensions
6
On the other hand, many transactions that are technically prohibited are
inconsequential or are completely consistent with a plan fiduciary's
responsibilities to participants, and so the Department of Labor (DOL) grants
exemptions in most cases. However, the current DOL process, which treats
each requested exemption as unique and entitled to all statutory procedural
protections, can take up to two years. We would, administratively, guarantee a
DOL response within 45 days for transactions DOL determined to be
substantially similar to exemptions previously granted to the same or other
plans. In addition, we would simplify the process for exempting another class
of prohibited transactions -- involving self-directed accounts -- that both the
IRS and DOL currently must act on, by designating DOL the primary decisionmaker and limiting the time within which the IRS must object or concur.
•
Expand the Pension Benefit Guaranty Corporation's missing participant
program to enable more of those promised a pension to get it, even if
their company goes out of business
Under the Retirement Protection Act, enacted in December, employers who are
terminating defined benefit plans guaranteed by the PBGC must register
"missing" participants -- participants the plan sponsor cannot locate, who have
often left the company's employment years earlier -- with the PBGC and either
transfer funds to the PBGC or purchase annuities for these participants.
Previously missing participants who learn of a plan's termination can then
contact the PBGC rather than having to trace the funds of an often-defunct
employer. In addition, the PBGC has developed a fairly effective system for
tracing such participants and providing them benefits. We propose to expand
this program to defined benefit plans (other than governmental plans) that are
not guaranteed by the PBGC and to defined contribution plans.
Simplifying Pensions
7
HIGH PRIORITY ACTIONS
SIMPLIFY PENSION PLANS FOR SMALL BUSINESS
1. The NEST -- A Simplified Plan for Small Business
Action: Create a new, simple retirement savings plan targeted to small employers and
deSigned to encourage coverage of all employees. The new plan would be known as
the National Employee Savings Trust ("NEST").
Background: The administrative cost and complexity associated with traditional
qualified retirement plans often discourage small employers from sponsoring these
plans. For employers with few employees, the cost of maintaining the plan may even
exceed the benefits provided to employees. As a result, pension coverage of
employees of small employers is significantly lower than the pension coverage of
employees of larger employers. Existing plans designed for small employers are
generally perceived as overly complicated and impractical. Where these plans are
used, there is significant noncompliance with the statutory requirements.
Description: A NEST is a tax-favored retirement savings plan designed to provide
small employers with a simple, cost-effective means of providing a retirement plan for
their employees. It achieves these goals primarily by eliminating several complex
nondiscrimination tests that apply to traditional qualified plans and, instead, simply
requires an employer to make NEST contributions in accordance with one of two
specified plan designs. The key features of the NEST are:
•
Any employer with 100 or fewer employees would be eligible to maintain a
NEST.
•
Each employee, age 21 or older, who completed two years of service with the
employer would participate in the NEST. However, an employer would not be
required to make nonelective contributions for an employee with less than
$5,000 of compensation for the year.
•
The NEST would have to be designed to satisfy one of the following two
formulas:
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8
(1)
The employer contributes at least 3% of pay for each eligible employee.
In addition employees may be given the opportunity to make salary
reduction (or "elective") contributions.
(2)
The employer contributes at least 1% of pay for each eligible employee.
In addition, employees must be given the opportunity to make elective
contributions. Employee elective contributions of up to 3% of
compensation must be matched by the employer dollar-for-dollar. The
employer match for elective contributions above 3% of compensation
(and up to 5% of compensation) must be at least 50 cents per dollar of
elective contributions. No employer matching contribution is allowed for
elective contributions in excess of 5% of compensation.
•
All contributions would be made to an IRA and would be immediately 100%
vested. However, withdrawal of any NEST contribution would be restricted for
two years.
•
An employee's annual elective contributions to a NEST would be limited to
$5,000. Employer nonelective contributions would be limited to 5% of an
employee's compensation (of up to $150,000). No other contribution or
deduction limits would apply to the NEST.
•
An employer would generally be allowed to make contributions for aI/
employees to the same financial institution. However, an employee could
subsequently move the NEST funds to an IRA at another financial institution.
•
NEST accounts would be portable -- NESTs could originate and receive
rol/overs from any other IRA, and NESTs could receive rollovers from qualified
plans.
Simplifying Pensions
9
2.
Repeal the Family Aggregation Rule
Action: Eliminate the rule that requires certain highly compensated employees and
their family members to be treated as a single employee.
Background: Under current law, if an employee is a family member of either a morethan-5% owner of the employer or one of the employer's 10 highest-paid highly
compensated employees, then any compensation paid to the family member and any
contribution or benefit under the plan on behalf of the family member is aggregated
with the compensation paid and contributions or benefits on behalf of the highly
compensated employee. Therefore, the highly compensated employee and the family
member(s) are treated as a single highly compensated employee. For purposes of
this rule, an employee's "family member" is generally a spouse, parent, grandparent,
child, or grandchild (or the spouse of a parent, grandparent, child, or grandchild).
A similar family aggregation rule applies with respect to the $150,000 annual limit on
the amount of compensation that may be taken into account under a qualified plan.
(However, under these provisions, only the highly compensated employee's spouse
and children or grandchildren under age 19 are aggregated.)
These family aggregation rules greatly complicate the application of the
nondiscrimination tests, particularly for family-owned or operated businesses, and may
unfairly reduce retirement benefits for the family members who are not highly
compensated employees.
Description: The family aggregation rules would be repealed.
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10
3.
Eliminate Special Restrictions on Plans Maintained by the Self-Employed
Action: Eliminate the special plan aggregation rules that apply to certain qualified
employer retirement plans maintained by self-employed individuals.
Background: Prior to the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) ,
numerous special rules applied to qualified retirement plans that covered selfemployed individuals. Almost all of these special rules were repealed by TEFRA.
However, special aggregation rules that do not apply to other qualified retirement
plans still apply to qualified plans that cover an "owner-employee" (Le., a sole
proprietor of an unincorporated trade or business or a more-than-10% partner of a
partnership). These aggregation rules generally require affected plans to be treated
as a single plan and affected employers to be treated as a single employer. For
example, under one of the special rules, if an owner-employee controls more than
one trade or business, then any qualified plans maintained with respect to those
trades or businesses must be treated as a single plan and all employees of those
trades or business must be treated as employed by a single employer. The special
aggregation rules afford plan partiCipants little, if any, protection because they are
largely duplicative of the general aggregation rules that apply to all qualified employer
plans, including plans that cover self-employed individuals.
DescripUon: The special aggregation rules for qualified plans that cover owneremployees would be repealed.
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11
4.
Simplify Substantial Owner Rules Relating to Plan Terminations
Action: Simplify the rules that phase in PBGC-guaranteed benefits for a "substantial
owner" who is a participant in a terminating plan.
Background: ERISA contains very complicated rules for determining the PBGCguaranteed benefits of an individual· who owns more than 10 percent of a business (a
"substantial owner") and who is a participant in the business's terminating plan. These
rules were designed to prevent a substantial owner from establishing a plan,
underfunding it, and terminating it in order to receive benefits from the PBGC. Under
the rules, the PBGC guarantee with respect to a participant who is not a substantial
owner is generally phased in over five years from the date of the plan's adoption or
amendment. However, for a substantial owner, the guarantee is generally phased in
over thirty years from the date the substantial owner begins participation in the plan.
The substantial owner's benefit under each amendment within the 30 years before
plan termination is separately phased in. As a result, when a plan covering a
substantial owner is terminated, the PBGC must obtain plan documents from as long
as 30 years ago. This is frequently difficult if not impossible.
Description: The same five-year phase-in that currently applies to a participant who
is not a substantial owner would apply to a substantial owner with less than a 50%
ownership interest. For a substantial owner with a 50% or more ownership interest (a
"majority owner"), the phase-in would depend on the number of years the plan has
been in effect, rather than on the number of years the owner has been a participant.
Specifically, the guaranteeable plan benefit for a majority owner would be 1/30 for
each year that the plan has been in effect. (Benefits under plan amendments would
not be separately phased in.) Under this approach, the fraction would be the same for
each majority owner, eliminating the need for separate computations based on
documents as many as 30 years old. However, a majority owner's guaranteed benefit
would be limited so that it could not be more than the amount that would be
guaranteed under the regular five-year phase-in applicable to other participants.
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12
IMPROVE AND EXPAND 401 (k) PLANS
5.
Eliminate Uncertainty and Monitoring of Contributions Through DesignBased Safe Harbors
Action: Provide design-based nondiscrimination safe harbors that would give
employers the option of avoiding all ADP (actual deferral percentage) and ACP
(average contribution percentage) testing.
Background: The ADP test generally applies to the elective contributions (typically
made by salary reduction) of all employees eligible to participate in a 401 (k) plan. The
test requires the calculation of each eligible employee's elective contributions as a
percentage of the employee's pay. The ADP test is satisfied if the plan passes either
of the following two tests: (1) the average percentage of elective contributions for
highly compensated employees does not exceed 125% of the average percentage of
elective contributions for nonhighly compensated employees, or (2) the average
percentage of elective contributions for highly compensated employees does not
exceed 200% of the average percentage of elective contributions for nonhighly
compensated employees, and does not exceed the percentage for nonhighly
compensated employees by more than two percentage points. The ACP test is
almost identical to the ADP test, but generally applies to employer matching
contributions and after-tax employee contributions under any qualified employer
retirement plan.
The annual application of these tests, and correcting violations of these tests, is
complicated and often costly. Most cases require either constant monitoring and
adjustments of contributions over the course of the year or complicated correction
procedures and information reporting after the end of the year.
Description: The proposal would provide two alternative "design-based" safe harbors.
If a plan were properly designed, the employer would avoid all ADP and ACP testing.
Under the first safe harbor, the employer would have to make nonelective
contributions of at least 3% of compensation for each nonhighly compensated
employee eligible to participate in the plan. Alternatively, under the second safe
harbor, the employer would have to provide a 100% matching contribution on an
employee's elective contributions up to the first 3% of compensation, and a match of
at least 50% (but no more than 100%) on the employee's elective contributions up to
the next 2% of compensation. The second safe harbor also would require the
employer to make a nonelective contribution of at least 1% of compensation for each
eligible nonhighly compensated employee.
Under both safe harbors, the nonelective employer contributions and the matching
employer contributions would be nonforfeitable immediately (i.e., 100% vested) and
Simplifying Pensions
13
generally could not be distributed prior to the participant's death, disability, termination
of employment, or attainment of age 59 1/2. In addition, each employee eligible to
participate in the plan would have to be given notice of his or her rights and
obligations under the plan within a reasonable period before any year begins.
Simplifying Pensions
14
6.
Facilitate Testing by Using Prior Year Data
Action: Adopt a look-back method for determining allowable contribution levels for
highly compensated employees in order to eliminate the need for on-going testing or
post-year-end corrections.
Background: The ADP test and the ACP test generally compare the average
contributions for highly compensated employees for the year to the average
contributions for nonhighly compensated employees for the same year. Because the
current year average for the nonhighly compensated employees is not known until the
end of the year, this almost always requires either constant monitoring and
adjustments over the course of the year or complicated correction procedures and
information reporting after the end of the year.
Description: To eliminate this unnecessary uncertainty and complexity, the proposal
would modify the ADP and ACP tests to require the average contributions for highly
compensated employees for the current year to be compared to the average
contributions for nonhighly compensated employees for the preceding year.
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15
7.
Improve Fairness of Corrective Distribution Rules
Action: Provide a method for correcting nondiscrimination test violations that does not
disproportionately favor the most highly compensated erpployees.
Background: Under current law, when the ADP or ACP test is violated, correction is
made by reducing the excess contributions of highly compensated employees
beginning with employees who have deferred the greatest percentage of pay. This
method illogically favors the most highly paid of the highly compensated employees:
their contributions, as a percentage of pay, are likely to be lower than the percentage
contributions of lower-paid highly compensated employees, even if the dollar amount
of their contributions is higher. For example, if an officer makes $65,000 and
contributes $5,000 (7.7% of pay), his contribution would be reduced before that of a
CEO who makes $150,000 and contributes $9,000 (6% of pay). In addition, it is
usually simpler to determine the total dollar amount contributed by an employee than
to determine what percentage of pay that dollar amount represents.
Description: The simplified correction method would require excess contributions to be
distributed first to those highly compensated employees who deferred the highest
dollar amount for the year. Under this method, the lower paid highly compensated
employees would no longer be disadvantaged by the correction method.
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16
8.
Permit Tax-Exempt Organizations to Maintain 401 (k) Plans
Action: Modify the tax law to delete the Code provision that prohibits organizations
exempt from income tax, including Indian tribes, from maintaining section 401 (k) plans.
Background: Except for certain plans established before July 2, 1986,an organization
exempt from income tax is not allowed to maintain a 401 (k) plan. This rule prevents
many tax-exempt organizations from offering their employees retirement benefits on a
salary reduction basis. Although tax-sheltered annuity programs can provide similar
benefits, many types of tax-exempt organizations are also precluded from offering
those programs.
Descr(ption: The proposal would delete the Code provision that prohibits organizations
exempt from income tax, including Indian tribes, from maintaining 401 (k) plans.
Simplifying Pensions
17
9.
Conform 401 (k) Distribution Rules for Rural Cooperatives
Action: Conform the distribution rules for 401 (k) plans maintained by rural
cooperatives with the distribution rules that apply to other 401 (k) plans.
Background: Under a 401 (k) plan, distributions are allowed only after separation from
service, death, disability, attainment of age 59 1/2, and certain other specified events.
However, 401 (k) plans maintained by rural electrical cooperatives or cooperative
telephone companies are money purchase pension plans. Therefore, in accordance
with the distribution restrictions generally applicable to pension plans, these plans
cannot allow distributions on account of a participant attaining age 59 1/2.
Description: The rules for 401 (k) plans of rural cooperatives would be conformed to
those that apply to other 401 (k) plans by allowing distributions after attainment of age
59 1/2. (Note: Proposal 28 would change the age 59 1/2 rule to an age 59 rule.)
Simplifying Pensions
18
SIMPLIFY PENSION RULES
Delete Unnecessary Tests and Special Rules
10. Eliminate Excessive Testing By Simplifying the Definition of "Highly
Compensated Employee"
Action: Simplify the definition of "highly compensated employee" that is used to test
qualified employer retirement plans for nondiscrimination.
Background: A qualified employer retirement plan must satisfy a variety of
nondiscrimination tests to ensure that it does not discriminate in favor of "highly
compensated employees." As a result, a/l of the nondiscrimination tests require the
employer to identify its "highly compensated employees." This term is currently
defined by reference to a complicated test that consists of seven major elements. An
employee is treated as a highly compensated employee for the current year, if, at any
time during the current year or the preceding year, the employee:
(1) owned more than 5% of the employer,
(2) received more than $100,000 (as indexed for 1995) in annual compensation from
the employer,
(3) received more than $66,000 (as indexed for 1995) in annual compensation from
the employer and was one of the top-paid 20% of employees during the same year,
or
(4) was an officer of the employer who received compensation greater than $60,000
(as indexed for 1995).
However, these four rules are modified by three additional rules.
(5) An employee described in any of the last three categories for the current year but
not the preceding year is treated as a highly compensated employee for the current
year only if he or she was among the 100 highest paid employees for that year.
(6) No more than 50 employees or, if fewer, the greater of three employees or 10% of
employees are treated as officers.
(7) If no officer has compensation in excess of $60,000 (for 1995) for a year, then the
highest paid officer of the employer for the year is treated as a highly compensated
employee.
Simplifying Pensions
19
This test is not only complicated, it classifies many middle-income workers as "highly
compensated employees" who are then prohibited from receiving better benefits than
others.
Description: The current seven-part test would be replaced by a simplified two-part
test: an employee would be a "highly compensated employee" for the current year
only if the employee owned more than 5% of the employer during the current or
preceding year or had compensation from the employer of more than $80,000
(indexed annually for cost of living) during the preceding year. This dollar threshold
would mean that many middle-income Americans would no longer be subject to
nondiscrimination restrictions.
Simplifying Pensions
20
11.
Exempt Defined Contribution Plans from the Minimum Participation Rule
Action: Eliminate the requirement that a defined contribution plan cover at least 50
employees or, in smaller companies, 40% of all employees of the employer.
Background: Under current law, every qualified defined benefit plan or defined
contribution plan is required to cover at least 50 employees or, in smaller companies,
40% of all employees of the employer. This rule was generally intended to prevent an
employer from establishing individual defined benefit plans for highly compensated
employees in order to provide those employees with more favorable benefits than
those provided to lower paid employees under a separate plan. The rule prevents an
employer from favoring one small group of participants over another by, for example,
covering them under two separate plans and funding one plan better than the other.
As applied to defined contribution plans, the minimum participation rule adds
complexity for employers without delivering commensurate benefits to the system.
•
The 50 employee/40% rule currently acts as a largely redundant backstop to
the nondiscrimination rules designed to prevent qualified retirement plans from
unduly favoring the top group of employees. Since 1986, when the minimum
participation rule was enacted (along with other, more extensive
nondiscrimination requirements), regulations have further limited the potential
for discriminatory practices that originally caused the minimum participation rule
to be applied to plans other than individual defined benefit plans.
•
All defined contribution plans are generally fully funded and, therefore, there is
no risk that an employer will favor participants in one plan over participants in
another by providing more favorable funding.
Thus, the abuses intended to be addressed by the minimum participation requirement
are unlikely to arise in the context of defined contribution plans. This requirement
adds unnecessary administrative burden and complexity with respect to these plans.
Description: The minimum participation rule would be repealed for defined
contribution plans.
Simplifying Pensions
21
12.
Eliminate Special Vesting Schedule for Multiemployer Plans
Action.' Eliminate the 1a-year vesting schedule currently allowed only for
multiemployer plans, so that multiemployer plans will be subject to the same 5- or 7year vesting schedules as all other qualified employer retirement plans.
Background: The accrued benefits of a collectively bargained employee under a
multiemployer pension plan are not currently required to become nonforfeitable (Le.,
"vested") until the employee has completed 1a years of service. If the employee's
employment terminates before then, all benefits can be lost. Accrued benefits of all
other employees (Le., employees under all non-multiemployer plans and any
noncollectively bargained employees under a multiemployer plan) must vest after five
years of service, or after seven years if partial vesting begins after three years.
DescriPtion: The special 10-year vesting rule applicable to multiemployer plans would
be repealed.
Simplifying Pensions
22
13.
Allow Triennial Actuarial Valuations for Multiemployer Plans
Action: Allow multiemployer plans to return to triennial, rather than annual, actuarial
valuations.
Background: An employer's annual deduction for contributions to a defined benefit
plan is generally limited to the amount by which 150% of the plan's current liability (or,
if less, the plan's accrued liability) exceeds the value of the plan's assets. Because
the annual calculation of the 150% limit requires an actuarial valuation, defined benefit
plans are required to have an actuarial valuation no less frequently than annually.
However, under a separate proposal (see proposal 18), the 150% limit would be
eliminated for multiemployer plans and, therefore, annual valuations would be
unnecessary and overly burdensome for these plans.
DescripUon: Actuarial valuations would be required no less frequently than every three
years, rather than annually, for multiemployer plans.
Simplifying Pensions
23
14.
Eliminate Partial Termination Rules for Multiemployer Plans
Action: Eliminate the partial termination rules for multiemployer plans.
Background: When a qualified employer retirement plan is terminated, all plan
participants are required to become 100% vested in their accrued benefits to the
extent those benefits are funded. In order to prevent an employer from evading this
rule simply by amending the plan to exclude nonvested employees or by laying off
nonvested employees before terminating the plan, a qualified employer retirement plan
must also provide that, upon a "partial termination," all affected employees must
become 100% vested in their benefits accrued to the date of the termination, to the
extent the benefits are funded.
Whether a partial termination has occurred in a particular situation is generally based
on the specific facts and circumstances of that situation, including the exclusion from
the plan of a group of employees who have previously been covered by the plan, by
reason of a plan amendment or severance by the employer. In addition, if a defined
benefit plan stops or reduces future benefit accruals under the plan, a partial
termination is deemed to occur if, as a result, a potential reversion of plan assets to
the employer is created or increased.
Over the years, court decisions have left unanswered many key questions as to how
to apply the partial termination rules. Accordingly, applying the rules can often be
difficult and uncertain, especially for multiemployer plans. For example, multiemployer
plans experience frequent fluctuations in participation levels caused by the
commencement and completion of projects that involve significant numbers of union
members. Many of these terminated participants are soon rehired for another project
that resumes their active coverage under the plan. In addition, it is common for
participants leaving one multiemployer plan's coverage to maintain service credit under
a reciprocal agreement if they move to the coverage of another plan sponsored by the
same union. As a result, these participants do not suffer the interruption of their
progress along the plan's vesting schedule that ordinarily occurs when an employee
stops being covered by a plan.
Given these factors, and the related proposal to require multiemployer plans to vest
participants after five (instead of the current 10) years of service, the difficulties
associated with applying the partial termination rules to multiemployer plans outweigh
the benefits.
Description: The requirement that affected participants become 100% vested in their
accrued benefits (to the extent funded) upon the partial termination of a qualified
employer retirement plan would be repealed with respect to multiemployer plans.
Simplifying Pensions
24
Simplify Rules Governing Contributions and Deductions
15.
Eliminate the Combined Plan Limit on Contributions and Benefits (Section
415(e»
Action: Repeal the extremely complex combined limit on contributions and benefits
that apply when an employee is covered under both a defined contribution plan and a
defined benefit plan of the same employer.
Background: An employee who participates in a qualified defined benefit plan and a
qualified defined contribution plan of the same employer must currently satisfy a
combined plan limit. This limit is satisfied if the sum of the "defined benefit fraction"
and the "defined contribution fraction" is no greater than 1.0.
The defined benefit fraction measures the portion of the maximum permitted defined
benefit that the employee actually uses. The numerator is the prOjected normal
retirement benefit, and the denominator is generally the lesser of 125% of the dollar
limitation for the year ($120,000 for 1995), or 140% of the employee's average
compensation for the three years of employment in which the employee's average
compensation was highest.
The defined contribution fraction measures the portion that the employee actually uses
of the maximum permitted contributions to a defined contribution plan for the
employee's entire career with the employer. The numerator is generally the total of
the contributions and forfeitures allocated to the employee's account for each of the
employee's years of service with the employer. The denominator is the sum of a
calculated value for each of those years of service. The calculated value is the lesser
of 125% of the dollar limitation for that year of service ($30,000 for 1995), or 35% of
the participant's compensation. Because of the historical nature of this fraction, its
computation is extremely cumbersome and requires the retention of various data for
an employee's entire career.
The combined plan limit is not the only Code provision that safeguards against an
individual accruing excessive retirement benefits on a tax-favored basis. There are
maximum limits for both defined benefit and defined contribution plans. In addition, a
15% "excess distribution" penalty was enacted in 1986 to achieve many of the same
goals as the combined plan limit. A distribution is generally considered an "excess
distribution" to the extent all distributions to an individual from all of the individual's
qualified employer plans and IRAs exceed $150,000 during a calendar year. The limit
is $750,000 for a lump sum distribution. Excess distributions made after death are
subject to an additional estate tax of 15%. Other rules also protect against excessive
benefits.
Simplifying Pensions
25
Because other provisions of the Code go far toward ensuring that an individual cannot
accrue excessive retirement benefits on a tax-favored basis, the extreme complexity
of the combined plan limit is not justified.
Description: The combined plan limit (Code section 41S(e)) would be repealed.
Simplifying Pensions
26
16.
Simplify Contributions and Benefits Limits for Governmental Plans and
Multiemployer Plans
Action: Exempt governmental plans and multiemployer plans from certain limitations
on benefits and contributions.
Background: Annual additions to a defined contribution plan for any participant are
limited to the lesser of $30,000 (for 1995) or 25% of compensation. Annual benefits
payable under a defined benefit plan are limited to the lesser of $120,000 (for 1995) or
100% of "three-year-high average compensation." If benefits under a defined benefit
plan begin before social security retirement age, the dollar limit must be reduced.
Reductions in the dollar or percentage limit may also be required if the employee has
fewer than 1 years of plan participation or service. Certain special rules apply to
governmental plans.
°
These qualified plan limitations are uniquely burdensome for governmental plans,
which have long-established benefits structures and practices that may conflict with
the limitations. In addition, some state constitutions may prohibit the changes needed
to conform the plans to these limitations.
These limitations also present problems for many multiemployer plans. These plans
typically base benefits on years of credited service, not on a participant's
compensation. In addition, the 100%-of-compensation limit is based on an
employee's average compensation for the three highest consecutive years. This rule
often produces an artificially low limit for employees in certain industries, such as
building and construction, where wages vary significantly from year to year.
Description: The rules for governmental plans and multiemployer plans would be
modified to eliminate the 100-percent-of-compensation limit (but not the $120,000
limit) for such plans, and to exempt certain survivor and disability benefits from the
adjustments for early commencement and for participation and service of less than 10
years. In addition, certain employee salary reduction contributions could be counted
as "compensation" for purposes of applying the limitations on benefits and
contributions. To the extent that governmental employers have previously made
elections that would prevent them from utilizing these simplification provisions, the
proposal would allow those employers to revoke their elections.
Simplifying Pensions
27
17.
Allow Tax-exempt Organizations to Provide Excess Benefit Plans
Action: Exempt "excess benefit plans" from the restrictions on nonqualified deferred
compensation provided under section 457 of the Code.
Background: The amount of compensation provided to an employee under a
nonqualified deferred compensation arrangement maintained by a for-profit
organization generally is not subject to any limitation. In addition, such deferred
compensation is not taxable to the employee until it is paid or otherwise made
available to the employee to draw upon at any time.
In contrast, with few exceptions, section 457 of the Code subjects all nonqualified
deferred compensation arrangements maintained by state and local governments and
tax-exempt organizations to special, more restrictive rules. First, the amount deferred
for any partiCipant under such arrangements must generally be limited to $7,500 per
year. Second, if this dollar limit and other restrictions are not satisfied, the deferred
compensation is taxed to the participant in the first taxable year in which the
compensation is not subject to a substantial risk of forfeiture, even if the compensation
is not paid or otherwise made available to the participant until a later date.
An "excess benefit plan" is a nonqualified deferred compensation plan maintained by
an employer solely for the purpose of providing benefits for certain employees in
excess of the limitations on annual contributions and benefits imposed by section 415
of the Code (Le., the lesser of $30,000 or 25% of compensation for a defined
contribution plan, and the lesser of $120,000 or 100% of compensation for a defined
benefit plan). If an employee's qualified plan contributions or benefits exceed these
limits, an excess benefit plan may provide the excess contributions or benefits on a
nonqualified basis. Thus, an excess benefit plan simply provides to certain employees
-- those whose contributions or benefits are reduced by the limits -- contributions or
benefits that are already provided to other employees under a qualified plan.
However, even though there is no opportunity under an excess benefit plan to provide
management employees with disproportionately higher benefits than those provided to
lower paid employees, the restrictions of section 457 still apply to such a plan if it is
maintained by a state and local government or tax-exempt organization. These
employers are therefore at a distinct disadvantage in attempting to provide all
employees with proportionate contributions or benefits.
Description: The proposal would exempt excess benefit plans of state and local
governments and tax-exempt organizations from section 457. The exemption would
not apply to an excess benefit plan that also provides benefits in excess of other
qualified plan limitations.
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18.
Simplify Deduction Rules for Multiemployer Plans
Action: Repeal the 150% limitation on deductible contributions for multiemployer
plans.
Background: An employer's annual deduction for contributions to a defined benefit
plan is generally limited to the amount by which 150% of the plan's current liability (or,
if less, 100% of the plan's accrued liability) exceeds the value of the plan's assets.
The 150%-of-current-liability limit is intended to limit the extent to which an employer
can deduct contributions for liabilities that have not yet accrued.
However, an employer has little, if any, incentive to make "excess" contributions to a
multiemployer plan. The amount an employer contributes to a multiemployer plan is
fixed by the collective bargaining agreement, and a particular employer's contributions
are not set aside to pay benefits solely to the employees of that employer. Moreover,
no reversions are permitted from multiemployer plans.
.
Descriotion: Because the 150% limit on deductible contributions needlessly
complicates the deduction rules for multiemployer plans, the 150% limit would be
eliminated for those plans. Therefore, the annual deduction for contributions to a
multiemployer plan would be limited simply to the amount by which the plan's accrued
liability exceeds the value of the plan's assets.
Simplifying Pensions
29
Eliminate and Simplify Rules Governing Distributions
19.
Repeal Rule Requiring Employer Plans to Commence Minimum
Distributions Before Retirement
Action: Eliminate the requirement that distributions from a qualified employer plan to
an employee (other than a more-than-5% owner) who continues to work for the
employer maintaining the plan must begin at age 70 1/2.
Background: Under current law, an employee who participates in a qualified employer
retirement plan must begin taking distributions of his or her benefit by the April 1
following the year in which he or she reaches age 70 1/2. Generally, the so-called
"minimum distribution" for any year is determined by dividing the employee's account
balance or accrued benefit by the employee's life expectancy as of that year. If the
employee is still working and accruing new benefits at age 70 1/2, the new benefits
must be taken into account to determine the minimum amount required to be
distributed for the same year. In effect, a portion of each year's new benefit accrual is
required to be distributed in the same year. This almost simultaneous pattern of
contributions and required distributions causes considerable complication and
confusion.
Description: The requirement to distribute benefits before retirement would be
eliminated, except for employees who own more than 5% of the employer that
sponsors the plan. Instead, distributions would have to begin by the April 1 following
the later of the year in which the employee reached age 70 1/2 or the year in which
the employee retired from service with the employer maintaining the plan. If payment
of an employee's benefits were delayed past age 70 1/2 pursuant to this rule, the
benefits ultimately paid at retirement would have to be actuarially adjusted to take into
account the delay in payment. Without this adjustment, the delay in payment could
cause the employee to "lose" the benefit payments that would otherwise have been
paid between age 70 1/2 and retirement.
The age 70 1/2 requirement would continue to apply to IRAs. Because an IRA is not
maintained by an employer, the initial payment date for an IRA cannot be tied to
retirement from the employer maintaining the plan. (Note: Proposal 28 would change
the age-70 1/2 rule to an age-70 rule.)
Simplifying Pensions
30
20.
Simplify Taxation of Annuity Distributions
Action: Replace the existing multiple and complex rules for calculating the taxable
portion of an annuity payment with a single, simplified method that is currently allowed
as an alternative method.
Background: If an employee makes after-tax contributions to a qualified employer
retirement plan or IRA, those contributions (i.e., the employee's "basis") are not taxed
upon distribution. When the plan distributions are in the form of an annuity, a portion
of each payment is considered nontaxable basis. This nontaxable portion is
determined by multiplying the distribution by an exclusion ratio. The exclusion ratio
generally is the employee's total after-tax contributions divided by the total expected
payments under the plan over the term of the annuity.
The determination of the total expected payments, which is based on the type of
annuity being paid, often involves complicated calculations that are difficult for the
average plan participant. Yet the burden of determining the exclusion ratio almost
always falls on the individual receiving the distribution.
Because of the difficulty an individual may face in calculating the exclusion ratio, and
in applying other special tax rules that may be applicable, the IRS in 1988 provided a
simplified alternative method for determining the nontaxable portion of an annuity
payment. However, this alternative has effectively added to the existing complexity
because taxpayers feel compelled to calculate the nontaxable portion of their
payments under every possible method in order to ensure that they maximize the
nontaxable portion.
Description: A simplified method for determining the nontaxable portion of an annuity
payment, similar to the current simplified alternative, would become the required
method. Taxpayers would no longer be compelled to do calculations under multiple
methods in order to determine the most advantageous approach.
Under the simplified method, in most cases, the portion of an annuity payment that
would be nontaxable is generally equal to the employee's total after-tax employee
contributions, divided by the number of anticipated payments listed in a table (based
on the employee's age as of the annuity starting date).
Simplifying Pensions
31
IMPROVE ADMINISTRATION OF PROHIBITED TRANSACTION RULES
21.
Simplify Prohibited Transaction Exemption Procedures
Action: Develop a prohibited transaction class exemption that would allow the DOL to
expeditiously process exemption requests that involve prohibited transactions
substantially similar to those described in individual exemption previously granted to
the same or another plan.
Background: A "prohibited transaction" is generally any transaction between a plan
and a person who is considered a "party in interest" or "disqualified person" with
respect to the plan. Unless exempt by statute or by an "individual" or "class"
exemption, a prohibited transaction may trigger an excise tax under the Code, and
may give rise to civil or criminal liability under ERISA. The DOL generally has
authority to exempt any person or transaction, or class of persons or transactions,
from the prohibited transaction rules under both the Internal Revenue Code and
ERISA.
Under the statute, an exemption may not be granted unless the DOL finds that the
exemption is: (1) administratively feasible, (2) in the interests of the plan and of its
participants and benefiCiaries, and (3) protective of the rights of participants and
beneficiaries of such plan. In addition, notice of a proposed exemption must be
published in the Federal Register, and interested parties must be notified of the
proposed exemption and be given an opportunity to comment and a hearing to
present their views. Under these mandatory procedures, it can take up to two years
to obtain an individual exemption.
Description: A class exemption, to be developed by the DOL, would exempt all
transactions that the DOL determined to be substantially similar to previously granted
individual exemptions. For transactions within its scope, the class exemption would
guarantee a DOL response within 45 days.
Simplifying Pensions
32
22.
Simplify Prohibited Transaction Exemptions for Self-Directed ERISA Plans
Action: Simplify the prohibited transaction exemption procedures for plans with
participant-directed accounts ("404(c) plans").
Background: ERISA sets forth certain fiduciary responsibilities that apply with respect
to pension plans. For this purpose, a fiduciary includes, among others, any person
who exercises any discretionary control respecting the management or disposition of
plan assets. However, ERISA section 404(c) generally provides that, if a plan
participant exercises control over assets in his or her account, the participant will not
be deemed to be a fiduciary by reason of the exercise of such control, and no person
who is otherwise a fiduciary will have fiduciary liability as a result of the participant's
exercise of contro/. Because of this exemption, a participant's direction of the
investment of his or her account will not give rise to a prohibited transaction under
ERISA. Such participant direction may, however, give rise to a prohibited transaction
under the Code.
Reorganization Plan NO.4 of 1978 generally provides the DOL with authority to grant
exemptions from the prohibited transaction provisions of both ERISA and the Code.
However, the Reorganization Plan also provides that, with respect to transactions that
are exempt from ERISA's prohibited transaction provisions pursuant to ERISA section
404(c), the Secretary of Treasury has the authority to grant exemptions from the
prohibited transaction provisions of the Code. As a result, if a 404(c) plan wishes to
take advantage of a DOL prohibited transaction class exemption, the 404(c) plan must
apply to the IRS for an exemption from the prohibited transaction provisions of the
Code, whereas a non-404(c) plan can rely on the DOL class exemption with respect
to both the ERISA and Code prohibited transaction rules. A similar issue arises with
respect to individual exemptions as well.
The DOL has developed significant prohibited transaction exemption expertise since
the effective date of the Reorganization Plan. Therefore, in the vast majority of cases,
it is inefficient and needlessly time-consuming for the IRS to process these exemption
requests.
Description: The IRS would issue a class exemption that would provide a prohibited
transaction exemption for all transactions under a 404(c) plan for which the DOL has·
granted a class exemption, unless the IRS notified the DOL otherwise within a
prescribed time after being notified that the DOL's class exemption was pending. The
IRS class exemption would also provide an exemption for any transaction under a
404(c) plan for which the DOL has granted an individual exemption, but only if the IRS
explicitly concurred with the individual exemption within a prescribed time.
Simplifying Pensions
33
STREAMLINE PENSION PLAN REPORTING AND DISCLOSURE
23.
Streamline ERISA Annual Report (Form 5500 Series)
Action: Streamline the Form 5500 Series annual reporting requirements for employee
benefit plans, and pursue methods for simplifying and expediting the receipt and
processing of Form 5500 information and data through the use of advanced computer
technologies.
Bac/{Qround: Each year, over 750,000 pension and welfare benefit plans are required
to file an annual return/report (the Form 5500 Series) regarding their financial
condition, investments, and operations. The Form 5500 series was developed by the
DOL, PBGC, and IRS (the "Agencies") to enable employers and plan administrators to
satisfy their statutory annual reporting obligations under Titles I and II of ERISA and
the Internal Revenue Code by filing a single form. The Form 5500 Series is the
primary source of information concerning the operation, funding, assets, and
investments of pension and other employee benefit plans. Accordingly, the Form
5500 Series is not only an important enforcement and research tool for the Agencies,
but a source of information and data utilized by other federal agencies, Congress, and
the private sector in assessing employee benefit, tax, and economic trends and
policies. The Form 5500 Series is currently received and processed by the IRS
through three designated IRS Service Centers.
The Agencies recognize that compliance with Form 5500 Series annual reporting
requirements is a lengthy and complex process, resulting in the imposition of
approximately 35 million burden hours on the universe of filers annually. The
Agencies also recognize that the receipt and processing of the Form 5500 Series
through the systems established for the receipt and processing of tax returns results in
compliance and processing inefficiencies and delays. Currently, it costs the Agencies
approximately $22 million annually to receive and process Form 5500 Series reports.
In an effort to both reduce reporting burdens and facilitate annual reporting
compliance, the Agencies are attempting to substantially simplify the Form 5500
Series. The Agencies are also examining ways by which to simplify and expedite the
receipt and processing of the Form 5500 Series, while substantially reducing filer
compliance burdens and government processing costs, through the use of an
electronic filing system and government-provided personal computer software.
The Agencies believe that meaningful burden hour and cost reductions can be
achieved only through an integrated implementation of changes to both the Form 5500
Series and the processing system. The National Performance Review (NPR)
determined that manual preparation and processing of the Form 5500 Series are
time-consuming and costly to the federal government and filers alike. The NPR
concluded that an automated processing system, with the availability of personal
Simplifying Pensions
34
computer software for the preparation and filing of the Form 5500 Series, should
reduce filer costs of preparing forms and government processing costs, while
enhancing the government's ability to protect the benefits of American workers as a
result of more timely and accurate information.
Description: The current Form 5500 Series would be significantly revised to
streamline or eliminate certain information that the Agencies determine is not required
to discharge their statutory responsibilities. Following development of a revised Form
5500 Series, the Agencies would pursue establishment of an automated filing system
for receipt and processing of Form 5500 Series information and data, as well as
computer software to be made available for Form 5500 Series filers.
Simplifying Pensions
35
24.
Provide Uniform Information Reporting Penalties
Action: Conform the penalties for failure to provide information reports with respect to
pension payments with the general penalty structure for failure to provide information
returns under the Code.
Background: The penalty structure for failure to provide information reports with
respect to pension payments is currently separate and different from the penalty
structure that applies to information reporting in other areas. The penalty for failure to
file a Form 1099-R is currently $25 per day per return, up to a maximum of $15,000
per year per return. The penalty for failure to file Form 5498 is currently a flat $50 per
return, with no maximum, regardless of the number of returns.
In contrast, the penalty for failure to file any other information return is generally $50
per return up to $250,000 per year, with lower penalties and maximums if the return is
filed within specified times. (The penalty is $15 per return filed late but within 30 days
and $30 per return filed late but on or before August 1.) Lower maximums also apply
to persons with gross receipts of no more than $5 million. The penalty for failure to
furnish a payee statement is $50 per payee statement up to $100,000 per year.
Separate penalties apply in the case of intentional regard of the requirement to furnish
a payee statement.
Description: In order to provide uniformity, the penalties for failure to provide
information reports with respect to pension payments would be conformed to the
general penalty structure. Thus, the penalty for failure to file Form 1099-R would
generally be reduced. The penalty for failure to file Form 5498 would generally remain
the same as under current law, but would no longer be unlimited. In addition, for both
Form 1099-R and Form 5498, the penalties would be reduced if the forms were filed
late but within specified times. Under the conformed penalty structure, the penalty for
failure to file Form 1099-R would generally be reduced for any return that was late by
more than two days.
Simplifying Pensions
36
25.
Simplify ERISA Advance Notice of Benefit Reductions
Action: Issue administrative guidance stating that the statutory 15-day advance notice
of plan amendments significantly reducing the rate of future benefit accrual need not
be given to any person who will be unaffected by the reduction.
Background: ERISA (section 204(h)) provides that a pension plan may not be
amended to significantly reduce the rate of future benefit accrual unless the plan
administrator provides a written notice to participants, certain persons entitled to plan
benefits under a domestic relations court order, and any union representing plan
participants. The notice is required to set forth the plan amendment and its effective
date, and must be provided after the amendment has been adopted but not less than
15 days before its effective date. Concerns have been expressed about the risk that
the statute might be interpreted to require that notice of an amendment affecting only
certain employees be provided to all participants, including retirees, terminated vested
employees, and other classes of participants who would clearly be unaffected by the
amendment but who might be confused or inappropriately alarmed if they received the
notice.
The notice requirement originated in a legislative proposal to require notice of a
complete cessation of benefit accrual ("freezing" a plan). It was subsequently
expanded to cover significant reductions in the rate of accrual.
A pension plan termination includes, and goes beyond, a complete cessation of benefit
accruals. ERISA requires an employer terminating a plan covered by PBGC insurance
to give 50-day advance notice to participants of the employer's intent to terminate. In
this case, the additional 15-day advance notice of a reduction in benefit accruals is
redundant.
Description: Treasury/IRS would issue administrative guidance making clear that the
ERISA notice is not required to be given to any individual who will be unaffected by
the plan amendment. The guidance would also state that the notice is not required
when a plan covered by PBGC insurance issues a notice of intent to terminate in
accordance with ERISA's plan termination requirements. In addition to addressing
other issues relating to the ERISA notice, the guidance would clarify that, pursuant to
the terms of the statute, the notice is required only for reductions in the rate of benefit
accrual.
Simplifying Pensions
37
26.
Streamline the ERISA Summary Plan Description Filing Requirements
Action: Eliminate the requirement that all summary plan descriptions (SPDs) be filed
with the DOL, and authorize the DOL to obtain SPDs from plan administrators for
purposes of responding to individual requests or monitoring compliance.
Background: Under ERISA, administrators of employee pension and welfare benefit
plans are required to furnish each participant and beneficiary with an SPD, summaries
of material modifications to the SPD (SMMs), and, at specified intervals, an updated
SPD. Filed SPDs, SMMs, and updated SPDs are required to be made available for
public disclosure. These requirements are administered by the DOL's Pension and
Welfare Benefits Administration (PWBA). The SPD is intended to provide participants
and beneficiaries with important information concerning their plan, the benefits
provided by the plan, and their rights and obligations under the plan. The primary
purpose of having SPDs filed with the DOL is to have them available for participants
and beneficiaries who are unable or reluctant to request them from their plan
administrators. However, because SMMs are not required to be filed with DOL until
210 days after the end of the plan year, there is little, if any, certainty that the SPD
information on file with the DOL at any given point in time is up-to-date.
PWBA annually receives approximately 250,000 SPD and SMM filings. Although
PWBA's cost for maintaining a filing, storage, and retrieval system for SPDs is
relatively small, approximately $52,000 annually, compliance with the SPD filing
requirements costs plan administrators approximately $2.5 million annually, with the
annual imposition of an estimated 150,000 burden hours. On average, PWBA
receives requests annually for about two percent of the filed SPDs. Many of the
requests for SPDs come from researchers and others who are not plan partiCipants
and beneficiaries. While there is some limited benefit from the federal government
receiving and storing SPDs, the costs to the public and private plan administrators
clearly outweigh the benefits. This conclusion is consistent with the findings of the
National Performance Review.
Description: The proposal would amend ERISA to eliminate the requirement that all
SPDs be filed with the DOL, and would authorize the DOL to obtain SPDs from plan
administrators for purposes of responding to individual SPD requests or monitoring
compliance with the SPD requirements. This approach would substantially reduce
costs and burdens for public and private plan administrators, while preserving the
ability of the DOL to assist participants who are unable or reluctant to request SPDs
from their plan administrators.
Simplifying Pensions
38
PREVENT LOSS OF BENEFITS
27.
Expand PBGC's Missing Participant Program
Action: Extend the missing participant program to be established by the PBGe to
defined benefit plans not covered by the PBGe and to defined contribution plans.
Background: When a qualified employer retirement plan is terminated, there may be
plan partiCipants who cannot be located after a diligent search. If the plan is a defined
benefit plan covered by the PBGe, the plan administrator must generally distribute
plan assets by purchasing irrevocable commitments from an insurer to satisfy all
benefit liabilities. If the plan is a defined contribution plan or other plan not covered by
the PBGe, plan assets still must be distributed to partiCipants before the plan is
considered terminated.
Because of the problems that a plan administrator may face under these rules when
plan participants cannot be located, the Retirement Protection Act (RPA), enacted as
part of the General Agreement on Tariffs and Trade (GAIT) in 1994, provided special
rules for the payment of benefits with respect to missing participants under a
terminating plan. The rules require the plan administrator to (1) transfer the missing
participant's deSignated benefit to the PBGe or to purchase an annuity from an insurer
to satisfy the benefit liability, and (2) provide the PBGe with information and
certifications with respect to the benefits or annuity as the PBGe may specify. These
rules will be effective after final regulations to implement them are adopted by the
PBGe.
As currently enacted, these RPA rules would apply only to defined benefit plans that
are covered by PBGe. Yet other defined benefit plans, as well as defined contribution
plans, face similar problems when they terminate.
Description: The PBGe's program for missing participants would be expanded to
defined benefit plans (other than governmental plans) not covered by the PBGe and
to defined contribution plans (other than governmental plans). This would provide
employers with a uniform method of dealing with miSSing participants, and would
provide missing participants with a central repository location for locating their benefits
once a plan has been terminated.
Simplifying Pensions
39
OTHER PROPOSALS
28.
Miscellaneous Simplification Provisions
•
Elimination of Half-Year Requirements
Background: Distributions from qualified plans and IRAs prior to age 59 1/2 are
subject to a 10% penalty. In addition, under certain plans (such as 401 (k)
plans), distributions before age 59 1/2 are generally prohibited. Minimum
distributions from IRAs and qualified employer plans are required to begin upon
attainment of age 70 1/2. (Note: Proposal 19 would eliminate the requirement
that distributions from qualified employer plans begin by age 70 1/2 for
employees, other than more-than-5% owners, who have not yet retired.)
Description: To simplify these provisions, all references to age 59 1/2 would be
changed to age 59, and all references to age 70 1/2 would be changed to age
70.
•
Provide Consistent Treatment for Disabled Employees
Background: An employer may elect to continue making deductible
contributions to a defined contribution plan on behalf of disabled employees
who are not highly compensated.
Description: In order to simplify the rules for disabled workers and to
encourage contributions for disabled workers, the need for an employer to
make an election would be eliminated and plans would generally be allowed to
provide for contributions for disabled highly compensated employees, as well as
for disabled nonhighly compensated employees.
•
Eliminate Unintended Cost of Reversions for Government Contractors
Background: If a pension plan terminates and "excess assets" revert back to
the employer, that reversion is subject to an excise tax as high as 50%.
However, certain government contracting regulations require that a portion of
any reversion from a plan maintained by a government contractor be paid to the
United States. The portion paid to the United States is nevertheless subject to
the reversion excise tax. Because the excise tax was intended to apply only to
amounts received by the employer, government contractors that face plan
terminations may experience unintended and unreasonably high costs.
Simplifying Pensions
40
Description: Amounts that are required to be repaid to the United States by
reason of the applicable government contracting regulations would be exempt
from the reversion excise tax.
•
Allow IRS to Determine Church Plan Status Under ERISA
Background: An employer retirement plan that satisfies the definition of a
"church plan" under ERISA is generally exempt from Title I of ERISA. An
employer retirement plan that satisfies a very similar definition of a "church
plan" under the Internal Revenue Code is exempt from certain current Code
requirements, such as current-law minimum coverage and vesting. However,
under the Code, a church plan can make an election to be subject to these
requirements. A plan that makes such an election is no longer exempt from
ERISA.
As a result of these rules, a plan that wishes to be sure of its status as a
church plan must currently seek both a private letter ruling from the IRS (which
requires a user fee) and an advisory opinion from the DOL The DOL begins its
review only after the plan obtains a private letter ruling. However, despite the
similarity of the ERISA and Code definitions of "church plan," there is room for
disagreement between the DOL and the IRS. If the DOL requires a church
plan to be modified in order to satisfy the ERISA definition, the plan may be
required to obtain another private letter ruling (and pay another user fee)
regarding the status of the modified plan.
Under current law, the Code election that results in ERISA coverage applies
only to pension plans; it does not apply to health and other welfare benefit
plans. A church employer may, therefore, end up with a pension plan that is
subject to ERISA and a welfare benefit plan that is exempt from ERISA. This
may create confusion among employees who participate in both plans. In
addition, the welfare benefit plan is subject to any applicable state law, while
ERISA preempts the application of state law to a pension plan that elects
ERISA coverage.
Descr;ption: ERISA would no longer provide a separate definition of "church
plan." Instead, ERISA would provide that a plan that satisfied the definition of a
church plan contained in the Code would be exempt from ERISA. In addition,
ERISA would be amended to allow a church plan that is a welfare benefit plan
to elect ERISA Title I coverage after providing notice to the DOL in accordance
with DOL regulations, but only if the employer made a similar election for its
pension plans. The DOL would, therefore, reserve the right to deny ERISA
coverage to a welfare benefit plan where appropriate.
Simplifying Pensions
41
•
Extend Date for Adoption of Plan Amendments
BackgrQund: Plan amendments that are made to reflect amendments to the
Internal Revenue Code must generally be made by the employer's income tax
return due date for the employer's taxable year in which the change in the law
occurs.
Description: In order to ensure that plan sponsors have adequate time to
amend plan documents for the pension simplification prOVisions, an extended
amendment period would be provided.
Simplifying Pensions
42
TREASURY
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANlA.;\VI;~yE N.W. - W~HINGTON, D.C. - 20220 - (202) 622-2960
.
FOR RELEASE AT 2:30 P.M.
June 16, 1995
~~
6d
l.J u z:
tj
0S
CONTACT:
,"
Office of Financing
202/219 - 3 350
!.: j:: (-j; T;.:-
\
:
TREASURY'S 52-WEEK BILL OFFERING
The Treasury will auction approximately $18,250 million of
52-week Treasury bills to be issued June 29, 1995. This offering
will provide about $1,500 million of new cash for the Treasury,
as the maturing 52-week bill is currently outstanding in the
amount of $16,757 million.
In addition to the maturing 52-week
bills, there are $25,606 million of maturing 13-week and 26-week
bills.
Federal Reserve Banks hold $10,675 million of bills for
their own accounts in the three maturing issues. These may be
refunded at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $6,062 million of the three
maturing issues as agents for foreign and international monetary
authorities. These may be refunded within the offering amount
at the weighted average discount rate of accepted competitive
tenders.
Additional amounts may be issued for such accounts if
the aggregate amount of new bids exceeds the aggregate amount
of maturing bills.
For purposes of determining such additional
amounts, foreign and international monetary authorities are
considered to hold $520 million of the maturing 52-week issue.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable Treasury bills, notes, and
bonds.
Details about the new security are given in the attached
offering highlights.
000
Attachment
RR-377
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
HIGHLIGHTS OF TREASURY OFFERING OF 52-WEEK BILLS
TO BE ISSUED JUNE 29, 1995
June 16, 1995
Offering Amount . . . . .
$18,250 million
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Maturing amount . . .
Minimum bid amount
Multiples.
..,
364-day bill
912794 Z5 6
June 22, 1995
June 29, 1995
June 27, 1996
June 29, 1995
$16,757 million
$10,000
$1,000
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000
at the average disco~nt rate of
accepted competitive bids
(1 ) Must be expressed as a discount rate
with two decimals, e.g., 7.10%
(2) Net long position for each bidder
must be reported when the sum of the
total bid amount, at all discount
rates, and the net long position are
$2 billion or greater.
(3 ) Net long position must be determined
as of one half-hour prior to the
closing time for receipt of
competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders .
Payment Terms .
Prior to 12:00 noon Eastern Daylight
Saving time on auction day
Prior to 1:00 p.m. Eastern Daylight
Saving time on auction day
Full payment with tender or by charge
to a funds account at a Federal
Reserve bank on issue date
TREASUR¥',
omCE OF PUBUC AFFAIRS. 1500 PENNSrLVANlAAVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
,
t
,"
Release
Upon Delivm
Expected at 2:00 PM EST
June 19, 1995
For
STATEMENT OF
GLEN A. KOHL
T AX LEGISLATIVE COUNSEL
DEPARTMENT 'OF THE TREASURY
BEFORE THE
SUBCOMMfITEE ON TAXATION AND INTERNAL REVENUE SERVICE OVERSIGHT
OF THE
COMMITTEE ON FINANCE
UNITED STATES SENATE
Mr. Chairman and distinguished Members of the Subcommittee:
I am pleased to have the opportunity to present the views of the Administration on the
provisions in S. 758, the WS Corporation Reform Act of 1995" (the wReform Act") and the
proposal in H.R. 1215 to change the rules for claiming expenses for the business use of a
home.
The Administration suppons the goal of the Reform Act to provide small business
with needed S corporation reform and simplification. We are concerned, however, that the
Reform Act, if enacted in its current form, would create undue complexity and increased
opponunities for large regular corporations (C corporations) to escape corporate taxation.
Accordingly, we would like to work with the Committee to develop a reform package that is
more precisely targeted to small business and does not introduce additional complexity into
the Code.
.
With regard to the proposal for permitting deductions for home offices (the wHome
Office Proposal-), we generally support the proposal. We believe the law should be revised
to reflect changes in the workplace. Here too. however. we would like to work with the
Committee to make sure the language is drafted so as to minimize the potential for abuse and
associated audit difficulties. We would also be interested in working with the Committee to
address the effect of the proposal on the tax treatment of daily transportation expenses.
Finally. we believe that appropriate revenue offsets must be provided for these
legislative proposals to the extent they lose revenue.
RR-378
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
-2-
A. S CorpQration Refonn Act of 1995.
Let me first address the S Corporation Reform Act. By way of background, I should
mention that this Administration frequently champions legislation specifically targeted at
assisting small businesses. For example, in the Omnibus Budget Reconciliation Act of 1993
(OBRA '93), the Administration supported the change which increased the maximum amount
of capital investment that small businesses can expense under Section 179 from $10,000 to
$17,500. In fact, we had proposed a greater increase and only settled for the $17,500 figure
that was ultimately enacted. We continue to support, on a revenue neutral basis, legislation
that would increase expensing for small businesses. This tax benefit applies to all small
businesses, regardless of form, and not merely those that are conducted as S corporations.
Similarly, the President last week announced a number of proposals that would make
it easier for all small businesses to establish retirement plans for their employees. One of the
President's propo$als, the National Employee Savings Trust or "NEST" proposal, is
specifically d~igned for businesses with fewer than 100 employees. We look forward to
working with the Committee on this proposal.
In addition to supporting legislative proposals that are targeted to small business,
Treasury regularly issues administrative guidance that assists small business. For example,
under current law, taxpayers intending to conduct business in a flow-through partnership
must comply with a multi-factored test that is both complex and uncertain in its application.
We recently issued Notice 95-14, 1995-14 I.R.B. 7, suggesting a proposal that would replace
this system and permit taxpayers to elect to be treated as a partnership simply by checking a
box on a return. If adopted, this check-the-box approach would replace the current rules and
eliminate needless administrative and compliance costs .to taxpayers seeking partnership
treatment. This proposal has been uniformly praised by taxpayers and tax practitioners.
We have also recently published guidance that, prior to the adoption of a check-thebox system, will provide more certainty under the current rules for taxpayers seeking
partnership status for limited liability companies or "LLCs." LLCs combine the flexibility of
partnerships with the liability protection of S corporations. Consequently, LLCs are
becoming the entity of choice among· new enterprises in many situations.
Finally, we have also issued guidance that specifically addresses S corporation issues.
For example, we recently revoked a 1977 ruling that cast doubt on an S corporation's ability
to enter into a partnership in certain circumstances and have explicitly provided that S
corporations can enter into partnerships with partners that could not qualify as S corporation
shareholders, including nonresident aliens. "Rev. Rul. 94-43, 1994-2 C.B. 198; Income T-ax
Regulation § 1. 70 1-2(d), Example 2. This guidance administratively furthers some of the
goals of the Reform Act by providing S corporations with more flexibility to raise additional
capital and structure their business relationships as required.
-3-
We share the desire of the sponsors of the Reform Act to assist and strengthen small
businesses. We believe, however, it is necessary to ensure that the goals of the legislation
are achieved most efficiently and that the primary beneficiaries will in fact be small
businesses.
The tax landscape has evolved significantly since the S corporation reform effort
began in earnest in the early 1990's. For example, as I mentioned earlier, LLCs have
recently become a tremendously popular alternative to S corporations. As of 1995, LLC
legislation has been enacted in almost every state and the proposed check-the-box system is
on the horizon. While these developments do not eliminate the need for certain reforms that
would be useful for existing S corporations, they do require a reassessment of who will
benefit from any S corporation proposal. We also should make sure we do not add undue
complexity to the S corporation regime.
Many of the technical and administrative provisions of the Reform Act are simply
good government and we support such provisions. These include, for example, the rules that
grant the IRS the authority to treat flawed elections as valid and certain other proposals. We
also support the proposal to increase the number of shareholders from 35 to 50.
Nevertheless, we are concerned that certain other aspects of the Reform Act, when coupled
with current law, will unduly benefit large C corporations, rather than the intended
.
beneficiaries of the Act.
We base our concerns on a variety of factors, including the fact that under current
law regular C corporations seeking flow-through tax treatment can frequently escape most
corporate level taxes simply by electing S corporation status, assuming the applicable
requirements are satisfied. I In particular, corporate taxes on current income are generally
eliminated and a tax on any net built-in gains can be avoided by deferring any sales of builtin gain assets for ten years. In this regard, S corporations have a distinct advantage over
other flow-through regimes such as partnerships. If a C corporation enterprise chooses to
conduct business as a partnership (including an LLC taxable as a partnership), it would
generally incur, in addition to a shareholder-level tax, a corporate-level tax on net built-in
gains. This "toll charge" tax reduces the erosion of the existing corporate tax base. 2
Exceptions to nonrecognition on conversion include LIFO recapture for C corporations that use the LIFO
method and, for C corporations with earnings and profits, a corporate-level tax on any recognized "excess net
passive investment income" under section 1375.
2
We note that the staff of the Joint Committee on Taxation recommended, as part of a simplification
package, that "a shift from C corporation status to passthrough entity status where the passthrough entity is an S
corporation [be] conformed to the present-law treatment where the passthrough entity is a partnership." See letter to
Chairman Dan Rostenkowski from Ronald A. Pearlman, Chief of Staff of the Joint Committee on Taxation, reprinted
in Committee on Ways and Means, Written Proposals on Tax Simplification, WMCP 101-27, May 25, 1990, p.20.
-4-
We are concerned that one consequence of the Reform Act's expansion of the
eligibility requirements is that it will enable an increasing number of large C corporations to
avail themselves of the S election to escape corporate level taxes. We expect that if the
Reform Act becomes law, large C corporations will take advantage of the new rules. The
Administration believes that legislation intended to benefit only small business and existing S
corporations should do just that.
In short, the Administration supports the goals of S corporation reform, but believes
that it should be more carefully tailored to Its objectives and should avoid undue
complexities. We would be pleased to work with the Committee to develop an S corporation
reform package that meets these criteria.
B. Modification of Home Office Deduction for Administrative and
Manaeement Activities.
We generally support the Home Office Proposal. It is important for the tax law to
keep pace with the changes in the workplace, and we believe that reform in this area is
appropriate.
The proposal would amend the Internal Revenue Code so that a portion of the
taxpayer's home would qualify as a "principal place of business" if (i) the office is used by
the taxpayer to conduct administrative or management activities, and (ii) there is no other
fixed location where the taxpayer actually conducts substantial administrative or management
activities. By contrast, under current law, a d¢uction is generally allowed with respect to -,
the use of a taxpayer's residence only in limited circumstances, including where a portion of
the home is exclusively used on a re~ular basis as the taxpayer's "principal place of
business."3 Thus, under the bill, a home office deduction would be allowed under
circumstances where the taxpayer's home, under current law, is not the taxpayer's principal
place of business.
While we believe this result is appropriate in many cases, certain considerations
should be addressed. In particular, the current rules were enacted by Congress in 1976 to
reduce the substantial amount of litigation over the circumstances under which a taxpayer
who worked in his or her home could deduct as a business expense a portion of the costs
associated with maintaining the home. It is important that we make every effort to avoid
turning back the clock and creating a level of ambiguity that would result in more disputes
between taxpayers and the IRS. To address this concern, we believe modifications to the
statutory language are needed.
3 A deduction is also allowed for a portion of a home that is exclusively used on a regular basis (i) as a place
of business which is used by patients, clients, or customers in meeting or dealing with the taxpayer in the normal
course of the taxpayer's trade or business, or (ii) in the case of a separate structure which is not attached to the
dwelling unit, in connection with the taxpayer's trade or business.
-5-
We are also concerned about the potential implications of the Home Office Proposal
for daily transportation expenses. As currently drafted, the bill would affect more than home
office deductions. It would also permit deductions for currently nondeductible commuting
expenses and create considerable uncertainty in this area. We believe the effects of the
Home Office Proposal should be limited to home office expenses. This issue also can be
addressed through drafting revisions.
In summary, we support the Home Office Proposal and would be pleased to work
with the Committee to address the concerns we have raised. 4
*****
Mr. Chairman, this concludes my testimony, and I would be pleased to answer any
questions that you or other members of the committee may have.
4
Section 6354 of H.R. 1215 would allow a deduction for expenses related to a storage unit in the taxpayer's
borne used for product samples if he or she is engaged in the business of selling those products at retail or wholesale
and the home is the sole fixed location of the taxpayer's business. This proposal simply extends a current-law rule
for inventory to product samples ..We have no objections to this proposed change.
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Title:
Date:
NBC News "Meet the Press", Guests: Robert E. Rubin, Secretary of the Treasury, Senator
Pete Domenici (R-NM), and Represenative John Kasich (R-OH)
1995-06-18
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Federal Reserve Bank of St. Louis
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DEPARTMENT
OF
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20220.12021622-2960
June 16, 1995
Fact Sheet on Key Communique Points on Reform of the Institutions
Halifax G-7 Economic Summit
Macroeconomic Policy and Exchange Market Cooperation
The Leaders agreed to pursue macroeconomic and structural policies to maintain the momentum
of growth. and to maintain close cooperation in economic policies and exchange markets. They
reaffirmed the conclusions of the April ComnDlDique of the G-7 Fmance Ministers and Central
Bank Governors.
"They agreed that recent movements [in exchange rates] have gone beyond the levels
justified by underlying economic conditions in the major countries. They also agreed that
orderly reversal of those movements is desirable, would provide a better basis for a
continued expansion of international trade and investment, and would conmbute to our
common objectives of sustained non-inflationary growth. They further agreed to
strengthen their effons in reducing internal and external imbalances and to continue to
cooperate closely in exchange markets."
Promoting rmaocial Stability
In response to the new challenges in the financial system exposed by the Mexican crisis. the
Leaders proposed a set of institutional reforms to improve our capacity to prevent and mitigate
financial crises.
Early Wamin& and Prevention
•
•
Creation of a more effective early warning and prevention system to enable the
international community to Ivett crises. with an emphasis on improved disclosure
SO that markets can encourage early policy responses.
Establishment of a new Emergency Fmancing Mechanism to provide the means for
a quick and surgical international response to crises with systemic implications.
•
RR.-379
To minimize moral hazard risks. this mechanism would be only be used to finance
IMF programs with strong conditionality, and it would be funded through an
expanded GAB. to ensure that the major creditors retain decision making authority
over when it is deployed.
2
•
To support this new mechanism. the G-IO and other countries with the capacity to
support the system are called on to double the resources now available for this
purpose to more than $SO billion.
Orderly Resolution
•
Safeguardin~
Funher review of procedures that might facilitate the orderly resolution of
international debt crises in a financial environment characterized by a greater
diversity of creditors and financial instruments.
the Financial System Against rusk
Commitment to intensify cooperation among financial authorities to limit systemic risk and a
pledge to develop and enhance safeguards. standards, transparency and systems to reduce risk.
Finance Ministers will report to the next Summit on the adequacy of the current system
and proposals for improvement.
Continued encouragement to countries to remove capital market restrictions, combined with
support for the development of appropriate supervisory and reguhtory systems.
Promoting Sustainable Development
G-7 endorsement of a blueprint for reforms of the World Bank and the regional development
banks. reforms the United States has been promoting for two and a half years.
Key elements'
•
Direct a substantial increase in the share of resources devoted to basic social
programs that invest in people and are a powerful force for poverty reduction,
such as primary education for girls and basic health care.
•
Focus on safeguarding the environment.
•
Support for development of the private sector and the use of more innovative
financial instruments to catalyze private capital flows.
•
Internal reforms, consolidation, decentralization, increased transparency, cost
reduction.
Support for the Mideast Peace Process
Agreement on the establishment of a new institution and financing mechanism enhacing regional
cooperation in support of the peace process.
Debt of the Poorest
Building on the Naples commitment to reduce the official debt owed by the poorest, the leaders
called on the IMF and the multilateral development banks to develop a comprehensive approach
for reducing the burden of large debt owed by some countries to the international financial
institutions. This approach will encompass new financing mechanisms that make bener use of all
the existing resources of the institutions.
As part of this commitment to the challenge of development, the Leaders agreed to
support a continuation of concessionallending through the IMPs enhanced structural
adjustment facility (ESAF).
Responding to Cruis
The leaders called on the IMF, the multilateral development banks and the United Nations to
develop a new coordinating procedure to mobilize concessional finance quickly to countries
emerging from political and economic crisis, as a bridge to the traditional lending facilities of the
institutions.
Halifax Summit
REVIEW OF INTERNATIONAL
FINANCIAL INSTITUTIONS
BACKGROUND
DOCUMENT
June 15 - 17, 1995
19 9 5'
The Halifax Summit Review of the International Financial Institutions
1. Introduction
At the Naples Summit, G-7 Leaders agreed that the Halifax Summit should
focus on how to "assure that the global economy of the 21st century will provide
SUStainable development with good prosperity and well-being of the peoples of our
nations and the world" by identifying the framework of institutions required to meet
these challenges.
This paper examines the need for changes to the architecture of the
international fmancial institutions -- i.e. International Monetary Fund, the World Bank
Group, and the regional development banks.
Broadly speaking, the international fInancial institutions have demonstrated an
exceptional degree of flexibility in adapting to changing demands. Nevertheless, there
remain a number of areas where improvements are both possible and desirable.
2. The Principal Challenges
Today's world is very different from the one in which the Bretton Woods
institutions were created.
•
The global economy is more integrated and, as a result, all countries have a much
greater stake in developments outside their borders.
•
World trade has grown steadily, and direct and portfolio investment flows have
increased sharply in recent years.
•
Capital market liberalization, technological change, and financial innovation have
transfonned the global fInancial landscape -- with great benefits, but also new
risks.
•
There isa much greater consensus on the role of the market, economic incentives,
and open policies, and much less faith in dirigiste solutions to economic problems.
•
A variety of new global challenges have emerged in areas such as environmental
stewardship and the importance of good governance.
2
•
The influence of developing countries in the world economy is growing, yet, a
large portion of the world's population still lives in extraordinary poverty.
•
The imperative of continued transition in the countries of Central and Eastern
Europe, the fonner Soviet Union, and elsewhere remains clear.
These changes leave the international community with a variety of continuing
challenges: promoting economic policies that ensure sustained non-inflationary growth
and correct imbalances that engender financial and exchange market instability;
adapting institutional mechanisms to a world of large and highly mobile private
capital; and promoting more effective sustainable development and poverty reduction.
3. Constraints and Other Considerations
In exploring potential institutional responses to these challenges, several general
considerations need to be kept in mind. Although donor countries face fiscal
constraints, which not only limit their ability to fmance new institutions or new pools
of resources, but have increasingly put pressure on the financing of existing
obligations, efficient and effective international institutions will continue to merit our
fmancial support. This strongly argues that the primary focus should be support for
existing international fmancial institutions and the need to mobilize their resources
more effectively. It also means that the needs which are identified must be consistent
with the magnitude and the specific nature of the resources available to address them.
The existing complement of international institutions has grown to a point
where the international community would benefit from a concerted effort to eliminate
unnecessary overlap, consolidate functions in the institutions that are most effective,
and focus their activities more clearly on private sector development, while continuing
to play a vital role in those areas where the private sector cannot or will not play a
role. In the future it will be beneficial to encourage the emerging economies to
assume a degree of global responsibility which is broadly in line with their
contribution to the world economy.
4. Economic Policy and Excbange Market Cooperation
Close consultation and effective cooperation on macroeconomic policies among
the G-7 are important elements in promoting sustained non-inflationary growth,
avoiding the emergence of large external and internal imbalances, and promoting
greater exchange market stability. We have adopted a number of changes to the
structure of our consultations over time in order to strengthen policy cooperation.
Specifically, the process of consultation with th~ IMF ~ been enhanced ~d the focus
of discussions extended. These changes are deSIgned to unprove our capacIty to
identify, and bener respond to, potential risks.
3
Appropriate structural policies contribute to the effectiveness of sound
macroeconomic policies. Structural policies that increase the flexibility and dynamism
of the supply side of economies limit the persistence of macroeconomic imbalances
and accelerate the response to macroeconomic policy adjustments. Such policies also
enhance the longer-term potential of economies to grow and create secure, high-paying
jobs.
The most effective route to greater exchange market stability lies in the pursuit
of sound domestic monetary and fiscal policies. Further progress in achieving a
non-inflationary environment and reducing inflation differentials will mitigate one
important source of exchange rate variability. Further substantial progress in reducing
fiscal deficits and increasing national savings will also contribute to greater exchange
market stability. Early policy action to avoid large external imbalances would help
reduce the likelihood of large and potentially destabilizing exchange rate adjustments.
In addition, continued cooperation in the exchange markets can be a useful and
effective means for moderating exchange rate movements that are not driven by
fundamental changes in economic conditions or policies. Close monitoring and
coordinated responses in the exchange markets can be appropriate when exchange rates
get out of line. In this context, it should be noted that, in their April 25 Statement, the
G- 7 Finance Ministers and Central Bank Governors agreed that recent exchange rate
movements had "gone beyond the levels justified by underlying economic conditions
in the majors countries. They also agreed that orderly reversal of those movements is
desirable, would provide a better basis for a continued expansion of international trade
and investment, and would contribute to our common objectives of sustained noninflationary growth. They further agreed to strengthen their efforts in reducing internal
and external imbalances and to continue to cooperate closely in exchange markets."
Administrative measures, such as selective taxes or controls on capital
transactions, are an ineffective and very costly means to attempt to limit exchange
market volatility. Since it would be impractical to implement such controls across
geographic areas and financial instruments, they would merely shift the location of
activity or the financial vehicle for the transactions. Controls would also tend to
hamper investment and capital flows that are productive for growth and reinforce
stability.
4
5. Promoting Financial Stability in a Globalized Economy
There is a need to ensure that the economic advantages made possible by
integrated, flexible fmancial markets can be enjoyed around the world while, at the
same time, more effectively managing financial developments with potentially broad
economic implications. In the past, this challenge has been met through a network of
institutions and arrangements, which include the IMF, BIS, G-7, GI0 and OECD.
These groups have significantly strengthened cooperation and information-sharing
among policy makers and financial market supervisors and regulators. They have also
developed a complex set of formal and ad hoc fmanciaI facilities that have been used
to respond to financial market crises which threatened to have major economic
consequences.
The international community must also improve its ability to address the risks
inherent in the dramatic growth in private fmancial flows, the increased integration of
domestic capital markets, and greater recourse to fmancial innovations. Episodes of
financial market distress, as most recently experienced in Mexico, illustrate both the
potential dangers and challenges these institutions must be prepared to meet.
A number of interrelated elements are required to effectively deal with these
challenges:
•
An improved early warning system is needed to avoid fmancial shocks where
possible. This requires, inter alia, an effective ongoing system of surveillance of
national economic policies and developments.
•
\Vhen potential problems are identified, there is a need to ensure that the capacity
existS to induce appropriate policy responses at an early stage.
•
Appropriate and adequate multilateral rmanc:ing mechanisms are required that can,
when needed, be brought to bear on a scale and with the timeliness required to
overcome the consequences of external shocks that may arise from the increased
mobility of international capital. Crucially, there is a need to ensure that these
mechanisms operate in such a way, in terms of conditionality, as to quickly restore
market confidence and access to private sector money.
•
An effective system of cooperation among the major industrial countries and
•
multilateral fmanciaI institutions is needed, which allows a rapid and concerted
response to external shocks.
There may also be a need to look at other mechanisms that might usefully be
considered in situations of fmanciaI crisis.
5
Early Warning and Surveillance
Timely and comprehensive data are the backbone of an effective surveillance
process in the multilateral institutions. Properly constituted, surveillance serves three
key functions: it provides the discipline needed to ensure that economic developments
are systematically reviewed by the multilateral institutions and their implications
clearly identified; it provides an opportunity for governments to deliver collective
advice to one another with respect to economic policy measures, past or prospective;
and it permits the private sector to make informed decisions and perform its role more
efficiently.
Minimizing the occurrence of fmancial shocks requires improved transparency _
- i.e. that all countries publish timely and reliable data on a broad range of economic
and financial indicators. Quick and widespread access to such information will allow
fmancial markets to better perform their role as the primary conduits by which capital
moves from savers to borrowers. Of particular importance is the role that continuous
and comprehensive data publication can play in minimizing the scope of abrupt shifts
in fmancial market sentiment in response to unwelcome surprises. Well-informed and
well-functioning fmancial markets are the best line of defence against fmancial crises.
To this end, the IMF should:
•
establish benchmarks for the timely publication of key economic and financial
data;
•
establish a procedure for tbe regular public identification of countries whicb
comply with these benchmarks;
•
insist on full and timely reporting by member countries of standard sets of
data.
G-7 Finance Ministers and Central Bank Governors conduct regular, detailed
surveillance discussions, with the input of the IMF', which are primarily focused on
their 0\w policies and prospects. More broadly-based surveillance is carried out by
the IMF in the context of its annual reviews of economic performance in member
countries. The IMF also conducts broader assessments of economic policies,
developments and prospects from a global perspective in its World Economic Outlook,
which it publishes twice a year.
Given its global mandate and the expertise of its staff, the IMF should continue
to be the focus of surveillance. However, the IMF's surveillance activities should be
improved in four specific ways:
6
•
Greater resources and attention should be devoted to those countries of global
significance, including both industrial countries and emerging economies.
•
Clear and direct policy advice should be offered to all governments,
particularly those which appear to be avoiding necessary policy measures.
•
Greater attention should be devoted, in general, to rmaneial and banking
sector developments and, in particular, to the pattern of capital flows and
their maturity. Better balance should also be achieved in the Fund's overall
surveillance process between cross-cutting issues, such as common
developments in capital markets, and country-specific issues.
•
Wherever feasible, the Fund should be more open and transparent in its
assessments and policy advice.
Some of these objectives conflict. to some degree, with one another. Most
importantly, any surveillance process faces a tension between the desire to function as
a cooperative process and the frequent need to deliver a sharp, unambiguous policy
message to national authorities. In carrying out this task, the IMF obviously needs to
be selective. In practice, this means focusing particular attention on countries with a
potentially large impact on the world economy.
Should bilateral surveillance fail to achieve its desired effect on the policies of
certain member countries, a direct. but private, dialogue with national authorities
should be encow-aged.
•
The IMF Managing Director should be invited to work more closely with
Executive Directors and when necessary, member governments, with a view to
initiating a concerted policy dialogue with the national authorities of problem
countries.
•
Where appropriate, governments should be prepared to take on the role,
collectively or individually, of passing a strong message on the need for policy
actions to the national authorities of these countries.
Early and Appropriate Policy ResponseS
In a well-functioning system, a country would begin taking policy actions to
correct external or internal imbalances as soon as these materialise. The international
financial institutions are set up to facilitate this process in several ways. The IMF, for
example, undertakes a regular process of consultations with all member countries.
These consultations provide an opportunity to candidly review the current policy stance
of members and discuss prospective problems before these arise. The timing of such
7
consultations should be flexible and responsive to changes in country policies and the
external economic environment.
In cases where external financing is required to support early policy actions, the
Fund is able to provide fmancial support through a variety of facilities. These differ
largely in terms of the nature of the macroeconomic and structural problems they seek
to address and the degree of conditionality attached to them. The IMF and MDBs also
provide significant financing for structural reforms. Such reform programs are
designed to reduce major economic distortions with a view to creating more dynamic
economies, which are better able to cope with external shocks should they arise in the
furure.
Financing Mechanisms
The international community's ability to respond to short-term liquidity needs
and medium-term balance of payments difficulties in individual countries is centred
principally on two institutions, the IMF and the BIS. At times, these have been
supplemented by ad hoc bilateral and multilateral mechanisms. The IMF has at its
disposal a number of financing facilities, each of which generally requires the
negotiation of an acceptable economic policy program as a prelude to disbursement of
loans which. in tum. are predicated on the fulfilment of the agreed policy
commionents and targets.
Should the financial need of one or more member economies be sufficiently
large to strain the IMF's regular resources or threaten the functioning of the
international fmancial system, the G-IO countries stand ready to provide loans to the
IMF through the General Arrangements to Borrow (GAB). To bridge the gap
between the urgent liquidity needs that often arise in a time of crisis and the weeks or
months that may be required for the IMF to begin disbursing its loans, the monetary
authorities of the G-I0 countries have found it necessary on occasion to extend shortterm credits, either directly or through the BIS.
A key question should be what constitutes the right mix of surveillance,
adjustment and financing - rather than viewing the crisis as the consequence of
inadequate fmancing. The Mexican crisis clearly illustrates that the vast financial
flows that are now commonplace in private markets pose important new challenges. It
also illustrates the importance of strong policy action in responding to such crises, and
the crucial need for any financial support to be conditional on that. While this episode
points to a need to review both the size and the speed of access to the financing
mechanisms, it is also understood that there can be no presumption that multilateral
fmancing will be provided in every instance of local or regional fmancial crisis.
8
This episode also highlights the necessity for international fmancial institutions
and major economies to be able to respond rapidly and in a well coordinated fashion.
when confronted with a problem that could have adverse economic consequences for a
significant number of countries or pose a significant threat to the stability of the
world's increasingly integrated fmancial system.
Issues pertaining to fmancing mechanisms can be identified in tenns of the
means by which funds can be made available and the sources of such funds. The
n. .1F's facilities continue to represent an important source of financing for
macroeconomic stabilization in many countries. Moreover, an IMF arrangement is an
essential element for any agreement with the BIS and creditor governments on a shorttenn bridging facility. In the aftennath of Mexico, attention might usefully be focused
on the adequacy of the Fund's current mechanisms (including use of the "exceptional
circumstances" clause on a selective and ad hoc basis).
•
We would propose the establishment within the IMF of a new standing
procedure - "Emergency Financing Mechanism" - involving a fund
arrangement with strong conditionality but with high up-front access and
faster procedures to access Fund resources in crisis situations under the
.. exceptional circumstances" clause.
The IMF presently has adequate usable resources to fmance its commitments to
Mexico and other projected lending without a significant increase in its liquidity.
Nevertheless, in order to support the above-mentioned new standing procedure, we
would ask:
that the G-IO and other countries with the capacity to support the system
develop fmancing arrangements with the objective of doubling as soon as
possible the amount currently available under the GAB to respond to financial
emergencies;
To ensure that the IMF has sufficient resources to meet its ongoing
responsibilities, we urge continued discussions on a new IMF quota review.
Strengthening International Cooperation
Should financial market crises arise, it is important that we improve existing
mechanisms for sharing our analyses and strengthen our ability to coordinate a quick
response. A willingness to cooperate is obviously essential but this must be backed up
by fast and reliable channels of communications at all levels of operational
responsibility .
9
In essence, the methods of coordination and cooperation among the major
industrialized economies and the multilateral fmancial institutions must be modernized
and brought into line with the growing speed and breadth of financial market
integration. Since these groups have at their disposal the same information technology
that markets have exploited, further improvements in these capabilities appear both
feasible and desirable.
Solid progress on the elements discussed above should significantly improve
the international community's ability to cope with future financial crises. Nevertheless,
these improvements may not be sufficient in all cases. In line with this, and
recognizing the complex legal and other issues posed in debt crisis situations by the
wide variety of sources of international fmance involved, we would encourage further
review by G-10 Ministers and Governors of other procedures that might also usefully
be considered for. their orderly resolution.
6. Strengthening Financial Market Supervision and Regulation
The growth of fmancial markets, the development of new instruments, and a
desire for diversification of investment have spurred global integration of national
markets and increased liquidity. These developments have led to a more efficient
allocation of capital and thus greater growth of economic activity. At the same time,
with today' s highly integrated financial markets, there is a greater potential for the
rapid transmission of fmancial disturbances. Close international cooperation in the
regulation and supervision of fmancial institutions and markets is essential to the
continued safeguarding of the fmancial system and to prevent erosion of necessary
prudential standards.
Continued strengthening of these efforts has the full support of G-7 Finance
Ministers and Central Bank Governors. We look forward to the development and
further enhancement of concrete international understandings, where necessary and
appropriate, on the safeguards, standards, transparency, and systems necessary to
reduce potential risks. In this context, we recognize the important initiatives being
undertaken separately and jointly by various committees under the aegis of the BIS
and the International Organization of Securities Commissions as well as by national
authorities.
•
The G·I0 should be encouraged to iatensify their review of work in this area
and tbere should be a call for the Basle Committee on Banking Supervision
and the International Organization of Securities Commissions to work closely
together in addressing tbe major issues in this area and tbe desirable steps to
address identified problems and to report back. These reports should belp
Ministen to reach conclusions regarding the extent of systemic risks and tbeir
10
implications for the world economy, and the need for any measures deemed
essential to an integrated approach to potential systemic risks.
•
The IMF should consider extending existing obligations regarding the
convertibility of current account transactions to the staged liberalization of
capital account transactions. At the same time, the IMF, the World Bank and
regional development banks, and national authorities should encourage an
integrated approach to ensure that adequate supervisory, regulatory and
policy structures are in place to support the sound development of rmaneial
markets in countries which are removing these restrictions. This might be
done, for example, by increasing technical assistance and strengthening
contacts with other regulatory authorities.
We also recognize that international fmancial fraud is a growing problem. We
are committed to improve communication between regulators and law enforcement
agenCies.
7. Special Drawing Rights
•
We reiterate our support for a one-time special aUocation of SDRs, through
an amendment of the Fund's Articles of Agreement, to reduce inequities in
the current system by aUowing new members, particularly the countries of
Central and Eastern Europe and the former Soviet Union, to participate fuUy
in the SDR system. This approach would also provide additional SDRs to
other countries, particularly the poorest countries with the greatest need.
The broader question of the appropriate future role of the SDR in the
international monetary system should be the subject of a separate study as
agreed at the last meeting of the Interim Committee.
8. Sustainable Development
The multilateral development banks - i.e. the World Bank and regional
development banks - must continue to play a key role in the promotion of sustainable
development In recent years, the MOBs have been broadly responsive to emerging
challenges and have adopted an impressive set of operational and administrative
reforms. This is most clearly evident in their ongoing response to the historic
challenge of transforming the countries of Central and Eastern Europe and the former
Soviet Union from centrally-planned to market-based economies.
The MDBs have also learned valuable lessons from past successes and failures,
which provide clear evidence of the complexity of the developmental challenge. The
international community bas a shared interest to ensure that these institutions continue
to adapt to the challenges of today's world and contribute efficiently to the
11
development process of poor countries. In line with this, the following areas deserve
closer examination.
Allocating Resources More Effectively
Greater attention needs to be paid to the use of increasingly scarce public
resources. Budget constraints in many donor countries are leading to growing
pressures on concessional programs. As a result, priorities must be sharpened and
difficult choices made concerning both the sectoral and country focus of assistance
efforts and we reaffirm our support to the MDBs' endeavour in this regard.
•
It is essential that the MDBs narrow their focus and increasingly direct their
lending toward the provision of "public" goods, for which private support is
inadequate or simply not available. This argues for a stronger focus on
programs such as those which support primary education and health care or
protection of the environment. Such investments are not only economically
sound, but typically demonstrate exceptionally high social rates of return as
well.
•
Wherever feasible, traditional lending for capital projects should be left to the
private sector and more generally the MDBs should ensure that their lending
is genuinely additional to private sector fmance, and not replacing it. In
order to promote private involvement in the development process, the MDBs
should: encourage private sector fmancing of capital projects through various
fmancing mechanisms; encourage the development of a healthy private sector
by establishing a policy environment conducive to private enterprise; and
support the provision of sufficient infrastructure for sustainable growth.
•
Concessional resources should be allocated primarily to the countries that
need them most and have a demonstrated capacity to use them effectively.
Countries with sustained and growing access to capital markets should be
progressively "graduated" from the concessional to tbe ordinary capital
wiDdows of these institutions.
•
In line witb our objective of supporting efficient and effective multilateral
institutions, we urge all donor countries to fulfil promptly their commitments
to IDA 10 and to support a significant replenishment of IDA 11.
12
Future Policy Directions
A number of key development challenges have their root causes in poverty.
The international development institutions clearly have an essential role to play in
reducing poverty through direct interventions and the promotion of sustainable, labourintensive growth.
•
To better play this role, the country strategies of the MDBs need to be more
dearly driven by the poverty reduction strategies of recipient countries. In
turn. country strategies should include clear statements of expected progress
on key poverty indicators and provide monitorable benchmarks to better
judge the success of individual projects.
•
The MDBs should also give serious consideration to sharply reducing their
lending programs in any country that does not clearly demonstrate a firm
commitment to poverty reduction. In some cases, this commitment might be
assessed against the share of government spending directed to basic social
services compared to the share directed to non-productive areas, such as
military spending.
The MDBs have responded well to the challenges of integrating sound
environmental principles into their operational policies. Nevertheless, there continues
to be concern about the implementation of these policies. This being the case:
•
Comprehensive environmental assessments should be an integral part of the
program and project development process and mitigative actions taken as
appropriate. Greater attention should also be paid to the environmental
impacts of completed projects. FuU consultation with relevant parties should
be undertaken at various stages of the project cycle.
There is also considerable public scepticism about the overall quality of tvIDB
projects and whether the MDBs are contributing to effective development, particularly
in regions such as sub-Saharan Africa. Clearly. there is a need to better demonstrate
results "on the ground" and to continue to press for higher quality projects.
•
One way to achieve this would be for the institutions to take better account of
the lessons of experience from their past successes and failures. It would be
useful to examine the possibility of introducing common standards and
criteria for evaluation across these various institutions. This would not only
belp improve the excbange of information, but would ensure the consistency
of project and program evaluations across different institutions. We would
also encourage the IMF to establish its own independent evaluation unit.
13
Developmental effectiveness can also be improved through efforts to strengthen
policy coordination. While the traditional division of labour between the IW and the
World Bank makes good sense, operations would be improved if joint missions and
program preparation were the norm both in areas of shared responsibility, such as
financial sector reform and budget exercises, and where macroeconomic and structural
issues interact.
•
For countries which are drawing on the resources of the Fund, efforts should
be made to operationaJize a more integrated approach. Where appropriate,
the use of common policy framework papers should be encouraged.
•
Scope may also exist to improve coordination between the World Bank and
the RDBs, with each focusing on their core missions and through stronger
cooperation where these intersect. The Development Committee Task Force
might explore the scope for improved consultation on respective country
programs with a \'iew to a clearer division of the sectoral responsibilities of
these institutions in individual member countries.
•
The World Bank and tbe regional development banks should be encouraged
to decentralize their operations wherever possible.
•
Tbe acth'ities of the International Finance Corporation (IFq and the
Multilateral Investment Guarantee Agency (MIGA) must be more strongly
integrated into the World Bank Group.
Looking ahead, the MDBs will need to do more to better customize their
services to meet the changing needs of many of their borrowing members, A key
challenge will be to continue to increase the capacity of the private sector to provide
services which. in most countries, have previously been provided by governments.
•
To catAlyse greater private sector participation, tbe World Bank bas
iDtroduced a new guarantee program whicb is aimed, in particular, at
leveraging additional private flows for infrastructure investment. In tbe same
vein, tbe World Bank and RDBs sbould work actively to expand their
cormancing arrangements witb private and public rmaneial institutions.
•
To catalyse greater private sector flows, while assuring adequate risk sharing
among public and private lenden, tbe World Bank Group should be
encouraged to eumine new public-private institutional arrangements which
migbt better support tbe organization of private-led rmancial packages.
Turning to debt, considerable progress has been made on the international debt
strategy at recent Summits. Nevertheless. significant debt overhang problems clearly
14
persist in a number of the poorest countries. Last December, as called for at the
Naples Swnntit, the Paris Club of creditor governments agreed to increase the level of
debt reduction to (up to) 67 percent for the most severely-indebted, low-income
countries and to operationalize a "stock of debt" approach. We welcome the Paris
Club's progress to improve the treaUIlent of the debt of these countries and urge the
full and constructive implementation of Naples terms, a step that is in the interest of
both debtors and creditors.
•
To address the overaU debt burdens of tbese countries in a comprehensive
manner, a coordinated approach should be maintained to official bilateral,
commercial, and multilateral debt, and special attention sbould be paid to the
prevention of future debt problems.
•
Further study on a country-by-country basis needs to be made of the extent
and nature (by institution and type of debt) of the problems faced, in order to
determine where innovative approaches are most appropriate.
There is general agreement that measures have to be taken to ensure that the
burden of multilateral debt does not impede the growth prospects for the poorest
countries. Exit strategies need to be found for countries with particularly high levels
of multilateral debt, but with good track records.
•
The IMF and World Bank sbould take tbe lead in developing a comprehensive
multilateral approach to assist countries with multilateral debt and debtservice ratios above prudent levels in addressing tbeir debt burdens, through
tbe flexible implementation of existing instruments, and new mechanisms
where necessary.
•
Thought should be given to the better use of all existing IMF and World Bank
resources and furtber consideration of appropriate measures in the
multilateral development banks, to advance tbis objective.
•
An important part of any resolution of tbese debt problems will be tbe
availability of flDancing on more higbly concessionsl or grant terms. Thought
also sbould be given to increasing tbe sbare of official bilateral assistance
directed to tbe poorest countries and the degree of concessionality in such
assistance.
Disasters and other crises have demonstrated gaps in the institutional
machinery. To help resolve emerging crises, the Bretton Woods institutions and the
UN should establish a new coordination procedure, supported as necessary by existing
resources, to facilitate a smooth transition to the rehabilitation phase in countries
15
emerging from economic or political crisis, and to cooperate more effectively \\<;th
donor countries.
Strengthening Governance and Management
A number of key governance mechanisms of the international system have
become less effective in recent years. There is a clear need to redesign and refocus a
number of these mechanisms if they are to have a more meaningful role.
Consideration might be given to two options to reinvigorate the Interim and
Development Committees. The first option could be to create a new forum with a
broader mandate than the current Interim and Development Committees. Under this
option. the Interim and Development Committees could be reconstituted into a single
joint Fund-Bank Committee to focus on global financial and development policy
issues.
An alternative option might be to transform the Development Committee into a
more effective policy steering committee with a relationship to the World Bank Group
analogous to that of the Interim Committee to the IMF. Under both cases, it could be
recommended that Ministerial attendance be limited to the Annual meetings.
Discussions at the Spring meetings could then be at the level of senior officials.
The time has also come for international fmancial institutions to better
prioritize their activities. In particular, these institutions need to actively address the
growing overlap and unnecessary duplication of many of their activities. Not only
would policy actions in this area yield welcome savings, but they could also contribute
to greater policy coherence throughout the IFI system.
•
There appears to be scope to reduce overlap in the area of macroeconomic
surveillance. In this area, the IMF and the OECD have sometimes come to
perform similar surveillance. The OECD should give relative priority to
structural issues without neglecting its traditional macroeconomic studies,
which are necessary to enable sound evaluation of structural policies. These
ltudies could focus more on medium term prospects.
Finally, there is a need for these institutions to clearly demonstrate their
commitment to cost effectiveness.
•
In line with this, those institutions which have already begun to formulate and
implement plans to effect significant reductions in their operating costs should
be encouraged in their work. Those institutions yet to begin such a process
should be urged to do so during upcoming budget exercises with a view to
achieving measurable results over the next few years.
16
Such plans could help to reinforce the pressure on many of these institutions to
bener prioritize their activities. It should also be stressed that these savings need not
necessarily come at a cost to the services that are provided to borrowing members, if
this leads to the creation of leaner and "smarter" institutions.
9. Other Institutions and Issues
The broader Halifax process will also need to review the coherence of the
overall system of international institutions. The international community has a strong
interest in eliminating duplication between the IFls and the UN system and operating
these institutions on as cost efficient a basis as possible.
Anention also needs to be paid to the synergies, as well as potential overlap,
between the World Trade Organization and the various trade-related activities of other
international institutions.
•
The WTO needs to become a strong force for open markets and tbe
continued liberalization of world trade. To ensure tbat it has a credible
leadership role, it will be essential tbat the WTO's activities are closely
coordinated with the IMF, World Bank, OEeD and trade-related UN bodies
to avoid unnecessary duplication in their activities.
Halifax Summit
COMMUNIQUE
June 15 - 17, 1995
HALIFAX SUMMIT COMMUNIOUE
PREAMBLE
1.
We, the H~ds of State and Government of seven major industrialized nations and
the President of the European Commission, have met in Halifax for our 21st annual Summit. We
have gathered at a time of change and opportunity, and have reaffirmed our commitment to
working together and with our partners throughout the world.
GROWTH AND EMPLOYMENT
2.
The central purpose of our economic policy is to improve the well being of our
people, allowing them to lead full and productive Lives. Creating good quality jobs and reducing
unemployment., which remains unacceptably high in too many of our countries, is thus an urgent
priority for all of us. We are committed to establishing an economic environment conducive to
the accomplishment of this goal.
3.
We remain encouraged by the continued strong growth in much of the world's
economy. While there has been some slowing, in most of our countries the conditions for
continued growth appear to be in place and inflation is well under control. We will pursue
appropriate macroeconomic and structural policies to maintain the momentum of growth.
Yet problems remain. Internal and external imbalances, together with unhelpful
4.
fluctuations in financial and currency markets, could jeopardize achievement of sustained, noninflationary growth as well as the continued expansion of international trade.
5.
We remain committed to the medium-term economic strategy that we earlier
agreed upon. Consistent with it., we are determined to make the best possible use of the current
economic expansion by taking steps to promote durable job creation. This requires determined
action to further reduce public deficits, to maintain a non-inflationary environment and to increase
national savings for the funding of a bigh level of global investment. Each country has to keep its
own house in order.
6.
We endorse the conclusions reached by G-7 Finance Ministers in Washington and
uk them to maintain close cooperation in economic surveillance and in exchange markets.
7.
Good fiscal and monetary policies will not on their own deliver the full fhrits of
better economic performance. We must also remove obstacles to achieving the longer-term
potential of our economies to grow and create secure, wen-paying jobs. This will require
measures to upgrade the skills of our labour force, and to promote, where appropriate, greater
8e:xJbility in labour markets and elimination of unnecessary regulations. At Naples we committed
ourselves to a range of reforms in the areas of training and education, labour market regulation
ad adjustment. technological innovation and enhanced competition. As we pursue these reforms,
we welcome the initiation by the OECD of a detailed review of each member economy's structura1
and employment policies.
8.
As a follow up to our discussions, we agree to ask ministers to meet in France
before our next Summit to review the progress made in job creation and consider how best to
increase employment in all of our countries.
9.
We are also committed to ensuring protection for our aging populations and those
in need in our societies. To this end, some of our countries must take measures to ensure the
sustainability of our public ·pension programs and systems of social suppon. Similar attention is
required in some of our countries to ensuring the availability of private sector pension funds.
10.
We welcome the results of the G-7 Information Society conference held in
Brussels in February, including the eight core policy principles agreed to by Ministers, and
encourage implementation of the series of pilot projects designed to help promote innovation and
the spread of new technologies. We also welcome the involvement of the private sector. We
encourage a dialogue with developing countries and economies in transition in establishing the
Global Wormation Society, and welcome the proposal that an information society conference be
convened in South Africa in spring 1996.
MEETING THE CHALLENGES OF THE 21ST CENTIJRY
11.
International institutions have been central to our pursuit of stability, prosperity
and equity for the past SO years. Last year, in Naples, we called for a review of the international
institutions to ensure that they are equipped to deal effectively with the challenges of the future.
Today, in Halifax, we are proposing some concrete steps toward this goal. All countries have a
stake in effective, efficient institutions. We pledge our full energies to strengthening the
institutions in partnership with their entire membership to enhance the security and prosperity of
the world.
Strengtbening tbe Global Economy
12.
The world economy has changed beyond all recognition over the last fifty years.
The process of globalization, driven by technological change, has led to increased economic
interdependence: this applies to some policy areas seen previously as purely domestic, and to
iDte:ractions between policy areas. The major challenge confronting us is to manage this increased
interdependence while working with the grain of markets, and recognizing the growing number of
importaD1 players. This is especially imponant in the pursuit of global macroeconomic and
financial stability.
13.
Oose consultation and effective cooperation on macroeconomic policies among
the G-7 are importaD1 elements in promoting sustained non-inflationary growth avoiding the
emergence of large extemal and internal imbalances, and promoting greater exchange market
subility. Our Ministers have adopted a number of changes to the structure of their consultations
over time., in order to strengthen policy cooperation, including enhanced consultation with the
IMF.
Page 3
14.
The growth and integration of global capital markets have created both enormous
opportunities and new risks. We have a shared interest in ensuring the international community
remains able to manage the risks inherent in the growth of private capital flows, the increased
integration of domestic capital markets, and the accelerating pace of financial innovation.
The developments in Mexico earlier this year and their repercussions have
sharpened our focus on these issues. We welcome the recent more positive turn of events in
Mexico, as well as the positive developments in a number of emerging economies.
15.
16.
The prevention of crisis is the preferred course of action This is best achieved
through each country pursuing sound fiscal and monetary policies. But it also requires an
improved early warning system, so that we can act more quickly to prevent or handle financial
shocks. Such a system must include improved and effective surveillance of national economic
policies and financial market developments, and fuller disclosure of this information to market
participants. To this end, we urge the IMF to:
•
establish benchmarks for the timely publication of key economic and
financial da~
•
establish a procedure for the regular public identification of countries which
comply with these benchmarks;
•
insist on full and timely reporting by member countries of standard sets of
data, provide sharper policy advice to all governments, and deliver franker
messages to countries that appear to be avoiding necessary actions.
17.
Ifprevention fails, financial market distress requires that multilateral institutions
and major economies be able to respond where appropriate in a quick and coordinated fashion.
Fmancing mechanisms must operate on a scale and with the timeliness required to manage shocks
effectively. In this context., we urge the IMF to:
•
18.
To suppan this procedure, we ask:
•
19.
establish a new standing procedure - "Emergency Fmancing Mechanism"which would provide faster access to Fund arrangements with strong
conditionality and larger upfront disbursements in crisis situations.
the G-I 0 and other countries with the capacity to suppon the system to
develop financing arrangements with the objective of doubling as soon as
possible the amount currently available under the GAB to respond to
financial emergencies;
To ensure that the IMF has sufficient resources to meet its ongoing
respoDSlbilities, we urge continued discussions on a new IMF quota review.
20.
Solid progress on the elements discussed above should significantly improve our
ability to cope with future financial crises. Nevertheless, these improvements may not be
sufficient in all cases. In line with this, and recognizing the complex legal and other issues posed
in debt crisis situations by the wide variety of sources of international finance involved, we would
encourage funher review by G-l 0 Ministers and Governors of other procedures that might also
usefully be considered for ~heir orderly resolution.
We continue to support the inclusion of all IMF members in the SDR system.
Moreover, we urge the IMF to initiate a broad review of the role and functions of the SDR in
light of changes in the world financial system.
21.
22.
Closer international cooperation in the regulation and supervision of financial
institutions and marketsis essential to safeguard the financial system and prevent an erosion of
prudential standards. We urge:
•
a deepening of cooperation among regulators and supervisory agencies to
ensure an effective and integrated approach, on a global basis, to
developing and enhancing the safeguards, standards, transparency and
systems necessary to monitor and contain risks;
•
continued encouragement to countries to remove capital market
restrictions, coupled with strengthened policy advice from international
financial instirutions on the appropriate supervisory structures;
•
Fmance ministers to commission studies and analysis from the international
organizations responsible for banking and securities regulations and to
report on the adequacy of current arrangements, together with proposals
for improvement where necessary, at the next Summit.
We also recognize that international financial fraud is a growing problem. We are
committed to improving communication betWeen regulators and law enforcement agencies.
23.
Promoting Sustainable Development
24.
A higher quality of life for all people is the goal of sustainable development.
Democracy, human rights. transparent and accountable governance, investment in people and
environmental protection are the foundations of sustainable development. The primary
responsibility rests with each country but bilateral and multilateral international cooperation is
essential to reinforce national efforts. We are committed to securing substantial flows offunds
aDd to improving the quality of our assistance.
25.
IDA plays an indispensable role in belping to reduce poverty and integrate the
poorest countries into the global economy. We urge all donor countries to fulfil promptly their
wmmitments to IDA-IO and to support a significant replenishment through IDA-1t. We look
forward to the reconunendations of the Development Committee's Task Force on Multilateral
Development Banks.
Page S
26.
Multilateral institutions playa crucial role by providing intellecrualleadership and
policy advice, and by marshalling resources for countries committed to sustainable development.
The United Nations and the Bretton Woods institutions should build on their respective strengths.
The UN offers a unique forum for consensus building on global priorities, is an advocate for core
values, and responds to development and humanitarian needs. The Bretton Woods institutions
have a particular role in promoting macroeconomic stability, in supponing favourable
environments for sustainable development and in mobilizing and transferring resources for
development. We will work with the organizations and all their members to ensure relevant
multilateral institutions:
•
make sustainable development a central goal of their policies and
programmes, including by intensifying and deepening the integration of
environmental considerations into all aspects of their programmes;
•
encourage countries to follow sound economic, environmental and social
policies and to create the appropriate legal and structural framework for
sustainable development;
•
encourage countries to follow participatory development strategies and
support governmental reforms that assure transparency and public
accountability, a stable rule oflaw, and an active civil society;
•
encourage the development of a healthy private sector, expand guarantees
and co-financing arrangements to catalyze private flows, and increase
credit for small and medium-sized enterprises;
•
continue to provide resources for the infrastructure needed for sustainable
development, where these are not available from the private sector.
27.
We agree on the need to actively support the peace process in the Middle-East.
Such support would include the establishment of a new institution and financing mechanism
enhancing regional cooperation. We therefore urge the Task Force already at work to continue its
deliberations with an aim to arriving at a suitable proposal in time for the Amman summit next
October.
Reducing Poverty
28.
AD. overriding priority is to improve the plight of the world's poor. Persistence of
exueme poverty and DW"ginal.ization of the poorest countries is simply not compatible with
UDivena1 aspirations for prosperity and security. Sub-Saharan Africa faces especially severe
cballenges. We wiD work with others to encourage relevant multilateral institutions to:
•
focus concessional resources on the poorest countries, especially those in
Sub-Saharan Africa, which have a demonstrated capacity and commitment
to use them effectively, and take trends in military and other unproductive
spending into account in extending assistance;
•
direct a substantially increased proportion of their resources to basic social
programmes and other measures which attack the roots of poverty.
29.
We welcome the Paris Club response to our encouragement last year to improve
the treatment of the debt of the poorest countries and urge the full and constructive
implementation of the Naples terms. We recognize that some of the poorest countries have
substantial multilateral debt burdens. We will encourage:
•
the Bretton Woods institutions to develop a comprehensive approach to
assist countries with multilateral debt problems, through the flexible
implementation of existing instruments and new mechanisms where
necessary;
•
better use of all existing World Bank and IMF resources and adoption of
appropriate measures in the multilateral development banks to advance this
objective and to continue concessional ESAF lending operations.
30.
Open markets throughout the world are also crucial to accelerated economic
growth in the developing countries. Multilateral institutions should work to assist the integration
of the poorest countries into the world trading system. We encourage the wro to monitor and
review the Uruguay Round's impact on the least developed countries.
Safeguardiog the Environment
31.
We place top priority on both domestic and international action to safeguard the
environment. Environmental protection triggers the development and deployment of innovative
technologies, which enhance economic efficiency and growth and help create long tenn
employment. In their policies, operations and procurement. G-7 governments must show
leadership in improving the environment. This will require the appropriate mix of economic
instruments. innovative accountability mechanisms, environmental impact assessment and
voluntary measures. EffortS must focus on pollution prevention. the "polluter pays" principle,
iDterna1izarion of euvironmental costs, and the integration of environmental considerations into
policy and decision making in all sectors.
32.
We UDderline the imponance of meeting the commitments we made at the 1992
Rio Earth Summit and subsequently. and the need to review and strengthen them, where
appropriate. Climate change remains of major global importance. We will work with others to:
•
fUlfil our existing obligations under the Climate Change Convention. and
our commitments to meet the agreed ambitious timetable and objectives to
page 7
follow up the Berlin Conference of the Parties;
•
implement the medium term work program adopted pursuant to the
Convention on Biological Diversity;
•
cOnclude successfully the work of the CSD intergovernmental panel on
forests, and promote a successful UN Conference on Straddling Fish
Stocks and Highly Migratory Fish Stocks and international consensus at
the next CSD session on action to deal with the problems of the world's
oceans.
33.
We encourage a clearer delineation of the mandates of the CSD and DNEP. CSD
should be the global forum for identifying and agreeing upon long term strategic goals for
sustainable development. UNEP should act as an international envirorunental voice and catalyst;
it should focus on monitoring, assessment, and the development of international envirorunental
law.
Preventing and Responding to Crises
Disasters and other crises complicate the development challenge and have exposed
gaps in our institutional machinery. To help prevent and mitigate emerging crises, including those
with human rights and refugee dimensions, we will ask:
34.
•
the UN Secretary General to explore means to improve the analysis and
utilization of disaster and conflict-related early warning information,
particularly through the High Commissioners on Human Rights and
Refugees;
•
the Bretton Woods instinltions and the U.N. to establish a new
coordination procedure. supported as necessary by existing resources, to
facilitate a smooth transition from the emergency to the rehabilitation phase
of a crisis, and to cooperate more effectively with donor countries;
•
the bodies involved in the provision of humanitarian assistance to
cooperate more closely with the Department of Humanitarian Affairs in its
assigned coordination role.
Reinforcing Cobereace, EffectiveDess aDd Efficiency of IDstitutions
35.
To fulfil their missions effectively into the future, multilateral institutions must
continue to undertake reforms and to improve coordination and reduce overlap. The international
fiMncial institutions have shown flexibility in responding to the changing needs of the world
economy; there nevertheless remain a number of areas where improvements are desirable to better
prepare the institutions for the challenges ahead. We will encourage:
•
the World Bank and the regional development banks to decentralize their
operations wherever possible,
•
the IMF and World Bank to concentrate on their respective core concerns
(broadly, macroeconomic policy for the IMF and structural and sectoral
policies for the World Bank);
..
reVision of the Ministerial committees of the IMF and World Bank to
promote more effective decision-making;
•
the World Bank Group to integrate more effectively the activities of the
International Finance Corporation and the Multilateral Investment
Guarantee Agency into its country assistance strategies;
•
the multilateral development banks to coordinate their respective country
programmes more effectively with bilateral and other multilateral donors.
So as to allow the United Nations better to meet the objectives in its Charter, we
will encourage broadening and deepening the reform process already underway, and will work
with others to:
36.
•
complete the Agenda for Development, which should set out a fresh
approach to international cooperation and define the particular contribution
expected of UN bodies;
•
develop a more effective internal policy coordination role for the Economic
and Social Council (ECOSOC); encourage deeper cooperation between
UN and specialized agencies both at headquarters and in the field;
consolidate and streamline organi.z.ations in the economic and social fields,
such as humanitarian relief and development assistance; and encourage the
adoption of modern management techniques, with a more transparent and
accountable Secretariat;
•
update and focus mandates to avoid duplication; eliminate overlaps with
new organizations, ego UNCTAD with WTO, and consider the roles of
certain institutions in light of evolving challenges, ego Regional Economic
Commissions and UNIDO;
We c:a1J upon Member States to meet their financial obligations and urge early agreement on
reform of the system of assessment.
To inause overall coherence, cooperation and cost effectiveness we will work
with others to encourage:
37.
•
rationalization of data collection, analysis, priority setting, and reporting
activities, and greater complementarity in the provision of assistance at the
country level;
Page 9
•
improved coordination among international organizations, bilateral donors
and NGOs;
•
all institutions to formulate and implement plans to effect significant
reductions in operating costs over the next few years.
FoUow-up
38.
These are our initial proposals to prepare multilateral institutions for the challenges
of the next century. We intend to promote them actively, working together with the wider
international community in all appropriate organizations. In particular, in the UN, we commit
ourselves to working with other members to advance these goals. We will use the 50th
anniversary celebrations in October 1995 to build consensus on these priorities with others. We
will take stock at our meeting next year in France.
CREA TlNG OPPORTUNITIES THROUGH OPEN MARKETS
39.
We recognize that new investment and increased trade are vital to achieving our
growth and employment objectives. In a global market., opportunities for domestic and foreign
producers and suppliers of goods and services depend as much on domestic policies as on external
barriers. In order to improve market access, we intend to work for the reduction of remaining
intcmal and external barriers.
40.
We will implement the Uruguay Round Agreements fully, and reaffirm our
commitment to resist protectionism in all its fonns. We will build on the Agreements to create
new opponunities for growth, employment and global cooperation. We will work together and
with our trading partners to consolidate the WTO as an effective institution, and are committed to
ensuring a well-functioning and respected dispute settlement mechanism. We endorse closer
cooperation between the WTO and other international economic institutions. We recognize the
importance of enhancing the transparency of the WTO.
41.
We support accession to the WTO in accordance with the rules that apply to all of
its members and on the basis of meaningful market access commitments. We are committed to
ensuring that our participation in regional trade initiatives continues to be a positive force for the
multilateral system.
42.
The momentum of trade liberalization must be maintained. We are committed to
the successful completion of current negotiations in services sectors and, in particular, significant
liberalization in financial and telecommunications services. We will proceed with follow-up work
foreseen in the Uruguay Round Fmal Act. We encourage work in areas such as technical
stIDdards. intellectual property and government procurement; an immediate priority is the
oegotiation in the OECD of a bigh standard multilateral agreement on investment. We will begin
discussions on investment with our partners in the WTO. We recognize that initiatives such as
regulatory reform have a p~~ ~~ contribution .to ~e to trade bberalization. ~d
economic growth by removmg administratIve and structura1unpediments to global competItIon.
43.
Consistent with the goal of continued trade liberalization. we will pursue work on:
•
trade and environment to ensure that rules and policies in these different
areas are compatible;
•
the-scope for multilateral action in the fields of trade and competition
policy;
•
trade, employment and labour standards.
44.
We will work together with our partners in the wre and other appropriate fora to
create the basis for an ambitious first wre Ministerial Meeting in Singapore in 1996.
ECONOMIES IN TRANSmON
45.
We recognize the progress of many countries in transition toward democratic,
market-based societies. Early and determined macroeconomic stabilization has proven the most
effective strategy to allow an early return to growth. To consolidate these gains, the process of
far reaching structural reform must be pursued vigorously. We will continue our support for
economic reform in the economies in transition, and their integration into the global trade and
financial systems. We recognize their need for improved market access.
46.
We welcome the good start Ukraine has made on its bold program of economic
reform. The recent Stand-By Arrangement with the IMF provided the basis for substantial
financial support by the international financial institutions and bilateral donors. We encourage
Ukraine to continue its reform efforts in close cooperation with the international financial
institutions. Assuming the continuation of strong economic reform, an additional $2 billion in
commitments could be available from the international financial institutions by the end of 1996.
47.
We are encouraged by Russia's renewed commitments to financial stabilization and
economic reform. Continued political reform is also necessary. We believe that a stable political,
regulatory and legal environment. and the development of a modern financial sector, together with
the full implementation of the policy measures outlined in the recent1y-signed IMF Stand-By
Arrangement. will promote Russian economic recovery. We welcome the June 3 Paris Club debt
rescheduling agreement and recognize the relevance of a comprehensive multilateral treatment of
Russia's external public debt. We also note Russia's interest in working in close cooperation with
the Paris Club.
NUg tAB SAFETY
Each country is responsible for the safety ofits nuclear facilities. We welcome
progress to date in improving levels of nuclear safety in the countries of central and eastern
48.
Page 11
Europe and the Newly Independent States. We congratulate President Kuchma of Ukraine on his
decision to close the Chemobyl nuclear power plant by the year 2000. We reaffirm the
commitments of support made last year at Naples under the G-7 Action Plan for Ukraine's Energy
Sector. We are pleased to note the replenishment of the EBRD Nuclear Safety Account and the
commitment of bilateral re~ources for short-term safety upgrades and preliminary
decommissioning'work for the closure ofChemobyl. We invite other donors to join with the G-7
countries in contributing funds for this purpose.
In order to assist the closure of Chemobyl, we will continue our efforts to mobilize
international support for appropriate energy production., energy efficiency and nuclear safety
projects. Any assistance for replacement power for Chemobyi will be based on sound costeffective and environmental criteria. The Worid Bank and EBRD should continue their
cooperation with Ukraine in devising a realistic iong-term energy strategy. They should increase
their financial contribution in support of appropriate energy sector reform and energy
conservation measures, and mobilize private sector support for energy investments.
49.
NEXT SUMMIT
50.
We have accepted the invitation of the President of France to meet in Lyon from
June 27th to 29th, 1996.
Halifax. June 16, 1995
POints on the bergency Financing Mechanisa and the GAB
How would the new Mechaniga work?
It would provide faster and larger access to IMF
resources in crises such as Mexico's. These IMF
credits, with strong conditionality, would be
supported by a doubling of financing now available
to the IMF under the GAB.
What's the GAB?
The General Arrangements to Borrow is a standing
credit line to the IMF, established in 1962, which
can be activated in the event of a threat to the
stability of the financial system, and/or an
insufficiency of permanent IMF resources.
How large is it?
The amount currently available under the GAB is 17.5
billion SDRs or nearly 527 billion.
Including the
associated arrangement with Saudi Arabia of 1.5
billion SDRs, the total comes to SDR 19.0 billion
(129 billion).
Who are the existing participants?
The "Group of Ten" industrial countries. (Actually,
11 countries -- the G-7 plus Belgium, Netherlands,
Sweden and SWitzerland.)
Bas it ever been used?
Yes, it has been activated nine times, most recently
in 1978.
Why doesn't this aaqnify aoral hazard probleas?
It could only be deployed in exceptional
circumstances, with agreement of the major
creditors, and only to support programs with strong
conditionality.
Doe. it require conqressional approval?
increase in the U.S. contribution would require
congressional authorization and appropriation, but
under current procedures no outlays. The latter
feature reflects recoqnition (also applicable to
transactions under the quota subscription to the
IMr) that drawings on the GAB are equivalent to an
exchange of assets rather than a loan or expenditure
-- a drawing gives rise to an offsetting U.S. claim
on the IMF that is liquid and interest-bearing.
An
Vbat other countries do you expect to Qet to partiCipate?
Those countries which have a stake in the stability
of the international financial system and have a
sufficiently strong financial position to be able to
contribute to a new arrangement.
June
lb,
1'.1'.1)
• Washington, DC 20239
_ . . I": \. -'-i
FOR IMMEDIATE RELElffi:E'I.C
June 19, 1995
\\\l-
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.. ,~'\ J \..1
,.<-
'":,Y
.
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $14,252 million of 13-week bills to be issued
June 22, 1995 and to mature September 21, 1995 were
accepted today (CUSIP: 912794T38).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.44%
5.46%
5.46%
Investment
Rate
5.61%
5.63%
5.63%
Price
98.625
98.620
98.620
Tenders at the high discount rate were allotted 80%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
5.45
RR-380
98.622
Received
$45,738,721
Accepted
$14,252,087
$40,511,002
1,374,409
$41,885,411
$9,024,368
1.374,409
$10,398,777
3,249,310
3,249,310
604,000
$45,738,721
604,000
$14,252,087
UBLIC
nEB~.(J NEWS
Department of the Treasury •
FOR IMMEDIATE RELEASE
June 19, 1995
O~?T. C~ TilE T"r9~)t:I'I:~CT:
,r.. ·h)Cnl
Office of Financing
202 - 219 - 3350
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Tenders for $14,341 million of 26-week bills to be issued
June 22, 1995 and to mature December 21, 1995 were
accepted today (CUSIP: 912794W26).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.40%
5.42%
5.42%
Investment
Rate
5.64%
5.67%
5.67%
Price
97.270
97.260
97.260
Tenders at the high discount rate were allotted 24%".
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
5.41
RR-381
97.265
Received
$50,216,720
Accepted
$14,340,983
$42,461,265
1,219,655
$43,680,920
$6,585,528
1,219,655
$7,805,183
3,550,000
3,550,000
2,985,800
$50,216,720
2,985,800
$14,340,983
DEPARTMENT
OF
THE
TREASURY
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.
L'!,.('l.
FOR IMMEDIATE RELEASE
-, ,-
(~. I ~
7 :: _
..
~
.
.-
, D.C .• 20220. (202) 622-2960
'. , .
. '
Text as Prepared for Delivery
June 20, 1995
STATEMENT OF DARCY BRADBURY
DEPUTY ASSISTANT SECRETARY OF THE TREASURY
FOR FEDERAL FINANCE
BEFORE THE SUBCOMMITTEE ON EDUCATION, ARTS, AND HUMANITIES
OF THE COMMITTEE ON LABOR AND HUMAN RESOURCES
UNITED STATES SENATE
RR-382
· h d i d ofhcial biooraphies, call our 24-hour fax line at (202) 622-2040
For press releases, speeches, pu blIC sc e u es an 'Jr
~.
STATEMENT OF DARCY BRADBURY
DEPUTY ASSISTANT SECRETARY OF THE TREASURY
FOR FEDERAL FINANCE BEFORE THE
SUBCOMMITTEE ON EDUCATION, ARTS,
AND HUMANITIES OF THE
COMMITTEE ON LABOR AND HUMAN RESOURCES
UNITED STATES SENATE
JUNE 20, 1995
Chairman Jeffords and members of the Subcommittee, on behalf
of Secretary Rubin, I welcome the opportunity to appear before
you today to discuss the Administration's proposals to cut the
ties to the Federal Government of two Government-sponsored
Enterprises (GSEs)
-- the Student Loan Marketing Association
(Sallie Mae) and the College Construction Loan Insurance
Association (Connie Lee).
years,
The Treasury has for a number of
in Democratic and Republican Administrations, believed
that it is appropriate to wean a GSE from Federal sponsorship
once the GSE becomes economically viable and successfully
fulfills the purpose for which it was created with Federal
sponsorship, or when the purpose for which it was created ceases
to exist.
The GSEs expose the Government to the market perception of
implicit risk that legislation would be enacted to prevent a GSE
from defaulting on its obligations.
As the Treasury said in its
1990 Report on GSES1:
1 Report of the Secretary of the Treasu~y on Governmentsponsored Enterprises, May 1990, pag~ 1. ,Thls 19~0 R~port was
required under section 1404 of the Flnanclal Instltutlons Reform,
Recovery, and Enforcement Act of 1989 (FIRREA) (P.L. 101-73).
2
, The market perception of Federal backing for GSEs
weakens the normal relationship between the
availability and cost of funds to the GSEs and the
risks that these enterprises assume .
The prospect
that Congress would use taxpayer funds to prevent the
failure of a GSE is perceived in the securities markets
as protecting investors in GSE debt securities or GSEguaranteed securities from loss .
In April 1991, as required by FIRREA and the Omnibus Budget
Reconciliation Act of 1990 2 , the Treasury followed up with a
further report on the GSEs. 3
The 1991 Report reiterated
statements of concern about the Government's risk exposure to the
GSEs.
At the Treasury's request, as part of the 1991 Report,
Standard and Poors (S&P) assessed the likelihood that a GSE would
be able to meet its future obligations from its own resources and
expressed that likelihood as a traditional credit rating.
gave a triple-A credit rating to Sallie Mae.
S&P
Connie Lee had
obtained a triple-A credit rating from S&P previously, and in
March 1990, S&P indicated to the Treasury that Connie Lee's
status as a GSE was not a factor in granting the triple-A rating
to Connie Lee as a bond reinsurer.
In 1992, legislation was enacted to provide for Federal
financial safety and soundness oversight of the housing-related
GSEs -- the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation -- and Sallie Mae to mitigate the
perception of implicit risks to the Government.
2
Federal
Public Law 101-508, section 13501.
3 Report of the Secretary of the Treasury on Governmentsponsored Enterprises, April 1991, or the 1991 Report.
3
oversight of the Farm Credit System had been tightened earlier as
a result of problems that arose and required Federal assistance
in the mid-198Gs.
As a general principle, we believe that the Government and
the GSEs would benefit from removal of the Government ties
because privatizing the GSEs would:
Reduce the amount of GSE debt, over time, that carries some
perception of u.s. Government support;
Demonstrate our commitment to moving from creating effective
public-private partnerships to then enabling complete
privatization when Government support for an activity is no
longer needed;
Show the financial markets that the Government respects the
interests of private bond- and shareholders; and
Support Federal efforts to create new GSEs in the future,
when appropriate, by demonstrating that the Federal
relationship can be severed when the time is right.
A
business operation that starts as a GSE with a limited
charter can be freed to operate in other markets once it has
fulfilled the purpose for which it was created.
4
Sallie Mae
Under a statute enacted in 1992,4 the Treasury has a special
relationship with Sallie Mae as its financial safety and
soundness
r~gulator.
We have reviewed Sallie Mae's financial
condition and can see their successes to date and challenges for
the future.
Sallie Mae increased its use of leverage and its
balance sheet grew rapidly in the 1980s, when it expanded market
share in response to opportunities arising from amendments to its
charter.
Sallie Mae benefitted from relatively low-cost GSE
funding through the early 1990s.
The company's earnings record
was especially strong in 1992, 1993, and early 1994, when market
interest rates were low and Sallie Mae was able to capture
windfall profits as a result of a floor on the interest rate on
most of its student loan assets.
Since then, however, return on
assets and net interest margin have been negatively impacted by a
rise in market rates of interest and shifts towards lower
yielding assets.
The financial environment for Sallie Mae has changed since
enactment of the Student Loan Reform Act of 1993 5 , which amended
the Higher Education Act to reduce the returns on guaranteed
student loans and to impose a 30 basis point fee on all
4 P.L. 102-325, enacted on July 23, 1992, added subsection
439(r) to the Sallie Mae charter in the Higher Education Act of
1965 (20 U.S.C. 1087-2(r)), providing a capital standard for
Sallie Mae and for Treasury financial safety and soundness
oversight.
5 P.L.
103-66. Subtitle A of the Omnibus Budget
Reconciliation Act of 1993.
5
guaranteed student loans purchased by Sallie Mae after August 10,
1993.
Even more significantly, the Act also established the
Federal Direct Student Loan Program (now the William D. Ford
Federal Direct Loan Program), under which loan capital is
provided directly to student and parent borrowers by the Federal
Government rather than through private lenders.
The Student Loan Reform Act authorizes the Department of
Education to fund as direct loans up to 60 percent of the total
of new guaranteed and direct loan volume combined in the 1998
academic year.
The Act further provides that the proportion of
direct loans may rise above 60 percent, if the Secretary of
Education "determines that a higher percentage is warranted by
the number of institutions of higher education that desire to
participate in the program . . . and that meet the eligibility
requirements for such participation.
,,6
The Direct Student Loan Program is one of the President's
top priorities.
The Administration, in the Budget for FY 1996,
proposed implementation of 100-percent direct lending (new loan
volume)
in 1997.
Consistent with the implementation of direct
lending under current law, the Administration has been studying
options for the future of Sallie Mae, including in particular,
restructuring the company into a fully private company.
As noted
above, privatizing Sallie Mae would significantly benefit the
U.S. Government.
In addition, removing Federal ties would mean
Subsection 453(a) of the HEA of 1965, as amended (20
U.S.C.I087c(a)).
6
6
that the restrictions on Sallie Mae's business operations under
its current charter would cease to exist and that Sallie Mae
could engage in profit-making activities that it cannot enter
into as a GSE.
In any restructuring, currently outstanding Sallie Mae debt
would retain the characteristics of GSE debt, and customers with
pre-existing commitments with the GSE would not be affected.
Any
new debt issued by a private company successor to Sallie Mae
would not possess the characteristics of GSE debt.
The Administration believes that the benefits to be gained
by the Government and Sallie.Mae from privatization, in the
context of continued expansion of the Direct Studefit Loan
Program, are such that Congress should favorably consider
legislation to authorize Sallie Mae's management to form a fully
private company and to wind down the GSE during a transition
period.
In this connection, we have been working with the Department
of Education, the Office of Management and Budget, the Domestic
Policy Council, the National Economic Council, Sallie Mae, and
Congressional staff to develop legislation to privatize Sallie
Mae.
Moreover, on May 3, I testified in general support of
privatization before two subcommittees of the House. 7
7 Subcommittee on Postsecondary Education,
Training and
Lifelong Learning of the Committee on Economic and Educational
Opportunities and the Subcommittee on National Economic Growth,
Natural Resources and Regulatory Affairs of the Committee on
Government Reform and Oversight.
7
I am encouraged that the House Committee on Economic and
Educational Opportunities voted on June 8 to report a bill that
provides for privatizing Sallie Mae.
The Administration supports
many of the provisions of the reported bill, which we understand
may be amended before the bill is sent to the floor.
Nonetheless, I also believe there are some differences which
should be worked out to the satisfaction of the Administration,
Congress, and Sallie Mae.
As I indicated at that time, we are working on an
Administration draft bill, which we look forward to sharing with
Congress in the near future.
The key elements of our
privatization proposal are:
The Sallie Mae Board of Directors would be authorized to
carry out a reorganization -- which would be voted upon by
the holders of Sallie Mae common shares -- under which
Sallie Mae the GSE would become a wholly-owned subsidiary of
an ordinary state-chartered holding company whose other
subsidiaries could engage in other businesses;
If the shareholders choose not to proceed with a
reorganization, Sallie Mae would prepare a plan for an
orderly termination of the Association that would ensure
that the GSE will meet its ongoing capital requirements and
have adequate assets to transfer to a trust to ensure
payment of outstanding GSE debt obligations.
After the decision by the shareholders, Sallie Mae would
enter a wind down period during which new business
8
activities of the GSE would be restricted and new debt
issued by the GSE would be restricted as to purpose and
maturity;
During the wind down, excess capital of the GSE could be
transferred to the new private holding company or paid out
to shareholders subject to continued 'compliance with the
GSE's statutory capital requirements;
The GSE would be protected from the financial failure of the
holding company or its other subsidiaries in the event of
reorganization;
The GSE would cease to exist at a certain point in time and
its remaining assets and liabilities would be liquidated;
The bill would be deficit-neutral; and
As a form of "exit fee", to recognize the benefits Sallie
Mae has received because of its GSE status, the legislation
would enable the United States to participate in the success
of the company, for example through the issuance of stock
warrants.
The Administration will also propose that certain provisions
be included in the privatization bill to facilitate Government
oversight of the relationship between the GSE and, if applicable,
the new private company during the wind down period.
The
Administration bill will provide that:
The reorganization plan and other actions of the GSE during
the wind down period be subject to certain reviews by the
Departments of Education and Treasury;
9
The Government's financial safety and soundness oversight
and enforcement authorities over the GSE be enhanced and the
minimum capital ratio of the GSE be increased gradually
during the wind down period;
The Secretary of the Treasury be authorized to collect an
annual assessment to pay the Treasury's reasonable costs and
expenses for carrying out its oversight responsibilities
over the GSE during the wind down; and
The new company and any of its nonGSE subsidiaries be
prohibited from using the name Student Loan Marketing
Association, Sallie Mae, or any variation on that name in
securities offerings in order to prevent confusion in the
financial markets.
Connie Lee
The Administration transmitted legislation in May to convert
Connie Lee to a fully private enterprise. Congress structured
Connie Lee as a private, for-profit corporation, but provided for
a limited infusion of Federal capital in the form of stock
purchases by the Secretary of Education in order to get the
corporation started.
Congress clearly intended the Federal
Government's direct interest in Connie Lee to diminish and
eventually terminate,S as evidenced by the statutory limitations
S u.S. Congress, House, Committee on Education and Labor,
Higher Education Amendments of 1985, 99th Congress, 1st sess.,
1985, H. Rept. 99-383 to accompany H.R. 3700, page 74.
1,0
on purchases of stock by the Secretary of Education and the
authorization of the sale of such stock.
The Administration's legislation severs all Federal ties
with Connie Lee, largely by requiring that the Connie Lee stock
that is held by the Department of Education be sold by a date to
be specified in the bil1 9 •
The legislation would eliminate
Federal appointment of directors as well as all business
restrictions.
In marketing securities, Connie Lee would have to
notify potential investors of these changes to reduce the risk of
confusion regarding its status.
The Treasury is prepared to act
on behalf of the Department of Education to sell the Government's
stake in Connie Lee.
Thus, Connie Lee would be permitted to
pursue business opportunities and the Federal Government would be
free of any perception of implied risk that it would be called
upon to provide assistance in the unlikely event that Connie Lee
gets into financial difficulty.
Conclusion
We appreciate the opportunity to testify on these two
proposals.
Privatization, if implemented in a careful and
deliberate manner, can benefit the u.s. Government and taxpayers,
as well as Sallie Mae's and Connie Lee's stockholders, and the
students and schools we are all trying to serve.
I will be glad to answer any questions that you may have.
9In the 1990 Report, the Treasury proposed that the Federal
Government sell its Connie Lee stock when it had authority to do
so (February 1992) .
DEPARTMENT
OF
THE
TREASURY
~17~~~~·. . . . . . . . . . . . . . . . . . . .. .
......................
OmCE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
June 20, 1995
ORAL STATEMENT OF ROBERT E. RUBIN
CHAIRMAN OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD
BEFORE THE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS
UNITED STATES SENATE
~-383
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
ORAL
STATEMENT OF THE CHAIRMAN
THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD
BEFORE THE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS
OF THE UNITED STATES SENATE
ROOM 534 DIRKSEN SENATE OFFICE BUILDING
JUNE 20, 1995
Mr. Chairman, Senator Sarbanes, and members of the Committee. I am pleased
to appear before you this afternoon as Chairman of the Thrift DepOSitor Protection
Oversight Board.
I am joined by the other members of the Oversight Board: Alan Greenspan,
Chairman of the Federal Reserve Board; Ricki Helfer, Chairman of the Federal Deposit
Insurance Corporation (FDIC); Jonathan Fiechter, Acting Director of the Office of Thrift
Supervision (OTS); Robert Larson, Chairman of Taubman Realty Group; and Jack
Ryan, Acting Chief Executive Officer of the Resolution Trust Corporation. We also are
joined by Dietra Ford, Executive Director of the Oversight Board. While I will deliver
the opening remarks for the entire Board, I plan to call on the Board members to
address topics in their area of expertise.
The President has recently nominated Herbert F. Collins, Chairman of the Board
of Boston Capital Partners, Inc., to serve as the other independent member of the
Oversight Board. We look forward to his rapid confirmation. He will be a great asset
as we oversee this final phase of the RTC's work.
This is my first appearance before Congress in this role, and it comes just over
six months from the day the RTC will close its doors.
The Oversight Board's jurisdiction is limited. It reviews overall strategies,
policies and goals established by the RTC for its activities. The Board is prohibited by
statute from involvement in case-specific matters involving individual institutions,
specific asset dispositions or generally the day-to-day operations of the RTC.
Therefore Jack Ryan, who is Acting CEO of the RTC as well as a member of the
Oversight Board, will address issues relating to the RTC's operations.
This is a time of tremendous change for the RTC as the FDIC/RTC Transition
Task Force and its numerous subgroups have been meeting to plan the RTC's closing.
Two of RTC's six field offices will have closed by the end of the month. The overall
staff of the RTC has decreased from a peak of about 8,600, to about 5,400 on
December 31, 1994, to approximately 5,000 at the end of May 1995.
It is possible to close the RTC entirely in December 1995, a year earlier than
initially anticipated, because the job has been done rapidly and because the thrift
industry overall is sound. On the other hand, the thrift industry's ROA is half of that of
the banking industry, and there are 51 thrift institutions with $27.8 billion in assets
classified as troubled institutions.
I want to use this opportunity to emphasize the importance of resolving the
problems of the Savings Association Insurance Fund known as SAIF. One of the
lessons that RTC has taught us is that not providing sufficient funding in a timely
manner can result in very costly problems that will ultimately fall on the taxpayers. This
suggests we should move promptly to address the SAIF issues before a crisis
develops.
RTC FUNDING
Over a period of six years, $105 billion has been provided for the RTC to protect
deposits and pay for losses of failed thrifts. We expect the total actual loss funds used
by the RTC will be approximately $87 billion to $95 billion. In view of early estimates,
this effort should be viewed as a success.
RTC PROGRESS
The RTC has accomplished a great deal since its creation almost six years ago.
In August 1989, the RTC immediately became responsible for 262 failed institutions
with $114 billion in assets. As of today, the RTC has closed or sold a total of 747 failed
institutions with more than $460 billion in assets.
In the process, it has protected
over 25 million deposit accounts, with average balances of $9000. In doing this, the
government's guarantee of deposit insurance to millions of Americans was fulfilled.
At the same time, the largest asset liquidation project in our history was
undertaken. Using all the methods available including auctions, securitizations, small
investor offerings, Land Fund sales and others, most of the assets acquired from the
nation's failed thrift institutions have been sold. As of today, more than $445 billion in
assets have been sold or collected for approximately 87 percent of their book value.
This undertaking also has contributed to our national goals for affordable
housing by selling more than 102,000 units under the RTC Affordable Housing
Disposition Program.
When this Administration took office, the RTC had many problems that made it
difficult to obtain Congressional approval of funding. Secretary Bentsen's nine
management reforms -- increased to 21 reforms in the Completion Act - were designed
to reduce the cost and improve management of the RTC.
Today, I am pleased to report that all 21 management reforms contained in that
funding legislation have been implemented by the RTC. Some, like the appointment of
a Chief Financial Officer, have been completed. Others are ongoing. For instance, the
preparation of a Business Plan with regular updates is now part of the RTC's regular
procedures. And the Audit Committee, chaired by Oversight Board member Robert
Larson, has been established and continues to meet regularly.
The RTC's accomplishments in addressing this financial crisis under very
difficult circumstances have been many and while inevitably there have been problems,
I believe that on balance, the RTC's record is one of considerable success.
THE TASK REMAINING
With just over six months before the RTC ceases all its operations, a large
amount of time and effort is, of course, being devoted to the smooth transfer of
remaining assets and responsibilities to the FDIC.
Closing down such a large and complex agency, and transferring its remaining
responsibilities efficiently to another agency, is a complicated and time-consuming
undertaking.
The structure for transition activities was provided by the RTC Completion Act.
The FDIC/RTC Transition Task Force, which consists of two RTC and two FDIC
representatives, has been meeting regularly. It provided a report to Congress at the
end of 1994 and will provide another report to Congress by July 1, 1995, as required by
law.
Currently the RTC holds just over $20 billion of assets to be sold. When the
FDIC takes over the RTC's responsibilities at the end of 1995, it is estimated that $8
billion in assets will remain to be sold. A large portion of those assets will be properties
with serious environmental problems that make them difficult to sell. The balance of
the inventory will be hard-to-sell assets that will take a good deal of FDIC time and
effort to liquidate.
June 30, 1995, is the last date on which the RTC will accept additional thrifts.
Thereafter, failed thrifts will be accepted by the FDIC for the SAIF.
On January 1, 1996, the FDIC will become responsible for administering all
activities for which the RTC had been responsible. This will include not only asset
disposition and resolution of any new thrifts acquired after July 1, 1995, but also the
myriad of operational matters such as contract administration, financial administration,
legal work and report subm ission.
As you know, all assets and liabilities that remain on the books of the RTC on its
sunset date will transfer to the FSLlC Resolution Fund (FRF), which is managed by the
FDIC. The FDIC then will become responsible for managing and disposing of those
remaining assets as expeditiously and cost-effectively as possible.
The RTC and the FDIC are conducting a detailed review of the RTC's financial
position to determine the appropriate level of contingency funding above reserves that
might be necessary to absorb losses from adverse changes in econom ic conditions,
current or potential litigation, and other factors beyond RTC's and FDIC's control.
In reviewing the determination of the RTC and FDIC regarding contingency
funding above reserves, the Oversight Board will be mindful of the need to use the least
amount of the taxpayers' money for the work remaining. It is also important to note that
the funds approved will not be drawn down if the money is not needed.
THE OVERSIGHT BOARD
The Oversight Board structure and function was designed to provide ongoing
policy oversight of the RTC. The sale of some $460 billion in assets by a new and
independent Federal agency was a matter of great concern to Congress. Meeting six
times a year, the Oversight Board members have a continuing dialogue with top RTC
officials on their work, but do not become involved in case specific matters.
In 1994, the Oversight Board strengthened its review of the RTC's programs,
policies and management practices and will continue throughout 1995 to undertake
these reviews. The Board has continued to review the RTC's quarterly Financial
Operating Plan, its internal controls, organizational goals and satisfaction of these
goals. The Audit Committee, which I mentioned earlier, reviews audit findings by the
General Accounting Office (GAO), the RTC Office of Contractor Oversight and
Surveillance and the RTC Inspector General (IG). The Committee meets with the
auditors and the RTC to ensure that issues raised by GAO and the IG are addressed
satisfactorily. It also reviews financial operating reports and internal controls and
financial statements of the Corporation.
Finally, the Oversight Board staff has administered the Regional and National
Advisory Boards and the Affordable Housing Advisory Boards. These citizen advisory
bodies have provided public input into the RTC decision-making process. The final
meetings of the six Regional Advisory Boards will take place in June and July. Among
the Advisory Boards' recommendations that had significant impact on RTC's policies
are those in support of the Small Investor Program, support for seller financing in asset
disposition, support for the use of securitization and auctions and support for greater
efforts to ensure minority acquisition of thrifts.
The Board staff offices will close during 1996, after completing certain statutory
reports and duties. The Board staff of approximately thirty people are Federal
employees who do not have return rights to FDIC and will seek new employment whe.n
the office closes.
Much has been learned from the RTC's experience. These lessons ought not be
lost. The Oversight Board staff is helping to ensure that they will not be. The RTC is
preparing a history of the RTC involvement in the thrift crisis. While contributing to that
effort, the staff also is working with the advisory boards to create a history of that
process and their participation. Together, these documents will provide a ready source
of information.
CONCLUSION
In conclusion, let me state that the RTC is on course toward closing and
transferring its remaining responsibilities to the FDIC. We expect that not all of the
funds appropriated will be spent by the RTC. As we close this chapter in the nation's
history, we do so with a legacy of stronger financial institutions across this country.
Responses to the questions that FIRREA requires be addressed at these
appearances are contained in Attachment I.
The members of the Oversight Board and I would be pleased to respond to any
questions you may have. As I said earlier, I plan to call on the Board Members to
address topics in their area of expertise.
DEPARTMENT
OF
THE
TREASURY
~/8~. . . . . . . . . . . .. .
. . . . . . . . . . . . . . . .
OFFICE OF PUBUC AFFAIRS. 1500 Pf:W~SYLVANIA AVENUE, N.W.• WASHINGTON, D.C.. 20220. (202) 622-2960
ADV 12:30 p.m. EDT
Text as prepared for delivery
June 20, 1995
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REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
PUBLIC RADIO INTERNATIONAL "MARKETPLACE" LUNCHEON
I think one of the things I like most about public radio, is that it offers an almost
unique opportunity to explain issues in something longer than a sound bite. That's
enormously important with something as complicated as economics.
I was mentioning that the other day to one of your reporters, Marty Goldenson.
We were talking about why we'll never have the kind of economy we want if we don't
deal effectively with the problems of the inner city and bring these areas into the
mainstream economy. I was in the Bronx looking at how neighborhoods and businesses
are coming back because of changes we've made in community lending programs. The
importance of having jobs and growth in our inner cities, instead of decay, means a great
deal to our economy. You just can't pack that into a sound bite -- unless you want to
say, "Where there was hopelessness there now is hope."
What I'd like to do today is talk about why what happens in the international
economic arena is important to every American. Our future is now very directly related
to what transpires on the economic front overseas because national economies are highly
inter-related.
To set the stage, however, I first want to spend a moment on our debate over the
budget here in Washington, because that will determine whether we properly prepare
our economy to compete and succeed in the global economy.
The President has proposed bringing the federal budget into balance over 10
years. Taking $1.1 trillion from the budget in a decade is no easy task, but it makes a
great deal more sense to reach balance with sensible policy choices iri which you weigh
and balance all the factors that affect the economy, rather than going to balance just to
meet an arbitrary date. The latter leads to cuts driven by a time-line, not sound policy.
RR-384
(MORE)
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2
In constructing his budget, the President asked: What is best for jobs? What is
best for increasing incomes? He has built a budget that brings the deficit to zero, makes
vigorous investments in education and training critical to our economic future, and deals
with Medicare sensibly -- in the context of health care reform without reductions
imposed on beneficiaries, and reductions only half the size of those proposed by the
Republicans. The Republican budgets start with an arbitrary date for being in balance,
2002, and then by virtue of that arbitrary date make arbitrary and draconian cuts,
without respect to the economic impact. Above that, the House version must make
room for very significant tax cuts for Americans who are already well off, rather than the
more modest reductions for middle-income Americans the President proposes.
That's the choice: going to balance based on sound policy decisions and the right
investments for the future to increase jobs and living standards, or an arbitrary deadline
that requires arbitrary cuts.
I want to say a word about investments for the future. By that, I believe, and
more importantly the President believes, that we must invest in education and training.
These investments are long-term business investments, not simply social programs.
I was in Indonesia recently meeting with finance ministers from Asia and the
Pacific region. Most of those nations were impoverished 15 or 20 years ago and today
have economies that are vastly improved and growing rapidly. Having spoken to these
ministers, I can tell you that they view a long-term, sustained investment in education as
indispensable to their success, and so should we.
I would also like to address the rather arcane subject of the numbers that underlie
the balanced budget the president has offered.
Let's go back two and one-half years. The administration decided to use the
numbers of the Congressional Budget Office for credibility, because past administrations
had had so little credibility on numbers -- and we produced a remarkable program of
deficit reduction that took no less than $500 billion out of the deficit. The president
insisted then, as he insists today, on the soundest, most reliable numbers we can produce.
Two and a half years into the process, we have earned our bona fides.
Thus, in developing a budget that goes to balance in 10 years, we made a careful
judgment about what figures to use in making what we believe to be the most reliable
projections out over the next decade, recognizing of course that there are uncertainties in
long-range forecasting.
3
There is debate about those assumptions, and I want to illustrate the three areas
where there are slight differences. In counting health care costs, we used the numbers
produced by the career actuaries at the Department of Health and Human Services.
These are career employees with no axe to grind, and they gave us their best
professional judgment. The CBO used its own number. On growth rates, the figures we
developed equals the average projections of the Blue Chip Forecast -- the top private
sector forecasters who look five years out. The CBO number is slightly, I emphasize
slightly, lower. And on inflation, our numbers are closer to the Blue Chip Forecast than
the CBO number.
We used what in our judgment are the most reliable figures available, as opposed
to figures that could require reductions that could adversely affect the economy. If it
turns out that the more stringent forecasts are closer to what transpires in the economy
over time -- and I emphasize that we believe our numbers are more reliable and I don't
believe this will occur -- but should that be the case, mid-course corrections can be
made.
This is an arcane area, as I said, but one in which I think public radio can
contribute to a greater understanding in this debate.
.
There is one other point I want to make about budgeting, which is that one of the
steps in devising a sound policy is reinventing the operations of government. For
instance, not many people realize it but today the civilian federal work force, as a share
of the total nonfarm work force, is at its lowest point in 60 years. And government is
becoming more customer oriented and user friendly. That's what these times demand,
and that is what we all are doing.
Just as there is a debate over the budget, there also is a debate over engaging
internationally or turning our back on the challenges of the global environment. We
strongly believe that dealing the issues and opportunities presented us by the global
economy is in America's economic and national security interests.
There are three key elements in our approach: first, promoting open markets and
free trade; second, leading in dealing with problems inthe global financial markets that
can undermine our economic and national security interests; and third, promoting
economic reform and development in the developing nations and countries such as
Russia where economies are in transition.
On the first point, one of the most useful ways to create jobs and improve living
standards for Americans is to open markets and encourage free trade. That is why this
administration worked so actively to pass NAFfA, and GAIT, and create the new
WTO. We are now working on creating a free trade zone throughout this hemisphere by
2005, and similarly throughout Asia and the Pacific by 2020.
4
I won'~ address myself to the issue of our trade talks with Japan right now, other
than to observe that it is very difficult to enjoy the full benefits of free trade, and to
support the concept of free trade politically around the world, when access to the
second-largest economy is substantially lower than it is for the other major trading
nations.
The second aspect of our approach is providing leadership in dealing with the
problems in financial markets around the world that affect our interests. The President
was a bit prescient last year at the Naples summit when he asked the G-7 nations to start
examining changes in our international economic architecture that might be necessary in
a new economic era.
The case of Mexico holds important lessons for all of us. In Halifax, we agreed
that nations should provide the same kind of timely and sufficient disclosure of financial
information that has served as the cornerstone of the United States' system of financial
markets. We also asked the International Monetary Fund to provide enhanced global
economic surveillance. And we reached general agreement on the need to develop
within the international financial institutions the capacity to rapidly mobilize larger
amounts of multilateral conditional financing for emergency situations.
I want to spend a moment on the final element of our approach to economic
engagement -- encouraging reform and development in the transitioning economies and
in the developing world. The debate about international engagement centers on this
area, more specifically over funding that the United States provides to the international
financial institutions -- the World Bank, the multilateral regional development banks, and
the International Monetary Fund. It's a tiny amount of money -- 1 percent of the
budget -- although many Americans are under the mistaken impression it's as much as 25
percent.
However, the debate is about whether this nation will exercise leadership to
promote growth and development in developing nations and those in transition. That in
turn will create larger markets and enhance our economic and national security interests.
Without running through all the statistics, the developing world -- five-sixths of the
world's popUlation -- will be the engine of growth in the global economy in the years and
decades ahead. Already 4 million American jobs depend on exports to the developing
world. It is in the economic interest of every American to see to it that these nations
grow and prosper, and so provide bigger markets for us, increase jobs and standards of
living in our country.
The international financial institutions are the most effective and efficient way to
encourage growth in developing and transitional countries. The institutions help put
economies back on track and guide reforms, encourage microenterprises, support health
and education, protect the environment, and help create the social infrastructure that
encourages the private sector.
5
A good example is the case of India. I stopped there on the way back from
Indonesia. India was literally within days of insolvency back in 1991, just four years ago.
They agreed to an IMF reform program, began changing their economy, lowering tariffs,
privatizing, and today they have a growing economy. That, in tum, has resulted in rising
U.S. exports to India.
We also visited a very poor village in an area of India with a very harsh climate.
In that village, with guidance from the World Bank, the villagers are employing very
simple soil conservation and animal husbandry practices. The simple steps they are
taking mean they are preserving scarce water resources. They mean higher crop and
livestock yields. That, in tum, means higher incomes, which translates into consumer
spending, and when that is spread across the whole nation, it means larger markets for
U.S. goods.
In conclusion, in my view, it is imperative that we have the budget and economic
programs that best prepare our nation to compete and succeed in the global economy.
And it is imperative that we lead in dealing with the issues that affect the global
economy, because it matters to every American concerned with increasing growth,
creating jobs in the United States, and raising our standard of living.
I mentioned at the outset some of the reasons I like public broadcasting. I saved
one -- it raises the level of discourse in this country on critical policy issues. Public radio
can make an important contribution to an increased level of public understanding by
explaining the stakes involved. That will make it a better debate, and I think the proper
choices will be made-- to prepare for the global economy, to compete and succeed in it,
to exercise our leadership, and thus reap the benefits available to Americans.
Thank you.
-30-
ornCE OF PUBUC AFFAIRS. 1500
FOR RELEASE AT 2:30 P.M.
June 20, 1995
, D.C .• 20220 • (202) 622-2960
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Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $27,200 million, to be issued June 29,
1995. This offering will provide about $1,600 million of new
cash for the Treasury, as the maturing 13-week and 26-week bills
are outstanding in the amount of $25,606 million.
In addition to
the maturing 13-week and 26-week bills, there are $16,757 million
of maturing 52-week bills. The disposition of this latter amount
was announced last week.
Federal Reserve Banks hold $10,675 million of bills for
their own accounts in the three maturing issues. These may be
refunded at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $5,630 million of the three
maturing issues as agents for foreign and international monetary
authorities.
These maY'be refunded within the offering amount
at the weighted average discount rate of accepted competitive
tenders.
Additional amounts may be issued for such accounts if
the aggregate amount of new bids exceeds the aggregate amount
of maturing bills.
For purposes of determining such additional
amounts, foreign and international monetary authorities are
considered to hold $5,110 million of the original I3-week and
26-week issues.
Tenders for the bills will be received at Federal Reserve
Banks and Branches and at the Bureau of the Public Debt,
Washington, D. C. This offering of Treasury securities is
governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable Treasury bills, notes, and
bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
RR-385
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED JUNE 29, 1995
June 20, 1995
Offering Amount .
$13,600 million
$13,600 million
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
91-day bill
912794 U9 3
June 26, 1995
June 29, 1995
September 28, 1995
March 30, 1995
$12,122 million
$10,000
$ 1,000
182-day bill
912794 W3 4
June 26, 1995
June 29, 1995
December 28, 1995
June 29, 1995
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, ·e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, a~ all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms
Prior to 12:00 noon Eastern Daylight Saving time
on auction day
Prior to 1:00 p.m. Eastern Daylight Saving time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
TREASURY
OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
June 21, 1995
Contact:
Jon Murchinson
(202) 622-2960
RUBIN APPOINTS ADVISORY COMMISSION ON FINANCIAL SERVICES
Treasury Secretary Robert E. Rubin, Wednesday, appointed 13 members of the
Treasury Department's Advisory Commission on Financial Services, which will advise
him during the course of a study of the American financial system.
The Interstate Banking and Branching Efficiency Act of 1994, which was signed
into law by President Clinton at the Treasury Department, directs the Secretary of the
Treasury to conduct a study of the American financial services system. The Secretary
was charged by the Act with appointing a commission to consult with during the course
of the study. The commission consists of a broad representation of providers of and
users of financial services. Secretary Rubin will convene the commission's first meeting
on July 31, 1995.
"Treasury's examination of the American financial system will make a valuable
contribution in order to ensure that the system will continue to meet the needs of its
users into the next century," Secretary Rubin said. "The Advisory Commission on
Financial Services will play an important role in helping to frame the major policy
challenges in the financial marketplace over the next ten years."
The Treasury study will examine the strengths and weaknesses of the U.S.
financial system in meeting the needs of the system's users. A final report and
recommendations are due to Congress by December 29, 1995. The report will set forth
a broad vision for the future of financial services and will focus on the needs of the users
of those services.
A list of the commission members is attached.
-30-
RR-386
F:'
biooraphies, call our 24-hour fax line at (202) 622-2040
ror
press re1eases, s:peech es, Public schedules and ollicial
~r~'
Department of the Treasury
Advisory Commission on Financial Services
Stephen J. Brobeck, Executive Director, Consumer Federation of America
John G. Heimann, Global Financial Institutions Group Chairman, Merrill Lynch & Co.
Beth Hodges, Executive Vice President, First National Bank of Panhandle, Texas
Mary Agnes Houghton, President, ShoreBank Corporation
Glenn H. Hutchins, General Partner, Blackstone Group
Orin S. Kramer, General Partner, Kramer Spelman, L.P.
Donald A. Moore Jr., Managing Director, Morgan Stanley & Co.
Clyde W. Ostler, Vice Chairman, Wells Fargo Bank
Robert C. Pozen, General Counsel and Managing Director, Fidelity Investments
Franklin D. Raines, Vice Chairman, Federal National Mortgage Association
Rachel F. Robbins, Managing Director and Deputy General Counsel,
J.P. Morgan & Co.
Arthur F. Ryan, Chairman and CEO, The Prudential Insurance Company of America
John F. Sandner, Chairman of the Board, Chicago Mercantile Exchange
June 21, 1995
DEPARTMENT
OF
THE
TREASURY
omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
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1995
Monthly Release of U.S. Reserve Assets
The Treasury Department today released U.S. reserve assets data for the month of
May 1995.
As indicated in this table, U.S. reserve assets amounted to $90,549 million at the end
of May 1995, up from $88,756 million in April 1995.
End
of
Month
Total
Reserve
Assets
Gold
Stock 11
Special
Drawing
Rights 1111
Foreign
Currencies
11
Reserve
Position
in IMF 11
1995
April
88,756
11,055
11,743
51,752
14,206
May
90,549
11,054
11,923
53,294
14,278
II
11
JI
11
Valued at $42.2222 per fine troy ounce.
Beginning July 1974, the IMF adopted a technique for valuing the SDR based on a
weighted average of exchange rates for the currencies of selected member countries. The
U.S. SDR holdings and reserve position in the IMF also are valued on this basis
beginning July 1974.
Includes allocations of SDRs by the IMF plus transactions in SDRs.
Includes holdings of Treasury and Federal Reserve System; beginning November 1978,
these are valued at current market exchange rates or, where appropriate, at such other
rates as may be agreed upon by the parties to the transactions.
RR-387
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
Monthly Treasury Statement
of Receipts and Outlays
of the United States Government
For Fiscal Year 1995 Through May 31, 1995, and Other Periods
Highlight
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RECEIPTS, OUTLAYS, AND SURPLUS/DEFICIT
THROUGH MAY 1995
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Contents
Summary, page 2
1000
Receipts, page 6
800
Outlays, page 7
600
Means of financing, page 20
Receipts/outlays by month, page 26
400
Federal trust funds/securities, page 28
N
S
200
Receipts by source/outlays by
function, page 29
0
Explanatory notes, page 30
-200
Compiled and Published by
Department of the Treasury
Financial Management Service
Introduction
of receipts are treated as deductions from gross receipts; revolving and management fund receipts. reimbursements and refunds of mOnies previously expended are
treated as deductions from gross outlays; and interest on the public debt (public
Issues) is recognized on the accrual basis. Major information sources include
accounting data reported by Federal entities. disbursing officers. and Federal
Reserve banks.
The Monthly Treasury Statement of Receipts and Outlays of the United States
Government (MTS) IS prepared by the Financial Management Service. Department of
the Treasury. and after approval by the Fiscal Assistant Secretary of the Treasury. IS
normally released on the 15th workday of the month following the reporting month.
The publication IS based on data provided by Federal entities. disbursing officers.
and Federal Reserve banks
Triad of Publications
The MTS is part of a triad of Treasury financial reports. The Daily Treasury
Statement is published each working day of the Federal Government. It provides
data on the cash and debt operations of the Treasury based upon reporting of the
Treasury account balances by Federal Reserve banks. The MTS is a report of
Government receipts and outlays, based on agency reporting. The U.S. Govemment
Annual Report is the official publication of the detailed receipts and outlays of the
Government. It is published annually in accordance with legislative mandates given
to the Secretary of the Treasury.
Audience
The MTS IS published to meet the needs of: Those responsible for or interested
In the cash poSItion of the Treasury; Those who are responsible for or interested in
the Government's budget results; and Individuals and bUSinesses whose operations
depend upon or are related to the Government's financial operations.
Disclosure Statement
ThiS statement summarizes the financial activities of the Federal Government
and off-budget Federal entitles conducted in accordance with the Budget of the U.S.
Government. Le .. receipts and outlays of funds. the surplus or deficit. and the means
of finanCing the deficit or dispoSing of the surplus. Information is presented on a
modified cash basIs: receipts are accounted for on the basis of collections; refunds
Data Sources and Information
The Explanatory Notes section of this publication provides information conceming the flow of data into the MTS and sources of information relevant to the MTS.
Table 1. Summary of Receipts, Outlays, and the Deficit/Surplus of the U.S. Government, Fiscal Years 1994 and 1995,
by Month
[$ millions]
Period
FY 1994
October
November
December
January
February
March
April
May
June
July
August
September
Year-to-Date
FY 1995
October
November
December
January
February
March
April
May
Year-to-Date
Receipts
Outlays
Deficit/Surplus (-)
78.662
83.102
125,403
122.961
73.186
93.107
141,321
83.541
138,119
84.822
97,333
135,895
124,085
121,483
133,108
107,713
114,752
125,422
123,867
115,597
123,269
118,020
'121,608
2131,796
45,422
38,381
7,705
-15,248
41,566
32,315
-17,454
32,057
-14,850
33,198
24,275
-4,099
31,257,452
31,460,722
3203,269
89.024
87,673
130.810
131.801
82.544
92.532
165,392
90,405
120,365
124,915
134,941
115,171
'120,527
142,458
115,673
129,355
31,342
37,242
4,130
-16,629
37,983
49,927
-49,720
38,950
870,180
1,003,406
133,226
'Outlays have been decreased In August 1994 by $9 million and In February 1995 by $9 million
to reflect the redemption of agency secuntles not preViously reported by the Architect of the
Capitol
'Outlays and depoSit funds have been Increased In September 1994 by $3 million and $8
million to reflect additional reporting by the Department of the Army and the Department of the
Navy. respectively
'The receipt. outlay and deficit figures differ from the FY 1996 Budget. released by the Office
of Management and Budget on February 6. 1995. by $100 million due mainly to revIsions In the
data follOWing the release of the Final September Monthly Treasury Statement
2
Table 2. Summary of Budget and Off-Budget Results and Financing of the U.S. Government, May 1995 and
Other Periods
[$ millions)
Current
Fiscal
Year to Date
This
Month
Classification
Total on-budget and off-budget results:
Total receipts
...........
On-budget receipts .
Off-budget receipts
Total outlays .
On-budget outlays
Off-budget outlays
Total surplus (+) or deficit (-)
On-budget surplus (+) or deficit (-)
Off-budget surplus (+) or deficit (-)
...........
Total on-budget and off-budget financing
Means of financing:
...........
Borrowing from the public ..
Reduction of operating cash, increase (-)
By other means .
Prior
Fiscal Year
to Date
(1994)
870,180
1,346,414
801,283
1.415,456
61,027
29,378
635,935
234,245
995,158
351,256
580,121
221,162
1,045,095
370,361
129,355
1,003,406
1,538,920
966,028
1,612,128
102,581
26,773
812,068
191,337
1,246,936
291,984
781,668
184,360
1,307,105
305,023
-38,950
-133,226
-192,506
-164,745
-196,671
-41,554
+2,604
-176,133
+42,907
-251,778
+59,272
-201,547
+36,802
-262,010
+65,338
38,950
133,226
192,506
164,745
196,671
44,740
11,841
-17,631
142,717
9,714
-19,205
207,936
-4,058
-11,372
145,790
25,312
-6,358
217,151
... No Transactions
Note: Details may not add to totals due to rounding.
Monthly Receipts, Outlays, and Budget Deficit/Surplus of the U.S. Government, Fiscal Years 1994 and 1995
$ billions
1
Outlays
160
140
120
100
80
60
Receipts
Deficit(-)/Surplus
-80~~~--~.-~-r-.--.-.-.--r~--r-.-.--r~--,-,1
Oct.
Dec.
Feb.
Budget
Estimates
Next Fiscal
Year (1996)'
90.405
'These figures are based on the FY 1996 Budget. released by the Office of Management and
Budget on February 6. 1995.
Figure 1.
Budget
Estimates
Full Fiscal
Year'
Apr.
Jun.
FY
FY
95
94
3
-20,480
Figure 2.
Monthly Receipts of the U.S. Govemment, by Source, Fiscal Years 1994 and 1995
$ billions
ITotal Receipts I
160
1
1
Oct.
Dec.
Feb.
Apr.
Jun.
Aug.
FY
95
FY
94
Figure 3.
Monthly Outlays of the U.S. Government, by Function, Fiscal Years 1994 and 1995
$ billions
1Rn-~------------------------------------------1
I Total Outlays
1
1
Social Security & Medicare
20~________------~==~--------------~
I,nterest
I
ol-~~~~~~~~~~~.-.-.-~.-~~~
Oct.
Dec.
Feb.
Apr.
Jun.
Aug.
FY
94
Oct.
FY
95
4
Dec.
Feb.
Apr May
Table 3. Summary of Receipts and Outlays of the U.S. Government, May 1995 and Other Periods
[$ millions]
This Month
Current
Fiscal
Year to Date
Individual income taxes
.............................. .
Corporation income taxes ................................... .
Social insurance taxes and contributions:
Employment taxes and contributions (off-budget) ..
Employment taxes and contributions (on-budget) ............ .
Unemployment insurance ................ . ................... .
Other retirement contributions ............ . ................. .
Excise taxes ....................... .
Estate and gift taxes ............. .
Customs duties .............................
. ......... .
Miscellaneous receipts .................................. .
29.729
2.193
380.850
82.324
346.426
77.092
588.460
150.864
29.378
7.848
10.601
355
4.770
1.339
1.471
2.719
234.245
67.465
22.233
2.985
36.933
9.898
12.686
20.561
221.162
60.939
21.089
3.068
34.948
10.603
12.769
13.188
351.256
100.538
28.057
4.558
57.600
15.587
20.913
28.581
Total Receipts ...•.....•............••..........•...........•..
90,405
870,180
801,283
1,346,414
(On-budget) ........•..............••.........................
61,027
635,935
580,121
995,158
(Off-budget) .......••........•.......•......•......•......•..
29,378
234,245
221,162
351,256
191
200
15
1.021
4.111
287
21.117
2.621
2,406
1.353
26.791
1.843
574
774
2.741
335
3.193
21.833
1.809
145
8.127
43.337
2.284
165,447
20.870
20.587
11,467
198.227
19.203
4.885
6.908
21.388
3.799
24.874
21.751
1.715
142
8.838
43,497
1.977
3175.209
20.073
15.316
11.398
182.628
17.391
4.357
6.645
26.173
3.664
23,419
2.793
3.101
192
10.860
62.313
3.601
260.269
31.207
32.888
16.135
301,439
26.854
7.329
11.821
31.942
6.272
37.992
26.769
2,476
3.185
571
540
1.245
3,431
55
30.221
209.637
14.801
23.876
4.140
483
8.744
27.184
580
235.077
187.110
11.516
23.969
3.702
-82
8.899
25.273
414
225.396
333.704
18.112
38.231
6.274
1.131
14.241
40.308
703
363.419
Classification
Comparable
Prior Period
Budget
Estimates
Full Fiscal Year 1
Budget Receipts
Budget Outlays
Legislative Branch
. . . . . . . . . . . . .. .
. ................ ..
The Judiciary .................
.. ................... .
Executive Office of the President ............................. ..
Funds Appropriated to the President .......................... ..
Department of Agriculture ....................................... .
Department of Commerce ...................................... .
Department of Defense-Military
....................... ..
Department of Defense-Civil ........
. ................... .
Department of Education ...................................... ..
Department of Energy .......................................... ..
Department of Health and Human Services ................... .
Department of Housing and Urban Development .............. .
Department of the Interior ........
. ............ .
Department of Justice .......................................... ..
Department of Labor ............................................ .
. .......................... .
Department of State .............
.. ................. ..
Department of Transportation .....
Department of the Treasury:
Interest on the Public Debt .................................. .
Other ...........................
.. ........ ..
Department of Veterans Affairs ........................... .
Environmental Protection Agency ............................... .
General Services Administration ............................... ..
National Aeronautics and Space Administration ................ .
Office of Personnel Management .............................. ..
Small BUSiness Administration ................................. ..
SOCial Security Administration ................................... .
Other independent agencies:
Resolution Trust Corporation ................................ ..
Other ......................................................... ..
Undistributed offsetting receipts:
Interest
.. , ............................................ .
Other .......................................................... .
-1.024
792
-7.559
5.253
2.678
4.143
-6.753
15.399
-5.524
-2.956
-51.654
-22.347
-48.463
-22.721
-91.465
-41.392
Total outlays •...••.•..••.....••........•.•••••••••.•........•..
129,355
1,003,406
966,028
1,538,920
(On-budget) .......•••••••••.••..•••••••................••••••
102,581
812,068
781,668
1,246,936
(Off-budget) .......•.••...•.••....••.........•••••••..•......
26,773
191,337
184,360
291,984
Surplus (+) or deficit (-) ..•..........••••••.....•...•.....••
-38,950
-133,226
-164,745
-192,506
(On-budget) •...•......••.....•......••••...........••...•...•
-41,554
-176,133
-201,547
-251,778
(Off-budget) •......•.......•......•••........••••••...•....•.
+2,604
+42,907
+36,802
+59,272
'Outlays and deposit funds have been increased in September 1994 by $3 m.llion and $8
million to reflect additional reporting by the Department of the Army and Department of the Navy.
respectively.
Note: Details may not add to totals due to rounding.
'These figures are based on the FY 1996 Budget. released by the Office of Management and
Budget on February 6. 1995.
..
'Outlays have been decreased in August 1994 by $9 million and in February 1995 by $9 m.lllon
to reflect the redemption of agency securities not previously reported by the Architect of the
Capitol.
5
Table 4.
Receipts of the U.S. Government, May 1995 and Other Periods
[$ millions]
Classification
I
Gross \ Refunds
Receipts (Deduct)
Individual Income taxes:
Withheld
PreSidential Election Campaign Fund
Other
Prior Fiscal Year to Date
Current Fiscal Year to Date
This Month
Receipts
Gross
Receipts
I
Refunds
(Deduct)
I Receipts
I
Refunds
(Deduct)
I .
Receipts
310,954
53
105,443
339,539
52
118,358
43,414
12
8,691
Gross
Receipts
.........................
52.117
22.388
29.729
457.948
77.099
380.850
416.449
70.023
346.426
Corporation income taxes ....................................
3.572
1.379
2.193
96.298
13.974
82.324
86.811
9.719
17.092
23,716
1,207
23,716
1,207
(")
(")
(")
("')
172,813
12,127
1
172,813
12,127
1
188,025
11,780
-45
(' ')
(' ')
(")
24,923
24,923
184,942
184,942
199,761
199,761
4,239
216
4,239
216
46,548
2,754
46,548
2,754
20,143
1,258
20,143
1,258
(")
("j
(" ')
(")
(' ')
("j
4,455
4,455
49,303
49,303
21,401
21,401
6,959
475
6,959
475
59,585
4,983
59,585
4,983
54,281
3,911
54,281
3,911
Total-Individual income taxes
Social insurance taxes and contributions:
Employment taxes and contributions:
Federal old-age and survivors ins. trust fund:
Federal Insurance Contributions Act taxes
Self-Employment Contributions Act taxes
...........
DepOSits by States
Other
Total-FOASI trust fund
.. . . ... . .. .
Federal disability Insurance trust fund:
Federal Insurance Contributions Act taxes
Self-Employment Contributions Act taxes
Receipts from railroad retirement account
DepOSits by States
Other
Total-FDI trust fund
Federal hospital Insurance trust fund:
Federal Insurance Contributions Act taxes
Self-Employment Contributions Act taxes
Receipts from Railroad Retirement Board
DepoSits by States
Total-FHI trust fund
Railroad retirement accounts:
Rail industry pension fund
Railroad Social Security equivalent benefit
188,025
11 ,780
-45
n
(' 'j
(" ')
("j
(" ')
(' 'j
(")
7,434
7,434
64,569
64,569
58,192
58,192
257
162
5
252
162
1,619
1,292
15
1,605
1,292
1,560
1,215
29
1,532
1,215
37,231
5
37,226
301,724
15
301,710
282,129
29
282,100
Unemployment insurance
State taxes deposited in Treasury
Federal Unemployment Tax Act taxes
Railroad unemployment taxes
Railroad debt repayment
8,675
1,935
2
11
8,675
1,925
2
17,572
4,712
18
68
17,572
4,644
18
16,738
4,366
21
32
69
16,738
4,298
21
32
Total-Unemployment Insurance
10,612
11
10,601
22,302
68
22,233
21,158
69
21,089
Total-Employment taxes and contributions
Other retirement contributIOns:
Federal employees retirement - employee
contributions
Contributions for non-federal employees
348
7
348
7
2,924
61
2,924
61
3,004
64
3,004
64
Total-Other retirement contributions
355
355
2,985
2,985
3,068
3,068
Total-Social insurance taxes and
contributions
........................................
Excise taxes:
Miscellaneous excise taxes'
Airport and airway trust fund
Highway trust fund
Black lung disability trust fund
48.198
16
48.183
327.011
83
326.928
306.355
98
306.257
2,976
499
1,553
52
229
81
2,747
499
1,472
52
19,079
3,518
15,196
412
749
21
502
18,329
3,497
14,694
412
20,632
3,278
11,469
408
489
24
327
20,144
3,254
11,142
408
1,273
36,933
35,787
840
34,948
.....................................
5.080
310
4,770
38.205
Estate and gift taxes ........................................ ,
1.371
32
1,339
10,159
261
9,898
10.853
250
10,603
...............................................
1,652
180
1,471
13,836
1,150
12,686
13.319
551
12,769
2,478
241
(. 'j
2,478
241
17,748
2,821
8
17,748
2,813
10,824
2,377
14
10,824
2,364
(
)
20,561
13,201
14
13,188
Total-Excise taxes
Customs duties
Miscellaneous Receipts:
DepoSits of eamlngs by Federal Reserve Banks
All other
..
Total -
Miscellaneous receipts .............. ".,., ....
2.719
2,719
20,569
8
Total -
Receipts
........................................
114,710
24.305
90,405
964,026
93,846
870.180
882,776
81.494
801,283
Total -
On-budget
......................................
85.332
24,305
61.027
729,782
93,846
635,935
661,615
81,494
580,121
Total -
Off-budget
......................................
29.378
29,378
234.245
234.245
221.162
1includes amounts for the Windfall profrts tax pursuant to P L 96-223
No Transactions
(. 0) Less than $500.000
Note DetaJls may not add to totals due to rounding
6
221,162
Table 5, Outlays of the U,S, Government, May 1995 and Other Periods
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross jAPPlicablej Outlays
Receipts
Outlays
Gross !APPlicable! 0 tl
Receipts
u ays
Outlays
Gross !APPlic.able! Outla s
Outlays
Receipts
y
Classification
Legislative Branch:
Senate .............
. ............................ .
House of Representatives
Joint items
Congressional Budget Office
............. .
Architect of the Capitol ....
. ........... .
Library of Congress .'
.............. .
Government Printing Office:
Revolving fund (net)
........... .
General fund appropriations .......... .
General Accounting Office .... . ............. .
United States Tax Court ................................... .
Other Legislative Branch agencies .....
. ......... .
Proprietary receipts from the public ........................ .
Intrabudgetary transactions ................ . ............... .
35
59
r ')
35
(' .)
59
6
6
2
2
14
30
13
30
-3
8
-3
36
36
2
2
4
4
..
(
8
285
485
51
14
'122
511
12
65
270
21
23
-1
..
)
9
281
503
51
14
'133
370
12
65
270
21
23
-9
-8
31
63
289
22
21
1,833
1,772
16
16
1,716
76
1,624
1,809
1,717
1
12
6
280
491
51
14
128
370
31
63
289
22
2
21
-2
-7
21
1,751
)
-8
191
1,851
2
2
16
191
190
9
1.720
76
4
9
Total-The Judiciary .................................... .
202
200
1,812
4
Executive Office of the President:
Compensation of the President and the White House
Office
.................................. .
Office of Management and Budget .... . .................. .
Other
....................................... .
3
3
4
4
25
37
84
27
38
77
77
145
142
142
196
2,664
2,297
54
20
-430
4,802
600
3,362
2,335
637
127
306
1,070
306
1,070
Total-Legislative Branch .............................. ..
The Judiciary:
Supreme Court of the United States ... .. ................ .
Courts of Appeals, District Courts, and other judicial
services
Other ............ ..
193
Total-Executive Office of the President
Funds Appropriated to the President:
International Security Assistance:
Foreign military loan program
Foreign military financing program ....................... .
Economic support fund ............. .
Peacekeeping Operations ................................. .
Other ...................................................... .
Proprietary receipts from the public ..... .
2
8
8
25
37
84
15
15
145
30
102
102
63
102
102
34
5
5
586
2,664
2,297
54
4
4
20
14
48
International Development ASSistance:
Multilateral Assistance:
Contribution to the International Development
Association
.................... .
International organizations and programs ............. .
Other.
... .
390
430
-14
-7
16
2
1,622
2
1,715
77
77
27
38
386
214
3,362
2,335
42
33
406
792
-406
25
)
743
443
267
25
25
1,453
743
443
267
1,453
175
175
26
864
237
864
237
925
166
925
166
61
551
485
331
551
147
430
347
147
430
347
25
..
(
)
(
26
..
61
50
36
50
36
819
485
331
45
4
56
11
Total-International Development Assistance ..... .
408
International Monetary Programs ........................... .
Military Sales Programs:
Special defense acquisition fund ......................... .
Foreign military sales trust fund ........................ .
Kuwait civil reconstruction trust fund .................... .
Proprietary receipts from the public ..................... .
Other ...
. ........................................... ..
-26
1,234
Total-Funds Appropriated to the President ., •......•.
1,908
9
..
(
30
526
45
129
-526
44
184
637
127
42
502
-2
44
142
-502
-2
289
2,673
556
2,117
2,241
543
1,698
53
-49
31
182
..
2
28
136
61
151
19
-151
150
63
3
-124
136
58
740
3,632
3,535
698
2,837
-935
12
118
-10
8,721
118
8,822
(
(
8,105
-8,105
23
49
8,127
18,908
4
19
160
5,580
60
349
Overseas Private Investment Corporation ............... .
Peace Corps .....
.. ........................ ..
Other ...................................................... .
-3
-56
6,372
42
33
5,621
Total-Multilateral Assistance .............. .
Agency for International Development:
Sustainable development assistance program ......... .
Assistance for Eastern Europe and the Baltic States
ASSistance for the new independent States of the
Former Soviet Union .................................. .
Development fund for Africa ....................... .
Operating expenses ............................. .
Payment to the Foreign Service retirement and
disability fund
.......................... .
Other ............................................ ..
Proprietary receipts from the public ................... .
Intrabudgetary transactions ..................... .
17
227
275
Total-International Security Assistance
Total-Agency for International Development
(
6
284
484
51
14
116
511
)
11
150
65
113
296
4,373
-26
-935
7
108
8,721
(
3
1,234
..
(
)
724
8
887
7
)
..)
..)
(
-724
8
23
1,021
17,910
9,783
..
12
181
-63
8,822
8,399
-8,399
49
10,070
8,838
)
..
(
)
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions)
This Month
Classification
Gross [APPlicable
Outlays
Receipts
Department of Agriculture:
Agricultural Research Service
Cooperative State Research Education and Extension
Service
Cooperative state research activities
Extension Service
Other
Animal and Plant Health Inspection Service
Food Safety and Inspection Service
Agricultural Marketing Service
Farm Service Agency:
Salaries and expenses
Conservation programs
Federal crop insurance corporation fund
Commodity Credit Corporation:
Price support and related programs
National Wool Act Program
Agricultural credit insurance fund
Other
Total-Farm Service Agency
Food and Consumer Service:
Food stamp program
State child nutrition programs
Women, infants and children programs
Other
Total-Food and Consumer Service
Forest Service:
National forest system
Forest and rangeland protection
Forest service permanent appropriations
Other
Total-Forest Service
Other
Proprietary receipts from the public
Intrabudgetary transactions
Total-Department of Agriculture
Department
Economic
Bureau of
Promotion
Gross [APPlicable/
Receipts
Outlays
Outlays
492
492
479
479
34
36
1
40
50
16
34
36
1
40
50
16
287
294
27
334
346
509
287
294
27
334
346
509
269
284
31
315
343
495
269
284
31
315
343
494
74
16
23
74
16
21
631
1,828
514
631
1,828
63
603
1,846
1,296
603
1,846
947
-153
3
86
6,870
8,820
102
-175
2
15,432
200
1,374
2
4,927
..)
15,689
102
901
2
47
19,668
8,396
11,272
20,752
6,670
43
22
7
376
187
54
376
187
54
404
175
54
904
3
178
2
1,056
93
(
(" ')
1,151
43
22
7
1,394
10,504
200
-20
2
14,082
404
175
54
-114
39
18
1,510
587
272
1,885
309
134
-374
278
138
1,740
630
272
2,378
386
340
-638
244
-68
348
96
106
223
125
96
106
2,427
127
715
1,678
749
127
715
2,513
58
701
2,190
324
58
701
2,136
791
301
31
2,136
791
301
31
17,331
5,543
2,371
314
17,331
5,543
2,371
314
17,125
5,096
2,168
351
17,125
5,096
2,168
351
3,260
3,260
25,560
25,560
24,740
24,740
112
387
22
-282
112
387
22
-282
870
763
473
192
870
763
473
192
917
210
260
553
917
210
260
553
239
239
2,297
2,297
1,940
1,940
35
-50
338
26
643
312
-643
( )
329
24
1,040
305
-1,040
..)
4
50
5,762
(
1,651
..
)
..)
(
56,408
13,071
43,337
56,525
13,028
43,497
30
31
40
225
218
251
9
217
218
251
181
181
206
10
171
1,293
286
74
15
1,285
80
95
10
21
1,278
286
53
23
1,275
80
72
36
1,617
1,460
32
1,428
64
-83
70
.. )
79
70
-79
2,099
121
156
43
( )
..
3
153
43
-3
Total-Science and Technology
199
6
193
1,653
Other
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
2
2
-10
64
10
..
(
3
)
304
(
17
8
..
4,111
31
31
40
.......................
1,076
348
165
43
15
of Commerce:
Development Administration
the Census
of Industry and Commerce
Total-Department of Commerce
451
51
82
33
(
SCience and Technology:
NatIOnal Oceanic and Atmospheric Administration
NatIOnal Institute of Standards and Technology
Other
Gross [APPlicable[ Outla s
Outlays
Receipts
y
61
39
.......................
Prior Fiscal Year to Date
61
1,198
Natural Resources Conservation Service:
Conservation operations
Watershed and flood prevention operations
Other
Rural Utilities Service:
Rural electrification and telephone fund
Rural development insurance fund
Other
Rural housing and Community Development Service:
Rural housing insurance fund
Other
Foreign Agricultural Service
I Outlays
Current Fiscal Year to Date
..
)
287
(
.. )
.. )
83
2,412
128
(
(
.. )
2,284
(
181
206
(")
1,9n
Table 5,
Outlays of the U,S, Government, May 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IAPPlicable I Outlays
Receipts
Outlays
Gross IAPPlicablel
Outlays
Receipts
Outlays
Gross IAPPlic.ablel Outla s
Outlays
Receipts
y
Classification
Department of Defense-Military:
Military personnel:
Department of the Army
...............................
Department of the Navy
Department of the Air Force .................. ...........
2.163
2.047
1.616
2.163
2.047
1.616
15.982
16.162
12.034
15.982
16.162
12.034
17,491
17.285
11.829
17,491
17.285
11.829
.............. , .... ...........
5.826
5.826
44.178
44.178
46.605
46.605
Operation and maintenance:
Department of the Army
.......................
Department of the Navy
........... .................
Department of the Air Force
...............
..............
Defense agencies
...........
1.909
1.914
1.752
1.594
1.909
1.914
1.752
1.594
14.742
14.154
15.727
12.763
14.742
14.154
15.727
12.763
13.736
14.164
15.985
12.950
13.736
14.164
15.985
12.950
Total-Operation and maintenance ...................
7.169
7.169
57.387
57.387
56.836
56.836
Procurement:
Department of the Army ...........
Department of the Navy
..................
...........
Department of the Air Force
...........
Defense agencies
663
642
1.672
311
663
642
1.672
311
5.006
14.062
14.234
2.565
5.006
14.062
14.234
2.565
5,459
217.263
215.588
2.741
5,459
17.263
15.588
2.741
..............
3.288
3.288
35.867
35.867
41.050
41.050
Research. development. test. and evaluation:
Department of the Army
Department of the Navy
.............
Department of the Air Force
........... .............
Defense agencies
....... , .........
471
577
1.126
790
471
577
1.126
790
3.363
5.900
8.314
5.230
3.363
5.900
8.314
5.230
3.819
5.019
8,464
5.510
3.819
5.019
8,464
5.510
Total-Research. development. test and evaluation
2.965
2.965
22.807
22.807
22.813
22.813
95
58
108
303
95
58
108
303
629
552
861
2.232
629
552
861
2.232
604
354
688
1.321
604
354
688
1.321
564
564
4.275
4.275
2.967
2.967
93
106
96
15
93
106
96
10
769
715
688
102
769
715
688
69
846
524
688
69
846
524
688
47
-13
81
-42
202
-42
202
56
244
Total-Military personnel
Total-Procurement
Military construction:
Department of the Army
Department of the Navy
Department of the Air Force .....................
Defense agencies
...............
Total-Military construction
...........
Family housing:
Department of the Army
Department of the Navy
Department of the Air Force
...........
Defense agencies
. . . . . . . . . . ..
Revolving and management funds:
Department of the Army
Department of the Navy .............
Department of the Air Force
Defense agencies:
Defense business operations fund
Other.
Trust funds:
Department of the Army
Department of the Navy
...........
Department of the Air Force
Defense agencies ............................
Proprietary receipts from the public:
Department of the Army
Department of the Navy
Department of the Air Force
Defense agencies
Intrabudgetary transactions:
..............
Department of the Army
Department of the Navy . . . . . . . . . . . . .
..............
Department of the Air Force
...............
Defense agencies ...............
Offsetting governmental receipts:
...........
Department of the Army
Defense agencies
Total-Department of Defense-Military
.............
6
-13
81
33
926
-3
(' 0)
926
-3
-588
-105
2
-588
-107
2.545
-239
(0 0)
(00)
rO)
r 0)
r 0)
(00)
rO)
1
1
17
3
15
(0 0)
rO)
rO)
rO)
(00)
17
17
160
22
6
150
17
-27
-19
21
-18
34
18
-50
-18
34
18
-50
21,115
-17
27
19
-21
(* 0)
r 0)
-2
21,117
9
160
210
204
718
244
14
437
121
-145
166,862
-210
-204
-718
-244
14
437
121
-145
22
56
244
4
2.545
-243
(' 0)
9
6
12
r ')
150
49
67
328
193
120
528
120
-56
-49
-67
-328
-193
120
528
120
-56
1
-1
6
-6
(0 ')
(00)
(' 0)
(* ')
1,415
165,447
683
175,209
175,892
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions]
This Month
Classification
Gross IAPPlicable 1 Outlays
Outlays
Receipts
Department of Defense-Civil
Corps of Engineers:
Construction, general
Operation and maintenance, general
Other
Proprietary receipts from the public
285
Military retirement:
Payment to military retirement fund
Military retirement fund
Intrabudgetary transactions
Education benefits
Other
Proprietary receipts from the public
Total-Department of Defense-Civil
...................
10
6
2,637
IAPPII~ble
I
Receipts
Gross IAPPlic.ablej Outl
Outlays
Receipts
ays
Gross
Outlays
685
894
935
14
14
271
2,513
2,335
2,335
.......... .
Prior Fiscal Year to Date
69
99
117
-14
69
99
117
Total-Corps of Engineers
Current Fiscal Year to Date
11,470
18,335
-11,470
67
53
1
10
6
-1
16
2,621
20,968
(00)
Outlays
589
693
1,048
88
685
894
935
-88
88
2,426
2,330
3
8
11,470
18,335
-11,470
67
50
-8
11,908
17,684
-11,908
127
52
98
20,870
20,194
4,859
702
1,019
59
110
589
693
1,048
-110
110
2,220
2
8
11,908
17,684
-11,908
127
50
-8
120
20,073
Department of Education:
Office of Elementary and Secondary Education:
Education for the disadvantaged
Impact aid ...
School improvement programs
...............
Other
700
14
98
11
700
14
98
11
4,757
652
942
4,757
652
942
77
77
4,859
702
1,019
59
Total-Office of Elementary and Secondary
Education
823
823
6,429
6,429
6,639
6,639
Office of Bilingual Education and Minority Languages
Affairs . . . . . . . . . . . . .
Office of Special Education and Rehabilitative Services:
...... , .. ...
Special education
Rehabilitation services and disability research
Special institutions for persons with disabilities
Office of Vocational and Adult Education
22
22
147
147
150
150
247
220
12
86
247
220
12
86
2,187
1,569
95
1,026
2,187
1,569
95
1,026
2,071
1,524
90
947
2,071
1,524
90
947
Office of Postsecondary Education:
College housing loans
Student financial assistance
Federal family education loans
Higher education
Howard University
Other
7
-7
353
454
65
14
53
14
5,037
2,600
521
141
367
51
-37
5,037
2,600
521
141
367
1
5,205
-2,376
485
143
62
38
353
454
65
14
53
-36
5,205
-2,376
485
143
62
7
932
8,681
51
8,630
3,520
38
3,482
273
296
65
273
296
-65
286
243
16
34
46
-16
116
286
243
-116
23
2,406
20,703
116
20,587
15,470
154
15,316
1,017
1,017
7,989
7,989
7,889
7,889
104
238
11
34
62
16
104
238
11
34
62
16
956
2,145
73
288
430
140
956
2,145
73
288
430
140
853
2,015
245
270
370
196
853
2,015
245
270
370
196
.
(" 0)
Total-Office of Postsecondary Education
Office of Educational Research and Improvement
Departmental management ..
Proprietary receipts from the public ..
Total-Department of Education
........................
Department of Energy:
Atomic energy defense activities
Energy programs:
General science and research activities
Energy supply, Rand D activities
Uranium supply and enrichment activities
Fossil energy research and development
Energy conservation
Strategic petroleum reserve
Clean coal technology
Nuclear waste disposal fund
Other
Total-Energy programs
Power Marketing Administration
Departmental administration
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting govemmental receipts
Total-Department of Energy ..... " ..... "" .... , .. , ... ,
939
34
46
2,429
34
88
(" 0)
34
88
228
653
228
652
175
587
2
175
585
587
(0 .)
587
4,912
4,912
4,711
2
4,709
118
37
194
-76
37
-126
-86
1,161
319
1,176
300
1,148
9
-199
319
-1,186
-359
-9
107
28
300
-1,147
-274
-107
2,555
11,467
13,802
2,404
11,398
126
-86
1,673
("")
(" 0)
320
1,353
10
1,359
1,186
-359
14,022
1,147
-274
Table 50 Outlays of the UoSo Government, May 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross !APPllcablel Outlays
Outlays
Receipts
Gross !APPlicable! 0 tl
Outlays Receipts
u ays
Gross !APPlicable! Outla s
Outlays
Receipts
y
Classification
Department of Health and Human Services:
Public Health Service:
Food and Drug Administration ........................... .
Health Resources and Services Administration .......... .
Indian Health Services .................................... .
Centers for Disease Control and Prevention ............ .
National Institutes of Health ............................. ..
Substance Abuse and Mental Health Services
Administration ............................................ .
Agency for Health Care Policy and Research ........... .
Assistant secretary for health ............................ .
67
161
152
138
1,229
66
161
152
138
1,229
552
1,633
1,412
1,175
7,179
194
11
-151
194
11
-151
1,587
82
163
Total-Public Health Service .......................... ..
1,803
1,802
13,782
Health Care Financing Administration:
Grants to States for Medicaid .......................... ..
Payments to health care trust funds .................... .
7,637
3,781
7,637
3,781
10,312
81
Federal hospital insurance trust fund:
Benefit payments ...................................... ..
Administrative expenses ............................... ..
Interest on normalized tax transfers
Total-FHI trust fund ..
Federal supplementary medical insurance trust fund:
Benefit payments ....................................... .
Administrative expenses .....
. ..................... .
Total-FSMI trust fund .....
Other
Total-Health Care Financing Administration
Administration for children and families:
Family support payments to States
................... .
Low income home energy assistance ................... .
Refugee and entrant assistance ......................... .
Payments to States for the job opportunities and basic
skills training program ................................... .
State legalization impact assistance grants ............. .
Payments to States for the child care and development
block grant ..
. ................................. .
Social services block grant ............................... .
Children and families services programs ................ .
Payments to States for foster care and adoption
assistance ................................................ .
Other ..................................................... ..
Total-Administration for children and families ....... .
Administration on aging ..................................... .
Departmental management ................................ ..
Proprietary receipts from the public .................. .
Intrabudgetary transactions:
Payments for health insurance for the aged:
Federal hospital insurance trust fund ................. .
Federal supplementary medical insurance trust fund ..
Payments for tax and other credits:
Federal hospital insurance trust fund ................. .
Other..
.. ...................... .
Total-Department of Health and Human Services
2
548
1,633
1,412
1,175
7,179
508
1,539
1,149
969
6,810
1,587
82
163
1,547
64
133
13,778
12,720
58,722
31,573
58,722
31,573
54,083
27,422
54,083
27,422
10,312
81
73,401
844
73,401
844
65,953
826
65,953
826
10,394
10,394
74,245
74,245
66,779
66,779
5,555
145
5,555
145
40,745
1,123
40,745
1,123
37,046
1,119
37,046
1,119
5,701
5,701
41,867
41,867
38,165
38,165
34
34
22
22
17
17
27,547
27,547
206,429
206,429
186,466
186,466
1,534
102
42
1,534
102
42
11,676
1,181
247
11,676
1,181
247
11,294
1,835
254
11,294
1,835
254
3
3
505
1,539
1,149
969
6,810
1,547
64
133
2
12,717
83
83
-1
-1
646
144
646
144
538
615
538
615
81
251
474
81
251
474
617
1,912
3,424
617
1,912
3,424
516
1,849
2,910
516
1,849
2,910
288
288
2,149
15
2,064
3
2,149
15
2,064
3
2,858
2,858
22,011
22,011
21,874
21,874
50
50
22
-1,706
604
213
604
213
-13,235
549
130
549
130
-11,687
-3,781
-28,173
-28,173
-26,268
-26,268
-3,400
-3,400
-1,154
-1,154
198,227
194,317
22
1,706
-3,781
28,498
1,707
11
26,791
13,235
211,465
13,238
(00)
(00)
11,687
11,689
182,628
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions]
Classification
Department of Housing and Urban Development:
Housing programs:
Public enterprise funds
Credit accounts:
Federal housing administration fund
Housing for the elderly or handicapped fund
Other
Rent supplement payments
Homeownership assistance
Rental housing assistance
Rental housing development grants
............
Low-rent public housing
Public housing grants
College housing grants ................
. . . . .. . . . ... .
Lower Income housing assistance
Section 8 contract renewals
Other
Total-Housing programs
Public and Indian Housing programs:
Low-rent public housing-Loans and other expenses
Payments for operation of low-income housing
projects
.............................
Community Partnerships Against Crime ...
Other
Total-Public and Indian Housing programs
Government National Mortgage Association:
Management and liquidating functions fund
Guarantees of mortgage-backed securities
Total-Government National Mortgage Association
Community Planning and Development:
Community Development Grants
Home investment partnerships program
Other
.. . . .. . . .. . ..
Total-Community Planning and Development
Management and Administration
Other
Proprietary receipts from the public
Offsetting governmental receipts
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross !APPlicable! Outlays
Outlays
Receipts
Gross !APPlic.able! Outla s
Receipts
y
Outlays
Gross !APPlicable! 0 tI
Outlays
Receipts
u Bya
14
13
1,206
-3
51
12
11
53
1,747
64
64
330
2
835
376
16
31
101
87
14
-542
-66
51
12
11
53
4,998
541
383
107
79
433
5,308
442
64
330
2
835
376
16
525
2,416
12
6,625
3,267
113
525
2,416
12
6,625
3,267
113
3,884
696
293
48
70
439
5
545
2,155
13
6,980
2,285
42
4,162
469
( )
r .)
-310
99
383
107
79
433
( )
-277
227
293
48
70
439
5
545
2,155
13
6,980
2,285
42
..
..
(
)
..
1,824
1,143
19,619
5.837
13,782
17,555
4,718
12,837
2
r·)
2
259
197
62
293
195
98
245
16
3
1,790
108
14
1,790
108
14
1,698
107
2,098
245
16
3
266
r·)
265
2,171
197
1,973
r .)
18
54
-37
234
525
( )
-291
18
54
-37
234
525
361
92
28
9
361
92
19
2,792
749
214
481
9
473
3,754
331
38
33
29
3
-33
1,921
1,843
26,147
56
15
52
491
268
462
.............
.............
Department of the Interior:
Land and minerals management:
Bureau of Land Management:
Management of lands and resources
................
Other
Minerals Management Service
Office of Surface Mining Reclamation and
Enforcement
87
2,967
29
3
Total-Department of Housing and Urban
Development .............................................
119
3,764
56
15
52
1,698
107
195
1,903
697
1
1,029
-1
-332
-291
697
1,029
-333
78
2,792
749
135
2,261
438
192
87
2,261
438
106
78
3,676
2,891
87
2,804
337
23
301
5
331
38
-301
-5
175
5
337
23
-175
-5
6,944
19,203
23,601
6,210
17,391
491
268
462
437
153
513
..
..
(
)
437
153
513
20
20
207
207
192
192
143
143
1,428
1,428
1,296
1,296
Water and science:
Bureau of Reclamation:
Construction program
Operation and maintenance
Other
Central utah project
United States Geological Survey
Bureau of Mines
31
21
35
( )
31
21
28
( )
48
14
199
168
277
26
372
115
17
199
168
162
26
372
98
191
179
303
6
404
127
18
191
179
194
6
404
109
Total-Water and science
150
143
1,158
133
1,025
1,209
127
1,083
128
13
112
128
13
112
840
86
1,010
840
86
1,010
811
59
943
811
59
943
253
253
1,936
1,936
1,813
1,813
Total-Land and minerals management
Fish and wildlife and parks:
United States Fish and Wildlife Service
National Biological Survey
National Park Service
Total-Fish and wildlife and parks
..
6
48
15
8
12
..
116
109
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross /APPllcablej
Receipts
Outlays
Outlays
Gross jAPPlicablej 0 tl
Receipts
u ays
Outlays
Gross IAPPlic.able I Outla s
Outlays
Receipts
y
Classification
Department of the Interior:-Continued
Bureau of Indian Affairs:
Operation of Indian programs
Indian tribal funds .....
Other ....
Total-Bureau of Indian Affairs
Territorial and international affairs ................... .
Departmental offices
Proprietary receipts from the public ............ . .......... .
Intrabudgetary transactions
Offsetting governmental receipts ................... .
Total-Department of the Interior
Department of Justice:
Legal activities .............................................. .
Federal Bureau of Investigation ......... .
Drug Enforcement Administration ........................... .
Immigration and Naturalization Service ..................... .
Federal Prison System .....
. .......... .
Office of Justice Programs
.......... .
Other .................... .
Intrabudgetary transactions
Offsetting governmental receipts .....
Total-Department of Justice .........•........•...•••••
Department of Labor:
Employment and Training Administration:
Training and employment services
............ .
Community Service Employment for Older Americans .. .
Federal unemployment benefits and allowances ........ .
State unemployment insurance and employment service
operations .......... . .................................... .
Payments to the unemployment trust fund ............. .
Advances to the unemployment trust fund and other
funds..........
. ................................ .
Unemployment trust fund:
Federal-State unemployment insurance:
State unemployment benefits ............... .
State administrative expenses ............... .
Federal administrative expenses ..................... .
Veterans employment and training .................. .
Repayment of advances from the general fund
Railroad unemployment insurance ..................... .
Other .................................................... .
Total-Unemployment trust fund
Other
Total-Employment and Training Administration
105
18
30
153
(")
105
18
30
992
188
279
(")
153
1,459
370
79
144
10
22
-144
-5
-167
10
22
-5
726
286
134
-51
147
246
95
35
(")
(* ')
152
574
6,262
286
134
-51
147
235
95
35
1 ,781
1,347
510
1,119
1,850
446
539
-39
12
-6
-6
8
992
188
272
886
190
320
6
886
190
314
8
1 ,451
1,396
6
1,389
205
97
1,233
3
370
79
-1,233
-167
-3
1,377
4,885
5,814
86
1,608
1,432
516
990
1,579
579
401
-23
561
1,781
1,347
510
1,119
1,764
446
539
-39
-561
646
6,908
7,082
1,324
-202
205
97
-1,324
-202
(")
(")
1,457
4,357
78
358
1,608
1,432
516
990
1,501
579
401
-23
-358
437
6,645
101
-101
112
774
7,555
383
38
26
383
38
26
2.827
260
139
2,827
260
139
2,554
257
95
2.554
257
95
32
32
39
39
144
144
619
619
2.547
2,547
14,871
2,135
150
120
20,012
2,090
132
125
20,012
2.090
132
125
886
1,794
235
12
15
1.794
235
15
14,871
2.135
150
120
4
1
4
1
44
12
44
12
49
14
49
14
2.062
2,062
17.333
17,333
22,422
22,422
4
4
56
56
58
58
2.545
2,545
21,272
21,272
28,076
28,076
-35
981
-204
844
19
157
47
15
23
17
51
159
5
382
94
197
182
314
159
5
382
94
197
182
314
154
33
401
83
194
176
314
122
Pension Benefit Guaranty Corporation ..................... .
Employment Standards Administration:
Salaries and expenses ....................... .
Special benefits ................................ .
Black lung disability trust fund .... .
Other ...................................................... .
Occupational Safety and Health Administration ............ .
Bureau of Labor Statistics ................................. .
Other ........................................................ .
Proprietary receipts from the public .................. .
Intrabudgetary transactions ................................. .
-98
Total-Department of Labor •.•......••.....•••.......••.
2,898
12
157
19
157
47
15
23
17
51
(")
158
13
1.185
5
(")
-98
-1,010
2,741
22,578
1,190
-5
1,124
154
33
401
83
194
176
314
2
-1,010
-2,976
21,388
27,299
-281
-2
-2,976
1,126
26,173
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions]
Classification
Department of State:
Administration of Foreign Affairs:
Diplomatic and consular programs
AcquISition and maintenance of buildings abroad
Payment to Foreign Service retirement and disability
fund
Foreign Service retirement and disability fund
Other
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross /APPlicable/ Outlays
Outlays
Receipts
Groll /APPlicablel Outlays
Receipts
Outlays
Gross /APPlicable/ 0 tl
Outlays
Receipts
u ays
116
36
116
36
1.022
345
1.022
345
1.118
387
1.118
387
34
43
34
43
129
297
334
129
297
334
125
265
165
125
265
165
Total-Administration of Foreign Affairs
229
229
2.126
2.126
2.060
2.060
International organizations and Conferences
...........
Migration and refugee assistance
Other
Proprietary receipts from the public .
Intrabudgetary transactions
Offsetting governmental receipts
42
45
20
42
45
20
1.311
460
84
1.311
460
84
1.182
475
124
1.182
475
124
rO)
(00)
-182
-182
-176
-176
335
335
3,799
3,799
3,664
3,664
1.790
20
19
1.790
20
19
11.757
119
126
11.757
119
126
11.092
104
143
11.092
104
143
1.829
1.829
12.003
12.003
11.339
11.339
24
24
178
178
169
169
rO)
rO)
33
33
708
151
7
708
144
425
245
8
425
237
33
33
859
7
852
670
8
662
120
187
47
120
187
47
439
1.332
1.206
439
1.332
1.206
-63
1.077
1.536
-63
1.077
1.536
353
353
2.977
2.977
2.549
2.549
48
48
1.294
1.294
1.684
1.684
95
241
25
204
95
241
25
204
1.164
1.749
151
1.729
1.164
1.749
151
1.729
1.027
1,473
141
1.434
1.027
1,473
141
1,434
Total-Department of State ..............................
Department of Transportation:
Federal Highway Administration:
Highway trust fund:
Federal-aid highways
Other
Other programs
...........
. . . . . . . . . ..
Total-Federal Highway Administration
National Highway Traffic Safety Administration
Federal Railroad Administration:
Grants to National Railroad Passenger Corporation
Other
Total-Federal Railroad Administration
Federal Transit Administration:
Formula grants
Discretionary grants
Other
Total-Federal Transit Administration
Federal Aviation Administration:
Operations
Airport and airway trust fund:
. . . .. . . . . . . .
Grants-in-aid for airports
Facilities and equipment
Research. engineering and development
...........
Operations
565
Total-Airport and airway trust fund
............
Other
Total-Federal Aviation Administration
Coast Guard:
Operating expenses
AcqUisition. construction. and improvements
Retired pay
Other
Total-Coast Guard
...........
............
Mantlme Administration
Other
Propnetary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
Total-Department of Transportation
565
4.793
4.793
4.074
4.074
rO)
rO)
(00)
r 0)
-1
r 0)
-1
613
(0 0)
613
6.088
6.086
5.759
5,158
221
16
42
25
rO)
221
16
42
25
1.640
163
352
194
4
1.640
163
352
191
1.603
219
333
229
4
1.603
219
333
225
303
(00)
303
2.349
4
2.346
2.385
4
2.381
48
31
4
1
43
31
458
242
rO)
272
236
-3
584
263
r 0)
186
6
3
244
4
3
(0 0)
36
-36
10
73
-73
46
340
259
-3
10
-46
42
3,193
280
24,874
310
23,419
(0 0)
...................
3,236
14
25,154
23,728
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Gross IAPPlicablel Outlays
Outlays Receipts
Gross IAPPlicablel 0 tl
Outlays Receipts
u ays
Prior Fiscal Year to Date
Classification
Department of the Treasury:
Departmental offices:
Exchange stabilization fund
Other
Financial Management Service:
Salaries and expenses
............................... .
Payment to the Resolution Funding Corporation ........ .
Claims, judgements, and relief acts ..................... .
Net interest paid to loan guarantee financing accounts
Other
......................................... .
Total-Financial Management Service
Federal Financing Bank
............ .
Bureau of Alcohol, Tobacco and Firearms:
Salaries and expenses
............................ ..
Internal revenue collections for Puerto Rico ............. .
United States Customs Service ............................ .
Bureau of Engraving and Printing ......................... ..
United States Mint .......
. ................ ..
Bureau of the Public Debt ......................... .
Internal Revenue Service:
Processing, assistance, and management
Tax law enforcement ..................................... .
Information systems ..................................... .
Payment where earned income credit exceeds liability
for tax
................................................. .
Health insurance supplement to earned income credit ..
Refunding internal revenue collections, interest ......... .
Other
.................................... .
Total-Internal Revenue Service
United States Secret Service
Comptroller of the Currency
Office of Thrift Supervison
-144
2
-146
I
Outlays
-773
-1,858
117
-766
116
2
162
1,751
480
766
63
162
1,751
480
766
63
161
1,751
345
2
95
161
1,751
345
2
95
-9
-9
10
10
52
52
2
-1,844
117
GrOssjAPPlic.able
Outlays Receipts
14
8
116
65
65
3,223
3,223
2,354
2,354
-114
-114
-216
-216
-216
-216
23
18
153
-41
-19
14
23
18
153
-41
-19
14
250
136
1,195
250
136
1,195
(")
(")
-110
191
-110
191
257
131
1,290
5
-42
182
257
131
1,290
5
-42
182
156
321
157
156
321
157
1,196
2,731
1,016
1,196
2,731
1,016
1,232
2,527
762
1,232
2,527
762
3,031
3,031
14,252
14,252
262
(")
2,030
2
2,030
2
10,599
738
1,737
-1
10,599
738
1,737
-1
3,927
21,227
(")
21,226
17,594
17,594
35
26
10
348
273
108
199
81
348
74
27
326
251
117
262
(' ')
(")
3,927
35
28
11
2
224
87
326
28
31
Interest on the public debt:
Public issues (accrual basis)
........................... .
Special issues (cash basis) ............................... .
20,301
6,468
20,301
6,468
154,225
55,412
154,225
55,412
136,554
50,556
136,554
50,556
Total-Interest on the public debt .................... .
26,769
26,769
209,637
209,637
187,110
187,110
Other
Proprietary receipts from the public ........................ .
Receipts from off-budget federal entities .................. .
Intrabudgetary transactions ................................ ..
Offsetting governmental receipts ........................... .
6
6
-612
35
2,870
35
-2,870
39
612
-728
-132
-6,257
711
-6,257
-711
-7,256
132
749
29,245
228,314
3,876
224,437
201,492
Total-Department of the Treasury
-728
29,995
15
2,039
39
-2,039
508
-7,256
-508
2,865
198,627
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions]
Classification
Department of Veterans Affairs:
Veterans Health Administration:
Medical care
Other
Total-Veterans Benefits Administration
Gross !APPlicable! Outlays
Outlays
Receipts
Gross !APPlic.able! Outla s
Receipts
y
Outlays
Gross !APPlicable! 0
Outlays
Receipts
utlays
22
63
31
8
63
-4
13
1.518
120
5
104
1
12
8
3
105
1.360
41
(
628
313
120
10,464
871
44
104
1
9
8
832
12
98
23
1.734
13,404
38
99
417
754
Total-National Aeronautics and Space
Administration
............................................
Office of Personnel Management:
Government payment for annuitants. employees health
and life Insurance benefits
Payment to CIVil service retirement and disability fund
CIVil service retirement and disability fund
Employees life Insurance fund
Employees and retired employees health benefits fund
Other
Intrabudgetary transactions:
CIVil service retirement and disability fund:
General fund contnbutlons
Other
...............
13.824
417
754
448
697
(' ')
448
697
233
-233
..)
561
819
1.262
919
537
6
200
4,140
3,847
63
190
230
-211
-10
143
571
4,340
355
161
25
-1
63
190
230
541
540
483
415
430
177
102
98
19
2
415
430
177
102
98
19
2
1,245
355
161
25
1.053
585
948
1.563
941
552
-194
-250
-6
-250
15
14.877
26,362
.. )
585
12.618
23,876
585
948
1.563
941
552
.. )
823
12
90
-3
1,628
69
83
225
163
45
-14
(
832
12
3
23
-27
25,503
211
996
413
274
11.396
817
59
-477
-17
3,185
3,396
280
43
46
10,464
871
44
477
-17
)
9.909
459
-182
-63
-2
..
10.481
282
..)
63
.. )
National Aeronautics and Space Administration:
Human space flight
SCience. aeronautics and technology
Mission support
Research and development
Space flight. control and data communications
Construction of facilities
Research and program management
Other
..)
(
(
(
................
787
182
14
General Services Administration:
Real property activities
Personal property activities
Other
Proprietary receipts from the public
95
(
69
83
225
163
45
...............
348
270
74
-22
)
-2
Total-Environmental Protection Agency
)
181
..22
(
.................
..
10,481
464
-35
4
1.518
120
5
38
99
Environmental Protection Agency:
Program and research operations
Abatement. control. and compliance
Water infrastructure financing
Hazardous substance superfund
Other
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
Total-Office of Personnel Management
Prior Fiscal Year to Date
1.839
Construction
Departmental administration
Proprietary receipts from the public:
National service life
Untied States government life
Other
Intrabudgetary transactions
Total-General Services Administration
Current Fiscal Year to Date
1.360
62
Veterans Benefits Administration:
Public enterprise funds'
Guaranty and Indemnity fund
Loan guaranty revolving fund
Other
Compensation and pensions
Readlustment benefits
Post,Vletnam era veterans education account
Insurance funds:
National service life
United States government life
Veterans special life
Other
Total-Department of Veterans Affairs
This Month
(
194
(
(
..)
(* *j
..
(
(
..
178
479
320
160
95
..
(
)
)
517
93
115
11.396
817
59
823
12
-5
-3
..)
(
929
-929
-27
2,393
23,969
6
561
819
1.262
919
534
-136
-250
-6
145
3,702
3
-211
-10
143
-3
3
-82
3
136
-250
)
9.909
281
483
-79
1.760
1.291
1.277
2.807
1.297
210
94
10
1.760
1.291
1.277
2.807
1.297
210
94
10
4.309
3.224
265
1.091
10
4.309
3.224
265
1.091
10
1,245
8,744
8,744
8,899
8,899
338
338
2,658
2,658
2.634
2.634
3,223
132
1,360
24
337
1,306
3.223
-205
53
24
25,443
1,070
10.355
52
25,443
-719
-229
52
23,967
910
10.046
102
-3
-22
-22
-23
1,644
3,431
39,557
27,184
37,635
-3
5,074
16
1.789
10.584
12,373
1,825
10,537
23.967
-915
-491
102
-23
12,362
25,273
Table 5,
Outlays of the U,S, Government, May 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IAPPlicable1
Receipts
Outlays
Outlays
Gross IAPPlicablel 0 tl
Receipts
u ays
Outlays
Gross IAPPlic.ablel Outla s
Outlays
Receipts
y
Classification
Small Business Administration:
Public enterprise funds:
Business loan fund
. . . . ...... . . . . ..... . ... . ........
Disaster loan fund
Other
Other
................
52
31
1
46
(")
..................
130
75
Total-Small Business Administration
Social Security Administration:
Payments to Social Security trust funds .............
Special benefits for disabled coal miners
Supplemental security income program
Ottice of the Inspector General
Federal old-age and survivors insurance trust fund (offbudget):
Benefit payments
....................
Administrative expenses
............ ..
Payment to railroad retirement account ..................
Other
Total-FOASI trust fund
.,
Federal disability insurance trust fund (off-budget):
Benefit payments
Administrative expenses
..............
Payment to railroad retirement account . . . . . . . . . . .
Other
............................
Total-FDI trust fund
264
161
10
375
130
16
369
271
197
8
46
-6
194
4
389
(")
105
-67
7
369
55
1,016
436
580
891
476
414
13
59
2,191
13
59
2,191
3,852
484
15,340
3,852
484
15,340
4,145
521
16,137
4,145
521
16,137
(")
("')
("')
(")
24,348
177
24,348
177
191,376
1,157
191,376
1,157
183,267
1,054
183,267
1,054
24,525
24,525
192,534
192,534
184,321
184,321
3,403
73
3,403
73
26,423
718
26,423
718
24,168
662
24,168
662
3,476
3,476
27,141
27,141
24,829
24,829
Proprietary receipts from the public:
On-budget
Off-budget
.......................
Intrabudgetary transactions:
On-budget
Off-budget3
..............
-14
...................
30,250
Total-Social Security Administration
Other independent agencies:
Board for International Broadcasting
Corporation for National and Community Service
Corporation for Public Broadcasting
District of Columbia:
Federal payment
...........
Other
................................
Equal Employment Opportunity Commission
Export-Import Bank of the United States
Federal Communications Commission ...........
Federal Deposit Insurance Corporation:
Bank insurance fund
Savings association insurance fund
FSLlC resolution fund
Affordable housing and bank enterprise
Total-Federal Deposit Insurance Corporation
Federal Emergency Management Agency:
Public enterprise funds
Disaster relief
Emergency management planning and assistance
Other
Federal Trade Commission
Interstate Commerce Commission
Legal Services Corporation
National Archives and Records Administration .............
National Credit Union Administration:
Credit union share insurance fund
Central liquidity facility
Other
(")
27
2
-27
-2
-14
-3,853
30
30,221
235,496
29
27
29
27
153
271
286
(")
(")
15
-45
15
(" ')
91
4
15
-136
11
108
9
421
506
32
6
-398
-24
416
714
5
158
838
107
412
8
-412
-8
-3,853
-4,140
420
235,077
225,814
153
271
286
129
126
275
714
-7
157
163
73
698
3
156
681
95
12
(")
675
34
408
10
-408
-10
418
225,396
-4,140
129
126
275
12
(")
1,408
27
698
-9
155
-727
68
6,850
578
667
-5,242
-544
943
3
1,760
17
1,535
3
8,129
551
2,374
-6,368
-534
-839
3
(")
1,609
34
1,610
3
538
544
-6
3,256
8,095
-4,839
3,315
11,053
-7,738
24
181
30
21
7
2
34
25
37
300
1,626
185
203
55
25
295
155
233
66
1,626
185
189
55
25
295
155
282
2,434
153
168
59
28
264
152
245
(")
-12
181
30
13
7
2
34
25
37
2,434
'153
168
59
28
264
152
25
42
-18
11
5
-11
238
5
3
-227
-3
54
23
220
54
48
(")
............
-3
12
258
355
14
389
55
18
1
-3
7
(")
17
-3
14
(")
(")
-14
(")
-223
(")
-25
Table 5.
Outlays of the U.S, Government, May 1995 and Other Periods-Continued
[$ millions)
This Month
Current Fiscill Yellr to Dllte
Prior FisC1l1 Yellr to Date
Gross IAPPliCllble I Outlays
Outlays
Receipts
Gross I Applic.able I Outlays
Outlays
Receipts
Gross IAPPlicable lOti
OutlllYs
Receipts
u ays
Classification
Other independent agencies:-Continued
National Endowment for the Arts
National Endowment for the Humanities
National Labor Relations Board
National SCience Foundation
Nuclear Regulatory Commission
Panama Canal Commission
Postal Service
PubliC enterprise funds (off-budget)
Payment to the Postal Service fund
13
14
12
247
45
45
3,945
92
56
13
14
12
247
-47
-12
118
108
115
1,709
356
368
44,546
-602
32,519
107
Railroad Reitrement Board:
Federal windfall subsidy
Federal payments to the railroad retirement accounts
Rail Industry penSion fund'
Benefit payments
Advances from FOASDI fund
OASDI certifications
Administrative expenses
Interest on refunds of taxes
Other
Intrabudgetary transactions'
Payments from other funds to the railroad
retirement trust funds
Other
Supplemental annuity pension fund:
Benefit payments
Interest on refund of taxes
Railroad Social Security equivalent benefit account:
Benefit payments
Interest on refund of taxes
Other
..
(
('.)
)
381
415
36,677
118
108
115
1,709
-25
-47
114
105
116
1,593
353
346
-4,158
107
31,188
107
337
375
33,146
114
105
116
1,593
15
-29
-1,957
107
..21)
21
(
r .)
170
172
170
172
182
38
182
38
243
-92
92
5
243
-92
92
5
1,876
-732
732
47
16
4
1,876
-732
732
47
16
4
1,888
-723
723
48
16
4
1,888
-723
723
48
16
-172
-172
-38
-38
..
..)
(
(
)
r .)
r·)
4
r .)
r .)
7
61
1
61
1
64
64
402
..)
402
3,262
3,188
3,188
r .)
..)
3,262
(
(
r·)
1
1
2
2
Total-Railroad Retirement Board
679
679
5,439
5,439
5,392
5,392
Resolution Trust Corporation
SeCUrities and Exchange CommIssion
Smithsonian InstItution
Tennessee Valley AuthOrity
United States Information Agency
Other
520
9
33
837
87
185
1,544
3,810
85
282
6,340
746
1,801
11,369
1,429
-7,559
85
282
1,078
746
372
12,297
34
255
6,728
735
1,604
9,619
181
-1,024
9
33
156
87
4
879
2,678
34
255
914
735
724
7,595
7.827
-232
62.536
64.841
-2,306
70,058
63.237
6.821
Total-Other independent agencies
....................
7
681
..
(
Total-Employer share. employee retirement
(
5,262
..
(
)
..
Undistributed offsetting receipts:
Other Interest
Employer share. employee retirement:
Legislative Branch:
United States Tax Court:
Tax court Judges survivors annuity fund
The JudiCiary:
Judicial survivors annuity fund
Department of Defense-Civil:
MIlitary retirement fund
Department of Health and Human Services:
Federal hospital Insurance trust fund:
Federal employer contributions
Postal Service employer contributions
Payments for military service credits
Department of State
Foreign Service retirement and disability fund
Office of Personnel Management:
C,Vil service retirement and disability fund
SOCial Security administratIOn (off-budget):
Federal old-age and survivors insurance trust fund:
Federal employer contributIOns
Payments for military service credits
Federal disability Insurance trust fund:
Federal employer contributions
Payments for military service credits
Independent agenCies
Court of veterans appealS retirement fund
..)
)
(
..
)
r .)
r .)
-1,022
-1.022
-152
-48
(
)
..)
r .)
r .)
(
..)
5,814
..)
n
n
(
(
-8,157
-8,157
-8,535
-8,535
-152
-48
-1,214
-372
-1,214
-372
-1,201
-345
-1,201
-345
-9
-9
-72
-72
-73
-73
-822
-822
-6,445
-6,445
-6,548
-6,548
-456
-456
-3,416
17
-3,416
17
-3,592
-3,592
-81
-81
-610
-17
-610
-17
-386
-386
2,590
-2,590
-20,285
-20,285
-20,682
-20,682
18
Table 5. Outlays of the U.S. Government, May 1995 and Other Periods-Continued
[$ millions)
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross /APPlicable / Outlays
Outlays
Receipts
Gross /APPlicable/ 0 tl
Outlays
Receipts
u ays
Gross /APPlicable/ Outla s
Outlays
Receipts
Y
Classification
Undistributed offsetting receipts:-Continued
Interest received by trust funds:
The Judiciary:
Judicial survivors annuity fund
Department of Defense-Civil:
Corps of Engineers
Military retirement fund
Education benefits fund
Soldiers' and airmen's home permanent fund
Other
.................... .
Department of Health and Human Services:
Federal hospital insurance trust fund ........ .
Federal supplementary medical insurance trust fund
Department of Labor:
Unemployment trust fund ........... . ................. .
Department of State:
Foreign Service retirement and disability fund ....... .
Department of Transportation:
Highway trust fund .... , ..... .
Airport and airway trust fund
Oil spill liability trust fund ..
Department of Veterans Affairs:
National service life insurance fund
United States government life Insurance Fund
Environmental Protection Agency ....................... ..
National Aeronautics and Space Administration ..... .
Environmental Protection Agency ...................... .
Civil service retirement and disability fund
Social Security administration (off-budget):
Federal Old-age and survivors insurance trust fund
Federal disability insurance trust fund
Independent agencies:
Railroad Retirement Board
Other
Other
Total-Interest received by trust funds ....... .
-4
-4
-14
-14
-13
-13
-2
-2
-5.007
-13
-1
-5.007
-13
-13
-10.789
-35
-9
-10.224
-41
-6
-9
-10.224
-41
-6
(
(
..-1
-6
)
-1
-13
-10.789
-35
-6
-1
-11
-16
-5,407
-984
-5,407
-984
-5.364
-1.090
-5.364
-1.090
-51
-51
-1,443
-1,443
-1.347
-1.347
-1
-1
-301
-301
-281
-281
-48
-48
-9
-2
-9
-2
-625
-410
-625
-410
-6
-732
-425
-6
-732
-425
-6
-541
-5
-1
-1
-541
-5
-1
-1
(' ')
(
-11
-16
....
..
-3
( )
-6
..)
..)
..-3)
-540
)
)
-1
-1
-540
-4
-1
-1
-90
-90
-14.036
-14,036
-13.120
-13.120
-63
-10
-63
-10
-15,423
-869
-15,423
-869
-14.294
-412
-14.294
-412
-147
-147
-4
-4
-553
-15
-176
-426
-10
-113
-426
-10
-113
-51.654
-48,463
-48,463
(
(
(
(
(
....
)
)
-4
-42
-42
-553
-15
-176
-5.524
-5.524
-51.654
366
Rents and royalties on the outer continental shelf lands ..
Sale of major assets
................... .
. ................... .
Spectrum auction proceeds ...
-366
1,451
-1,451
2.040
-2.040
-69,144
2,040
-71,184
136,697 1,003,406 1,097,801
131,774
966,028
610
-610
2,061
-74,001
-8,114
366
147,278
17,923
129,355 1,140,102
Total on-budget
115,956
13,374
102,581
912,080
100,012
812,068
880,286
98,618
781,668
Total off-budget
31,322
4,549
26,773
228,022
36,685
191,337
217,515
33,155
184,360
Total-Undistributed offsetting receipts ............... .
Total outlays ................
-71,939
-133,226
-164,745
•• 0000 • • • 0.
-41,554
-176,133
-201,547
• • • • • • • • • • • • • • 00 • • 0000 • • • • • • • • • • • • • • • • • •
+2,604
+42,907
+36,802
Total on-budget ......
0
-8,480
-38,950
Total surplus (+) or deficit
Total off-budget ..
0 0 0 0 0 0 . 0 . 0 • • • 00 • • • 0 . 0 0 . 0 0 • • • • 0 . 0 .
0
0
0
0
•••••••••••• 0
••• 0
0
•••••••••• 0
• • • • • • • • • • • 00 • • • 0000 • • • 0
0
MEMORANDUM
[$ millions]
Receipts offset against outlays
Current
Fiscal Year
to Date
Proprietary receipts ............................... . ............ ..
Receipts from off-budget federal entities ...........
Intrabudgetary transactions ......
. . , . .. . .. .. . .. . . ......... , .
Governmental receipts .....................
' ............... ..
0
Comparable Period
Prior Fiscal Year
32.977
31.506
127.174
2.374
162,525
123,414
~
156.295
•••••••••
Total receipts offset against outlays .... 0........
.. .......... ..
'The Postal Service accounting is composed of thirteen 28-day accounting periods. To
confonm with the MTS calendar-month reporting basiS used by all other Federal agencies. the MTS
reflects USPS results through May 26th and estimates for $266 million through May 31 sl.
... No Transactions.
(, 0) Less than $500.000
Note: Details may not add to totals due to rounding
'Outlays have been decreased in August 1994 by $9 million and in February 1995 by $9 million
to reflect the redemption of agency securities not previously reported by the Architect of the
Capitol
'Outlays and depoSit funds have been increased in September 1994 by $3 million and $8
million to reflect additional reporting by the Department of the Army and Department of the Navy.
respectively.
'Includes FICA and SECA tax credits. non-contributory military service credits. special benefits
for the aged. and credit for unnegotiated OASI benefit checks.
19
Table 6.
Means of Financing the Deficit or Disposition of Surplus by the U.S, Government, May 1995 and Other Periods
[$ millions)
Net Transactions
(-) denotes net reduction of either
liability or asset accounts
Assets and Liabilities
Directly Related to
Budget Off·budget Activity
Account Balances
Current Fiscal Year
Beginning of
Fiscal Year to Date
This Month
This Year
Liability accounts:
Borrowing from the public
Public debt secuntles, ISSUed under general Financing authorities:
Obligations of the United States. issued by:
United States Treasury
Federal Fonanclng Bank
Total. public debt securities
197,807
4,677,750
15,000
4.837,327
15,000
4,888,926
15,000
51.599
211.176
197.807
4.692.750
4.852.327
4.903.926
-8
-311
-63
1,937
-9
-10.843
1.333
78.631
1.277
80.879
1.269
80.568
51.902
209.176
208.641
4.615,453
4.772.727
4.824.629
201
-1.522
2,104
28.185
26,462
26.663
52.103
207,654
210,746
4.643.638
4.799,189
4.851,292
7,383
65.514
52,945
1.213,104
1.271,236
1.278,619
20
578
-12.011
1.684
2.242
2.261
Deduct
Federal secunties held as investments of government accounts
(see Schedule D)
. . ......... . . .
Less discount on federal securities held as investments of
government accounts
Net federal securities held as investments of govemment
accounts
Total borrowing from the public
Accrued Interest payable to the public
Allocations of special drawing rights
Deposit funds
Miscellaneous liability accounts (includes checks Outstanding etc.)
Total liability accounts ....................................................
Asset accounts (deduct)
Cash and monetary assets:
US Treasury operating cash: 2
Federal Reserve account
Tax and loan note accounts
Balance
7,363
64.937
64.956
1.211,421
1.268.994
1.276.358
44.740
142.717
145.790
3.432.218
3.530.195
3.574.935
-19,486
14
-809
2.060
-7,780
532
-1.339
7.396
-10.100
-5
-1.593
7.955
43.287
7.189
'7,327
4.938
54.994
7,707
6,797
10,274
35,508
7,721
5.988
12.334
26,519
141,526
142,048
3,494,959
3,609,966
3,636,485
-3.595
-8.246
-2,202
-7,512
-11,614
-13.698
6.848
29.094
8.241
29.828
4.646
21.582
-11.841
-9.714
-25.312
35.942
38.069
26.228
179
1,952
319
9.971
-8,018
11,743
-8,018
11,923
-8,018
179
1,952
319
1,953
3,725
3,905
76
-3
45
2,879
1,230
44
-28
-251
(" ')
31,762
7,163
-25,923
-96
31,762
9,965
-24,690
-98
31,762
10,042
-24,693
-53
-50
-1,944
17
-837
-2,730
-2,781
68
2.208
-262
12,069
14,209
14,277
10,753
2,851
(OO)
21,416
(OO)
29,658
(OO)
32,169
9,082
5,200
-22,404
71,379
85,661
76,579
-371
787
-3,701
-1.360
4,443
463
-2,225
3,015
-636
-9,806
12,726
-1,386
-10,794
16,382
2,779
-11,166
17,169
-922
94,027
81,660
+3,515,939
+3,554,825
382
446
+3,516,321
+3,555,271
Special draWing rights:
Total holdings
SDR certificates issued to Federal Reserve banks
Balance
Reserve pOSition on the U.S. quota in the IMF:
US subscnption to International Monetary Fund:
Direct quota payments ....................
Maintenance of value adjustments
Letter of credit issued to IMF
Dollar depOSits with the IMF
Receivable/Payable (-) for interim maintenance of value
adjustments
Balance
Loans to International Monetary Fund .....................
Other cash and monetary assets
2,511
Total cash and monetary assets
Net activity, guaranteed loan financing
Net activity, direct loan financing
Miscellaneous asset accounts
Total asset accounts
Excess of liabilities (+)
.....................................................
or assets (-) ....................................
12,367
8,746
-22,250
72,914
+38,886
+132,780
+164,298
+3,422,045
63
446
447
+38,950
+133,226
+164,745
Transactions not applied to current year's surplus or deficit (see
Schedule a for Details)
Total budget and off·budget federal entities (financing of deficit (+)
or disposition of surplus (-II ............................................
I This Month
211,176
Agency secuntles, Issued under special financing authorities (see
Schedule B for other Agency borrowing, see Schedule C) ......
Total federal securities
This Year
51,599
Plus premium on public debt securities
Less discount on public debt securities
Total public debt securities net of Premium and
discount
....................
I Prior Year
Close of
This month
'Outlavs and depoSit funds have been Increased In September 1994 by $3 million and $8
m"',on to reflect addltlona' repol1lng by the Oepal1ment of the Anmy and Oepartment of the Navy.
+3,422,045
No Transactions
(. 'J Less than $500,000
Note Details may not add to totals due to rounding
~esl)ectlvely
':~1alor sources of Information used to determine Treasury's operating cash Income Indude
Federal Reser\e Banks the Treasury Regional Finance Centers. the Intemal Revenue Semce
Cen:ers tile Bureau of the Public Debt and vanous electronic systems DePOSits are reflected as
recel\E'U and .... Ithdrawals are reflected as processed
20
Table 6. Schedule A-Analysis of Change in Excess of Liabilities of the U.S. Government, May 1995 and
Other Periods
[$ millions]
Fiscal Year to Date
Classification
This Month
This Year
...
Excess of liabilities beginning of penod:
Based on composition of unified budget in preceding period
Adjustments during current fiscal year for changes in composition
of unified budget:
Revisions by federal agencies to the prior budget results
3,515,945
I
Prior Year
3,422,146
3,218,965
-6
-101
526
3,515,939
3,422,045
3,219,491
Budget surplus (-) or deficit:
Based on composition of unified budget in prior fiscal yr
Changes in composition of unified budget
38,950
133,226
164,745
Total surplus (-) or deficit (Table 2)
38,950
133,226
164,745
Excess of liabilities beginning of period (current basis)
Total-on-budget (Table 2)
41,554
176,133
201,547
Total-off-budget (Table 2)
-2,604
-42,907
-36,802
-63
-446
-447
(")
(")
(")
-63
-446
-447
3,554,825
3,554,825
3,383,788
Transactions not applied to current year's surplus or deficit:
Seigniorage
........................... .
................ .
Profit on sale of gold
Total-transactions not applied to current year's Surplus or
deficit
............. .
Excess of liabilities close of period .................................. .
Table 6. Schedule B-Securities Issued by Federal Agencies Under Special Financing Authorities, May 1995 and
Other Periods
[$ millions]
Net Transactions
(-) denotes net reduction of
liability accounts
Account Balances
Current Fiscal Year
Classification
Beginning of
Fiscal Year to Date
This Month
I Prior Year
This Year
Agency securities, issued under special financing authorities:
Obligations of the United States, issued by:
Export-Import Bank of the United States
Federal Deposit Insurance Corporation:
FSLlC resolution fund
Obligations guaranteed by the United States, issued by:
Department of Defense:
Family housing mortgages ............. .
Department of Housing and Urban Development:
Federal Housing Administration
Department of the Interior:
Bureau of Land Management
Department of Transportation:
Federal Transit Administration
Coast Guard:
Family housing mortgages
Obligations not guaranteed by the United States, issued by:
Legislative Branch:
Architect of the Capitol
Independent agencies:
Farm Credit System Financial Assistance Corporation
National Archives and Records Administration
Tennessee Valley Authority
This Year
I This Month
Close of
This month
(")
(")
(")
-145
189
158
158
("')
6
6
6
-82
112
70
78
13
13
13
(")
(")
(")
10
'184
184
185
192
-2
-1,457
2,868
1 ,261
298
26,121
1,261
296
24,472
1 ,261
296
24.665
201
-1,522
2,104
28,185
26,462
26,663
-32
8
-34
-547
'2
Total, agency securities .......................................... .
... No Transactions.
'Outlays have been decreased In August 1994 by $9 million and in February 1995 by $9 million
to reflect the redemption of agency securities not previously reported by the Architect of the
Capitol.
(' 'j Less than $500,000.
Note: Details may not add to totals due to rounding.
21
Table 6.
Schedule C (Memorandum)-Federal Agency Borrowing Financed Through the Issue of Public Debt Securities,
May 1995 and Other Periods
[$ millions]
Account Balances
Current Fiscal Year
Transactions
Classification
Beginning of
Fiscal Year to Date
This Month
Borrowing from the Treasury:
Funds Appropriated to the President:
International Security Assistance:
Foreign military loan program
Agency for International Development:
International Debt Reduction
Housing and other credit guaranty programs
Private sector revolving fund
Overseas Private Investment Corporation "
Department of Agriculture:
Farm Service Agency:
Federal crop insurance corporation fund
Commodity Credit Corporation
Agricultural credit insurance fund
Natural Resources Conservation Service
Rural Utilities Service:
Rural electrification and telephone revolving fund
Rural Telephone Bank
Rural development insurance fund
Rural communication development fund
Rural housing and Community Development Service:
Rural housing insurance fund
Self-help housing land development fund
Rural Business and Cooperative Development Service:
Rural development loan fund
Rural economic development loan fund
Foreign Agricultural Service
Department of Education:
Federal direct student loan program
Federal family education loan program
College housing and academic facilities fund
College housing loans
Department of Energy:
Isotope production and distribution fund
Bonneville power administration fund
Department of Housing and Urban Development:
Housing programs:
Federal Housing Administration
Housing for the ederly and handicapped
Public and Indian housing:
Low-rent public housing
Department of the Interior:
Bureau of Reclamation Loans
Bureau of Mines. Helium Fund
Bureau of Indian Affairs:
Revolving funds for loans
Department of Justice:
Federal prison industries. incorporated
Department of Transportation:
Federal Highway Administration:
High priority quarters loan fund
Federal Railroad Administration"
Railroad rehabilitation and improvement
finanCing funds
Amtrak corndor Improvement loans
Other
Federal AViation Administration:
Aircraft purchase loan guarantee program
MinOrity bUSiness resource center fund
Department of the Treasury
Federal FinanCing Bank revolving fund
Department of Veterans Affairs"
Guaranty and Indemnity fund
Loan guaranty revolving lund
Direct loan revolving fund
Native american veteran hOUSing lund
Vocattonal rehabilitation revolving lund
This Year
'- Prior Year
This Year
I
Close of
This month
This Month
405
413
750
750
22
8
315
125
1
16
315
125
1
38
315
125
1
38
-41
-7.570
-1.748
-113
-9.129
-1.225
16.909
4.028
4
9.380
2.280
4
9.339
2.280
4
-35
-1
688
84
715
237
-170
561
8.193
586
2.091
25
8.916
671
2.806
25
8.881
670
2.806
25
1.192
1
2.134
1
4.497
r .)
5.689
1
5.689
1
40
8
97
29
10
385
21
19
583
61
27
680
61
27
680
(
..14)
433
1.605
162
411
5.302
1.605
181
411
5.302
1.605
181
411
-14
35
266
14
2.617
2.612
2.652
-21
-770
-475
783
8.484
762
7.714
762
7.714
-135
25
135
2
6
11
252
11
252
13
252
8
9
26
34
34
20
20
20
21
21
..)
1
3
1
3
("')
(" .)
..
(
..
337
4.868
18
40
. . . . . . . . . .. .
2
21
n
1
2
(00)
(
-2.635
..
(" .)
)
( )
8
13
27
27
-16.618
-13.236
94.357
80.374
77,739
586
903
612
1.158
181
1.107
1
1
2
767
2.011
1
13
2
767
2.011
1
13
2
..
(
)
("')
12
7
..
(
22
..
)
14
(
)
(
)
Table 6.
Schedule C (Memorandum)-Federal Agency Borrowing Financed Through the Issue of Public Debt Securities,
May 1995 and Other Periods-Continued
[$ millions]
Account Balances
Current Fiscal Year
Transactions
Classification
Fiscal Year to Date
Beginning of
This Month
This Year
I Prior Year
This Year
I This Month
Close of
This month
Borrowmg from the Treasury:-Contmued
Environmental Protection Agency:
Abatement, contrOl, and compliance loan program
Small Business Administration:
Business loan and revolving fund
Disaster loan fund ........................................... .
Independent agencies:
Export-Import Bank of the United States
Federal Emergency Management Agency:
National insurance development fund .............................. ..
Disaster assistance loan fund ............ .
Pennsylvania Avenue Development Corporation:
Land aquisition and development fund ................ .
Railroad Retirement Board:
Rail industry pension fund ............... .
Social Security equivalent benefit account
Smithsonian Institution:
John F. Kennedy Center parking facilities
Tennessee Valley Authority
....................... .
Total agency borrowing from the Treasury
financed through public debt securities issued
11
-1
10
26
37
37
114
2,350
293
6,996
293
6,996
293
6,996
30
811
2,632
2,662
2,662
169
100
25
3
84
3
253
3
253
9
85
85
85
2,013
2,128
2,781
2,128
4,565
2,128
4,564
20
150
20
150
20
150
1,783
-2,670
-15,230
-13,042
163,642
151,082
148,412
-17
-173
-164
3,785
3,629
3,612
-1,010
-2,610
-910
6,063
4,463
3,453
14
-4
-235
21,916
3,675
21,898
3,675
21,912
3,675
-760
-585
24,391
23,631
23,631
-47
-49
1,624
-145
1,624
-192
1,624
-192
Borrowing from the Federal Financing Bank:
Funds Appropriated to the PreSident:
Foreign military financing program
Department of Agriculture:
Farm Service Agency:
Agriculture credit insurance fund ............ .
Rural Utilities Service:
Rural electrification and telephone revolving fund
Rural development insurance fund
Rural housing and Community Development Service:
Rural housing insurance fund ..................... .
Department of Defense:
Department of the Navy
Defense agencies
Department of Education:
Federal family education loan program
Department of Health and Human Services:
Medical facilities guarantee and loan fund
Department of Housing and Urban Development:
Low rent housing loans and other expenses
Community Development Grants ............. .
Department of Intenor:
Territorial and international affairs
Department of Transportation:
Federal Railroad Administration
Federal Transit Administration ................. .
Department of the Treasury:
Financial Management Service
General Services Administration:
Federal buildings fund
..................... .
Small Business Administration:
BUSiness loan fund
Independent agencies:
Export-Import Bank of the United States
Pennsylvania Avenue Development Corporation
Postal Service
Resolution Trust Corporation .......................... .
Tennessee Valley Authority ................. .
Total borrowing from the Federal Financing Bank
-4,790
..
(
)
(' ')
-23
--6
63
40
40
-58
-14
-54
-16
1,747
110
1,689
96
1,689
96
-1
-1
22
21
21
-4
-1
11
488
15
665
11
-665
-30
-35
11
-258
-1,340
0000000000000000
-2,635
Note: This table includes lending by the Federal Financing Bank accomplished by the purchase
of agency financial assets, by the accUisilion of agency debt securities, and by direct loans on
behalf of an agency. The Federal Financing Bank borrows from Treasury and issues its own
securities and in turn may loan these funds to agencies in lieu of agencies borrowing directly
through Treasury or Issuing their own securities.
113
249
1,780
1,891
1,893
-116
-57
581
500
465
-777
79
-1,358
-10,001
-200
-948
67
-258
-4,285
-1,650
3,926
250
8,973
26,519
3,400
3,150
31"1
7,873
17,858
3,200
3,150
32e
7,615
16,518
3,200
-16,619
-13,237
109,360
95,375
92,741
... No Transactions.
Less than $500,000
Note: Details may not add
(0
23
')
'0
totals due to rounding
Table 6. Schedule D-Investments of Federal Government Accounts in Federal Securities, May 1995 and
Other Periods
[S millions]
Securities Held as Investments
Current Fiscal Year
Net Purchases or Sales (-)
Classification
Beginning of
Fiscal Year to Date
This Month
I
This Year
Federal funds:
Department of Agriculture
Department of Commerce
Department of Defense-Military:
Defense cooperation account
Department of Energy
Department of Housing and Urban Development:
Housing programs:
Federal housing administration fund
Government National Mortgage Association:
Management and liquidating functions fund:
PubliC debt securities
Agency securities
Guarantees of mortgage· backed securities:
Public debt securities
...............
Agency securities
Other
Department of the Interior
Department of Labor .. '
Department of Transportation
Department of the Treasury
Department of Veterans Affairs:
Canteen service revolving fund
Veterans reopened Insurance fund
Servicemen's group life insurance fund .. '
Independent agencies:
Export-Import Bank of the United States
Federal Deposit Insurance Corporation:
Bank insurance fund
Savings association insurance fund .
FSLlC resolution fund
Federal Emergency Management Agency:
National flood insurance fund
National Credit Union Administration
Postal Service
Tennessee Valley Authority.
Other
...........
Other
Total public debt securities
Total agency securities
Total Federal funds
.............................................
..)
This Year
Prior Year
-j This Month
Close of
This month
-1
1
3
2
3
13
17
1
16
55
-4
474
-4
458
5
4,527
1
4,946
1
5,001
-740
-670
479
5,742
5,812
5,072
-9
-4
16
16
16
3,998
1
184
3,303
5,499
1,022
3,066
4,036
1
184
3,409
5,566
1,019
1,036
(
-9
687
236
45
-6,417
-6
479
-11,770
59
962
3,713
1
193
2,722
5,330
974
7,452
-6
6
-7
-38
3
-6
-109
37
524
41
43
523
4
43
517
4
87
176
432
57
147
233
331
26
-347
5,233
550
-910
6,432
535
1,303
13,972
2,493
1,649
18,875
3,017
1,086
19,206
3,042
739
-33
29
679
-11
-7
-57
-152
244
3,116
-2,712
197
239
-71
248
2,051
502
83
189
200
3,052
1,271
3,954
1,017
2,626
81
3,267
3,708
1,253
1,221
2,922
48
3,296
4,387
1,242
1,214
2,865
-1,818
611
2,560
-4
61,564
17
63,993
17
62,175
17
-1,818
611
2,556
61,581
64,010
62,192
3
4
5
27
12
5
31
13
5
31
284
291
38
323
316
(
106
66
-3
-2,030
..)
Trust funds:
Legislative Branch:
.............
Library of Congress
United States Tax Court
Other
The JudiCiary
JudiCial retirement funds ..
Department of Agriculture
Department of Commerce
Department of Defense-Military:
Voluntary separation incentive fund
Other
Department of Defense-Civil:
Military retirement fund
...........
Other
..
(
(
)
..)
..9)
(
(' ')
4
(")
(")
6
2
39
18
27
195
245
273
278
289
(")
(" ')
(' ')
(")
(' .)
(")
(' .)
9
-66
-30
7
763
157
772
91
772
91
3,445
53
12,515
90
13,169
39
105,367
1,307
114,437
1,343
117,882
1,397
24
Table 6o Schedule D-Investments of Federal Government Accounts in Federal Securities, May 1995 and
Other Periods-Continued
[$ millions]
Securities Held as Investments
Current Fiscal Year
Net Purchases or Sales (-)
Classification
Fiscal Year to Date
Beginning of
This Month
This Year
I
This Year
Prior Year
I
Close of
This month
This Month
Trust Funds-Continued
Department of Health and Human Services:
Federal hospital insurance trust fund ..
. ...... , . , ..
Federal supplementary medical insurance trust fund .... , , . , ..... .
Other ""
"'"''''''''''''''''''''''''
Department of the Interior
, " .. , " ... " " .. " " .. " ..
Department of Justice ... " ..... ,
Department of Labor:
Unemployment trust fund ..... .
Other "".
""."""""".".",,.
Department of State:
Foreign Service retirement and disability fund ...
Other
"" .... '''''.,,,,, .. ,,'''',, ... '
Department of Transportation:
Highway trust fund """'" " .. , " . " .. " " .. " . , , " . "" .. " .. ,,"""
Airport and airway trust fund '''''" .. "" .. "" .. ".
" ." " " .,
'''''''''''''''''''''''''''''''''' """""""""'"
Other """.
Department of the Treasury .,"".". " ... " .. ,,"
,," " ' " ,," .
Department of Veterans Affairs:
General post fund, national homes
.............. .
National service life insurance """'''''''''''''''''''' ..
United States government life Insurance Fund ... , .... ".,.,.,.
Veterans special life insurance fund
, ........... , ..... .
, , . , .... , ....... , , .... , .
Environmental Protection Agency
National Aeronautics and Space Administration .. " ....... ,' .. ,' .. ,.'
Office of Personnel Management:
Civil service retirement and disability fund .. .
Employees life insurance fund ., ... ,',.,." .... .
Employees and retired employees health benefits fund
Social Security Administration:
Federal old-age and survivors insurance trust fund
Federal disability insurance trust fund ............ .
Independent agencies:
Harry S. Truman memorial scholarship trust fund .. , , , , , , , , , , , .. , .. , ,
Japan-United States Friendship Commission
Railroad Retirement Board .,." ... ,
Other
"""""."""
-2,543
-427
2,507
-1,041
105
70
56
210
92
108
30
67
128,716
21,489
836
234
133,765
20,875
933
344
56
131,222
20,448
941
304
56
9,017
-15
7,331
-17
3,040
-17
39.788
59
38,102
57
47,119
42
-26
274
-15
218
12
7.179
50
7,479
35
7,453
35
-457
150
25
-26
1,463
-852
224
-71
-1,987
-489
-87
-23
17.694
12,206
1.683
247
19,614
11,205
1,881
202
19,157
11,354
1,907
176
-1
-104
-7
(00)
-56
37
11,832
110
1,516
6,945
16
37
11,748
108
1,506
6,883
8
-40
-3
4
633
495
(" 0)
1
38
11.852
115
1.509
6.250
16
-2,033
339
-68
-2,061
713
237
-1,219
925
622
338.889
14.929
7.573
338,861
15,303
7,878
336,828
15,642
7,810
878
899
17,722
24,256
37,353
-2,301
413,425
6,100
430,268
29,457
431.146
30.356
(0 0)
(00)
1
(0 0)
1
(" 0)
164
4
735
131
-114
102
53
17
12.203
226
54
17
12,774
353
54
17
12.938
357
9,201
64,903
50,389
1.151.523
1,207,226
1.216.427
Total trust funds ................................................ .
9,201
64,903
50,389
1,151,523
1,207,226
1,216,427
Grand total ................................................................. .
7,383
65,514
52,945
1,213,104
1,271,236
1,278,619
-85
-2
-10
-62
(00)
Total public debt securities
", No Transactions
oJ less than $500,000,
-7
Note: Investments are in public debt securities unless otherwise noted,
Note: Details may not add to totals due to rounding,
(0
25
16
Table 7.
Receipts and Outlays of the U.S. Government by Month, Fiscal Year 1995
[$ millions)
Classification
June
July
Aug.
Sept.
Fiscal
Year
To
Date
Comparable
Period
Prior
F.Y.
April
May
26,846
14,863
76,441
23,482
29,729
2,193
380,850
82,324
346.426
77,092
35.667
2,630
357
3,485
916
1,435
2,131
38,646
320
413
5,143
1,218
1,470
3,612
50,423
3,061
354
4,602
1,906
1,349
3,774
37,226
10,601
355
4,770
1,339
1,471
2,719
301,710
22,233
2,985
36,933
9,898
12,686
20,561
282,100
21,089
3,068
34,948
10,603
12,769
13,188
87,673 130,810 131,801
82,544
92,532 165,392
90,405
870,180
......
62,083 103,860 101,036
54,405
61,970 126,170
61,027
635,935
......
39,222
29,378
234,245
......
March
Oct.
Nov.
Dec.
Jan.
Feb.
43,659
3.055
37,414
1,497
53,736
31.915
79.162
3.25B
33.863
2,060
31,263
1,073
351
4.272
1,202
1,848
2,300
33,786
3.249
352
5,518
1.220
1,827
2,811
35,708
230
420
4.587
1,092
1,747
1,375
3B,990
1.069
383
4,555
1.005
1,539
1,839
...........
89,024
(On-budget) ." ...... ,., ...... , .....
65,384
Receipts:
Individual Income taxes
Corporation Income taxes
Social Insurance taxes and
contnbutlons
Employment taxes and
contnbutlons
Unemployment Insurance
Other retirement contributions
Excise taxes
Estate and gift taxes
Customs duties .
Miscellaneous receipts .
Total-Receipts this year
(Off-budget) ....... , ....... , .... , ...
Tota/-Reeelpls pnor year
23,639
25,590
26,950
30,765
28,139
30,562
93. /07 /4/..1:/
83.54/
801,283
580.121
Z21.l62
78.66:
83./0:: /::5.403 /]::.96/
73./86
(On blldget)
55.858
58.695
99.709
94.390
4 7 191
64.61J
/04.306
55.361
(Oli hlldget)
21.804
::4.407
::5,694
::8.5'/
::5.995
::8.49 7
37.0/5
::8.179
354
184
18
217
169
17
333
303
26
222
214
21
174
188
15
166
348
16
178
202
18
191
200
15
1,833
1,809
145
1,751
1,715
142
3,255
310
271
203
101
213
221
227
4,802
5,580
726
-381
367
452
443
18
471
94
427
133
327
-372
575
-749
296
498
3,632
-307
2,837
421
1,760
5,839
305
2,983
3,650
300
1,869
3,637
304
1,115
4,191
308
745
3,521
262
966
4,547
291
244
3,960
227
-44
4,155
287
9,636
33,700
2,284
11,404
32,092
1,977
3,713
6,118
4,254
5,701
7,837
4,754
6,203
7,312
4,727
3,260
6,720
4,984
5,914
7,566
4,715
8,404
7,915
4,744
3,136
6,749
4,399
5,826
7,169
3,288
44,178
57,367
35,867
46,605
56,836
41,050
2,501
425
247
2,896
537
242
3,211
436
305
2,752
575
277
2,675
505
275
3,389
719
324
2,417
514
267
2,965
564
305
22,607
4,275
2,241
22,813
2,967
2,105
147
275
-311
-222
942
42
-757
-264
-1,373
21
76
-212
-251
-405
990
10
-535
-775
2,601
232
17,660
21,435
25,178
17,548
20,298
25,361
16,828
21.117
165,447
175,209
2,638
1,949
1,683
2,656
2,322
1,330
2,553
3,888
1,743
2,592
2,764
1,328
2,542
2,593
1,255
2,674
2.691
1,588
2,592
1,974
1.18B
2,621
2,406
1,353
20,870
20,587
11,467
20,073
15,316
11,398
1,603
1,588
1,761
1.824
1,829
1,726
1,646
1,802
13,778
12,717
6,622
7,634
7,545
8,942
7,321
9,757
7,215
6,630
6,694
8,836
8.446
11,171
7,239
8.680
7,637
10,394
58,722
74,245
54,063
66,779
4,799
3,055
5.290
3,092
5,837
3,015
5,014
4,950
4,712
3,796
5.987
4.467
4,527
5,405
5,701
3,815
41,867
31,595
36,165
27,439
2,726
-4.506
2,519
-4.490
2,812
-4.473
3.151
-6,540
2,524
-5.462
2.781
-6.021
2.639
-7,083
2,858
-5.415
22,011
-43,992
21,874
-38,429
2,903
883
90B
2.426
562
818
2.394
557
749
2.009
567
1,094
2.227
553
730
2,694
671
915
2,707
499
920
1,843
574
774
19,203
4,885
6,906
17,391
4,357
6,645
1.650
702
488
1.854
-170
841
2.001
469
664
2.543
653
201
2,330
621
488
2.762
331
411
2,131
768
371
2.062
679
335
17,333
4,054
3,799
22,422
3,751
1.797
1.765
1.418
1183
1.351
1.307
1.245
1.810
11,676
11,196
Outlays
Legislative Branch
The JudiCiary
Executive OHice of the President .
Funds Appropriated to the President:
Intemational Security ASSistance
Intemational Development
ASSistance
Other
.......
Department of Agriculture:
Commodity Credit Corporation and
Foreign Agricultural Service
Other
....
.......
Department of Commerce ...
Department of Defense:
Military:
Military personnel .. '
Operation and maintenance ........
Procurement
Research, development, test, and
evaluation
Military construction
Family housing .... '
Revolving and management
funds
Other
Total Military
Civil
Department of Education .
Department of Energy .
Department of Health and Human
Services:
Public Health Service
Health Care FinanCing Administration:
Grants to States for Medicaid
Federal hospital ins trust fund
Federal supp. med. ins. trust
fund
Other
Administration for children and
families
Other
Department of HOUSing and Urban
Development
Department of the Interior
Department of Justice
Department of Labor'
Unemployment trust fund
Other
Department of State
Department of Transportation
Highway trust fund
26
3,664
Table 7. Receipts and Outlays of the U.S. Government by Month, Fiscal Year 1995-Continued
[$ millions]
Classification
Oct
Nov_
Dec_
Jan_
Feb_
March
April
May
June
July
Aug_
Sept.
Comparable
Period
Prior
F.Y.
Fiscal
Year
To
Date
Outlays-Continued
..................
Other
Department of the Treasury:
Interest on the public debt
......
Other.
.......
Department of Veterans Affairs:
Compensation and pensions
National service life
United States government life
......
Other.
....... ............
Environmental Protection Agency .......
General Services Administration .. .......
National Aeronautics and Space
Administration ..............
Office of Personnel Management . . . . . . .
Small Business Administration
Social Security Administration:
Federal old-age and survivors ins.
trust fund (off-budget) .............
Federal disability ins. trust fund (offbudget) .
.......... ...........
Other ........................
Independent agencies:
Fed. Deposit Ins. Corp.:
Bank insurance fund ......... .....
Savings association insurance
fund .....
.. ..........
FSLlC resolution fund .. ..........
Affordable housing and bank
enterprise ............ ..... . .......
Postal Service:
PubliC enterprise funds (offbudget) . . . . . . . . . . . . . . . . . . . . . . . . .
Payment to the Postal Service
fund
Resolution Trust Corporation
Tennessee Valley Authority ..... ....
Other independent agencies
Undistributed offsetting receipts:
Employer share, employee
retirement
Interest received by trust funds ......
Rents and royalties on outer
continental shelf lands
Other.
Totals this year:
Total outlays
.........................
........................
(Off-budget) ........................
Total-surplus (+) or deficit (-) .....
(On-budget) ........................
(Off-budget) ........................
Total borrowing from the public ....
(On-budget)
Total-oUilars prior rear
1,647
1,734
1,637
1,905
1,463
1,902
1,326
1,383
12,997
12,223
19,732
34
24,912
-308
57,320
1,336
20,069
145
19,259
3,010
20,693
4,375
20,883
3,732
26,769
2,476
209,637
14,801
187,110
11,516
105
64
1
1,528
438
-651
1,457
70
1
1,784
474
639
2,824
83
2
1,344
538
462
81
71
1
1,827
520
-717
1,492
79
1
1,429
429
431
2,894
106
2
1,614
678
544
93
94
1
1,640
493
-767
1,518
81
1
1,584
571
540
10,464
650
12
12,750
4,140
483
11,396
590
12
11,971
3,702
-82
845
3,410
65
1,143
3,118
145
1,203
3,460
64
926
3,324
58
1,072
3,337
64
1,284
3,556
77
1,028
3,548
53
1,245
3,431
55
8,744
27,184
580
8,899
25,273
414
23,413
23,368
23,810
24,392
24,220
24,310
24,495
24,525
192,534
184,321
3,289
287
3,244
2,157
3,348
4,079
3,417
78
3,415
2,201
3,492
4,255
3,460
126
3,476
2,219
27,141
15,402
24,829
16,245
-127
-208
-496
-1,193
-1,977
-536
-305
-398
-5,242
-6,368
-2
-87
-13
430
(")
33
-91
-149
-361
331
-37
-16
-15
-14
-24
416
-544
943
-534
-839
1
1
. .....
1
(")
(")
3
3
101
-396
-494
-1,268
-706
-602
-4,158
-1,957
(")
(")
-467
-326
61
-471
265
2,720
...
....
-1,502
239
1,647
-2,001
119
1,710
23
-1,078
142
1,260
-699
92
1,572
-348
42
1,452
23
-436
24
1,461
-1,024
156
1,244
107
-7,559
1,078
13,066
107
2,678
914
12,817
-2,416 -2,564
-5,727 -38,216
-2,557
-95
-2,491
-634
-2,671
-251
-2,554
-596
-2,590
-5,524
-20,285
-51,654
-20,682
-48,463
-197
-158
43
-610
-366
-1,451
-610
-2,040
120,365 124,915 134,941 115,171 120,527 142,458 115,673 129,355
1,003,406
812,068
......
......
-2,442
-611
-154
-160
-106
(")
(")
(")
89,889
94,050 116,507
90,628 102,581
25,059
25,452
25,282
26,478
25,045
n
26,773
191,337
......
-4,130 +16,629 -37,983 -49,927 +49,720 -38,950
-133,226
-29,922 -37,381 -19,783 +11,147 -39,644 -54,537 +35,542 -41,554
11,297
25,951
-176,133
......
......
-1,420
+138 +15,653
+5,483
+1,661
+4,610 +14,178
+2,604
+42,907
......
32,457
40,528 -13,316
13,337
38,964
13,645 -27,638
44,740
142,717
145,790
-31,342 -37,242
124,085 121,483 133.108 107,713 1I{752 125,422 123,867 115,597
966,OYI!
(OjJbudget)
23,523
IOfHudget)
......
99,464 123,643
100,562
(On-budget)
-353
....
...
95,307
IOn-budget)
Total-surplus (+) or dejicit (-) prior
year
...
96.719 121,425
83,521
88,835 100,259 100,620
89,726
781,6611
24,764
24,192
25,917
23,247
25,871
1114.360
-7,705 +15,248 -41,566 -32,315 +17.454 -32,057
-164.745
+3,686 -34,365
-201.547
-45,422 -38,381
11,683
25,164
-44,704 -38,024 -21,717 + 10,869 -41,644 -35,648
-719
-357 +14,012
+4,379
+77
.. No transactions.
I" "j Less than $500,000.
Note: Details may not add to totals due to rounding.
27
+3.333 +13.768
+2.308
+36.IIOY
Table 8. Trust Fund Impact on Budget Results and Investment Holdings as of May 31, 1995
[$ millions]
Fiscal Year to Date
This Month
Securities held as Investments
Current Fiscal Year
Classification
Beginning of
Receipts
Outlays
Excess
Receipts
Outlays
Excess
This Year
Trust receipts. outlays, and investments
held:
Airport
Black lung disability
Federal disability insurance
Federal employees life and health
Federal employees retirement
Federal hospital Insurance
Federal old-age and survivors insurance
Federal supplementary medical insurance
Highways
Military advances
Railroad retirement
Military retirement
.............
Unemployment
............
Veterans hfe Insurance
................
All other trust
24,069
75,607
207,371
41,719
15,320
8,105
3,622
30.417
24.679
727
3.925
4.793
382
27.141
-947
25,750
74,245
192,534
41.867
14,225
8,721
5,269
18,335
17.333
847
2,681
-886
33
23.912
947
-1.681
1,363
14.837
-148
1,095
-616
-1,647
12,081
7,346
-119
1,243
8,721
490,936
120,850
433,177
120,850
57,759
44,287
8,721
370,087
312,327
57,759
522,582
235
713,567
235
-190,985
522,346
713,331
-190,985
22,253
22,253
1,283
7.724
25,457
5,422
1,520
724
561
6,030
10.750
25
432
565
47
3.476
-152
3,259
10,394
24,525
5,701
2,009
1,234
658
2,335
2,062
114
88
-57
5
1.071
152
-1.976
-2,670
932
-278
-489
-510
-97
3,695
8,688
-89
345
Total trust fund receipts and outlays
and investments held from Table 60
Less Interfund transactions
65,035
12.027
56,314
12,027
Trust fund receipts and outlays on the basiS
of Tables 4 & 5
53.008
..........................................
508
53
4.547
Total Federal fund receipts and outlays
Less Interfund transactions
39,949
21
87,620
21
-47,671
Federal fund receipts and outlays on the
baSIS of Table 4 & 5
39,928
87.599
-47,671
2,531
2,531
90,405
129,355
Less: offsetting proprietary receipts
Net budget receipts & outlays
...............
-38,950
3.907
415
51,053
870,180 1,003,406
I
This Month
12.206
11.205
11,354
6.100
22,503
346.317
128,716
413,425
21,489
17,694
29.457
23,181
346,623
133,765
430,268
20,875
19,614
30,356
23,452
344,570
131,222
431,146
20,448
19,157
12.203
105,367
39.788
13,477
12,240
12,774
114.437
38,102
13.458
13,468
12,938
117,882
47,119
13,362
13,420
1,151,523
1,207,226
1,216,421
-133,226
Note: Det8lls may not add to totals due to rounding.
No transactions
Note. Interfund receipts and outlays are transactions between Federal funds and tnust funds
such as Federal payments and contributions, and interest and profits on investments in Federal
securities. They have no net eHect on overall budget receipts and outlays since the receipts side of
Such transactions IS offset against bugdet outlays. In thiS table, Interfund receipts are shown as an
adJustment to arrive at total receipts and outlays of trust funds respectiveJy.
28
Close of
This Month
Table 9. Summary of Receipts by Source, and Outlays by Function of the U.S. Government, May 1995
and Other Periods
[$ millions]
This Month
Fiscal Yaar
To Date
Comparable Period
Prior Fiscal Year
29.729
2.193
380.850
82.324
346,426
77.092
37.226
10.601
355
4.770
1.339
1.471
2.719
301.710
22.233
2.985
36.933
9.898
12.686
20.561
282.100
21.089
3.068
34.948
10.603
12.769
13.188
90,405
870,180
801.283
National defense ..................................... . ......... ..
Intemational affairs
. . .. . . .. .. .. . .. .. .. .. . ......... .
General science. space. and technology .....
Energy ....
. ............. .
Natural resources and environment .................... .
Agriculture
.......... .
Commerce and housing credit
...................... .
Transportation
.......... .
Community and regional development ............................ .
Education. training. employment and social services ............ .
Health ..........
.. ............................ .
Medicare ..
Income security .................
.. .. .. .. .. ... .. ........... ..
Social Security ....
.. ............... .
...................... ..
Veterans benefits and services
Administration of justice
........................ .
General government
................ .
.. .......... ..
Interest .................
........................... .
Undistributed offsetting receipts '"
22.194
1.282
1.596
244
1.820
236
-1.988
3.154
860
4.205
9.952
14.390
20.633
27.997
3.204
1.129
1.109
20.295
-2.956
174.025
11.757
11.408
3.017
15.788
11.138
-14.864
24.720
6.823
34.771
75.618
102.905
151.969
219.665
24.007
10.438
8.804
153.764
-22.347
183.739
12,462
11.344
3.095
14.564
13.884
-5.988
23.115
6.121
28.572
70.361
93.297
149848
209.146
24.161
10.141
7.032
133.855
-22.721
Total ........................................................ .
129,355
1,003,406
966,028
Classification
RECEIPTS
Individual income taxes
................................... ..
Corporation income taxes
.......... .
Social insurance taxes and contributions;
Employment taxes and contributions
Unemployment insurance " .
Other retirement contributions
Excise taxes
Estate and gift taxes
Customs
............ ..
Miscellaneous .............. .
Total ........................................................ .
NET OUTLAYS
Note: Details may not add to totals due to rounding.
29
Explanatory Notes
the employee and credits for whatever purpose the money was withheld
Outlays are stated net of offsetting collections (including receipts of
revolving and management funds) and of refunds. Interest on the public
debt (public issues) is recognized on the accrual basiS. Federal credit
programs subject to the Federal Credit Reform Act of 1990 use the cash
basiS of accounting and are divided into two components. The portion of
the credit activities that involve a cost to the Government (mainly
subsidies) is included within the budget program accounts. The remaining
portion of the credit activities are in non-budget financing accounts.
Outlays of off-budget Federal entities are excluded by law from budget
totals. However, they are shown separately and combined with the onbudget outlays to display total Federal outlays.
1. Flow of Data Into Monthly Treasury Statement
The Monthly Treasury Statement (MTS) is assembled from data in the
central accounting system. The major sources of data include monthly
accounting reports by Federal entities and disbursing officers, and daily
reports from the Federal Reserve banks These reports detail accounting
transactions affecting receipts and outlays of the Federal Government
and off-budget Federal entitles, and their related effect on the assets and
liabilities of the U S. Government. Information is presented in the MTS on
a modified cash basis.
2. Notes on Receipts
Receipts included in the report are classified into the following major
categories: (1) budget receipts and (2) offsetting collections (also called
applicable receipts). Budget receipts are collections from the public that
result from the exercise of the Government's sovereign or governmental
powers, excluding receipts offset against outlays. These collections, also
called governmental receipts, consist mainly of tax receipts (including
SOCial insurance taxes), receipts from court fines, certain licenses, and
deposits of earnings by the Federal Reserve System. Refunds of receipts
are treated as deductions from gross receipts.
Offsetting collections are from other Government accounts or the
public that are of a business-type or market-oriented nature. They are
classified into two major categories: (1) offsetting collections credited to
appropnations or fund accounts, and (2) offsetting receipts (i.e., amounts
deposited in receipt accounts). Collections credited to appropriation or
fund accounts normally can be used without appropriation action by
Congress. These occur in two instances: (1) when authorized by law,
amounts collected for materials or services are treated as reimbursements to appropriations and (2) in the three types of revolving funds
(public enterprise, intragovernmental, and trust); collections are netted
against spending, and outlays are reported as the net amount.
Offsetting receipts in receipt accounts cannot be used without being
appropriated. They are subdivided into two categories: (1) proprietary
receipts-these collections are from the public and they are offset against
outlays by agency and by function, and (2) intragovernmental fundsthese are payments into receipt accounts from Governmental appropriation or funds accounts. They finance operations within and between
Government agencies and are credited with collections from other
Government accounts. The transactions may be intrabudgetary when the
payment and receipt both occur within the budget or from receipts from
off-budget Federal entities in those cases where payment is made by a
Federal entity whose budget authority and outlays are excluded from the
budget totals.
Intra budgetary transactions are subdivided into three categories:
(1) interfund transactions, where the payments are from one fund group
(either Federal funds or trust funds) to a receipt account in the other fund
group: (2) Federal intrafund transactions, where the payments and
receipts both occur within the Federal fund group; and (3) trust intrafund
transactions. where the payments and receipts both occur within the trust
fund group.
Offsetting receipts are generally deducted from budget authority and
outlays by function. by subfunction, or by agency. There are four types of
receipts. however. that are deducted from budget totals as undistributed
offsetting receipts. They are: (1) agencies' payments (including payments
by off-budget Federal entities) as employers into employees retirement
funds. (2) interest received by trust funds, (3) rents and royalties on the
Outer Continental Shelf lands. and (4) other interest (i.e., interest collected
on Outer Continental Shelf money in deposit funds when such money is
transferred Into the budget)
4, Processing
The data on payments and collections are reported by account symbol
into the central accounting system. In turn, the data are extracted from
this system for use in the preparation of the MTS.
There are two major checks which are conducted to assure the
consistency of the data reported:
1. Verification of payment data. The monthly payment activity reported by
Federal entities on their Statements of Transactions is compared to the
payment activity of Federal entities as reported by disbursing officers.
2. Verification of collection data. Reported collections appearing on
Statements of Transactions are compared to deposits as reported by
Federal Reserve banks.
5. Other Sources of Information About Federal Government
Financial Activities
• A Glossary of Terms Used in the Federal Budget Process. January
1993 (Available from the U.S. General Accounting Office, P.O. Box 6015,
Gaithersburg, Md. 20877). This glossary provides a basic reference
document of standardized definitions of terms used by the Federal
Government in the budgetmaking process.
• Daily Treasury Statement (Available from GPO, WaShington, D.C.
20402, on a subscription basis only). The Daily Treasury Statement is
published each working day of the Federal Government and provides data
on the cash and debt operations of the Treasury.
• Monthly Statement of the Public Debt of the United States
(Available from GPO. Washington, D.C. 20402 on a subscription basis
only). This publication provides detailed information concerning the public
debt.
• Treasury Bulletin (Available from GPO, Washington, D.C. 20402. by
subscription or single copy). Quarterly. Contains a mix of narrative, tables,
and charts on Treasury issues, Federal financial operations, international
statistics, and speCial reports.
• Budget of the United States Government, Fiscal Year 19 _
(Available from GPO, Washington, D.C. 20402). This publication is a
single volume which provides budget information and contains:
-Appendix, The Budget of the United States Government, FY 19_
-The United States Budget in Brief, FY 19 _
-Special Analyses
-Historical Tables
-Management of the United States Government
-Major Policy Initiatives
3. Notes on Outlays
Outlays are generally accounted for on the basis of checks issued,
electronic funds transferred. or cash payments made. Certain outlays do
not require Issuance of cash or checks. An example is charges made
against appropriations for that part of employees' salaries withheld for
taxes or savings bond allotments - these are counted as payments to
• United States Government Annual Report and Appendix (Available
from Financial Management Service, U.S. Department of the Treasury,
Washington, D.C. 20227). This annual report represents budgetary
results at the summary level. The appendix presents the individual receipt
and appropriation accounts at the detail level.
30
Scheduled Release
The release date for the June 1995 Statement
will be 2:00 pm EST July 24, 1995.
For sale by the Superintendent of Documents, U.S. Government Printing
Office, Washington, D.C. 20402 (202) 512·1800. The subscriptIOn price is
$35.00 per year (domestic), $43.75 per year (foreign).
No single copies are sold.
The Monthly Treasury Statement is now available on the Department of Commerce's Economic Bulletin Board.
For information call (202)482-1986.
EWS
OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
CONTACT:
FOR RELEASE AT 2:30 P.M.
June 21, 1995
Office of Financing
202/219-3350
TREASURY TO AUCTION 2-YEAR AND 5-YEAR NOTES
TOTALING $29,250 MILLION
The Treasury will auction $17,750 million of 2-year notes
and $11,500 million of 5-year notes to refund $16,772 million of
publicly-held securities maturing June 30, 1995, and to raise
about $12,475 million new cash.
In addition to the public holdings, Federal Reserve Banks
hold $1,392 million of the maturing securities for their own
accounts, which may be refunded by issuing additional amounts
of the new securities.
The maturing securities held by the public include $1,199
million held by Federal Reserve Banks as agents for foreign
and international monetary authorities. Amounts bid for these
accounts by Federal Reserve Banks will be added to the offering.
Both the 2-year and 5-year note auctions will be conducted
in the single-price auction format.
All competitive and noncompetitive awards will be at the highest yield of accepted
competitive tenders.
For both auctions, competitive yields must be expressed with
three decimals, for example, 7.123 percent.
Tenders will be received at Federal Reserve Banks and
Branches and at the Bureau of the Public Debt, Washington, D. C.
This offering of Treasury securities is governed by the terms
and conditions set forth in the Uniform Offering Circular (31 CPR
Part 356) for the sale and issue by the Treasury to the public of
marketable Treasury bills, notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
RR-388
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-204-0
HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC OF
2-YEAR AND 5-YEAR NOTES TO BE ISSUED JUNE 30, 1995
June 21, 1995
Offering Amount .
Description of Offering:
Term and type of security
Series
CUSIP number
Auction date
Issue date
Dated date
Maturity date
Interest rate
Yield .
Interest payment dates
Minimum bid amount
Multiples .
Accrued interest
payable by investor
Premium or discount .
$17,750 million
$11,500 million
2-year notes
AF-1997
912827 U3 4
June 27, 1995
June 30, 1995
June 30, 1995
June 30, 1997
Determined based on the
highest accepted bid
Determined at auction
December 31 and June 30
$5,000
$1,000
5-year notes
M-2000
912827 U4 2
June 28, 1995
June 30, 1995
June 30, 1995
June 30, 2000
Determined based on the
highest accepted bid
Determined at auction
December 31 and June 30
$1,000
$1,000
None
Determined at auction
None
Determined at auction
The followinq rules app~y to all securities mentioned above:
Submission of Bids:
Accepted in full up to $5,000,000 at the highest accepted yield
Noncompetitive bids
(1) Must be expressed as a yield with three decimals, e.g., 7.123%
Competitive bids
(2) Net long position for each bidder must be reported when the
sum of the total bid amount, at all yields, and the net long
position is $2 billion or greater.
(3) Net long position must be determined as of one half-hour prior
to the closing time for receipt of competitive tenders.
Maximum Recognized Bid
35% of public offering
at a Single Yield
35% of public offering
Maximum Award .
Receipt of Tenders:
Prior to 12:00 noon Eastern Daylight Saving time on auction day
Noncompetitive tenders
Prior to 1:00 p.m. Eastern Daylight Saving time on auction day
Competitive tenders
Full payment with tender or by charge to a funds account at a
Payment Terms .
Federal Reserve Bank on issue date
TREASURY
EWS
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASHINGTON, D.C .• 20220. (202) 622-2960
For Release Upon Del~very
Expected at 10:00 A.M.
June 22, 1995
I!
/.,
" : .•
I
I
• •' , .
",
STATEMENT OF
MICHAEL B. THORNTON
DEPUTY TAX LEGISLATIVE COUNSEL (TAX LEGISLATION)
DEPARTMENT OF THE TREASURY
BEFORE THE
SUBCOMMITTEE ON OVERSIGHT
COMMITTEE ON WAYS AND MEANS
UNITED STATES HOUSE OF REPRESENTATIVES
Madame Chair and distinguished Members of the Subcommittee:
I am pleased to present the views of the Treasury Department
on the Coal Industry Retiree Health Benefit Act of 1992 (lithe
Coal Act. II ), which was enacted as part of the Energy Policy Act of
1992, P.L. 102-486.
In the letter of invitation, Chairman
Johnson has requested that our testimony address:
(1) the
general effectiveness of the 1992 provisions;
(2) the impact of
premiums on small and reachback companies;
(3) the methods and
procedures for collecting premiums and penalties; and (4)
whether Treasury has perceived a need to exercise discretion in
enforcing premium collection because of the potential impact on
some operators.
In testifying before the Committee on Ways and Means in
September 1993, the Administration expressed its strong support
for the goal under the Coal Act of ensuring adequate funding of
retired miners' health benefits. We continue to strongly support
this goal.
Background
The Coal Act requires that former employers of retired coal
miners finance, in part, the health benefits that previously were
negotiated for those miners and their families by the United Mine
Workers of America (IIUMWAII).
Prior to the Coal Act, these
benefits were provided for retired miners and their families
either by the miner's individual employer or through one of two
mUltiemployer funds -- the 1950 UMWA Health Benefit Fund (the
111950 Fund") or the 1974 UMWA Health Benefit Fund (the 111974
Fund"). contributions to both Funds were required of signatories
to the national wage agreements negotiated between the UMWA and
the Bituminous Coal Operators Association, Inc. ("BCOA").
RR-389
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
- 2 -
Employers that were not signatories to the national wage
agreement also contributed to the Funds under separate wage
agreements negotiated with the UMWA.
The 1950 Fund covered miners who had retired as of December
31, 1975, and their beneficiaries. Miners who retired after 1975
generally received health benefits under the single plan of their
former employer. However, if the employer went out of business
or left the coal industry, the employer's retirees and their
beneficiaries were covered by the 1974 Fund. As a result, all of
the retirees and their beneficiaries covered under the 1974 Fund
were "orphans" for whom no contributions were being made by their
former employers. About half of the retirees and their
beneficiaries in the 1950 Fund were orphans.
Beginning in the late 1980's, the Funds began to experience
serious financial difficulties. As of March 31, 1992, the
combined deficit of the Funds reached $140 million and was
projected to grow dramatically if no changes were made. The
deficit was precipitated by a number of factors, including
medical inflation and the trustees' inability to impose certain
kinds of containment mechanisms under the Funds. Moreover, the
contribution base of the Funds was eroding.
In the early 1980's,
for example, approximately 2,000 employers contributed to the
Funds. That number had fallen to about 300 in 1992.
In March 1990, as part of a compromise that helped settle
the Pittston Coal Company strike, then-Secretary of Labor
Elizabeth Dole announced the establishment of a special national
Coal Commission to study the Funds.
In its report, published in
November 1990, the Coal Commission agreed that the problems of
the Funds could not be solved through private bargaining alone.
The Coal Commission recommended establishing a statutory
obligation to contribute to the Funds. Although the Coal
Commission was divided as to how this obligation should be
implemented, there was general agreement that it should cover all
then-current signatory employers (companies that had signed the
1988 collective bargaining agreement), as well as certain other
signatory employers.
In response to the Coal Commission Report and growing
concerns about the continued viability of the Funds and the
security of retirees' benefits, Congress passed the Coal Act as
part of the Energy Policy Act of 1992.
The Coal Act created two new benefit funds:
(1) the UMWA
Combined Benefit Fund (the "Combined Fund"), which services
beneficiaries receiving health benefits from the 1950 and 1974
Funds as of July 20, 1992; and (2) the UMWA 1992 Benefit Plan
(the "1992 Plan"), which services certain employees who retired
between July 20, 1992, and September 30, 1994, and whose last
signatory employer is not providing them with benefits.
-
3 -
Employees retiring after September 30, 1994, are not covered
under the provisions of the Coal Act, but are dependent on the
provisions of future bargaining agreements.
Under the Coal Act, any employer that signed a wage
agreement with the UMWA since 1950 and has retirees who benefit
under the Funds could be obligated to pay premiums for the health
benefits of those retirees and their beneficiaries.
In addition,
employers are obligated to finance the health benefits of
"orphans" in the Combined Fund whose former employers are no
longer in business. Each employer's share of orphans is
proportional to the number of the employer's retirees who receive
health benefits under the Combined Fund. Generally, the
allocation method assures that costs are shared by all employers
that signed UMWA wage agreements providing for retiree health
benefits.
In order to reduce premiums associated with orphan
beneficiaries who could not be assigned to a particular employer,
the Coal Act authorized three annual transfers of $70 million
each from the excess assets of the UMWA 1950 pension plan.
Beginning October 1, 1995, annual transfers of up to $70 million
will come from the interest earnings of the Abandoned Mine Land
Reclamation Fund ("AML fund") to cover the costs of orphans. 1
The AML fund is financed by fees assessed on all coal mining
companies. 2
Because beneficiaries were not yet assigned to signatory
operators during the first plan year of the Combined Fund,3
transition rules provided for the 1988 signatories to make
contributions to the Combined Fund to finance benefits and
administration costs that were not covered by the $70 million
transferred from the 1950 Pension Fund. The 1988 signatories
receive a credit for these initial contributions against
To the extent that interest earned on the AML fund falls
short of $70 million in any year, the difference is made up out
of the interest accumulated during the FY 1993-95 period (about
$122 million).
In FY 1996, interest earnings on the AML fund are
expected to be about $57 million.
The Abandoned Mine Reclamation Fees are levied at the
lesser of (a) 35 cents per ton for surface-mined coal and 15
cents per ton for underground-mined coal, or (b) 10 percent of
the value of the coal at the mine.
For lignite, the rate is the
lesser of 10 cents per ton, or 2 percent of the value of the coal
at the mine.
2
3
The first plan year was a short one, running from
February 1, 1993, to September 30, 1993.
-
4 -
subsequent premiums. The 1988 signatories also were required to
make transition payments to cover the combined net deficits held
by the merged 1950 and 1974 Benefit Plans.
Under the Coal Act, responsibilities for administering the
Combined Fund4 are divided among three separate entities, as
described below:
(i)
The Social Security Administration (SSA) -- The SSA is
responsible for assigning each coal industry retiree receiving
benefits to a former employer or related party. The SSA also
calculates the annual per-beneficiary premium charged to each
former employer.
Following the assignment of beneficiaries to
employers, the SSA is responsible for informing the former
employer and the trustees of the Combined Fund of the
assignments.
Finally, the SSA is responsible for reviewing
appeals raised by employers regarding the assignments of
retirees, and reassigning the retirees when appropriate.
(ii)
Trustees of the Combined Fund -- As established by the
Coal Act under section 9702 of the Internal Revenue Code, the
Combined Fund is a private multi-employer plan. 5 The Coal Act
provided for a Board of Trustees 6 who were required, among other
duties, to establish the Combined Fund, to determine benefits to
be paid from the Combined Fund, to establish and maintain
accounts of the premiums that are required to be paid to the
Combined Fund, to collect the premiums, and to provide
information to the SSA, as necessary for carrying out the SSA's
duties under the Coal Act.
4
The provisions for the 1992 Fund were not developed in as
much detail. Responsibility was given to the settlors (the UMWA
and BCOA) to work out many of the specific provisions.
5
The Coal Act provides that the Combined Fund is a plan
described in section 302(c) (5) of the Labor Management Relations
Act of 1947 (LMRA), an employee welfare benefit plan within the
meaning of section 3(1) of the Employee Retirement Income
Security Act of 1974 (ERISA), and a mulitemployer plan within the
meaning of section 3(37) of ERISA. Both LMRA and ERISA are
administered by agencies in the u.S. Department of Labor.
6
section 9702(b) of the Internal Revenue Code provides for
the appointment of a board of seven trustees.
One trustee is
designated by the BCOA to represent employers in the coal mining
industry; one trustee is designated by the three reachback
companies with the greatest number of eligible employees· and two
trustees are designated by the UMWA. These four trustee~ select
the other three.
- 5 -
(iii) Department of the Treasury -- section 9707 of the
Internal Revenue Code imposes a penalty upon an assigned operator
for failure to pay a required premium. The statute treats the
penalty as an internal revenue tax, and thus the IRS, as part of
its general tax administration duties, is responsible for
collecting the penalty.
Discussion
1.
The Effectiveness of the 1992 Provisions
The principal goal of the 1992 provisions was to ensure
that benefits promised to retired union miners and their families
continue to be paid without interruption. The 1992 provisions
appear to have been effective in achieving this goal.
The Combined Fund appears to be in sound financial condition
currently, although its future financial status is unclear.
According to recent GAO analysis, the Combined Fund reported a
surplus of $114.8 million as of September 30, 1994, but future
annual surpluses may not occur, and annual deficits may erode the
current surplus over time.
Given this uncertain financial
outlook, the Administration would be troubled by any
modifications to the Coal Act that would diminish the security of
the Fund.
It appears that the Coal Act also has been effective in
ensuring collection of the required premiums. According to
representatives of the Combined Fund, approximately 91 percent of
the assessed premiums have been paid. 7
While it appears that the Coal Act has been effective to
date, we are aware that concerns about its operation and
effectiveness persist. We would be happy to worK with the
Subcommittee to address such concerns in a manner that will not
compromise the security of the funds or otherwise risk
interrupting health benefits for retired miners and their
beneficiaries.
7
According to representatives of the Combined Fund, its
collection program is designed to resolve all the delinquencies,
either through collection or uncollectibility determinations,
after weighing the time and expense involved in the
investigations and the likelihood of successful recovery.
- 6 -
2.
Impact of the Premiums
It is difficult, if not impossible, to isolate the effects
of the Coal Act on the coal industry as a whole or on certain
categories of companies within the coal industry. The health of
the coal-mining industry primarily reflects dynamic factors that
are largely independent of the impact of the premiums -- factors
such as productivity improvements, price changes and structural
shifts.
The coal industry has seen sUbstantial growth in consumption
and productivity in recent years. This growth has been
accompanied by a shift to western coal, largely due to the higher
productivity of long-wall mining and western coal's lower sulphur
content. Lower-cost western coal and improved productivity have
resulted in declining real coal prices since the mid-1970's.
Technological improvements in mining operations and a shift
away from underground mining in the East to less labor-intensive
surface mining in the West allowed labor productivity to increase
much more rapidly than for most other U.S. industries. Over the
period from 1980 to 1992, output per hour of work in coal mining
increased at an average rate of 6.65 percent, whereas output per
hour of work in all forms of nonfarm business increased at an
average annual rate of 1.16 percent. The number of production
workers in coal mining fell from 204,000 in 1980 to 101,000 in
1992, while production increased from 830 million tons in 1980 to
998 million tons in 1992. These changes also involved a
reduction in the number of operating mines and mining companies.
Improvement in mining productivity has placed financial pressure
on eastern mines that have not managed sufficient productivity
increases.
We are aware that concerns have been expressed that
provisions of the Coal Act may have contributed to financial
hardship for certain small companies. Legislative proposals have
been introduced to provide relief under the Coal Act. The
Administration would be concerned, however, about proposals that
provide relief without reference to specific financial hardship.
These types of proposals could unnecessarily exacerbate the
burden of financing retirement health benefits, by imposing an
even gr 7ater burden on.other c~mpanies that are not eligible for
the rel1ef, but that m1ght be 1n worse financial condition.
In
particular, any relief provisions based solely on a company's
size or status as a reachback company, which does not necessarily
reflect its financial condition, could weaken the Combined Fund
and threaten the benefits of the retirees and their families.
- 7 -
3.
Methods and Procedures for Collecting Premiums and Penalties
As noted above, premiums under the Coal Act are assessed and
collected through the efforts of the trustees of the Combined
Fund, based on assignments made by the Social Security
Administration.
In addition, the Coal Act imposes a penalty for
delinquent premium payments. Pursuant to the Coal Act, this
penalty is treated in the same manner as an internal revenue tax.
consequently, the Internal Revenue Service, as part of its
general authority to assess and collect taxes and penalties, has
jurisdiction over the collection of the penalty.
Because operators have the ability to appeal the assignment
by the SSA, reliable information regarding liability for premiums
currentlr is not immediately available following the annual
billing.
In addition, assessment of the penalty prior to
collection action with respect to the premiums by the Combined
Fund would reduce funds available for providing benefits to
retired miners and their families. 9 Moreover, in some cases the
resources required for collecting the penalties may exceed the
reasonable expectations of collection, given the financial
condition of an operator.
Because it would be premature to attempt to assess penalties
before the completion of collection efforts by the Combined Fund,
the IRS has not assessed penalties to date. However,
representatives of the IRS have met with the Combined Fund
regarding the coordination of their collection efforts with the
implementation of the penalty.
In its testimony this morning,
the IRS will address these matters in detail.
4. Exercise of Discretion in Enforcing Premium and penalty
Collection
The trustees of the Combined Fund are responsible for
collecting premiums, and they are restricted by their fiduciary
duty to the fund from waiving collection of premiums. To
maximize the return to the fund, it appears that the trustees
could take collection and litigation risks into consideration, as
well as the fact that any penalties collected by the IRS would be
paid to the government rather than to the Combined Fund.
8
Under section 9706(f) (5) of the Internal Revenue Code, an
assigned operator is required to pay premiums pending review by
the SSA.
If the retirees are reassigned, the operator is allowed
a credit against premiums for other retirees.
9
Penalties for nonpayment of premiums are paid to the
government rather than the Combined Fund.
-
8 -
The IRS is responsible for assessing any penalties for
noncompliance. The Coal Act provides for two types of penalties
for failure to make required contributions:
(i) Penalty for Delinquent contributions of Transition-Year
Payments. As described above, the Coal Act required 1988
signatory employers to make initial contributions for the
Combined Fund's first short year (February 1, 1993, to September
30, 1993). Under section 9704(i) (1) (C) of the Internal Revenue
Code, the penalty for failure to make these initial contributions
is nondeductibility of contributions to the Combined Fund, until
such time as the failure is corrected. No discretion is provided
to waive this penalty, nor would any such discretion appear
necessary or appropriate, since the penalty terminates once the
taxpayer makes the required contribution.
(ii) Penalty for Delinquent Premium Payments. The penalty
for failure to pay a required premium is $100 per day per
beneficiary, for the period commencing on the due date for the
required premium or installment, and ending on the date of
payment of the premium or installment. The penalty is not
imposed if it is established to the satisfaction of the Secretary
of the Treasury that none of the persons responsible for the
failure knew, or exercising due diligence, would have known that
the failure existed. In addition, the penalty is not imposed if
the failure was due to reasonable cause and not to willful
neglect and the failure is corrected within 30 days after any of
the persons responsible for the failure knew or should have known
that the failure existed. Moreover, if the failure is due to
reasonable cause and not to willful neglect, the Secretary of the
Treasury has authority to waive all or part of the penalty to the
extent that he determines that payment of the penalty would be
excessive relative to the failure involved.
Under these provisions, the Treasury Department is limited
in its ability to waive the penalty for delinquent premiums. In
particular, this standard for relief generally does not allow for
the waiver of penalties for nonpayment based solely on the
financial hardship of the taxpayer. IO
Because, as noted above, the IRS has not yet attempted to
assess the penalty for delinquent premiums, the IRS's limited
ability to waive the penalty has not yet created problems.
The IRS has general authority to compromise a full tax
includi~g ~nterest ~nd penalties, through an offer in
comprom1se, where 1t 1S determ1ned that the tax is uncollectible
and the offer in compromise is in the best interests of both the
taxpayer and the government.
10
liabili~y,
- 9 -
Nonetheless, we are concerned that the $100 per-day, perbeneficiary penalty for delinquent premiums may be excessive.
The first month's penalty alone (from $2800 to $3100) would
exceed the annual premium (about $2350 for FY 1995).
As a general policy matter, this level of penalty raises
questions in light of the relative level of premiums to which the
penalty applies.
Moreover, collection of the penalty may act at
cross purposes to the goals of the Coal Act.
Enforcing the
penalty could adversely affect certain taxpayers' financial
conditions, which in turn could jeopardize the payment of future
premiums and result in reduced contributions to the Combined
Fund, contrary to the goals of the Coal Act.
For these reasons, a revised penalty structure may, in
certain instances, provide a better enforcement tool.
In this
regard, if the current penalty structure is retained, it may be
desirable to consider granting additional discretion to the
Secretary of the Treasury to waive or reduce the penalty for
delinquent premiums in certain cases.
In addition, we would be
willing to work with the Congress to explore means of
restructuring the penalty provision to limit the aggregate
penalty while still providing an adequate incentive for prompt
payment of premiums.
Conclusion
The Administration believes that the Coal Act has been
effective in achieving its goal of ensuring uninterrupted health
benefits for retired union miners. We continue to believe that
the Coal Act was a reasonable solution to a difficult problem.
With respect to the enforcement provisions, we recognize
that under current law the penalty for delinquent premiums may,
in certain circumstances, become excessive relative to the
required premium.
We are willing to work with the Congress to
address this and other concerns in a manner that would preserve
the security of the Fund and the uninterrupted provision of
health benefits to retired miners and their families.
IN AIJV'AOCE OF PRINI'ED mpy.
FILED:
06/21/95
PUBLICATION DATE:
DEPARTMENT OF THE TREASURY
4:57 P.M.
06/26/95
Office of Foreign Assets Control
CHANGES TO THE LIST OF SPECIALLY DESIGNATED NATIONALS OF CUBA
AGENCY:
Office of Foreign Assets Control, Treasury
ACTION:
Notice of Additions and Deletions to the List of Blocked
Persons and Specially Designated Nationals
SUMMARY:
The Treasury Department is designating four entities as
specially designated nationals of Cuba and adding these entities
to the List of Blocked Persons and Specially Designated
Nationals. In addition, the Treasury Department is removing an
entity previously designated from the list.
EFFECTIVE DATE:
[Insert date of filing for public inspection]
FOR FURTHER INFORMATION:
Programs, Tel.:
J. Robert McBrien, Chief, International
(202) 622-2420; Office of Foreign Assets Control,
Department of the Treasury, 1500 Pennsylvania Ave., N.W.,
Washington, DC 20220.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document is available as an electronic file on The
Federal Bulletin Board the day of publication in the Federal
Register. By modem dial 202/512-1387 and type "/GO/FAC" or call
- 2 -
for disks or paper copies.
This file is available in Postscript,
WordPerfect 5.1 and ASCII formats.
Background
The Office of Foreign Assets Control ("FAC") is designating four
entities as Specially Designated Nationals of Cuba and adding
these entities to the List of Blocked Persons and Specially
Designated Nationals and removing one entity from the list that
was previously designated.
The Director of FAC has determined that the designated entities
are owned or controlled by or act or purport to act directly or
indirectly on behalf of the Government of Cuba and, therefore,
pursuant to
§
515.306 of the Cuban Assets Control Regulations, 31
CFR part 515 (the "Regulations"), are subject to the prohibitions
applicable to the Government of Cuba.
All unlicensed
transactions with these entities or transactions in property in
which they have an interest are prohibited unless otherwise
exempted or generally licensed in the Regulations.
-
3 -
Determinations that persons are Specially Designated Nationals of
Cuba are effective upon the date of determination by the Director
of FAC, acting under authority delegated by the Secretary of the
Treasury.
Public Notice of such a determination is effective
upon the date of Federal Register publication or upon earlier
actual notice.
The List of Blocked Persons and Specially Designated Nationals
is not definitive or all-inclusive, and new Federal Register
notices with regard to specially designated nationals or blocked
persons may be published at any time.
The absence of any
particular person from the list is not to be construed as
evidence that the person is not a component agency of a
government subject to sanctions; or organized or located in a
country subject to economic sanctions; or owned and controlled by
persons that are organized or located in, or are nationals of, a
country subject to economic sanctions; or owned or controlled by,
or acting or purporting to act directly or indirectly on behalf
of, the government of a country subject to economic sanctions.
The Treasury Department regards it as incumbent upon all u.S.
persons or persons subject to U.S. jurisdiction, depending upon
the sanctions program, to take reasonable steps to ascertain for
themselves whether persons with whom they enter into transactions
fall into one of these categories.
- 4 -
Users are advised to check the Federal Register and The Federal
Bulletin Board routinely for additional names or other changes to
the list. Entities and individuals on the list are occasionally
licensed by the Office of Foreign Assets Control to transact
business with U.s. persons or persons subject to U.s.
jurisdiction in anticipation of removal from the list or because
of foreign policy considerations in unique circumstances. Current
information on licenses issued with regard to blocked persons or
specially designated nationals may be obtained by calling the
Office of Foreign Assets Control, Licensing Division (202/6222480) .
The following name is removed from the List of Specially
Designated Nationals and Blocked Persons and is no longer
considered a specially designated national of Cuba:
COMPAGNIA MERCANTILE INTERNAZIONALE (a.k.a. COMEI SPA), Milan,
Italy.
The following names are added to the List of SpeciallY Designated
Nationals and Blocked Persons as specially designated nationals
of Cuba:
COBALT REFINERY CO. INC., Fort Saskatchewan, AB, Canada.
INTERNATIONAL COBALT CO. INC., Fort Saskatchewan, AB, Canada.
-
5 -
LA COMPANIA GENERAL DE NIQUEL (a.k.a. GENERAL NICKEL SA), Cuba.
MOA NICKEL SA, Cuba.
Dated:
June~,
1995
;,
'.
/
Newcomb,
Director, Office of Foreign Assets Control
Approved: June
l~,
1995
Simpson,
Deputy Assistant Secretary
(Regulatory, Tariff and Trade Enforcement)
(FR Doc. 95-_____ Filed 06BILLING CODE 4810-25-P
-95: _: __ am)
UBLIC DEBT NEWS
Department of the Treasury •
Bureau of the Putlll<EBe'bUef
JUN
FOR IMMEDIATE RELEASE
June 22, 1995
WP:41wiW,
DC 20239
c<ON111Atto:L &2:b:e
of Financing
202-219-3350
RESULTS OF TREASURY'S A@ctt'1t@N lIVE TB2AWBErK BILLS
Tenders for $18,292 million of 52-week bills to be issued
June 29, 1995 and to mature June 27, 1996 were
accepted today (CUSIP: 912794Z56).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.20%
5.23%
5.22%
Investment
Rate
5.50%
5.54%
5.53%
Price
94.742
94.712
94.722
Tenders at the high discount rate were allotted 65%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$41,807,162
Accer;1ted
$18,292,192
$36,100,250
886,912
$36,987,162
$12,585,280
886,912
$13,472,192
4,300,000
4,300,000
520,000
$41,807,162
520,000
$18,292,192
An additional $1,007,500 thousand of bills will be
issued to foreign official institutions for new cash.
5.21--94.732
RR-390
Juri
-
-:- ('
.J.!J
.
UU U ;
S3
White House Conference
on Small Business
June 13, 1995
Treasury DepartDlent Initiatives
WHITE HOUSE CONFERENCE ON SMALL BUSINESS
DEPARTMENT OF THE TREASURY
SMALL BUSINESS INITIATIVES
PRO-BUSINESS
LEGISLATIVE ACTION
Incentives to invest in small businesses: In 1993, Congress passed a provision
proposed by the Administration to exempt 50 percent of the capital gains from
the sale of small business stock. This preferential rate was designed to increase
capital flow to small businesses by reducing the effective tax rate on qualified
investments to no more than 14 percent (28 percent applicable rate times 50
percent exclusion). The Administration also supported the enactment of Section
1044, which encourages investment in small businesses by allowing taxpayers to
postpone gain recognition from the sale of publicly traded securities if the gain is
invested in specialized small business investment companies.
Increasing the expensing limit: In 1993, the Administration also proposed to
increase the amount of capital investment that small businesses can expense from
$10,000 to $25,000 (as ultimately passed by Congress, the limit was increased to
$17,500). This increase allows small businesses to deduct the cost of investment
immediately, rather than over the recovery life of the acquired assets. It
encourages small businesses to invest in new technologies and capital assets and
simplifies tax reporting for eligible small businesses.
Health insurance deduction for self-employed made permanent: This year, the
President signed a bill to extend the health insurance deduction permanently for
self-employed individuals, and to increase the deduction from 25 percent to 30
percent. This extension and increase more closely conforms the tax treatment of
self-employed individuals to the treatment of other employers and employees. It
helps make health insurance more affordable for self-employed persons.
REGULATORY ACTION
The IRS and the Office of Tax Policy are taking steps to ensure that tax regulations are
as simple and understandable as possible. This approach aims to reduce taxpayer
burden and enhance voluntary compliance with the tax laws.
Simpler depreciation: New regulations simplify the computation of depreciation
by allowing taxpayers to elect to group assets into one or more general asset
accounts which can be depreciated as a single asset. As a result, taxpayers who
choose to do so are relieved of the burden of tracking individual assets. These
regulations are especially useful to small businesses that do not have sophisticated
accounting systems to track large numbers of depreciable assets.
"Check the Box": The IRS and Treasury have now proposed that unincorporated
businesses, many of which are small businesses, be allowed to elect to be treated
as either a partnership or corporation by simply checking a box on their tax
return. This simplified approach would replace the current rules.
In addition, during the past two years, the IRS has published rulings classifying
limited liability companies (LLCs) formed under the laws of various states as
partnerships. These rulings assist small businesses by providing them with
assurance that entities formed as LLCs in these states can in fact be taxed as
partnerships. Rulings have been published for Nevada, Delaware, Illinois, West
Virginia, Utah, Oklahoma, Alabama, Kansas, and Connecticut.
S Corporation relief: Previously, many S corporations were concerned about their
ability to conduct joint business with other parties, including corporations and
nonresident aliens. In 1994, the IRS revised the rules to eliminate these concerns.
Also in 1994, the IRS issued relief procedures for S corporations that have
inadvertently terminated their S elections. These procedures will allow S
corporations to have their elections reinstated retroactively. A simplified
procedure allows S corporations to file certain information with an IRS Service
Center, rather than going through the more complicated and expensive process of
obtaining a formal private letter ruling, as was previously required.
In addition, a corporation purchasing the stock of another corporation can
generally elect to have the target corporation taxed as if it sold all its assets and
distributed the proceeds in complete liquidation to a new corporation. A recent
regulation extended the availability of this potentially beneficial election to cases
where the target corporation is an S corporation. Hence, the regulation grants S
corporations, many of which are small business corporations, the same business
and tax flexibility in this regard as is accorded C corporations.
Partnership relief: In 1994, the IRS issued relief to partnerships that are
inadvertently terminated for tax purposes due to a sale of more than half of the
interests in the partnership in a single year. In certain cases, partners in these
partnerships would be taxed when such a termination occ~rs. The relief meas.ure
eliminates this possibility. The measure principally beneflts smaller partnershlps
that may lack access to sophisticated tax advice.
Elimination of an unnecessary reporting requirement: Previously, regulations had
provided that any taxpayer claiming an ordinary loss, rather than a capital loss, on
2
the sale of stock in a "small business corporation" had to file a statement with the
taxpayer's income tax return containing information supporting the loss. Under
those regulations, the IRS had been denying ordinary loss treatment if the
taxpayer failed to file the statement with the income tax return. The Tax Court
upheld this position in several cases. Nevertheless, new regulations were issued in
1995 that eliminated the information statement requirement as unnecessary. The
regulations are effective for open taxable years beginning after December 31,
1953.
Inventory capitalization relief: In 1993 and 1994 the IRS issued regulations on
the capitalization of costs in inventory under the "uniform capitalization" rules.
The regulations contain several small business relief measures. For example, the
regulations provide a special de minimis rule for producers of property with total
indirect costs of $200,000 or less. The producer can treat additional capitalizable
costs under the "simplified production method" as zero. The regulations also
provide that a small reseller is not required to capitalize costs of de minimis
production activities. Finally, the regulations provide that certain eligible
taxpayers (generally those with under $10 million in gross receipts for the 3 prior
tax years) may elect to use an external interest rate (the "Applicable Federal
Rate") instead of computing a weighted average actual interest rate.
Relief from mark-to-market rules: In 1994, Treasury published regulations
exempting certain taxpayers (mostly small financial institutions) from the mark-tomarket regime and provided a de minimis rule for small businesses.
Relief from hedging requirements: In 1994, the IRS and Treasury issued
regulations providing that certain small businesses are exempt from the timing
rules governing gains and losses from hedging, even while extending to taxpayers
the benefit of the favorable character provisions of those rules.
Implementation of a simpler W-4 system: In December 1994, regulations were
issued implementing an electronic means for businesses to manage Form W-4
reporting by their employees. All employees are required to furnish employers
with a signed withholding exemption certificate (Form W-4) when beginning
employment. In addition, a new Form W-4 must be used to make any changes to
the number of withholding allowances claimed. Previously, all Forms W-4 were
prepared and filed on a paper certificate. The new regulations allow employers to
establish systems enabling employees to make changes to their initial withholding
certificate electronically. Electronic systems for filing Forms W-4 lighten the
regulatory burden on employers through a reduction of ~r~ors .(and a red~ction in
resources devoted to correcting those errors) and the elimmatlOn of duplicate
entry of data.
3
ADMINISTRATIVE ACTION
Small Business Affairs Office: In March of 1994, the Commissioner of Internal
Revenue established the IRS Office of Small Business Affairs to serve as the
national IRS contact with small businesses, to recommend changes to regulations
and administrative practices that cause undue burden or inequity, and to address
issues crossing industry and agency lines. During 1994, this office worked
extensively with other federal agencies on the Small Business Forum on
Regulatory Reform co-sponsored by the Small Business Administration and
OMB's Office of Information and Regulatory Affairs (the "SBA/OIRA Forum").
Increased access to the regulatory process: In response to comments received
from small business participants in the SBA/OIRA Forum, the IRS took steps to
increase access to the tax regulatory process:
"Plain language" summaries: Beginning in 1995, the IRS will prepare a
brief summary of each IRS regulation for persons without tax expertise.
The summary will describe in lay terms the scope, purpose, and general
substance of the regulation. The summary will be made available to the
general public through electronic bulletin boards and other readilyaccessible media.
On-line access: In December 1994, the IRS established the capability to
provide enhanced access to the IRS regulatory process through FedWorld,
an on-line service accessible via modem or through the Internet. The IRS
is now considering the creation of a regulatory docket system that would
provide information about regulatory projects and possibly allow for
electronic filing of comments on regulations. The IRS is also working with
the SBA to develop a multi-agency approach to on-line information
services.
•
Longer comment periods: The IRS currently subjects all of its regulatory
rulemaking to a notice and comment process. In response to comments
received in the SBA/OIRA forum, the IRS decided to extend the normal
comment period from 60 to 90 days to give taxpayers more time to
comment on proposed regulations.
Task force on burden reduction: In March 1995, the IRS formed a task force to
review systematically its record keeping and reporting requirements. The IRS
Office of Small Business Affairs is playing a key role in this project. The task
force is reviewing all IRS business forms, publications, and regulatory
requirements in search of ways to reduce burden associated with recordkeeping
and reporting.
4
Small business grassroots meetings! In April 1995, Commissioner Richardson
and other IRS representatives conducted a series of five "town meetings" to study
the impact of tax requirements on small business taxpayers. Small business
participants made numerous thoughtful suggestions for improvement. The IRS is
now in the process of developing an action plan for addressing them. Overall, the
IRS identified a need to open new lines of communication with small business
owners and concluded that its educational programs need substantial modification
to suit small business needs better. The IRS is continuing these dialogues.
Form simplification: Since tax forms, instructions, and publications serve as the
principal means of communicating tax rules and policy to the public, simplifying
these items can be the most effective way of reducing government burden on
many individuals and small businesses. In the past 2 years, the IRS has simplified
over fifteen major tax forms. These improvements have affected over 134 million
taxpayers and have reduced the cumulative reporting burden by more than 46
million hours.
The latest form to be simplified is the Form 2106-EZ -- new for the 1995 filing
season -- which can be used by an estimated 3 million employees who deduct
business expenses but who want merely to claim the standard mileage rate for
using their vehicles. The new EZ form is only 12 lines long, fewer than one-third
the number of lines on the full form.
In addition, a new Schedule C-EZ, Net Profit from Business, allows filers to use
only three lines to compute their net profit, rather than the 36 lines necessary on
the full Schedule C. In the 1994 filing season, approximately 1.8 million taxpayers
were able to take advantage of this simplified form.
Simplified Tax and Wage Reporting System: The IRS is working on a Treasurymanaged project designed to reduce tax and wage reporting burdens on employers
by (1) simplifying laws, definitions, and procedures related to tax and wage
reporting, (2) providing a central contact for employers to get assistance with their
tax and wage obligations, and (3) accessing the electronic commerce network to
enable employers to report tax and wage information in a consolidated and
streamlined format.
•
FedState partnerships: The IRS and state tax authorities are working together to
reduce taxpayer burden, improve taxpayer service, and minimize tax
administration costs. The goal is to eliminate duplicative tax requirements and to
take advantage of economies of scale in tax administration. Numerous projects
are underway. For example, in 1995, taxpayers in 29 states have the option to
satisfy both state and federal income tax obligations with a single electronic
transmission.
5
Electronic funds transfer: IRS has developed a system for receiving federal tax
deposits through electronic means which is designed to replace the current paper
coupon system. Electronic deposits, which can be made from the employer's
place of business over the telephone, eliminate frequent trips to the bank, reduce
paperwork burden, and lower the risk of errors. This fiscal year, more than 11
thousand employers have enrolled in the program.
Electronic methods for return filing: IRS is successfully developing alternatives to
paper returns. Electronic filing is available for the individual Form 1040 forms
and schedules, and for several business returns. Business returns that can be filed
on magnetic media include Form 1065 K-1s (partnership information), Form 1041
(trust return), Form 1041 K-ls (trust information), and the Form 5500 series
(employee plan reporting). In addition, in February 1995, a pilot program was
successfully completed for a new electronic system of filing Form 941
(employment tax return).
Electronic access to tax forms and publications: Beginning in December 1994,
taxpayers with computers, modems and printers can directly dial up FedWorld -an on-line information service made available by the Commerce Department -- or
access it via the Internet, and can download and print out a blank tax form within
minutes. This saves taxpayers a trip to an IRS office or a call to an IRS
Distribution Center. This service is available worldwide and includes
international tax forms.
In December 1994, IRS began selling a comprehensive CD-ROM containing all
the latest tax forms, instructions, and information publications. The CD includes
over 1200 products spanning up to three tax years.
OFFICE OF THE COMPTROLLER OF THE CURRENCY
Improving Access to Credit Through the Community Development and Regulatory
Improvement Act.
Sma)) Business Capital Enhancement: In September 1994, President Clinton
signed the Community Development and Regulatory Improvement Act. The new
law contains many provisions that will benefit small businesses. One effective way
to increase liquidity and diversify risks for loan originators is to create a secondary
market for the loans through securitization. The new law provides a federal
statutory framework for small business and commercial real estate loan
securitization.
6
If lending institutions can securitize small business loans, they can make many
more such loans and sell them off for securitization. This process makes money
for lending "recyclable"--a lender makes a loan, sells it, takes the proceeds, and
lends them out again. This is what we have seen in mortgage lending and the
result is lower operating costs for lenders and lower costs for borrowers. Wall
Street buys the loans, pools them, and securitizes them, enabling lenders to make
more loans without having to wait for repayment month after month. This
framework provides securities backed by these loans with a variety of tax,
investment and distribution advantages which were not previously available to
small business securitizations, but which are available to some other types of
securitized loans, like single family mortgage loans.
Subtitle A of the new law works to generate a capital benefit in small business
loan sales below what existing capital rules would allow, which in turn may help
prompt more bank lending to small businesses. It allows banks selling small
business loans first to establish a reserve according to Generally Accepted
Accounting Principles, then capitalize only a percentage of the loss protection
provided, rather than a percentage of the principal being protected.
Subtitle B of Title II authorizes for the use of $50 million in Federal funds to
encourage and expand small business "capital access programs" administered by
states and some localities. Under such programs, a state contributes to a "reserve"
fund to cover losses on small business loans underwritten by participating lenders.
The participating lender and the benefiting borrower also contribute (through
premiums) to the reserve fund. The effect of the fund is to shift some of the risk
of loss to the state, as well as to the borrower in the form of the added premium.
By reducing the losses a bank can expect on any given loan, the reserve funds
create an incentive for banks to make additional loans to credit-constrained small
business borrowers. The use of the premium helps to ensure that new loans will
tend to go to credit-constrained borrowers. Since the premium raises the
borrower's total costs of funds, only those borrowers that cannot get cheaper
credit elsewhere will tend to participate.
Recent examples of reducing the regulatory burdens on Financial Institutions include:
Bank Fees: The acc issued a final rule changing the way it determines the fees
charged to national banks for examinations and investigations. By removing
detailed formulas used to assess these charges, the new rule reduces trust
examination and corporate application fees by approximately 50 percent. This
reduction affects small as well as large banks.
Non-Complex Bank Exam Procedures: acC's Bank Supervision Review Project
seeks to fundamentally reorient the acC's bank examination process. It focuses
supervisory resources on those areas and on those banks that pose the most likely
7
threats to the safety and soundness of the banking system. Bank examiners are
developing new programs that address the needs of specific industry segments.
New examination procedures for small, traditional, community-based banks have
already been put in place, focusing on the banks' actual performance. This
standardization promotes consistent treatment of similar banks and reduces
regulatory burden. The examiners look at each banks' results of operations to
confirm that the bank follows sound banking principles; they do not nitpick the
methods small banks use to achieve their results. Banks that qualify for this
program are examined by experienced personnel using 30 pages of guidelines,
replacing the 1200 page manual used for more complex banks, drawing on the
longer guidelines only when they encounter unexpected problems.
OFFICE OF THRIFT SUPERVISION
Annual Independent Audits: The Office of Thrift Supervision (OTS) issued a
final rule reducing requirements for annual independent audits of savings
associations. To lessen the regulatory burden on small well-run institutions, OTS
now only requires annual independent audits for thrift institutions with assets of
more than $500 million, as well as any institution that did not get the highest
rating for safety and soundness in the previous year.
U.S. CUSTOMS SERVICE
The U.S. Customs Service is in the process of developing regulations to implement the
Customs modernization provisions of the North American Free Trade Agreement
(NAFT A) Implementation Act. These provisions will streamline and automate the
commercial operations of the U.S. Customs Service. Examples of regulations
implementing provisions that will particularly benefit small businesses include:
Remote Filing: This feature of the legislation permits an importer, or a broker
servicing an importer, to do business with Customs from a single location, even
though the company or broker may import through more than one port. Since
importers will not have to hire a broker at each port used by the importer, small
brokers will be more competitive with large brokers.
Informed Compliance: A key to better compliance is making sure that persons
and businesses subject to the complex tariff laws know their responsibilities under
the law. This will better enable small importers and brokers to comply with these
requirements without the need to hire attorneys and other specialists.
Country of Origin: Several U.S. laws require that goods en~e~ing the ~nited
States be treated differently according to their country of ongm. PrevIOusly, the
8
u.s. Customs Service
has determined the origin of goods on a case-by-case basis,
applying subjective criteria and historical precedents. This has left importers,
many of whom are small businesses, with little certainty about the status of their
go~ds under the law. Proposed regulations published on January 3, 1994, set forth
a lIst of product-specific rules that enable both Customs officers and importers to
determine the origin of their imported goods with a high degree of certainty and
for fewer unexpected costs.
THE MULTILATERAL DEVELOPMENT BANKS
Increasing U.S. Exports and Creating U.S. Jobs: The multilateral development
banks are playing a leading role in increasing U.S. exports and creating U.S. jobs.
Over the past several years, exports have been responsible for generating between
40 and 50 percent of the real growth in U.S. gross domestic product.
The multilateral development banks have sparked groundbreaking private sector
initiatives in Central and Eastern Europe. They are building major new markets
for U.S. firms in Asia, Africa, and Latin America, and working to remove
impediments to economic growth in developing countries.
U.S. firms win contracts to provide goods and services for a wide range of projects
financed through the multilateral development banks. In the past two years,
nearly $5.0 billion have gone to thousands of U.S. firms as a direct result of their
participation in multilateral development bank funded projects.
U.S. firms also benefit from the work the development banks have done in
creating a friendlier economic environment for the private sector in developing
countries. U.S. firms have increased their participation in equity and loan
investments sponsored by the development banks, and they are beginning to take
advantage of newly enhanced instruments such as partial loan guarantees.
U.S. Firms Win Major Contracts: A significant portion of development bank
funding also goes to smaller companies. Many of these smaller firms are
privately-held, with one or two plants and 200-300 employees. The work they get
from the multilateral development banks is an important source of income and it
makes a large contribution to employment in the communities where their
facilities are located.
Subcontractors and Suppliers: Two multilateral development bank contracts
recently awarded to the IBM Corporation of Armonk, New York, provided major
economic benefits for a number of subcontractors in other states, including
Arkansas, Ohio and California. Teaming with these smaller firms, IBM was
successful in entering new data networking and retrieval markets in Thailand and
9
Argentina. It is now pursuing follow-on contracts that should result in additional
commercial benefits.
General Elec.tric, one of the largest recipients of multilateral development bank
contracts, estimates that more than 60 percent of the value of its total exports are
purchased from its U.S. suppliers. In 1992, these suppliers received $9.5 billion
from the sales of their products to various GE divisions which exported final
products to foreign markets.
The GE Power Systems Division buys $1.6 billion in intermediate goods and
services from 4,670 suppliers in 50 states and the District of Columbia,
incorporating them into an export program that covers many developing countries.
These power generation suppliers and others like them are "the hidden exporters"
of the United States. They have benefitted significantly from their participation in
the work of the multilateral development banks.
Small and Medium-Size Firms: Small and medium-size firms also benefit from
multilateral development bank business. American Cast Iron Pipe, a company
with 3000 employee-owners in Birmingham, Alabama, is providing pipe and
fittings for clean water and sewerage projects in Latin America and the
Caribbean. These projects are funded through the World Bank and the InterAmerican Development Bank.
Morrison Textile Machine Company, which employs 135 people in Fort Lawn,
South Carolina, has won contracts to provide bleaching and other equipment for
industrial projects in India funded through the World Bank and the International
Development Association. M& W Pump Corporation, which employs 200 people
in Deerfield Beach, Florida, is providing fluid pumps and motors for other
development bank funded projects in Latin America and Asia.
BUREAU OF ALCOHOL, TOBACCO AND FIREARMS
The Federal Alcohol Administration Act of 1935 regulates trade practices among
members of the industry, the overwhelming majority of which are small businesses
(wineries, and some breweries and distilleries; distributors; retailers). New regulations
published in May 1995 clarify ambiguous provisions of the law and define "safe havens"
and "danger zones" to better enable members of the industry to conduct their business in
compliance with the law.
Streamlined Rules for Brewpubs: Currently A TF regulations treat brewpubs
(small breweries which serve their own beer in a tavern on premises) exactly the
same as large brewers. Most brewpubs are operated by small businesses and have
a limited impact on the revenue collection or the national market. A TF plans to
10
change its regulations to reduce the burdens now placed on these brewpubs with
streamlined regulations designed just for them.
FINANCIAL CRIMES ENFORCEMENT NElWORK
The Financial Crimes Enforcement Network (FinCEN) is responsible for implementing
the Secretary's anti-money laundering authority under the Bank Secrecy Act (BSA).
FinCEN has developed a new cash transaction reporting form that eliminated
unnecessary and duplicative information and reduced the form by one-third.
In the rule for reporting wire transfers, FinCEN included a $3,000 reporting
threshold, which is expected to exclude 98 percent of all transactions by non-bank
money transmitters from the regulatory requirements. A principal beneficiary of
this threshold is small businesses.
BUREAU OF THE PUBLIC DEBT
Revised rules for registered government securities brokers and dealers: In
adopting risk assessment rules for registered government securities brokers and
dealers in 1994, Treasury provided exemptions for small"firms (in terms of their
capital) and for those firms that have affiliated brokers and dealers that are
already in compliance with SEC risk assessment rules. As a result, only 11 of the
33 registered government securities broker and dealers would be subject to
Treasury's risk assessment rules. The principal beneficiaries of the rule are small
firms that: 1) have under $20 million in capital and do not maintain customer
accounts; and 2) have under $250 thousand in capital regardless of whether they
carry customer accounts.
11
SMALL BUSINESS PROGRAM
Small Business Program Accomplishments: In Fiscal Year 1994 Treasury
awarded over 42 percent ($556 million) of its total prime procurement dollars to
small businesses. Over 21 percent ($284 million) was awarded to minority and
women-owned businesses.
Minority Business Expansion Effort: In 1994, the Treasury began hosting
regional conferences for minority and women-owned small businesses to: (1)
explain National Performance Review initiatives to streamline the procurement
process; (2) promote the government purchase card; (3) develop and strengthen
relationships between the Treasury, large prime contractors and small businesses;
and (4) offer on-the-spot procurement opportunities.
The lively competition received at the previous three conferences, on the over $8
million in procurement opportunities, produced a cost savings of approximately
$1 million. The next conference is scheduled for August 30, 1995, to be held in
the City of Industry, California, located in the heart of small, minority and
women-owned business communities. Once again we will showcase NPR
initiatives and offer on-the-spot procurement opportunities.
Treasury's Contractors Profile Database: The Treasury has established an
automated bidders list which eliminates the need for current vendors or
prospective vendors to file a separate Standard Form (SF) 129, Solicitation
Mailing List Application, with each Treasury bureau procurement office.
Registration via modem, (202) 927-4913, allows vendors the opportunity to
provide more specific information regarding their company and its capabilities.
Each of Treasury's 12 bureaus has access to this database to obtain additional
sources for their bid lists.
•
Monthly Vendor Outreach Sessions: The Treasury, in conjunction with its
bureaus, sponsors a series of small business vendor outreach sessions. They are
designed to generate opportunities for businesses who wish to meet technical
representatives, program managers, and procurement personnel. The sessions are
generally scheduled for the third Wednesday of each month and are held at the
Interstate Commerce Commission Building, Hearing Room B, 1201 Constitution
Ave., N.W., Washington, DC. Vendors must contact the individual bureaus Small
Business Specialists, in advance, to schedule an appointment for the outreach
seSSIOns.
•
Get the Fax: Treasury's Small Business Interactive Fax Line gives the public 24
hour a day access to procurement marketing information. The Fax Line, at (202)
622-1133, can be reached from either a touch tone phone, or the phone on a fax
machine. Allor part of Treasury's marketing publications or any other small
business information can be faxed on demand by following the voice prompts and
responding from the keypad on the telephone or fax machine.
For additional information on doing business with the Treasury, contact the Office of
Small and Disadvantaged Business Utilization, 1500 Pennsylvania Ave., NW, Room 6100
Annex, MMD, Washington, DC, 20220, at (202) 622-0530.
DEPARTMENT
OF
THE
TREASURY
IREASURY )~·.(>N
~ J '·'.J~;:,W S
I'
OFFICE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. -
FOR IMMEDIATE RELEASE
June 22, 1995
WAWtrt.Gi~.2 2JOC202) 622-2960
Contac~:"
~; ~.;;
\ • I.J
_ .Jon M.~}t'fhinson
(2b'1) 622-2960
l' I
RUBIN SIGNS DISTRICT OF COLUMBIA FINANCING AGREEMENT
Treasury Secretary Robert E. Rubin, Thursday, signed a financing agreement that will
allow the Treasury Department to advance funds to the District of Columbia pursuant to the
District of Columbia Financial Responsibility and Management Assistance Act of 1995.
On June 20, 1995, the District submitted a requisition for $146.7 million to Treasury
to enable the city to meet its short-term cash needs. After reviewing the District's financial
data, the Government Accounting Office determined that $146.7 million may be advanced for
the purpose of assisting the District Government in meeting its general expenditures, as
authorized by Congress. Treasury is processing the request and expects to provide the city
funds by June 30. The $146.7 million loan will be repaid from the District's Fiscal Year
1996 Federal Payment.
"We all have an interest in the nation's capital being fiscally healthy, and a vibrant
place for those who live, work and visit here," Secretary Rubin said.
The newly-appointed members of the District of Columbia Financial Responsibility
and Management Assistance Authority, commonly known as the D.C. "control board" will
be making recommendations to Congress about how the District can operate more efficiently
and address some of the problems posed by its financial structure.
The District has recently stated that its cash needs for Fiscal Year
the $146.7 million requested by the District, certified by GAO and being
Treasury. Treasury's authority to provide future advances to the District
will likely depend upon action by Congress to afford the city some relief
spending limits on the District's Fiscal Year 1995 budget.
1995 will exceed
advanced by
this budget year
from Congressional
"It is clear that in the near term, the District, Congress, and the control board will
have to work together expeditiously to ensure that the city will have enough funds to operate
for the remainder of Fiscal Year 1995," Secretary Rubin said. "Treasury will do its part by
meeting its statutory lending obligation. "
-30RR 391
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
......................................:i178ig~..~................................
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AvmPtJ-i~W' ~ ~lrrrpN, D.C. • 20220 • (202) 622-2960
FOR IMMEDIATE RELEASE
June 23, 1995
STATEMENT BY TREASURY SECRETARY ROBERT RUBIN
"We are now at the crucial stage in the financial services negotiations. We must
conclude by June 30. The U.S. objective for these negotiations is to obtain from key
countries substantially full-market access and national treatment for financial services
firms. Offers from many developed and emerging markets meet this objective.
Unfortunately, the offers of other important countries fall short. The United States will
do its utmost in the next few days to craft a successful agreement, but if these financial
services offers are not improved, it will not be possible for the United States to take an
irrevocable MFN obligation in the WTO."
-30-
RR-392
D I P h P blic schedules and oihcial biographies, call our 24-hour fax line at (202) 622-2040
ror press re eases, s eec es, u
~r
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY
~/78f9~. . . . . . . . . . . . . . . . . . . . . . . .. . .
............................
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
June 23, 1995
MEDIA ADVISORY
Treasury Secretary Robert E. Rubin and U.S. Senator Carol Moseley-Braun will visit
an empowerment zone in Chicago, IL, on Monday, June 26, to highlight the importance of
the Community Reinvestment Act, now under attack in Congress. They will also meet with
local business leaders.
The following visits are open to the press. This schedule is for planning purposes
only and is not for publication. Times are approximate; all locations are in Chicago.
10:30 am
Visit to Chicago Board of Trade, 141 West Jackson Boulevard.
Secretary Rubin and Senator Moseley-Braun will tour the floor of the Board
of Trade.
Cameras should be in place by 10:20 am. This is a photo opportunity only.
11:30 am
Mercantile Exchange, Upper Trading Floor, 30 South Wacker Drive.
Secretary Rubin and Senator Moseley-Braun will tour the floor of the
Mercantile Exchange.
Cameras should be in place by 11: 20 am. This is a photo opportunity only.
2 pm
Fulton Carrol Center, 2023 West Carrol Avenue.
Secretary Rubin and Senator Moseley-Braun will tour the facility, then
participate in a discussion with community leaders and business people.
Cameras should be in place by 1:45 pm.
Note: The tour portion will be pooled for stills and cameras.
Contacts:
Rebecca
Contact:
Contact:
Contact:
Lowenthal or Jon Murchinson, U.S. Treasury (202) 622-2960
Matt Weisman, Office of Senator Moseley-Braun (202) 224-3472
David Prosperi, Board of Trade (312) 435-3620
Bill Crawford, Mercantile Exchange (312) 930-1000/3434
RR-393
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
UBL1C~jljEBT
Department olthe
TreastRV':' CBJ~Jkul ()tt~~'~~'blic Debt
FOR IMMEDIATE RELEASE
June 26, 1995
NEWS
• Washington, DC 20239
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $13,683 million of 13-week bills to be issued
June 29, 1995 and to mature September 28, 1995 were
accepted today (CUSIP: 912794U93).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.31%
5.35%
5.35%
Investment
Rate
5.47%
5.51%
5.51%
Price
98.658
98.648
98.648
Tenders at the high discount rate were allotted 47%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$49,455,618
Acce:gted
$13,683,208
$44,031,476
1,315,072
$45,346,548
$8,259,066
1,315,072
$9,574,138
3,174,835
3,174,835
934,235
$49,455,618
934,235
$13,683,208
An additional $166,665 thousand of bills will be
issued to foreign official institutions for new cash.
5.32--98.655 5.33--98.653 5.34--98.650
RR-394
UBLIC DEBT NEWS
FOR IMMEDIATE RELEASE
June 26, 1995
JUl
CON.TAClJ
j JJ U U
Iqf9ice
of Financing
2 02 - 2 19 - 3 3 5 0
RESULTS OF TREASURY' S ~V~T.~9ttll~~[":?j?SlWftEK BILLS
Tenders for $13,682 million of 26-week bills to be issued
June 29, 1995 and to mature December 28, 1995 were
accepted today (CUSIP: 912794W34).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.32%
5.34%
5.34%
Investment
Rate
5.56%
5.58%
5.58%
Price
97.310
97.300
97.300
Tenders at the high discount rate were allotted 25%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$51,529,225
Accepted
$13,681,939
$43,078,124
1.170,658
$44,248,782
$5,230,838
1.170,658
$6,401,496
3,200,000
3,200,000
4,080,443
$51,529,225
4,080,443
$13,681,939
An additional $728,457 thousand of bills will be
issued to foreign official institutions for new cash.
5.33
RR-395
97 .. 305
OFFICE OFl!';ORE'IGN ,ASSETS CONTROL
SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS
I
i
Jc _
1 A THAR (HNAR) hnker 1,502DWT Iraqi nag
(111lql Oil Tankel1l Company) (v_I) [IRAQ]
1 HURIZAN (HNHN) Tinker 1,502DWT Iraqi nag
(111lql Oil hnkalll Company) (v_I) [IRAQ]
7 NISSAN (HNNN) T.nker 1.502DWT Il1lql Rag
(111lql Oil T.nkelll Company) (v_I) [IRAQ]
7TH APRIL CARD BOARD FACTORY. r.IOUI1l,
Libya [lIBYA]
13.JULI. PodgorIca, .. ontenegro [FRY S& .. ]
21 "AJ, Balgrade, Serbia [FRY S& .. )
A. 8ORTOLOTTI & CO. S.P.A. (alla BORTOLOTTI), Cremon•. Italy [lIBYA)
A. BORTOLOTTI & CO. SP.A. (. k.. BORTOLOTTI), VIII Pradore, 59, 24067 SemlCO, Bergamo, Italy [lIBYA]
ATE. INTERNA TlONAL LTD (fk.a RWR INTERNATIONAL CO .... ODITIES), 3 "andev~1e Place.
London, England [IRAQ)
AWA ENGINEERING L1 .. ITED, 3 Mandev~1e
Place, London, Engt.nd [IRAQ]
ABASTECADORA NAVAL Y INDUSTRIAL. SA
(a.k.. ANAINSAl. P.nama [CUBA)
ABBAS, Abdul HUlllllllf'I, Italy (If'IdMdual) [IRAQ)
ABBAS, Abu (a k.. ZAYDAN. "uhammad), Onetor of PALESTINE LIBERATION FRONT - ABU
ABBAS FACTION: DOB 10 Dec 1~ (IncIMdual)
[SOT)
ABBAS. KaUlm. Italy (IndIVidual) [IRAQ)
ABBOTT. John G , J.4 Grosvenor Street. London
W1X \WG. England (lndlVldu.l) [lIBYA)
ABO AL-GHAFUR. Humam Abd .I-Kha~q (a k..
GHAFUR Humam Abdel Kh.laq Abdel) .... n_ler
of Hlgtler Educabon .nd ScoentJfic: Researdl,
DOB 1~5. Ir.q (IndIVidual) [lRAQr
ABOELMULLA. Youse! Abd-el-Razagtl (. k.. ASDULMOLA. Youse! Abd-EI-Razegh). POBox
4538 M•• dan Maad EI Baladl, Tnpolt. LIbya (00'vidual) [lIBYA)
ABDELNUR. Nury de JesU&. Panama (IndIVidual)
[CUBA)
ABDUL JAWAD MOhammed (a k. ABDULJAWAD. "utlammed I ). TnpoIl. UClya (OOlVldual)
[LIBYA)
ABOULJAWAD Mutlammed I (. k. ABDUL
JAWAD. "onammed), Tnpolt, ltbya (OOlVldual)
[lIBYA)
ABOUL ... AlIK. Abdul Hameed (a k. MALIK. A&&1m MOh.mmed Raflq Abdul,. k.a RAFIQ. A.
&em). 14 Almow Sad AI Deen Street. AI Naztla
C.,ro Egypt (If'IdMdual) [IRAQ)
ABOUL ... OLA. YOUMI Abd-EI-Razagh (. k. ABDEL"'ULLA. Yousel Abd-el-Razagtl). POBox
4~ .... IO.n ...d EI Baledl. TnpoIl. LIbya (00"
vidual) [lIBYA)
ABRAHA ... TrWYor. Enot.nd (indIVidual) [IRAQ)
ABRA .. OVIC. ",roalltva, DOB 20 Feb 5e. (moo..s
from country to country) (OOlVldual) [FRY 5''')
ABU NIDAL ORGANIZATION (a k.a ANO .• k..
BLACK SEPTE .. BER .• k.a FATAH REVOLUTIONARY COUNCIL. a k... ARAB REVOLUTIONARY COUNCIL .• k.. ARAB REVOLUTIONARY
BRIGADES .• k.. REVOLUTIONARY ORGANIZATION OF SOCIALIST "USlI"S) Libya. LebItnQn.Alge,.. Sudan. Iraq (SOT]
ACE INDIC NAVIGATION CO .LTD ...... [CUBA)
ACECHILL Y (Acech.1y N.VlQlltJon Co ....Ita) (,,".
M/) (CUBA)
ACECHILLY NAVIGATION CO .LTD 171 Old Bak·
ery Strwet. V.IIetta .... b (CUBA)
ACEFROSTY (Acefrosty ShlPPIno Co . Waite) (.....
MI)(CUBA)
ACEFROSTY SHIPPING CO . LTD. 171 Old B •• ·
ery SII'Mt V.1eGa ..... (CUBA]
..;.,
";AlOF"A~L~I.~
AD-OAR AL JA .. AHIRIYA FOR PUBLISHING DISTRIBUTION & ADVERTISING. P.O. Box 321,
Bengtlaz., Llby. [lIBYA]
AD-OAR AL JA .. AHIRIYA FOR PUBLISHING DISTRIBUTION & ADVERTISING, P.O. Box 20108,
Sebha, Liby. [lIBYA]
AD-OAR AL JA .. AHIRIYA FOR PUBLISHING DISTRIBUTION & ADVERTISING, POBox 15977,
caaablllnca, .. orocco [lIBYA)
AD-OAR AL JA .. AHIRIYA FOR PUBLISHING DISTRIBUTION & ADVERTISING, P.O. Box 959,
TnpoJt, Libya [lIBYA)
AD-OAR AL JA .. AHIRIYA FOR PUBLISHING DISTRIBUTION & ADVERTISING, PO Box ~7, Vallette. "alia [lIBYA)
AD-OAR AL JA .. AHIRIYA FOR PUBLISHING DISTRIBUTION & ADVERTISING, POBox 17459,
",&orala. Libya [lIBY A)
AD .. INCHECK L1 .. ITED. 1 Old Burttng10n Street
London, England (IRAQ]
AD .. IRAL Z .. AJEVIC (9HTX3) General Dry cargo
8,569GT ... 1Ia nag (South Adnatlc Bulk Shipping
Ltd ) (v_I) [FRY S& .. ]
ADVANCED ELECTRONICS DEVELOP .. ENT.
LTD, 3 ".ndev~1e Place, London. Engl.nd [IRAQ)
AERO-CARIBBEAN (. k.. AEROCARIBBEAN AIRLINES). H.vana. Cuba [CUBA)
AEROCARIBBEAN AIRLINES (a k.a. AERO-CARIBBEAN), Havana. Cuba [CUBA)
AERODROM BEOGRAD (a k.a AIRPORT BELGRADE). Belgrade. Serbta [FRY S& .. ]
AEROINZINJERING, Belgrade. Serbta [FRY S& .. ]
AEROTAXI EJECUTIVO, SA. Managua, NIcaragua [CUBA)
AGENCIA d d . N_ York. USA [FRY S& .. )
AGENCIA DE VIAJES GUA ... A (ak.a VIAJES
GUA .. " TOURS. a k.1I GUAMATUR, SA, a.lta
GUA .. A TOUR). Bal H.rbour ShoppIng Center,
VIII ltalill. Panama City. Panamll [CUBA]
AGHIL. Yousell . ltbya (If'IdMdual) [lIBYA]
AGIP (N A ... E ) LIMITED (II k.a AGIP NORTH AFRICA AND .. IDDLE EAST OIL CO .. PANY).
Adatlr. POBox 346. SCiara Glakarla. Tnpoll,
ltbya [lIBYA)
AGIP (N A ME) lI .. ITED (. k .• AGIP NORTH AFRICA AND .. IDDLE EAST Oil CO .. PANY).
Bengtlazl Off.ce. POBox 4120. Benghazi, libya
(ae..gn.bon IIPPioes only to IOlnt venture located
In LlbYII) [lIBYA)
AGIP NORTH AFRICA AND MIDDLE EAST OIL
CO .. PANY (Ilk. AGIP (N A ME) LI .. ITED),
Bengtlazl OffIce. POBox 4120. BenghazI, LIbya
(Onignabon .ppl_ only to JOInt ventura located
an Llby.) [lIBYA]
AGIP NORTH AFRICA AND .. IDDLE EAST OIL
CO .. PANY (. It. AGIP (N A "E) lI .. ITED).
Adahr. POBox J.48, SClaI1l G,.karla. Tnpoll,
libya [lIB YA)
AGOCO (. k.. ARABIAN GULF OIL CO .. PANY),
POBox 159l-325. Ben Aahour Street Tnpoll,
libya [lIBYA]
AGOCO (. k.. ARABIAN GULF OIL CO .. PANY),
POBox 263. AI K_h, BenghazI. libya [lIBYA]
AGOCO (. k. ARABIAN GULF OIL CO .. PANY),
S.nr Foeld. Libya [lIBYA)
AGOCO (. k II ARABIAN GULF OIL CO .. PANY).
WIf'I4aOr Hoose. 42-50 Vteton. Street London
SW1H ONW, England [lIBYA]
AGRICUL TURAl BANK. THE (. k.a LIBYAN AGRICUL TURAL BANK .•. k.. NATIONAL AGRICULTURAL BANK OF LIBYA). (1 CIty branch and 27
branches If'I LIbya) [lIBYA]
AGRICUl TURAL BANK. THE (II k.a LIBYAN AGRICUL TURAL BANK. II k.. NATIONAL AGRICUL-
TURAL BANK OF LIBYA), 52. Omar EI .. oktItar
Street PO Box 1100, TripolI. Libya [lIBYA]
AGRICUL TURAL CO-OPERATIVE BANK. R••hld
St. Baghdad, Iraq [IRAQ)
AGRICULTURAL ENGINEERING CO .. PANY.
libya [lIBYA)
AGRO-KARIC BANK (n.lla. AKA BANK: n.It •. AKA
BANKA), 109()().C U/yIinovskaya ~:v.trenJe 1,
"0&COW. Runia [FRY S& .. )
AGRO-UNIVERZAL. KanijlZa. Vojvodlna (Seft*)
[FRY S& .. ]
AGROBANKA BELGRADE .•• offices wortdwIde
[FRY S& .. ]
AGROEXPORT. Belgrade, Serblll [FRY S& .. ]
AGROOPRE .. A, Belgrade, Serbia [FRY S& .. ]
AGROPANONIJA, VfMC, Vojvodina (Serbia) (FRY
S& .. )
AGROPRO .. BANKA dd .. Banja Luka. BoanleHerzegOVIna [FRY S& .. ]
AGROPROMET, Klkinda, Vojvodina (Serbl.) [FRY
S&M)
AGROVOJVODINA (•. k.• AGROVOJVODINA EXPORT -I .. PORT), 23 Oklobra blvd. 61. 21000 Novl
Sad. VOlvodlnll (SerbIa) [FRY S& .. ), .n offteeS
worldwide, includIng bu1 not limited to:
• AGROVOJVODINA (•. k .•. AGROVOJVODINA
EXPORT-I"PORT), K.rafi.tova "0, Prague 10,
Czectl Repubhc [FRY S& .. )
• AGROVOJVODINA (aka AGROVONODINA
EXPORT -I .. PORT), Katona Jazel utca lOla.
1137 Budapest 13ker, Hungllry [FRY S& .. )
• AGROVOJVODINA (a.k.a. AGROVONODINA
EX PORT -I" PORT), "osfiljmovskaj. "2, "oscow,
RU&IIIII [FRY S& .. )
• AGROVOJVODINA (a.k.a AGROVONODINA
EXPORT -I .. PORT), W.rynakiego 28 m 40, War&IIW, Poland [FRY S& .. ]
AGROVOJVODINA EXPORT-I .. PORT (.k.1I
AGROVOJVODINA), 23 Oklobra blvd. 61, 21000
Novl Sad, Vojvodlna (SerbIa) [FRY S& .. ], an offices woridwlde, inCludmg but not limited to·
• AGROVOJVODINA EXPORT -I .. PORT (a.lla
AGROVOJVODINA), Karafiatova 40, Prague 10,
Czech Republic [FRY S& .. )
• AGROVOJVODINA EXPORT -I .. PORT (. Ila.
AGROVOJVODINA). Katona Jazel utca lOla,
1137 Budapest 13 ker, Hungary [FRY S& .. ]
• AGROVOJVODINA EXPORT -I .. PORT (a.ll.
AGROVOJVODINA), "osfil)mOVakllja 42, Mo&row. RU&&la [FRY S& .. ]
• AGROVOJVODINA EXPORT-I .. PORT (all.
AGROVOJVODINA), Waryn&kiego 28 m 40, W.rMW, Poland [FRY S& .. ]
AGUIAR, Raul, DIrector, Banco NaclOnal da Cuba,
Avenida de Concha. Eaplna 8, E-28036 ...drid,
SpaIn (IndMdu.l) (CUBA]
AHLYA BUILDING .. ATERIALS CO. PO Box
8~5, Jumhounya Street Tnpoli, Libya: (branch)
PO Box 1351. Benghazi, Libya [lIBYA!
AH .. AD QASSEW AND SONS CO, libya [lIBYA!
AH .. AD, Raaem, PO Box 1318, Amman. Jordan
(tndMdual) [IRAQ]
AH .. AD. WaHId lUll, Iraq (individual) [IRAQ!
AIK SU"ADIJA, Kl1lgu)evllc. Serbta [FRY S&M]
AIK VRANJE, Vran)e, Serblll [FRY S& .. ]
AI .. OROS SHIPPING CO . Valletta, ... Ita [CUBA)
AIN ZALAH (HNAZ) Tanker 36,330DWT Iraqi flag
(IraqI Oil Tankelll Company, BII&nIh. Iraq) (vael) (IRAQ]
AIR JUGOSLAVIA, Belgrade, SerbIa [FRY S&W]
AIRE F (Ik a 0800) (9HTG3) General Dry cargo
13,651GT "alta nllg (Okloih Oven&ea& Shipptng
Ltd) (ve"'l) [FRY S& .. ]
0Ffl0!0f" rQM;l••, . . . . . ~Ot.
AIRPORT BELGRADE (ak.a AERODROM
BEOGRAD). Belgrade. Serb,. [FRY S&M)
AKA BANK (. k.. AKA BANKA. f k.. AGROKARIC BANK). 109()().4 UIV-novskaya
4OI22Jatrenie '. Mo.cow. Ru.... (FRY S&M)
AKA BANK (. k. •. AKA BANKA). Kralnod.r. Rus. . (FRY S&M)
AKA BANKA (.k.• AKA BANK. fk.a AGROKARIC BANK). 109()().4 UIV-novUIIya
4OI22Jalr'enie '. Ma.cow. Ruu. (FRY S&M)
AKA BANKA (.k.•. AKA BANK). Kralnod.r. RUIlia (FRY S&M)
AL ABIAR FODDER PLANT. Liby. [LIBYA)
AL .... GElI. Dr Mukblr AI! (a.k.a EL .... GELI. Dr
Mukhtar A~. a.k.a. EL .... GElI. Dr. Muktar All).
Apartment 10. Melde Vale. Little VenICe. London.
England; 15117 Lodge Road. Sl Johnl Wood.
London NW8 7JA. England. DOB 23 Jul« (indIvidual) [LIBYA)
AL AHlIYA CO FOR TRADING AND MANUFACTURE OF CLOTHING. PO Box 4152. Benghazi.
Libya; (branch) P.O Box 15182. Tnpol!. libya
[LIBYA)
AL .... HMAD. M.hmoud Dlab (. k.. AL .... HMAD
M.hmud Dhl'(llb). Ioolln.ler of Hou.lflg .nd ReeonItrucbon; Iraq (lndlVldu.l) (IRAQr
AL .... HMAD. Mahmud OIHyeb (. k.. AL-AHMAD
Mahmoud Dlab). Mln,"er of Houllng .nd Rea>nItrucbon. Iraq (IndlVldu.l) (IRAQ)'
AL .... LYAA (N/A) Tug 375DWT Iraqi nag (Stale Org
of Iraqi Ports) (venel) (IRAQ)
AL AMAL CO FOR TRADING AND MANUFACTURING OF CLOTHING. libya [LIBYA)
AL .... MIN (YIAM) Tug 368DWT Iraqi nag (Stale Org
of Iraqi Ports) (venel) (IRAQ)
AL.... MIRI. Adnan T.llb Ha..,m. 43 Pllillce MllnllOnl. Hllmmeramrtl'1. London. Englllnd (lndlYldulIl) (IRAQ)
AL ANBAR (YIAV) Tug DWT N/A Iraqi nllg (Govem.
menl of the RepublIC of Iraq M.nllged by the
State Org.OIUOOn of Inlql Porta. Balrah. Iraq)
(....Ilel) (IRAQ)
AL .... RABI TRADING COIo4PANY LlIo4ITED. Lllne
II. H.I Babol. Bllghd.d
929. Iraq (IRAQI
AL .... TRUSH Abel .I-Wahhab Umar Io4IfZII (a k.1I
AL .... TRUSHI Abelel Wahab) .• mln.ter of ~te
OOB 1936. Iraq (IndlVldu.l) [IRAQr
AL .... TRUSHI Abelel Wahab (a k.a AL-A TRUSHI
Abel al-Wahhab Umll' Mirza) .• mln.te, 01 Illite
OOB 1936 InlQ (IndIVidual) [IRAQr
AL-AZAWl Oar,r Iraq (lOdlVldual) (IRAQI
AL-8AATH (HNBT) Tanke< 9.928DWT Iraq, nag
(Iraqi 0<1 Tanllera Company) (v . . . . l) [IRAQI
AL-8AHAR AL·ARABI (Iormerly IraQ,-owned n II II
SEABANK) (HOHR4) F,lNCargo 6 953DWT Hoodur.. nag (1rad,ng & Mllntlme Investments Hoo·
dur.. lo4anaged by Anlb Trani Tnlde Co SA E
Alexandna Egypt) (...... 1) [lRAO]
AL-8AKR (VIBR) R .... rCtl)g()OWT Irllq' nag
(State Org of Iraq, Ports) ( _ I ) (lRAO]
AL BANNA S.tIn Khal. Abel AI O.dl( (a II. NIDAL. Abu) F'ounOe< and Sec~ry Genenll at
ABU NIDAL ORGANlLt.TION. DOB lo4ay 1937 ()l
1940 Poe J."a t.,-MI (Ind ... ldual) [SOT)
AL-8AYAA (T II a HI800B) (HNHB) Barge
1.662DWT Iraq, nag (Iraq, State Enlerpole 10<
W.ter TransDO"l) (v....r) (IRAO]
AL-8AZAZ H ......., Abel ..... " (a "a AL-BAZZAl
Hllcmlt AbOa"") ...... _r at EducatJon Iraq (.nd ..
vidual) (lRAO;
AL-8AZZAZ
Abela .. " (a k a AL-BAZAZ
Hllcmlt AbOu"") ..... _
at EducatJon Iraq (Ind ..
vidual) (lRAQr
AL-OAJANI L... N 5 PO 8OJ: 1318 Amman JOt·
din (If'Idnnd ....1) (IRAQ)
AL-DAJANI ... _
S PO 8OJ: 1318 Ammen JOtdan (If'Idnndual) (~QI
AL-OAJANI Sa ad PO Boa 1318 Ammen Jotd."
(nc:lrt>d ....n (IRAQ I
AL-DUU.I", Kha.., .... 8ag~ iraq (tndNocI
UBI) (IRAQI
AL-fNTISAR (It/A) 1 ug 37!CNT QQ. nag (StMe
Org at QQ. PQI1aI (....... ) (IRAQI
AL F'AO (VIANI R~ 800WT w.Qo IIag (S~.
Org at ItIQ< PQI1al 1 _ ) (IRAOI
AL-GA .. A A AllSU. ... IYYA (." a 1Sl.A"1C GA
WA'AT a"a GA .. AAT a". GA"AATAL~'
o.tnct
H*"I.'
APRIL"
,..,
SPEOAUY DESIGNATED NATIONALS & BlOO<ED PERSONS
LAMIYYA, a 11.. THE ISLAMIC GROUP). Egypt
(SOT)
AL GAZEERA BENGHAZI. POBox 2456. Benghazi, Libya [LIBYA)
AL4-iABOBI. Dr Saf. (. k.a AL4-iABUBI, Dr S.ta
H.dl Jawad .• k.a JAWAD. Dr S.ta H.dl, a k..
HABUBI, Dr Sata Jaw.d. e k. AL-HABOBI, Dr
S.ta H.jj J). Mini"" of O~. DOB 01 Jul 46, Flat
40 Thomey Court Palace G.le, Kenalnglon. England. Iraq (lndMdual) (IRAQr
AL4-iABOBI, Dr Sata H." J (. k. AL-HABUBI.
Dr Sata H.dl Jawed .•. k.a JAWAD, Dr S.ta
Hadl, e k.. AL4-iABOBI, Dr Sata. a k .• HABUBI.
Dr Sata H.dl J.wed). Io4lnltlter of Oil, DOB 01 Jul
46, Fla14D Thomey Court P.I.ce Gate, KenalllgIon. England. Iraq (lOdlVldual) (IRA Or
AL4-iABUBI, Dr Safe H.dl J.w.d (a lI..a HABUBI.
Dr Sala H.dl Jllwad, a k .• JAWAD, Dr Sata
H.dl. a k.1I HABUBI. Dr SlIta Jllwad, or a k.. AL·
HASOBI. Dr Salll .• k.1I AL·HABOBI. Dr Safll
H." J ). MIO,.ter of 011. DOB 01 Ju146. FI.t 40
T"omey Court Palace Gate. Kenllnglon. EngIlInd. Iraq (lfIdMdulIl) (IRAOr
AL HAIo4BRA HOLDING COIo4PANY. M.dnd. SpalO
(UBYA)
AL4-iAIo4MADI. Hamid Yul/f (II k.1I HAIo4ADI Hamed
Yuuef). M,n,.ter of Culture lind Inlorm.bon. 100q
(lIldMdual) (IRAQr
AL-HASSAN. Anlll Mlllik Dohan (a k a AL-HASSAN. Anlll .• k II DOHAN. Anas. II k.1I DOHAN,
Anall M.llk .• Ila Io4AUK. Anlll). Jordlln (IndMdulIl) (IRAQ)
AL4-iASSAN. Anlll lo4allk Do"lIn (II II. II AL-HASSAN. Anll5. II k II DOHAN. An1l5. II k.1I DOHAN.
Anll5 104.lIk. II k.a Io4ALlK. Anas). Baghdad. Iraq
(IndMdulIl) [IRAO)
AL4-iASSAN. Wlllban Ibrahim (II k II AL- TlKRITI,
W.tban Ibrahim aI-Hillin .• k. AL- T AKRITI,
Watban). lo4,n,.ter
the Intenor. DOB 1952. Bllghd.d. Iraq (IndlVldu.l) (IRA Or
AL4-iATHER (VIHR) Tug 368DWT Iraqi nag (State
Org 01 Iraqi Ports) (veslel) [IRAQ]
AL4-iIJAZI. 104.''mud. Secrelllry 01 JUltlCe lind PublIC Secunty 01 the Govemment 01 libya. libya.
DOB 19« (Place 01 birth BIIIII. LibYII) (lOdMdual) (lIBYAr
AL4-iINSHIRI. lZZ AI-OIO AI-Mu"lImmad. Secrelllry
of CommunlCllOOna .nd Tranapor1 of the Govemment 01 libya. Libya. DOB 6 Oct 51 (IndlVldu.l)
(lIBYAr
AL-HUWAYSH. IlIIm Rlllhid Govemor of the Centrill Blink. Iraq (.ndlVldu.l) (IRAOr
Al jABBURI Sadl Tume Abbal AdV1&er to the
" .... tdent lor 104~lIIIry Analra DOB 1939. Iraq (Ind,vtOual) (IRA Or
AL JAMAL TRADING EST (BENGHAZI). Beng·
"&ZI. libya [LIBYAI
AL-JIHAD (a Ila JIHAD GROUP a II a VAN·
GUARDS OF CONQUEST II Ila TALAA'AL AL·
FATEH) Egypt (SOT]
AL-JIHIIo4I. Tahir. Secretary 01 Economy .nd Trade
of the G~ment 01 libya. Libya (lndMdual)
(lIBYAr
AL KABIR. 1 Gllddel Om., 101 o.."ta '. POBox 685.
Tnpo~ Libya (Ind ... ldu.l) (lIBYA]
AL-KAFI. lea Abel Sec~ry of Agran.n Relorm.
L.nd Re<:lam.tJon and Anlm.1 Resource. 01 the
G~menl of Libya Libya (If'IdMdu.1) [LIBYA)AL KARAMAH (HNKIo4) Tanker 12 8820WT Iraq,
nag (Iraqi O~ T.n ...... Company) ( _ I ) (lRAO]
AL-KARRKH (YIKH) Tug 3680WT Iraqi nag (Stale
Org of Iraqi Ports) ( _ I ) (IRAQ)
AL-KHAF"-JI Sabah. 2~ Rue Adolphe P.,..ud
Q21eo Antony F'rance (IndlVldu.l) [IRAQ)
AL KHALIDA (HNKO) Tinker 7 1!15OWT Iraqi nag
(Iraqi 0.1 Tankera Company) (v . . . .1) [IRAO)
AL-KHALU .... L-ARABI (YIKA) ServICe 4 7400WT
Iraqi nag (State Org of Inlql PQI1a) (v. . . .I) [IRAQ)
AL-KHOOAIR Ahmad Huaaatn (. k I SAIo4ARRAI.
A"m.d Huuyn Khu4llYlr) .......,..., of Finance.
DOB I~I Iraq (IndIVidual) (lRAOr
AL· .. AHMUDI BagM.dl Secretary
He.lth.nd
SOCIal SIIQ./rty at the Government of Libya. Libya
(If'Idnnd .... 1) [LlBYAr
AL ..... AJID G_nli A~ Hallin (a"'a AL-MAJID
G~I All H .... n) ....n.ter of Defense DOB
I~I S.glldad IraQ (If'Idnnd ... al) (IRAOr
or
or
AL-MAJID, General Ah H .... n (II k II AL-Io4AJID
General All Hellln). Mill'"'' of Delenle; DOB
1941. Baghdad. 100q (indlVidu.l) (IRAQr
AL-MAJID. HUlllyn K.mi. H.llln (a k.a. AL-MAJID
Huneln Kamel H .... n). M ,,""er of Induatry .nd
Io4lnerall.nd Advlaor to the Pr_dent. DOB 1955 .
B.ghdad. Iraq (lndMdua') (IRAQr
AL-MAJID, Huneln KImel H .... n (. k.a AL-MAJID HUllyn KImil H.llln). Min'''er of Induatry
and MlOeOlla end Advltor to the Prelldent. DOB
1955. B.ghdad. Iraq (lndlVidu.1) (IRAQr
AL-MAL. Muhamm.d Bayt Secretary of PlanOing
.nd Finance
the Govemmenl of liby•. LIbV- (in·
dMdual) [LlBYAr
AL-MALEKI. Shebib Lazlm (.k.1I AL ..... AlIKI ShIIblb Lazem). Miniater of JuRice; DOB 1936; Iraq
(IndMdulIl) (IRAQr
AL-Io4AlIKI. Sh.b,b Lazem (a k.a AL-MALEKI Shebib Lazlm), Io4lnl"er of JuatJce; DOS 1936; Iraq (indMdulIl) [lRAQr
AL Io4ANSUR (HNMR) Yachl 1,223DWT Iraqi nag
(Iraqi State Enlerpnae for W.ter Tranaport) (vKael)(IRAQ)
AL Io4ERBIO (yIIo4D) SeMC8 4.64QDWT Iraqi n.g
(State Org of Iraqi Ports) (venel) (IRAQ)
AL 1040SUL (YIAS) SeMC8 1.219DWT Iraqi nag
(State Org 01 Iraqi Porta) ( _ I ) (IRAQ)
AL-MUNTASIR. Umar Muataf., Secretary of People's Extemlll L .. laon and Inlem.lIOn.1 Cooperabon Burellu 01 the Govemment of LibYII. Liby.,
DOB 1939 (Place of birth ",,.urata. libya) (lOd!vidual) [lIBYAr
AL NAJAF (YINF) ServICe 4.740DWT Iraqi nag
(State Org of Iraqi Ports) (vesllel) (IRAO)
AL NASR (DDRH) SeMce 2.444DWT Iraqi nag
(Stllte Org 01 Iraqi Ports) (lIHlel) (IRAQ)
AL NASR (HNNR) Tanker I,S02DWT Iraqi nag
(Iraqi Oil Tanker Company) (veslel) (IRAQ)
AL-NOHOODH (YINU) Tug 375DWT Iraqi nag
(State Org ollnlqi Ports) (vessel) (IRAQ)
AL-OGAIL Y. Akram H . FI.t 2. St Rononl Court. 63
Putney HIli. London. England (lOd ... ldu.l) (IRAQ)
AL OMARAH (YIAW) Tug 320DWT Iraqi n.g (Stele
Org of Iraqi Ports) (veSlel) (IRAQ)
AL PETRA COMPANY FOR GOODS TRANSPORT LTD, (II k II PETRA NAVIGATION AND
INTERNATIONAL TRADING CO LTD) Hai AI
WIIMII Mllhalat 906, 906 Zulllk SO. HOUle ,.
Bllghdad. Iraq (IRAQ)
AL-CADHAFI. lo4ullmm.r Abu Mlny.r. he.d of the
libyan Govemmenl .nd de lacto Chief of Stale.
libya. DOB , 942 (PIIICII of birth' Sirte. Libya) (Individual) (LiBYAr
AL-CADISIYA (HNKS) Yacht l00DWT Iraqi nllg
(Ir.!IQI State E nterpr,.e lor W.'er T ran.port) (veslei) (lRAO]
AL-CASIR Naz.r Jum.h All (. k.. AL-CASSIR NIzlIr Jomllll All). M,n,.ler 01 ImgllllOn, Iraq (IndlVldulIl) (lRAOr
AL-CASSIR. NlZlIr Jomaa All (II k.. AL-CASIR
Naza' Jumllh All). M,n,.ler ollmg.llOn, Iraq (IndlvldulIl) (IRAO)AL-CA'UD, AM AI M.,ld. Secratary of libya'a General People'l Commillee. libya. DOB 1943 (Place
01 bllth Gh.nar. Libya) (IndlVldu.l) [LlBYAr
AL-RAFIDAIN SHIPPING COMPANY, Bombay. Ind,. (IRAQ)
AL RAHMAN. Shllykh Um.r Abel. Chief IdeologICal
FlQure 01 ISLAMIC GAIo4A'AT, DOB 03 .... y 1938.
POB Egypt (IndIVidual) (SOT)
AL RAMADI (ylAY) Tug 3200WT Iraqi n.g (State
Org of Iraqi Ports) (ve&lel) (IRAQ]
AL RASHEeD (YIBE) ServICe 3040WT Iraqi !lag
(Stale Org of Iraqi Ports) (vanel) (IRAQ)
AL-RASHEED BANK (. k. AL-RASHID BANK.
a II. I RASHEED BANK). POBox 7177. H.1fa
Street. B.ghdad. 100q (Illciuding. but nol ~mlled to.
branCtles located III AI-Rullfi Branch. No 505,
AI-Io4.II"f Street. Baghdlld. Iraq. Credit Com me,·
CIIII BranCtl. No 506. Kha~d bin Alwaleed Street
B.ghdad. Iraq. B.lrah Branch. AI Th_rah
Street. No 88. POBox 116, Balrah, Iraq; "caul
Branch. No 3. POBox 183. Mosul. Iraq) (IRAO)
AL-RASHID BANK (a k. RASHEED BANK. a k a
AL-RASHEED BANK). POBox 7177. Haifa
Street. B.ghdad. Iraq (lfIcludlOg. but not ~m«ed to.
brancPIes Ioc.ted ... AI-Rullfi Branch. No 505.
AI-Millin! Street. Baghdlld. Iraq Cred~ Commer-
or
·2·
~ OF FOREIGN ASSETS CONTROL
c.1 Bnlnch. No. 5OC5. Kha~d bin ... lw8leed Street.
Baghdad. Iraq; Ballt1lh Bnlnch .... 1Th_rah
Street. No. 88. PO Box 116. 8allt1lh. Iraq: M05U1
Branch. No.3. P.O. Box 183. Mosul. Iraq) [IRAQ]
AL RA TBA (y IBA) Tanker 544DWT Iraqi nag (State
Org of Iraqi Porta) ( _ I ) (IRAQ)
... L-RESS ...F ... (YIRF) Tug 368DWT Iraqi tIeg (State
Org. of Iraqi Port.) ( _ I ) (IRAQ)
"'L-RIDA. Karwn Ha. .n (aka RIDA Kanm Haa.. n). Mln.ter of "'gnaJlture. DOB 1~4, Iraq (lIldlvidual) (IRAQr
... L-R U 8 .... Dr Khadlm. "anaglng DIrector of REAL
EST... TE BANK: Iraq (IndIVidual) (IRAQr
... L-S ... H... F. Mohammed Said (alla ... L-SAHH ... F
Muhammad Said Kazim). Mln.rer of Foreign ... ,1111,.: 008 1940; Iraq (IfIdivldual) (IRAQr
... L-S ... HH ... F. Muhammad Said KllZlm (a k.a ALSAH ... F Mohammed Said), Mmlaer of Foreign ... ,1111,.: DOB 1~O: Iraq tlndMdual) [IRAQr
AL-S... HIL ..... L-ARABI (HNSA) ServICe 6,396DWT
Iraqi nag (Iraqi State Enterpnae lor Sea F.henes
Ballt1lh Iraq) (v_I) (IRAQI
AL-S ...L1H. Muhammad Mahdl (a k.a SALEH Mohammed MaMI). Mln.ter 01 Trade. DOB 1~7,
Iraq (indIVidual) (IR ... Qr
"'L-SH ... MIKH. "ubarak. Secretary 0' HOUSing and
UtilitJe& of the Government of Libya. LIbYI, DOB
1950 (lIldMdual) [L1By"'r
AL SHU .. OOKH (NIA) Tug 375DWT Iraqi nag
(State Org of lreqi Porta) (veaael) [IRAQ]
... L-T ... KRITI, Barzan IbrahllTl Hnaan (a ka AL-TIKRITI, Barzan IbrahllTl Hlun), ... cIvJ&Or to the Pre.!dent: DOB 17 Feb 51, Geneva, Swttzertand. Iraq
(tndMdual) (IRAQr
AL-T"'KRITI. SabaWI Ibrahim Ha ....n. Baghdad,
Iraq (IndIVidual) [IRAQ)
AL-T"'KRITI, WaIDan (I ka ... L-H ... SS ... N, Watban
Ibrahtm. a k S "'L-TIKRIH Watban Ibrahim a~
Hasan). M,n.ter or the Intenor, OOB 1952. Bagh.
dlld. Iraq (IndIl/IdUIII) [IR"'Qr
AL-TiKRITI, Bllrzlln IbrlIh,m Huan (a Ita AL-T AKRIH Barzan Ibrahtm Ha .... n). Advl.ar to the
PIHldent, DOB 17 F.b 51, Geneva. SwtlZertand
Iraq (IndIl/IdUIII) [lRAQr
AL-T/KRITI. Watban IOrahlm a~Haaan (a Ita ALHASSAN WalDan IOl1lh,m .• ka AL-TAKRITI.
WalDan) W,n.ter of the Intenor, OOB 1952 Baghdad 1I1Iq (,ndll/ldual) (IRAQr
AL-THIRTHAR (YITH) Tanker 524D'NT Iraq' nllg
(State Org 01 Iraq, Porta) (veaael) (IRAQ]
AL-WAHDAH (YI'NH) Tug UQD'NT Iraqi nag (State
Org 01 Iraq, Porta) (veaael) (IRAQ]
AL WALEED (YIBF) Rnellrch D'NT N/A Iraq' nag
(State Org of Iraq' Porta) (veaael) (IRAQ]
AL L4B (YIBH) Tug D'NT NIA Iraq' !'tag (Stata Org
or Iraq' POtta) (.......1) (IRAQ]
Al·V.HRAA (HNNZ) ROIRO 3.Q85OWT II1IQ' IItIg
(Iraq' Stat. Ente~ for Wat., Tran&QOrt) (V...
ael) (IRAQ]
AL-V.NA TI Wuh.mmad. Seaetllry of the G_ral
P.oplll • Cong'"" of Libya. Libya (,nQlI/ldual)
[liBYAr
AL L4WAHIRI Dr Ayman Opera~1 and .. ,lItary
L••.,.,. of JIHAD GROUP. DOe HI Jun 1951
POB GIZa Egypt PaH()Ot1 No I ()6.otOl 0 (Eg~)
(tndMduer) (SOT)
AL L4WRAA (HNZW) Cargo 3 ~~ Iraq, nag
(IraQI Stat. E ~ !of watar T ranlPOl't 8aghdIIC!) ~ (IRAQ]
AL·ZIBARI Arwnad Wuhammad Ahmed Wullammee a m....- 01 ~ ... D08 1~2 Iraq (,nO..,.,·
UBI) (IRAQr
AL·ZUBA YOI Wuhafftmee Ham&a (a II a "l-W·
BAIOI WOI'Iemm~ Hanual Aout'( Pnm. WNaler DOe I~)8 IraQ (tndMdua'i {lRAQr
AL-ZUBAIOI WOI'Ientm~ Hanua (a II. a AL-ZUBAYDI Wuham"'ee Ha", .. ) ~ P"",. W~·
'-r DOe I~)8 Iraq (tnONoOtJar) (IRAQr
'AL-ZU .. AR AbOud (a II. a ZUWAR COlonel AI>bucll I'actJQt\al LMdef of JIHAD GROUP Eg)1lC
Poe EgyoI (~.,...,) (SOT]
ALABIO (I. a SANA8UL) (HNOBl BarQe
I ~OWT w.Q<!Iao (iraQ' State En...pnM lor
W_ TraneDOt1) ~ {IRAQ}
ALAWl ADOe<-Sa.", ADOe<-Ra""'''' (a ka ALL·
AWl S._l G ......, Wa ...ge< of .,.OUSTRIAl
BANK ~ IRAQ iraQ (.no..,.,uel) {lRAQr
SPEOAU.Y DESIGN-' TED NATIONAlS & BLOO<ED PERSONS
ALBA (J8F"9) ROIRQ Cargo 915GT Saint Vincent
nllg ("ontenegro Oversell. NaVIgation Lid) (vesael) [FRY S&M]
ALBAHR ALARABI (a k.a BAR~ON, "V:, Ila. BAHAR AL ARABI, lila. SEABANK) (V3"L6)
FaNCargo 6.953DWT Behzean nag (dllPuted
ownervlIp Baroon ShiPPing Co Lid. Haven Port.
Gibraltar. T L. DaNaa & Co., Lid. Brad/on!. England. Iraq' State Enlerp,.e lor Water Tran.port.
Baghdad, Iraq) (v . . . .I) (IRAQ)
ALEOREESI (HNID) Cargo 3.550OWT Iraqi flag
(Iraqi Stale Enlerpr.. lor Water Tranaport) (V...
HI) (IRAQ]
ALEGRIA DE PIO (NIM.ra Manbma de
Spa,n) (v_I) [CUBA}
ALFAR ...BI (HNFB) Cargo 8.3420Wl Iraqi nag
(Iraqi Stat. Enterpr.. lor Water Tran.port) (vesHI) (IRAQ]
ALFARAHIDI (HNFR) Tanker 149.4410Wl Iraqi
nag (Iraqi O~ Tanke" Company) ( _ I ) (IRAQ]
ALFIDAA (r Ita SILOWA T) (HNFD) Barge
1.562DWT Iraqi nag (IraqI Stale Enterpnte lor
Water Tranaport) (v.,..el) [IRAQ]
ALFONSO, Car10tl (a k a CanOl AtfonlO GONV.LEZ), Panllma (,ndlVldual) (CUBAI
All, All Abdul "utallb, Germany (,ndMdua/) (IRAQ)
ALKADISIYAH (n Ita "ANDAlI) (ylaS) SelVlce
6,Q77D'NT Iraq' nag (State Org of IraqI Porta)
(venel) [IRAQ]
ALKH ... NSAA (HNKN) Cargo 3,525DWT IraqI flag
(Iraqi State Enterprse 'or Water Tl1Inaport) (veste/) (IRAQ)
ALKHAYOUN. Dhtah H , Cha,rman and Genel1ll
Manage, 0' RASHEED BANK, Iraq (IndIVidual)
(IRAQr
ALKINDI (HNKI) Cargo 8,342DWT Iraqi nag (Iraqi
Stale Enlerpnte lor Water Tranaport) (veaael)
(IRAQ]
ALLAWI, Salam, (a k a ALAW! Abdel-Salam AbdelRahman). General Manage, or INDUSTRIAL
BANK OF IRAQ. Iraq ('ndll/ldual) (IRAQr
ALLEN. Peter Franc •. ·GreY5-. 36 Stoughton Lane.
Stoughton, LetCe&tef"ll'l're, England (lndMdual)
(IRAQ]
ALMUSTAN-SIRIYAH (HNMS) Tanker
155,210D'NT II1IQI nag (Iraq' 0,1 Tanke" Company) (veuel) (IRAQ]
ALMUTANAS81 (HNMB) Tanker 130,2.1DWT Iraq'
nag (Iraq, O~ Tanke" Company) (venal) (IRAQ]
ALNAJAF (YINF) ServICe 4.7400WT Iraqi flag
(Stale Org of Iraq' POtta) (venel) [IRAQI
ALOAROI. Carta GlOVlnn,. M'lIIn, Italy (lrtdMdual)
(CUBA)
ALQAOISIYAH (HNQS) Tanker 155,210OWT Iraqi
nag (Iraq' O~ Tanke" Company) ( _ I ) (IRAQ]
ALRAZI (formerly IraQ,-owned. n k a SKY SEA)
(HNRZ) Cargo 8,3;}4 OWl Honduraa flag (PandeB Shlpotng Co SA, Honduflla Managed by
PetB Na"lOatJon & InternatIOnal Trading Co. Ltd .
Amman. Jordan) (v_I) (IRAQ)
ALSUMOOD (yISO) Se""ce 6977D'NT 1I1Iql nag
(State Org 01 Iraq, POtta) (...-.el) [IRAQ)
AL TAAWIN-ALARABI (HNAI) Cargo 13.634OWT
IraQI neg (Iraqi Stete Enlef'pnae 10( Water Tranaport) (~) [IRAQ}
ALUBAF ARAB INTERNA TlONAL BANK E C
(a ka ALUBAF). UGB Tower. Otplomatx: Araa,
P 0 801 t252Q .. anama Bahra., {lIBYA1
ALUBAF INTERNATIONAL BANK - TUNIS (a kl
ALUBAF - TUNIS), W-1iI2 A ....nue Hedl Chllker.
PO 80x ~I, 1002 Tunl.B ....edere, Tun.1II
{lIBYA]
"'LUWINUW COOPERATIVE POOGORICA (II ka
KOWBINA T ALUWINUUWA POOGORICA)
PO B 22.81000 Podgorca Wontenegro (FRY
S& .. ]
ALVAREZ ... anue! (AGUIRRE). Panama (IfIdMdual) (CUBA]
ALWAHDA (HNAD) Barge I 862D'NT Iraq' tIeg
(Iraqi Stal. Entarpr. . for Water Tran.port) (vea-MI) (IRAQ]
ALWAN Allatdlfl HlnU,n (a II a ALWAN. ADa Idm
Hua&a,n) BeghGad It'aQ (tndMdual) (IRAQ]
ALWASITTI (HNWS) Cargo 8 343D'NT IraQ' nag
(IraQI State Enta~ 10( Water Tran.port) (ves&al) (IRAQ)
ALYARWUK (HNYK) Tanker U9.371D'NT Iraqi nag
(ir1KIl Otl Tanker. Company) (vnael) (lR"'Q)
"'roaa.
ALZUBAIR (YIZR) SelVlce 4.640D'NT Iraqi flag
(State Org. of Iraqi Porta) ( _ I ) (IRAQ)
AMAN CO FOR TYRES ... ND BATTERIES. TaJura
Km 19. PO. Box 30737. Tnpob. Libya: (branch)
POBox 23~. BengllZl. Libya; (branch) Tnpo~.
LIbya: (branch) POBox 17157. ".urata. Libya .
(branch) Sabha. Libya rUBY"')
AMARO. Joaqum Ferreira, FraCII Pia X. 54-100 "'ndar CEP 20091. RIO de Janeiro. Brazil (individual)
(IRAQ)
1. .. 0 CO LTD AGENCY. "'1-TaMr Car Parlcing
BuddlflQ. Tahnr Sq. Floor 3. Oftice 33. PO Box
8().44, Baghdad. Iraq (IRAQ)
AMERICAN AIR W ... YS CH ... RTERS, INC.. 1640
Wee.9th Street. Hialeah. Florida. U.S ..... rCUBA)
AMEROP ..... ERCH ... NDISING CORP .. E. .t Rockaway, NY, U.SA. [FRY SiMI
AMURIYAH (HN ..... ) Tanker 155.2100WT Iraqi IItIg
(Iraq, 0,1 Tanker. Company) (v_I) (IR"'Q)
ANA I (NaVIgable Water Corp .. Panama) (veuel)
[CUBA)
ANAINSA (a ka. ABASTECADORA NAVAL Y INDUSTRIAL, S.A). Panama (CUBA)
ANDJrc. Siobodan. Kolazceja 1. 11000 Belgrade.
Serblll (,ndivldual) [FRY S&M)
ANDZIC. RodoljUb; Colonel and Commander.
M,xed HerzegOVina Art Force and Air Detenee Bngade, SRBH Forc. . : Boanla-Herzegovina (tt1dMdual) (SRBH)
ANGELINI, ... lei8ndro Abood. Panllma (lndividulIl)
(CUBA)
ANGLO-CARIBBEAN CO, LTD. (a.k ......VIA 1.. PORT), Ibex Houae, The Mlnoriea. London EC3N
tOY. England (CUBA)
ANGLO-YUGOSLAV BANK (n k.a AY BANK LI .. ITED). London. England [FRY S& .. )
ANO (II ka ABU NIDAL ORGANIZATION. a.lla.
BLACK SEPTEMBER. a.k.a FATAH REVOLUTIONARY COUNCIL.II.k.a. ARAB REVOLUTIONARY COUNCIL; a ka ... RAB REVOLUTIONARY
BRIGADES, a It II. REVOLUTIONARY ORGANIZATION OF SOCIALIST MUSLIMS), Libya; Lebanon, Algerlll: Sudan. Iraq (SOT)
ANSAR ALLAH (aka PARTY OF GOD; a.lla
H\lBALLAH.II.k.8 ISLAMIC JIHAD: a.k.a. REVOLUTIONARY JUSTICE ORGANIZATION: 1I.k.a.
ORGANIZATION OF THE OPPRESSED ON
EARTH; 8.k.a. ISLA .. IC JIHAD FOR THE LIBERATION OF PALESTINE. a k.a. FOLLOWERS
OF THE PROPHET MUHAMMAD). Lebanon
[SDTI
ANTAMALLO SHIPPING CO. LTD. VaNetta. MIlIIa
(CUBA)
ANTARA (YIBD) ServICe 508DWT Iraqi nag (Stale
Org 0' Iraq' Porta) (venel) (IRAQ)
ANTIC. Bozldar, Prealdent 01 SRBH Chamber 01
Commerce, Bosnta-Herzegovlna (lndll/lduel)
{SRBH}
ANTILLANA SALVAGE CO .. LTD. 171 Old Bakery
Street, Vanetta, Malia (CUBA)
APABO (akll ARAB HELLENIC BANK. S"'l. 6088 Syngrou Avenue. GR-117 41 Athen •. Greece,
PO BOI lQ126, GR-I17 10 Athen., Greece .• 3
Penep.bmlOu Streel. GR-IOS 64 Athen •. Greece
{lIBY"'1
APA TEX-APATIN. Industh,aka Zona, 25280 "'palin.
Serbia [FRY 5& .. )
AQUITAINE UBYE. Omar EI Mokhtar Street PO
Box 282, Tnpob. Libya (Oealgnalion appllft only
to JOtnt venlure located ,n libya) {lIBY AI
ARAB BANK FOR INVESTMENT AND FOREIGN
TRADE (a k.a ARB 1FT). AI Waaood Building.
Khakla Street PO 801 7588. Abu Dhabi. U .... E
{lIBYA}
ARAB BANK FOR INVESTMENT AND FOREIGN
TRADE (a k II ARB 1FT). Head OffICe. ARBIFT
Bu~dlflg, Sheikh Hamdan Street P.O. 80x 2464,
Abu Dhabi. U A E. {lIBYA)
ARAB BANK FOR INVESTMENT AND FOREIGN
TRADE (a k.1I ARBIFT)' ... RBIFT Tower. Bamyali
Su-t. PO BOI 5~Q. De,ra, Dubal. UA.E
(LIBYA)
ARAB BANK FOR INVESTMENT AND FOREIGN
TRADE (a k a ARB 1FT). lOIalfan Bin Rallan BUild·
Ing. Khaldll Street, POBox 16003. AI Ain. U .... E
(LIBYA I
ARAB COMMERCIAL INSURANCE COMPANY.
Channel Islands [LIBYA)
-3
OFFICE Of FOREIGN ASSETS CONTROl
ARAB CO FOR IMPORTATION AND MANUFACTURE OF CLOTHING AND TEXTILES, libya
[lIBYA)
ARAB HELLENIC BANK, S A (aka APABO), 8088 Syngrou Avenue, GR-117 41 Athens, G~e,
PO Box 19126, GR-117 10 Athens, Greece, 43
Pene~timlOU Street. GR-105 &4 Athens, Greece
[lIBYA)
ARAB LIBYAN SYRIAN INDUSTRIAL & AGRICULTURAL INVESTMENT COMPANY (a k a SYLICO; a.ka. SYRIAN LIBYAN COMPANY -INDUSTRIAL & AGRICULTURAL INVESTMENTS), 9
Mazze, Autostrade, Damasan, Syna [lIBYA]
ARAB LIBYAN TUNISIAN BANK SAl. (nka
NORTH AFRICA COMMERCIAL BANK SAL ),
P.O Box ~75111, 1st Floor, Piccadlly Centre,
Hsmra Street. Beirut, Lebanon [lIBYA]
ARAB PETROLEUM ENGINEERING COMPANY
LTD, Amman, Jordan [IRAQ]
ARAB PROJECTS COMPANY SAL TO, POBox
7939, Bell'lll, Lebanon [IRAQ]
ARAB PROJECTS COMPANY SAL TO, POBox
1972, Riyadh, Saudi Arabia [IRAQ]
ARAB PROJECTS COMPANY S.A L TO, POBox
1318, Amman, Jordan [IRAQ]
ARAB REAL ESTATE COMPANY (aka
ARESCO), Beirut. Lebanon [lIBYA]
ARAB REVOLUTIONARY BRIGADES (a k a ANO.
Ik.1 ABU NIDAL ORGANIZATION. a k.a
BLACK SEPTEMBER. a k.a FATAH REVOLUTIONARY COUNCIL, a k I ARAB REVOLUTIONARY COUNCIL; I kl REVOLUTIONARY ORGANIZATION OF SOCIALIST MUSLIMS). Libya
Lebanon. Aigerta, Sudan. Iraq [SOT]
ARAB REVOLUTIONARY COUNCIL (a k a ANO.
a.k.I. ABU NIDAL ORGANIZATION. a k.a
BLACK SEPTEMBER. a k.a FATAH REVOLUTIONARY COUNCIL. a k a ARAB REVOLUTION·
ARY BRIGADES. a k.a REVOLUTIONARY OR·
GANIZATION OF SOCIALIST MUSLIMS). Libya
Lebanon. Aigena Sudan. Iraq [SOT]
ARAB TURKISH BANK (a k a ARAP TURK
BANKASI AS. k.. ATB). Va~ Konagl Cad No
10. 80200 Nlstanla •. Istanbul. Tu~y rUBY A]
ARAB TURKISH BANK (a k a ARAP TURK
BANKASI AS. a k.a ATB) POBox 380. 80223
S.. h. Istanbul. Tu~y [UBYA]
ARAB TURKISH BANK (a k a ARAP TURK
BANKASI A S a k.1I ATB). Zlyapaaa Bulvan No
14/A. 01130 Adan. Tur1<ey [lIBYA]
ARAB TURKISH BANK (. k a ARAP TURK
BANKASI AS. k.. ATB) POBox II 01321
Ad.n. Tur1cBy [lIBYA]
ARAB TURKISH BANK (. k a ARAP TURK
BANKASI AS. k.& A TB) Havuzlu Sok No 3
06~0 Augl Ayranci Anora Tur1cBy [lIBYA]
ARAB TURKISH BANK (a k & ARAP TURK
BANKASI AS. k.. A TBl. POBox 38 De532
Cankaya Anora Tur1cBy [lIBYA]
ARAB TURKISH BANK (. k. ARAP TURK
BANKASI AS. k. ATB) Gsz.,.m.npa .... Bu~
v&n No lOll 35210 Aluneak. 12m.,. Tur1<ey
[LIBYA]
ARAB TURKISH BANK (. k. ARAP TURK
BANKASIAS
ATB) PO Box 52 35212
P .upo<1 trm" T ur'l<ey [LIB Y A]
ARAB UNiON CONTRACTING CO POBox
3475 Tnooto Llby. [lIBYA]
ARABIAN GULF OIL COIolPANY (. k. AGOCO)
PO BOt 89l-325 a.n AlIhOur Street TnpoIt
Libya [LIB VA]
ARABIAN GULF OIL COIolPANY (. k a AGOCO)
PO BOt 283 AI K.n BenghaZI LtOya [lIBYA]
ARABIAN GULF OIL COIolPANY (a k . AGOCO)
Sanr FteICI Lib.,. [lIBYA)
ARABIAN GULF OIL COIolPANY (a k. AGOCO)
Wndsot MOUN 42·~ vctona Street London
SWIM ONW Engtend [lIBYA)
ARAP TURK SANKASI A S (. k. ARAB TURK·
ISH SANK. k. AT B)
Konagl C8(l No 10
802CXJ N"'_. _ I T....y [lIBYA]
ARAP TURK SANKASI A S (a k.. ARAB TURK
ISH SANI( • k 8 ATB) PO 801380
S... IaIlInbul T...,.., [lIBYA]
ARAP TURI( SANKASI A S (a k. ARAB TURI(
ISH SA",.: . " . ATB) Zry.pau BulV.n No
141A 01130 A4ana Tu"" • ., [lIBYA]
.k.
V."
eon)
SPEOAlLY DESIGNATED NATIONAlS & BlOCKED PERSONS
ARAP TURK BANKASI A S (a k.a ARAB TURKISH BANK; a k a ATB). POBox 11.01321
Adana, Tur1cBy [lIBYA]
ARAP TURK SANKASI A S (a k.a ARAB TURKISH BANK; a k a ATB). Havuzlu Sok No 3.
06540 Augl Ayrancl, Anlalra. Turlaey [lIBYA]
ARAP TURK BANKASI A S (a k.a ARAB TURKISH BANK; a k a A TB), POBox 38, 06552
Cankaya. Anlalra, Tu~y [lIBYA]
ARAP TURK SANKASI A S (a k.a ARAB TURKISH BANK, a k a ATB), Gszloamanpa. . Bulvan
No 10/1.35210 Aluneak, lzm", Turkey [lIBYA]
ARAP TURK BANKASI A S (a k.a ARAB TURKISH BANK, a k a ATB). PO Box 52,35212 Pu·
aport 12m". Tu~y [lIBYA]
ARBEEL (YIBB) Tug 320DWT Iraqi !lag (State Org
01 Iraqi Ports) (vanel) [IRAQ]
ARBIFT (. k a ARAB BANK FOR INVESTMENT
AND FOREIGN TRADE). AI M.aood Building,
Kh.lrla Street. POBox 7588. Abu Dhabi. U A E
[lIBYA]
ARBIFT (a k a ARAB BANK FOR INVESTMENT
AND FOREIGN TRADE). He.d Office, ARBIFT
BUilding. Shetkl1 Hamdan Street. POBox 2484.
Abu Dhabi. U A E [lIBYA)
ARBIFT (a k a ARAB BANK FOR INVESTMENT
AND FOREIGN TRADE). Khalfan Bin Ralaln
Bu~dmg. Khalrl. Street. POBox 16003, AI Atn.
U A E (LIBYA]
ARBIFT (a k a ARAB BANK FOR INVESTMENT
AND FOREIGN TRADE) ARBIFT Tower. Bano-·
yaa Street. POBox 5549. Delra. DUMI. U.A.E
[lIBYA]
ARCHI CENTRE ICE LIMITED. 3 MandeY1Ue
Place. London. England [IRAQ]
ARCHICONSUL T LIMITED. 128 Buckingham
Place. London 5 England [IRAQ]
ARENAL SHIPPING SA. OlrlCe 803. NIColaou Pen·
ladromos Centre. Penladromos Junctton. lImasW. CYPrus [FRY S&M]
ARESCO (a k.. ARAB REAL ESTATE COM·
PANY). BetrUlLebanon [lIBYA]
ARIFI. Dr Natmeddme Abdana (a k a ARIFI. Dr
Nagmeddln Abdallll), POBox 2134. Tnpoll.
lIbY1l. DOB 21 Nov 47 (IndIVidual) [lIBYA]
ARION SHIPPING CO . LTD. 60 South Streel Val·
letta. Malta [CUBA]
ARMANI. o.no Via San France&OO d·A ..... 10.
IoIllan. Italy VIII Abruzzl 94 IoIllan. Italy. Vtale Ab·
bruZZl 24. IoIllan. Italy. DOB 20 Sep 20 (lndMdual)
[lIBYA]
ARIoIANI Glllmptero. Vlale Abruzzi 94. MIllin. Italy.
DOB 15 Sep 32 (IndIVidual) [LIBYA]
AS IMPEX/AEROSERVIS $ert)!a [FRY SiMI
ASSOCIA TED BANK OF KOSOVO (a k a
UDRUZENA KOSOVSKA BANKA) .u olroc ..
wot1dWt()e [FRY S&M)lndudtng bu1 not Itmrted to
• ASSOCIA TED BANK OF KOSOVO (a k II
UDRUZENA KOSOVSKA BANKA) Roumar1<1
14/1 I I &lOO Franklurt am Mlln 1. Germany
[FRY SaM)
• ASSOCIA TED BANK OF KOSOVO (a k a
UORUZENA KOSOVSKA BANKA) Schauenberg·
etnoue 8 8046 Zunctt SwlI2.".nd [FRY S&M]
ASSOCIA TED BANK OF NOVI SAD (a k.a VO·
JVODJANSKA BANKA d d) ._ ofI'oc~ (Bank 15
heedquatered In Novi S.d VOfVOdIn8 [Serbta))
[FRY S&M]
ASSOCIA TED BELGRADE BANK (. k.& BEO·
BANKA CI d • k a BEOGRADSKA BANKA d d .
• k a UORUZENA BEOGRAOSKA BANKA) all
oIf\CH w()(1dwoOa [F R Y S& 101) InCluding. but not
limited to
• ASSOCIA TEO BELGRADE SANK (. k.. BEO·
SANKA d d . ail. BEOGRADSKA BANKA d d .
• ila UORUZENA BEOGRADSKA SANKA).
Kt.tne BuGefg .... 13. 5000 K.oIn (Cologne) I.
Genn.ny [FRY S&M)
• ASSOCIA TEO BELGRADE BANK (a k.. BEO·
SANKA d d • k. BEOGRADSKA BANKA d d .
• ila UDRUZENA BEOGRADSKA BANKAl.
Kunosgat.., 32NI PO Bot 7592. 103113 Stock·
hOlm Sweden [F R Y S& 101]
• ASSOCIA TED BELGRADE BANK (. ill BEO·
SANKA CI d • k. BEOGRADSKA BANKA d CI •
.... 8 UDRUZENA BEOGRAOSKA BANKA). Ura·
n.. Str. . . 141111 8001 Zunctt Swttle"and [FRY
S&1oI]
• ASSOCIATED BELGRADE BANK (aka BEOBANKA d.d.; a.kl BEOGRAOSKA BANKA d.d,
aka UDRUZENA BEOGRADSKA BANKA), 71
Avenue des Champs-Elyaeea, 75008 Pane,
France [FRY SUI]
• ASSOCIA TED BELGRADE BANK (a. ka. BEOBANKA d.d.; a.k.a BEOGRADSKA BANKA d.d.
a k.a UDRUZENA BEOGRADSKA BANKA).
POBox 3502, Hanrare, Zimbabwe [FRY SUI]
• ASSOCIATED BELGRADE BANK (a.ka. BEOBANKA d d , a.k.a. BEOGRADSKA BANKA d.d.,
a k.a UDRUZENA BEOGRADSKA BANKA). 38
Rue Ait AzII, Algiers. Algena [FRY SiMI
• ASSOCIATED BELGRADE BANK (aka BEOBANKA d.d.; aka. BEOGRADSKA BANKA d.d.;
a ila UDRUZENA BEOGRADSKA BANKA).
D.mrak 28-3OIlV, Amlterdam, Netherland. [FRY
S&M]
• ASSOCIATED BELGRADE BANK (ak.a. BEOBANKA d d . a k.a. BEOGRADSKA BANKA d.d ,
a k.a UDRUZENA BEOGRADSKA BANKA),
Tublngerltraae 72.7000 Stuttgart I, Germany
[FRY SaM]
• ASSOCIA TED BELGRADE BANK (a.k.a. BEOBANKA d d . a.k.a BEOGRADSKA BANKA d.d,
a k.a UDRUZENA BEOGRADSKA BANKA), AI!
Moabrt 74,1000 Bertin 21, Germany [FRY S&M]
• ASSOCIA TED BELGRADE BANK (aka BEOBANKA d d . a k.a BEOGRADSKA BANKA dd,
a k.a UDRUZENA BEOGRADSKA BANKA), SonnenSlraue 121111,8000 MUnich 2. Germany [FRY
S&M]
• ASSOCIA TED BELGRADE BANK (aka. BEOBANKA d d . II k.a BEOGRADSKA BANKA d.d.,
a k.a UDRUZENA BEOGRADSKA BANKAJ, PIazza Velaaca S. MIllin, Italy [FRY SaM]
• ASSOCIA TED BELGRADE BANK (ak.a BEOBANKA d d . a k.a BEOGRADSKA BANKA dd,
a k.a UDRUZENA BEOGRADSKA BANKA), 8593/1V Zell 6000 Franklurt am Main, Germany
(FRY S&M]
• ASSOCIATED BELGRADE BANK (a.k.a. BEOBANKA d d , a k.a. BEOGRADSKA BANKA d d.
II k.1I UDRUZENA BEOGRADSKA BANKA),
Lange Relhe 66. 2000 Hamburg I, Germany
[FRY SaM]
• ASSOCIA TED BELGRADE BANK (aka BEOBANKA d d . a k.e BEOGRADSKA BANKA dd,
a k.a UDRUZENA BEOGRADSKA SANKA),
Droklitre Str 14-16, 3000 Hannover I, Germany
(FRY S&M]
• ASSOCIA TED BELGRADE BANK (a k.a BEOBANKA d d , a k.a BEOGRADSKA BANKA d.d .
II k.a UDRUZENA BEOGRADSKA BANKA). 108
Fenchurch Street, London LEC 3M 5 JJ, England
(FRY S&M]
• ASSOCIA TED BELGRADE BANK (aka BEOBANKA d d . a k.1 BEOGRADSKA BANKA d d .
a k.a UDRUZENA BEOGRADSKA BANKA). Lan·
destrasae-Hauptstra ... 11111. 1030 Vienna, AusIna (FRY SUI]
• ASSOCIA TED BELGRADE BANK (a k.a. BEOBANKA d d ,a k.1I BEOGRADSKA BANKA d d ,
a k.1I UDRUZENA BEOGRADSKA BANKA),
POBox 2869. Tnpob. libya [FRY SaM]
• ASSOCIATED BELGRADE BANK (a k.a. BEO·
BANKA d d , a k.a BEOGRADSKA BANKA d.d ,
a k.a UDRUZENA BEOGRADSKA BANKA). Sok·
olOvai<a 9312p. Prague 8-Ka"tn. Czech Republoc
(FRY SiMI
• ASSOCIATED BELGRADE BANK (a ka. BEO·
BANKA d d . a k.a BEO£.,RADSKA BANKA d d ,
a k.a UDRUZENA BEOGRADSKA BANKA). Kan·
etnoue 3 1.•000 Dusseldorf 1. Germany [FRY
S&t.I]
• ASSOCIATED BELGRADE BANK (a ka BEOBANKA d d , a k.a BEOGRADSKA BANKA d d .
a k.a UDRUZENA BEOGRADSKA BANKAI,
Przed.tawlClelltwo. Alele Roz 5, Waruw, Poland
[FRY SaM]
• ASSOCIATED BELGRADE BANK (aka BEO·
BANKA d d , a k.1I BEOGRADSKA BANKA d d .
a k.a UDRUZENA BEOGRADSKA BANKA). 40
Rue de I'Ecuyer. BTE 8. 1000 Brusaela, BelgIUm
(FRY S&M]
ASSOCIA TED ENGINEERS, England (IRAQ]
- 4.
OFFICI: OF ~N ASSETS CONTROL
ASSOCIATION OF YUGOSLAV RAILWAYS (. k..
ZAJEDNICA JUGOSLOVENSKIH ZELEZNIGA).
Belgrade. Serbta (FRY
ASTERIS SA. INDUSTRIAL a CO .... ERCIAL
CORPORA TlON. Athena. Gnteee (lIBYA)
ASTRO-<lRION. Serbia (FRY sa .. )
ATB (•. k. •. ARAP TURK BANKASI A.S.; •. k..
ARAB TURKISH BANK). V.~ Konagi C.d. No
10.80200 Ni. .ntaa. IatIInbul. Turtaey (lIBYA)
ATB (•. k. •. ARAP TURK BANKASI A.S.; •. k..
ARAB TURKISH BANK). PO. Box 380. 80223
SU, !Canbul. Tunaay (lIBYA)
ATB (•. k.. ARAP TURK BANKASI A.S.; •. k..
ARAB TURKISH BANK). Z'yapa.. Bulvan No.
1<11A. 01130 AaM. Turtcey (lIBYA)
ATB (•. k. •. ARAP TURK BANKASI A.S.; •. k..
ARAB TURKISH BANK), P.O. Box 11. 01321
AaM. Turtaey (lIBYA'
ATB (•. k.. ARAP TURK BANKASI A S .• k..
ARAB TURKISH BANK). H.vuzlu Sok. No 3.
06540 A ..g, Ayranc,. Ankara. Turkey (lIBYA]
ATB (a.k. •. ARAP TURK BANKASI A.S ; •. k.a
ARAB TURKISH BANK). PO Box 38. 06552
cankaya, Anleara. Turtaey (lIBY AI
ATB (.k.• ARAP TURK BANKASI A.S.; a k.a
ARAB TURKISH BANK). Gazro.manpa.. Bulvan
No. 1011,35210 AlUncak. trm,r. Turkey (lIBYA]
ATB (aXa ARAP TURK BANKASI AS. a k.a
ARAB TURKISH BANK). P.O. Box 52. 35212 Pu• port, trmrr. Turtaey (lIBY AI
A TEKS. Belgrade. Serbl. [FRY S& .. ]
ATIA. H.Chim K .. 2 StrattOf'd Place. London WIN
9AE. England (indIVIdual) [IRAQI
ATIA, HaChlm K. H.y AI-Ad". ".hal.~5. Zukak8. No -39. Baghd.d. Iraq (IndlVldu.') (IRAQ]
ATIA. H.Chlm K .. L.ne 15. Are. 902. Hal AI-Wahda, B.ghdad. Iraq (lndlVldu.') [IRAQ]
ATLAS AIR CONDITIONING CO ... PANY LI",'TED.
55 Roebuck Houae. P.'.ce Street. London. England [IRAQ)
ATLAS EQUIP ... ENT CO ... PANY LI ... ,TED. 55 Roebuck Houae. P.,.ce Street. London. Englllnd
[IRAQ}
AUTO BATTERY PLANT. Libya [lIBYA}
AUTO ... OBILE INDUSTRY - CRVENA ZASTAVA
(. k.. ZASTAVA .• k. •. ZAVODI CRVENA ZASTAVA . KRAGUJEVAC). Kragul8Vllc. Serb.
[FRY S&"'J
AUTOPREVOZ. P_evtlll .... onteneoro [FRY S&M}
AUTOTEHNA. Belgrade. Sem.. [FRY S& ... }
AVALA (n ka DAN. I ka GOLD STAR) (J8FN7)
Bulk carner 27069GT Denm.rk (Saint Vincent)
Flag (Leonelli ShIPP.ng) «Sunbow MartJme SA»
(,,".el) [FRY S&"'J
AVALON. S A Colon Free Zone P.nama [CUBAJ
AVIA I"'PORT (a k a ANGLO-CARIBBEAN CO
LTD) lbe. HOUR. Tile .... nonn. London. EON
10'1' Engl.nd (CUBA)
AVIOGENEX "'.lentra PQI)OYICa. 1 1070 Belg~
Seft)4. (FRY 5& ... )
AVIS FAITH reradfteld .... nt'me Co<p Inc. Pan·
ama) (v_I) (CUBA]
AVNOJA 57 Se~ [FRY 5& ... ]
AVRA ... OVIC DragOlllav Governor of Natronal
Bank of YUgo.l.",a 008 ,.. Od 19 Bu"'"
RrrvOlUC ... 15 11000 Belg~ Sem.a 13200
CleYeland ~ RQCkv.ae "'aryl.nd USA (oncI~
vidual) [FRY S&"'J
"'WQA AbO AI Azlz. Choel ~ocal Ftgu1'8 of PAL·
ESTINIAN ISLA ... IC JIHAD· 5HlQAQI ooe
1~ (rnclfW3ual) (SOT)
AY BANK lI... ,TED (f k. ANGLO·YUGOSL.t.V
BANK) LondOn. England [FRY SUI)
"lIZ Fouad H.mz. P..ca Poo X ~.100 AncSar
CEP 200II1 RIO de Janetro. Bralf ('ndlV1Clua l )
(IRAQ]
"lIZ. Tanq .. >Ict\a.1 Deputy Pnme .. In...... ooe
19le Iraq (oncI ... OCS.... ) (IRAQr
"-ZIZIA BOTTLE PLANT. L.,.,. [lIBYA)
AZRAK 5 A Pane"'a (CUBA)
>\ZZAWtYA OIL REFINING CO .. PANY 8enghaZl
AS()t\aII Plant 0CtI0e 8engnazl LIb~ [lIBYA]
AZZAWtYA Oil REFINING CO .. PANY. P 0 BcD
&451 T"OOI Llbva [lIBYA]
B K CO .. PANY (a" a B K HOLDING." a
BRAGA KARIC COWPANY a" a BRAGA
KARIC TRADE CO"PANY . " a BRACE
KARC CO .. PANY . I l . KARIC BROTHERS
5&",
SPEOAU.Y DESIGNATED NATIONAlS & BLOO<ED ~SONS
HOLDING). P.lmlra TolJllblll 3. 11070 Novl
Beograd. Serbia .•nd •••!'/ilated COInpan_
worldwide (FR Y S& .. ,
B K HOLDING (ak.. B K CO"PANY; •. k. •.
BRACA KARIC CO .. PANY; a k .•. BRAGA
KARIC TRADE CO .. PANY. ak.•. BRACE
KARIC CO .. PANY; •. k. •. KARIC BROTHERS
HOLDING), P.lmlra ToIJllbJII 3. 11070 Novi
Beograd, Serbla .• nd a ••!'/ilated compan_
worldwIde (FRY 5& .. )
B K HOLDING JAKUTSK (a k.a B K HOLDING
YAKUTSK), ul. Y.roaillvuaya. d 3011. kv 101.
Yak1Qk, Sibena. RUUla (FRY 5& .. )
B K HOLDING SOUTH GATE. Fedba TowlllW. P.O
Box 30567. Kenya (FRY SaM]
B K HOLDING TASHKENT. ul .....y d.85, Tuhken!, Uzbeloallln (FRY 5&1.1)
B K HOLDING TOBOLJSK (. k.. B K HOLDING
TOBOL YSK). Gomnrca InOSlnlnlh Speayahatov.
km 8. Tobolyak. S-tya m'krorayon. Tyumen,kay.
Oblll't Ru_ [FRY 5&1.1]
B K HOLDING TOBOL YSK (. k.a B K HOLDING
TDBOLJSI(). Goatlnrca InOSlnlnm Speayal.tov.
Ion 8. Tobolyak. S-tya mlkrorayon. Tyumenakaya
Oblll.t. Ruua [FRY S&M]
B K HOLDING YAKUTSK (a k a. B K HOLDING
JAKUTSK). ul Yaroalllvikaya. d 3011. kv 101.
Yakulak. S.bena. RuUl. (FRY S&M)
B K HOLDING ZAPOROZHYE (a.ka B K HOLOING ZAPOROZJE). Proapeid Len,n •. 181. kv 35 .
Zaporozhye. 330006 Ukra,ne [FRY 5&1.1)
B K HOLDING ZAPOROZJE (a k a B I( HOLDING
ZAPOROZHYE). Prospek1 Len,n •. 181. kv. 35.
Z.porozhye. 330006 Ukra,ne [FRY saM]
B I( ING.
RUUla (FRY S&M]
B K TRADE. 51tl VoykovlkJy pr 12. M05COW. RUlSra
125171 [FRY SaM]
B S E GENE)( CO L TO (a ka B S E TRADING
LIMITED). Heddon Hou.e. ,.9·,51 Regent
S~. London. WIR 8HP. England [FRY S& .. ]
B S E TRADING LIMITED (f k.a B S E GENE)(
CO LTD). Heddon House. ,.9·,5, Regent
Street London. WIR 8HP. England [FRY SaM]
BTL (a ka BANQUE ARABE TUNISO·UBY.
ENNE DE OEVELOPPEMENT ET DE COM·
MERCE EXTERIEUR). 25 Avenue Khelredd,ne
Padla. P 0 Bo. 102. 1002 Le Be"'ede~. Tun ...
Tun • • [lIBYA)
BABA GURGUR (HNGR) Tanker 36.397DWT Iraq'
flag (Iraq. O. Tankers Company) (vesael) (IRAQ]
BABIL INTERNATIONAL. Aeroport D'Orty. 94390
Orty AefOgale France [IRAQ]
BABYLON (HNBB) Cargo 13 656DWT lraq,flag
(Iraq' State Enterpnae for Wllter Tran.port) (vessel) (lRAQJ
BADI. "ahmud. Secllltary of PeoOIe', Control and
FOIow-<Jp of the Govemment of libya. libya (rnd.·
vldu.') [lIB YA r
BAaR (N/A) SeMce ~7OWT Saud. Arablan flag
(Government of the Repub~c of Iraq. Mrn,stry of
0 .. State Company for 011 Pl'Ojecta. Baghd.d.
Iraq) (veuetl (IRAQJ
BAGERSKO BROQARSKO PREDUZECE Ha/duk
Ve_tcov Venae 046. 11000 Belgrade. Serb,a (FRY
S&M]
BAGHDAD (HNBD) cargo 13 8560WT IraqI flag
(I,.q' State En1erpnae fOf Water Tranaportl (Y_
ael) (IRAQI
BAGHDAD (YIAD) ServICe 2 9000WT Iraq. nag
(State Oro of l,.q' Porta) (......el) [IRAQJ
BA ..... R AL ARABI (n k a ALBAHR ALARABI.
n k. BAROON. "V. I k.a SEABANI() (V3"L6)
F ~rgo 8 9530WT BelIZean n.g (d'apu1ed
ownerVIlP Baroon Shlpptl'lg Co Ltd. Haven Port.
Gibraltar, T L 0.... & Co . Ltd BradfOrd. England Iraq' State Enteror-lOf Water Tran.port.
B.ghcled l,.q) (y-'l (IRAQ)
BAlI .. A (. k. BANQUE ARABE lIBYENNE "All·
ENNE POUR LE CO ...... ERCE EXTERIEUR ET
LE OEVELOPPE .. ENT. a k.a BANQUE COM·
"ERCIALE OU SAHEL) POBox ~372.
BamakD .. a~ (UBYA]
BAlINEX (. k.. BANQUE ARABE lIBYENNE NIGERIENNE POUR LE CO .... ERCE EXTER·
lEUR ET LE DEVELOPPEMENT. a k.
BANQUE CO ..... ERCIALE OU NIGER. a k a
BCN) PO BOI 11)83 Ntamey Noer [lIBYA]
BAlKAN S\1V8 Rek.a SertMe [FRY S'M]
"O&COW.
BALKANIJA. Belgrade. Serb. (FRY sa .. )
BAL ... (.k.. BANQUE ARABE LIBYENNE MAURI.
TANIENNE POUR LE CO .... ERCE EXTERIEUR
ET LE OEVELOPPE .. ENT; •. k. •. CHINGUETTY
BANK), J.m.' Abdulnaaaer S1reet. P.O. Box 262.
Nouakchott. ".unlltn,. (lIBY AI
BALQEES (HNBL) ROIRO 3,985DWT Iraqi illig
(State Oro.nlZ8tJon for Iraq Government) ( _ I )
(IRAO]
BAL TEX (a k •. BANQUE ARABE lIBYENNE TOGOLAISE DU CO .... ERCE EXTERIEUR; •. 11..
SOCIETE INTERAFFRIGAINE DU BANQUE).
POBox 487 ... Lome. Togo (lIBYA)
BANCO BRASILE/RO-IRAQUIANO S.A .• P..ca Pia
X. !).4.100 And.r CEP 20091. Rio de Janeiro. Bral~ (He.d OffICe .nd City B,..nCh) (IRAQ)
BANCO NACIONAL DE CUBA (•. k. •. BNC; •.
NA TIONAL BANI( OF CUBA), ZweieratraAe 35,
CH-8022 lunch, Switzerland) (CUBA)
BANCO NACIONAL DE CUBA (a.k.a. BNC; •. k.a
NA TlONAL BANK OF CUBA), Avenida de Con·
cha Eapma 8. E·28036 ".dnd. Spain (CUBA,
BANCO NAC/ONAL DE CUBA (a.k.a. BNC; •. k..
NA TIONAL BANK OF CUBA), Dei·lchi Bldg 6th
Floor. 10-2 Nihombaahl, 2-chome. Chuo-ku. Tokyo 103. Japan [CUBA)
BANCO NACIONAL DE CUBA (a.k.a. BNC; •. 11..
NA TlONAL BANK OF CUBA). Fedenco Boyd Avenue & 51 Street P.nama City, panama (CUBA)
BANJALUCKA BANKA d.d. Banja Luke, BosniaHerzegovm. [FRY SaM)
BANK FOR DEVELOPMENT OF KOSOVO AND
METOHIJA. a/l offices worldwide [FRY 5& .. )
BANK FOR FOREIGN TRADE AD (.k. •. JUGOBANKA; •. k .•. JUGOBANKA d.d.; •. k. •. YUGO·
BANKA). a/l ol"flCea worldw,de (FRY 5& .. ) Includ109. bU1 not hmited to:
• BANK FOR FOREIGN TRADE AD (a k.a. JUGO·
BANKA; •. k.8. JUGOBANKA d.d ,a k.a. YUGOBANKA). Argentmen&tnlsae 2211U4·1 1, 1o.cO Vienna. Austn. [FRY 5&")
• BANK FOR FOREIGN TRADE AD (a It •. JUGOBANKA; a k.a. JUGOBANKA d.d . a.k. •. YUGO·
BANKA). Sahabury Hou.e, Fnt Floor (Rooma
378-379). London. EC2 .. 5RT. England [FRY
S&M]
• BANK FOR FOREIGN TRADE AD (a.k.a. JUGO·
BANKA .•. k. •. JUGOBANKA d d.; •. k .•. YUGO·
BANKA). 25. Rue L.uneton, 75116 P.ne. France
[FRY 5& .. )
• BANK FOR FOREIGN TRADE AD (.k.a JUGO·
BANKA. a k.a JUGOBANKA cd. a.k.a YUGO·
BANKA). Kurful1llen,traue 106111, 1000 Berlin 30.
Germ.ny [FRY S&M]
• BANK FOR FOREIGN TRADE AD (.k. •. JUGOBANKA; a ka JUGOBANKA d.d ; a k .•. YUGO·
BANKA). Klosterstraaae 3411 . • 000 Ouaaeldorf.
Germany [FRY S&M,
• BANK FOR FOREIGN TRADE AD (a k.a. JUGOBANKA, •. k.a JUGOBANKA d.d.; a.k.a. YUGO·
BANKA). Goether S1rasae 2111. 6000 Frankfurt am
Main I. Germany (FRY S&M]
• BANK FOR FOREIGN TRADE AD (. k.. JUGO·
BANKA. a k •. JUGOBANKA d d .• k.a YUGO·
BANKAI. Schleduaenbruecke 1.... 2000 H.mburg
36. Germany (FRY S&MI
• BANK FOR FOREIGN TRADE AD (a.k.a JUGO·
BANKA; a k.a JUGOBANKA d d: a k .• YUGO·
BANKA). Georgeatrasae 3613. 3000 Hannover.
Germ.ny [FRY SaM)
• BANK FOR FOREIGN TRADE AD (a k. •. JUGOBANKA. a k.. JUGOBANKA d c'.• k .•. YUGO·
BANKA). clo BFG 1.1.7 m No 16-17. 6800 .. ann·
hem. Germ.ny (FRY S& .. )
• BANK FOR FOREIGN TRADE AD (.k.a JUGO·
BANKA. a k.a JUGOBANKA d.d . a k .• YUGO·
BANKA). Sonnen.uaue 12ftll. 6000 MuniCh. Ger.
m.ny (FRY S& .. ,
• BANK FOR FOREIGN TRADE AD (ak.a JUGO·
BANKA; a k.a JUGOBANKA d d ; a k a YUGO·
BANKA). Am Plaerer 2, 8500 Nuremberg. Ger·
many (FRY 5& .. ]
• BANK FOR FOREIGN TRADE AD (.k.. JUGO·
BANKA; a k.a JUGOBANKA d d . a k.a YUGO·
BANKA). Koenog.traa.e 5-418. 7000 Stuttg.rt 1.
Germllny [FRY S& .. ,
• BANK FOR FOREIGN TRADE AD (. k. •. JUGO·
BANKA: II k.a JUGOBANKA d d . a It a YUGO·
1(."
·5·
$PEOALLY OESIGNATED NAnONAL.S & BlOO<ED PERSONS
BANKA), c/o Yug<»1ev Chamber of Economy,
S. .doun Str., Shalen Bldg., Baghdad, Iraq [FRY
S&M)
• BANK FOR FOREIGN TRADE AD (alla JUGOBANKA; a.lla. JUGOBANKA d d.; a.k.a YUGOBANKA), P.O. Box 2869, Tnpol~ libya [FRY SU4]
• BANK FOR FOREIGN TRADE AD (alla JUGOBANKA; a.lla. JUGOBANKA d.d.; a.lla YUGOBANKA), Slngel 512, AmGerdam 1017 AX, Nether1andl [FRY S&M)
• BANK FOR FOREIGN TRADE AD (a Ila. JUGOBANKA; a.lla. JUGOBANKA dd, a.k.a YUGOBANKA), Kungagatan 55/3, 11122 Stoc:id'IoIm,
SWeden [FRY S&M)
• BANK FOR FOREIGN TRADE AD (aile JUGOBANKA; a.lla. JUGOBANKA d d, a.k.a YUGOBANKA), Zweleralnlaae ,69/" 8003 Zunel'l, Switzerland [FRY S&M)
BANK FOR FOREIGN TRADE AD-SKOPJE (a k a
JUGOBANKA; a.k.a JUGOBANKA d d . a k.a
YUGOBANKA), SkOpje. Former YugOilav Repubhc 01 Maoedonla [FRY SiMI
BANK OF VOJVODINA (a Ila VONODJANSKA
BANKA, d.d.; fila VONODINA BANK-ASSOCIATED BANK. NOVI SAD), Serbia [FRY 5&M), 1111
o1Iion wol1dwlde. Including, but nol limited 10
• BANK OF VOJVODINA (a k.a VONODJANSKA
BANKA, d.d.; fk.a VONODINA BANK-ASSOCIATED BANK, NOVI SAD), PO Box 391, Bulevar
M.rula TIIa 14, 21001 NOV! Sad. V ojVod ,"a. Serb.. [FRY S&M]
• BANK OF VOJVODINA (ak.a VONODJANSKA
BANKA, d.d.;' k.. VONODINA BANK-ASSOCIATED BANK, NOVI SAD), L.ngham HOUle. 308
Regent Stree!, London. WIR SAL. England [FRY
s&M]
• BANK OF VOJVODINA (a k.. VONODJANSKA
BANKA. d d ., Il. VONODINA BANK-ASSOCIATED BANK, NOVI SAD), KaIser StraMe 3. 6000
Frankfurt am Mam. Germllny [FRY SiMI
BANQUE ARABE D'AFRIQUE DU NORD [BAAN]
(a k.1 BANQUE ARABE DU NORD-BAAN .• lUI
N A I B ,a k II NORTH AFRICA INTERNATIONAL BANK. I k.a NORTH AFRICAN INTER.
NATIONAL BANK). POBox 485. 1080 Tun ..
Cedex. Tunl .. a [lIBYA]
BANQUE ARABE D'AFRIQUE DU NORD [BAAN}
(. k.. BANQUE ARABE DU NORD-BAAN .• It.
N A l B . k. NORTH AFRICA INTERNATIONAL BANK. a k.a NORTH AFRICAN INTER·
NA TlONAL BANK). 25 Avenue Khereddone
PIlCh •. Tun. Tun ... [lIBYA}
BANQUE ARABE D'AFRIQUE DU NORD [BAAN}
(a kl BANQUE ARABE DU NORD-BAAN • k.
N A l B . k. NORTH AFRICA INTERNATIONAL BANK. k.a NORTH AFRICAN INTER.
NA lIONAl BANK) POBox 102. Le Belvede<e
1002 Tun. Tun ... [lIBYA}
BAN QUE ARABE 0 AFRIQUE DU NORD [BAAN}
(a ka BANQUE ARABE DU NORD-BAAN .• k a
N A I B a k a NORTH AFRICA INTERNA·
TIONAl BANK. a k.a NORTH AFRICAN INTER·
NATIONAL BANK) Avenue Kh .. redd,ne Pac,,25. Tun •. Tun_ [lIBYA)
BAN QUE ARABE OU NORD-BAAN (a k a
BANQUE ARABE 0 AFRIQUE DU NORD
[8AAN) a It a N A I B a k a NORTH AFRICA IN
TERNA TIONAL BANK a I( a NORTH AFRICAN
INTERNATIONAL BANK) POBox 485 '080 Tu·
nilC-. Tun .... [lIBYA}
BANQuE ARABE au NORD-BAAN (a ka
BANQuE ARASE o AFRIQUE au NORD
[8AANI a It a N A lB. a k a NORTH AFRICA IN·
TERNA TIONAL SANK. a 1(. NORTH AFRICAN
INTERNATIONAL SANK) A"IInIle K.heo~
PICtIa 25 Tun. Tun • • rUBYAI
BANQUE ARABE au NORD-SAAN (. k..
SANQUE ARABE 0 AFRIQUE au NORD
[8AANI • I( a N A l B . 1(. NORTH AFRICA IN
TERNA TIONAl SANK. 1(. NORTH AFRICAN
''''TERNA T IONAl SANK) POBox '02 le Be<vlldeft! l00Z Tun. T un_ rUB YA}
BANQUE ARABE au NORD-SAAN (a k..
BANQUE ARABE 0 AFRIQUE au NORD
[8AANI.I(. NAIB . k . NORTH ... FRICAIN
TERNA T ION"'L SANK. k. NORTH ... FRICAN
INTERN ... T lON"'l SANK) 25 A",,"1Ie KI>e<~
PICtIa T _ Tunaa [lIBY"'1
~L" '18!>
BANQUE ARABE LlBYENNE BURKINABE POUR
LE COMMERCE EXTERIEUR ET lE DEVELOPPEMENT, 1336 Avenue Nelson M.ndela, Ouagadougou, Burkina FalO [LIBYA)
BANQUEARABEL~YENNEMAL~NNEPOUR
LE COMMERCE EXTERIEUR ET LE DEVELOPPEMENT (a k.a BALlMA,. k.a. BANQUE COMMERCIALE DU SAHel, a k a CHINGUETTY
BANK), POBox 2372, Bamako, Ma~ [LIBYA)
BANQUE ARABE LlBYENNE MAURITANIENNE
POUR LE COMMERCE EXTERIEUR ET LE DEVELOPPEMENT (. Ila. BALM), Jamal Abdulnaaler SI1M!, P O. Box 262, Nou.kchott, M.untanlll
[lIBYA)
BANQUE ARABE LlBYENNE NIGERIENNE POUR
lE COMMERCE EXTERIEUR ET LE DEVElOPPEMENT (. k.a SALlNEX,. k.a BANQUE COMMERCIALE DU NIGER, a k.• BCN), POBox
11363. NIamey, NIger [lIBYA]
BANQUE ARABE LlBYENNE TOGOLAISE DU
COMMERCE EXTERIEUR (a k.a BAL TEX, a k.a
SOCIETE INTERAFFRICAINE DU BANQUE),
POBox 4874. Lonle, Togo [lIBYA)
BANQUE ARABE TUNISO-LIBYENNE DE DEVELOPPEMENT ET DE COMMERCE EXTERlEUR (a k.a B TL.), 25 Avenue Khelreddme
Pachll. POBox 102. 1002 Le Belvedere, Tunll,
Tun .... [lIBYA)
BANQUE COMMERCIALE DU NIGER (a k.a BALlNEX, a k.a BANQUE ARABE LlBYENNE NIGERIENNE POUR LE COMMERCE EXTERlEUR ET LE DEVELOPPEMENT. a k.a BCN),
POBox' 1363. NIamey. Noger [LIBYA]
BANQUE COMMERCIALE DU SAHEL (a k.a
BALIMA. a k.a BANQUE ARABE LlBYENNE MALlENNE POUR LE COMMERCE EXTERIEUR ET
LE DEVELOPPEMENT). POBox 2372.
Bam.ko. Mak [lIBYA)
BANQUE FRANCO YOUGOSLAVE. Pllns. France
[FRY S&M]
BANQUE INTERCONTINENTALE ARABE. 67, Avenue Franklin Roosevelt. 75008 Pans. France
[lIBYA)
BANQUE NATIONALE DE YOUGOSLAVIE (aka
NATIONAL BANK OF YUGOSLAVIA. a k.a
NAROONA BANKA JUGOSLAVIJE). Belgrade,
Serbia [FRY S&M)
BANQUE TCH ... OO ARABE lIBYENNE. POBox
104. N'DJllmena C"-d [LIBYA]
BAR (9HSU3) Bulk Carner 17.46OOT Malta neo
(Bar Overse.. ShIPPIng LId ) (velsel) [FRY s&M}
BAR OVERSEAS SHIPPING L TO. Valletta. Malta.
c/o Rogel Shlpm.nagemenl Ltd . Second Floor.
Regency HOUle. Republic Stntet VaUena. Malta
[FRY SiMI
BAROON (. Ie.. ALBAHR ALARABI. I Ie. a BAHAR
Al ARABI. I Ie.. SEABANK) (V3ML6) F&hICargo
6.953DWT Belizean nag (dllOuted ownershIp
Baroon ShIPPIng Co Lid. H.ven Port. G obraltar,
T l DaM ... & Co LId. Bradford. England IraqI
Stale EnterpnM lor Waler Transport. Baghdad.
Iraq) (VIIIMI) [lR"'Q}
BAROON SHIPPING COMPANY LIMITED. Hllven
Court. 5 Library R.mp. Gibraltar (IRAQ)
BASRA (YIAB) Se<VIOe 2 906DWT IraqI nag (State
Org of l,.ql Porta) ( _ , ) (IRAQ)
BASRAH (HNBS) Cargo 13 656DWT IraqI nag
(iraqI State E ntertlflle lor Water Transport) (vea..,)(lR"'O)
BA TtST .... Mtguel P.nam. (IndIVidual) [CUBA I
BA Y INDUSTRIES. INC. 10100 Santa Monoca
BoutevarU. S.nta "onoca. Cail1omlll. US ...
[IRAQ}
BAY ... MO (I k.. NIKSIC) (9HTFJ) Bull Carner
IUI1&G T ..... nag (lovoen Overse... ShIPping
Ltd) 1'0'-') [FRY S&M)
BCN (. k. SA LIN EX .• k.. B ... NQUE ARABE
llBYENNE NIGERIENNE POUR lE COMMERCE EXTERIEUR ET LE OEVELOPPE·
.. ENT • k. BANOUE CO .. MERClAlE DU NIGER .• It. BCN) POBox ',363 NIamey N,·
get' [lIBYA}
BEGEJ SHIPY ... RD T.....~r..u dl\.lm bb. 23000
ZratnJllntn ~ [FRY 5&M}
BEKO Bullrvar VOfVode 8ofO'I'CII 6-8 ,'000 Belg~ Se<t>ta [FRY 5&"}
BELGRADE-PREDUZECE ROSNIH KUCA. Belg~ Se<bta [FRY S& .. }
BELGRADE RAILROAD TRANSPORTATION ORGANIZA TlON (•. k. •. ZELEZNICKO TRANSPORTNO PREDUZECE BEOGRAD), Belgrade,
Serbia [FRY S&M)
BELMEX IMPORT EXPORT CO, LTD., 24 Comer
Regenland King. Streeta, Belize City, Belize
[CUBA)
BENGHAZI CEMENT PLANT, libya [LIBYA)
BENGHAZI EST. FOR BUILDING AND CONSTRUCTION, P.O. Box 2118, Benghazi, libya
[LIBYA)
BENGHAZI LIME PLANT, Libya [LIBYA)
BENGHAZI PAPER BAGS PLANT, libya [LIBYA]
BENGHAZI TANNERY, libya [lIBYA]
BEOBANKA d.d. (a.Il •. ASSOCIA TED BELGRADE
BANK; a k.a. BEOGRADSKA BANKA d.d.; a.k..
UDRUZENA BEOGRADSKA BANKA), •• officeII
worldwIde [FRY s&M)lncludlng, but not limited 10
• BEOBANKA d d (a.k.a ASSOCIA TED BELGRADE BANK; a.k.a BEOGRADSKA BANKA
d d !I k.a UDRUZENA BEOGRADSKA BANKA).
40 Rue de l'Ecuyer, BTE 8, 1000 Bruaelll, BelgIum [FRY 5&M]
• BEOBANKA d d. (ak.a ASSOCIATED BELGRADE BANK; a k.a BEOGRADSKA BANKA
d d . a k.a UDRUZENA BEOGRADSKA BANKA),
PrzedslawlClele:two, AIe,e Roz 5, Waruw, Poland
[FRY S&M)
• BEOBANKA d.d (a.ka ASSOCIATED BelGRADE BANK. a k.a BEOGRADSKA BANKA
d a II ka UDRUZENA BEOGRADSKA SANKA),
Karlltrasae 31, 4000 Dulseldorf 1, Germ.ny
[FRY S&M]
• BEOBANKA d.d (. k.a. ASSOCIA TED BELGRADE BANK. a k.a. BEOGRADSKA BANKA
d d .!1 ka UDRUZENA BEOGRADSKA BANKA),
Sokolov&ka 9312p, Prague 8-1<al1ln, Czech Repub~c [FRY S&M)
• BEOBANKA d.d (ak a ASSOCIATED BELGRADE BANK. a k a BEOGRADSKA BANKA
d d . !I lUI UDRUZENA BEOGRADSKA BANKA),
Drokstre 51r 14-16,3000 Hannover I, Germany
{FRY S&M}
• BEOBANKA d.d (a k.a ASSOCIATED BELGRADE BANK; a k a BEOGRADSKA BANKA
d d . II 11.11 UDRUZENA BEOGRADSKA BANKA).
Sonnen.lralse 12/111, 8000 MunICh 2, Germany
[FRY S&M}
• BEOBANKA d d (aka ASSOCIATED BELGRADE BANK; a.k.a. BEOGRADSKA BANKA
d d , II k.a UDRUZENA BEOGRADSKA BANKA),
85-9311V Zell. 6000 Frankfurt am MaIn, Germany
[FRY S&MI
• BEOBANKA d d (a k II ASSOCIATED BELGRADE BANK; a k.a BEOGRADSKA BANKA
d d . II 11.11 UDRUZENA BEOGRADSKA BANKA).
loa Fenchurcn Streel. London LEC 3M 5 JJ, England [FRY 5&M}
• BEOBANKA d d (a k a ASSOCIATED BELGRADE BANK. !I k a BEOGRADSKA BANKA
d d , a ka UDRUZENA BEOGRADSKA BANKA),
A~ Moabrt 74.1000 Berlon 21. Germany [FRY
s&M]
• BEOBANKA d d (a k.a. ASSOCIA TED BELGRADE BANK. a k a BEOGRADSKA BANKA
d d , a k.a UDRUZENA BEOGRADSKA BANKA).
LandestraMe-Hauptltrlllse 1/111, 1030 Vienna.
Aualna [FRY S&M)
• BEOBANKA d.d (a k.a ASSOCIATED BELGRADE BANK. a k a BEOGRADSKA BANKA
d d . a k.a UDRUZENA BEOGRADSKA BANKA),
POBox 2869. Tnpoh. Libya [FRY S&M)
• BEOBANKA d d (a k.a ASSOCIATED BELGRADE BANK, a k.a BEOGRADSKA BANKA
d d .• k.a UDRUZENA BEOGRADSKA BANKA).
Tublngeratrlllle 72,7000 51uttgart I, Germ.ny
[FRY S&M)
• BEOBANKA d d (a k.a ASSOCIATED BelGRADE BANK. a It.a BEOGRADSKA BANKA
d d . a k.a UDRUZENA BEOGRADSKA BANKA),
POBox 3502, Hamlre. ZImbabwe [FRY SiMI
• BEOBANKA d d (a.k.a ASSOCIATED BELGRADE BANK. a k a BEOGRADSKA BANKA
d d ,a 11.11 UDRUZENA BEOGRADSKA BANKA),
Damrak 28-301lV, Amsterdam, Nethertands [FRY
s&M]
• BEOBANKA d d (a k a ASSOCIATED BELGRADE BANK. a k.a BEOGRADSKA BANKA
OFRCE OF FOREIGN ASSETS c:c:INmOl
d.d.; •. k. •. UDRUZENA BEOGRADSKA SANKA),
38 Rue Ali -'zil. AIg_. Aloena (FRY 5&1011
• BEOSANKA d.d. (•. k. •. ASSOCIA TEO BELGRADE SANK; .k.•. BEOGRAOSKA BANKA
dd,; •. k. •. UDRUZENA BEOGRADSKA SANKA),
71 Avenue des Ch.m~Elysees. 75008 Pans.
France (FRY 5&1011
• BEOSANKA d.d. (•. k.. ASSOCIA TEO BElGRADE SANK; •. k. •. BEOGRADSKA BANKA
d.d; •. k. •. UDRUZENA BEOGRADSKA SANKA),
Klellle Buderg.... 13. 5000 Koln 1, Germany
(FRY 5&1011
• BEOSANKA dd (a.k. •. ASSOCIATED BELGRADE SANK; .k.. BEOGRAD5KA BANKA
d.d.;. k.a. UDRUZENA BEOGRAOSKA BANKA),
PiaZZa Velaca 5. Milan, Italy (FRY S&MI
• BEOSANKA d d. (. Ita ASSOCIA TEO BelGRADE SANK; alta. BEOGRADSKA BANKA
d.d.; alta. UDRUZENA BEOGRADSKA BANKA).
Uran~ Straue 14/111. 8001 Zunch, Swltzenand
(FRY S&MJ
• BEOSANKA d d. (ak.a ASSOCIA TEO BELGRADE SANK; ak.a BEOGRADSKA BANKA
d d; •. lta. UDRUZENA BEOGRADSKA BANKA).
Kungagaten 32NI, PO Box 7592, 10393 Stockholm, SWeden (FRY S&MJ
• BEOSANKA d d. (alta ASSOCIATED BELGRADE SANK; a Ita. BEOGRADSKA BANKA
d.d.; a.lta UORUZENA BEOGRADSKA BANKA),
lange Relhe 66,2000 Hamburg " Germany
(FRY S&MI
BEOCINASKA FABRIKA CEMENTA, Trg lYe Lole
Ribara " 21300 Beoan, SertMa (FRY S&M\
BEOGRAD (n Ila MARIEL) (9HSV3) Bulk Cemer
15,396GT Matte Flag (lovcen Ove,...,.. Shlppong
LId) ( v - I ) (FRY 5&MJ
BEOGRAD AGRICULTURAL COMPLEX PKB.
11213 Padll1aka Skela. Belg,..de. Serbia (FRY
S&MJ
BEOGRAD-PREDUZECE ZA UPRAVA ElEKTROENERGICNIK SISTEMA. Belgrade. Serbia
(FRY S&M\
BEOGRADSKA SANKA d d (a ka ASSOCIATED
BELGRADE SANK; a k.a BEOBANKA. d d ,
a k a UORUZENA BEOGRADSKA SANKA) all
offioH wondw"e (FRY S&M] ",eludong. bu1 not
hmoted to
• BEOGRADSKA SANKA d d (a k a ASSOCIATED BELGRADE BANK a Ill! BEOBANKA
d d . a Ila UORUZENA BEOGRADSKA SANKA)
Kungagalen 32NI. POBox 7592. 10393 Stock·
holm. SWaoen (FRY S&1oI1
• BEOGRADSKA SANKA d d (a k a ASSOCI·
A TED BELGRADE BANK. a Ila BEOBANIU.
d d a Ita UORUZENA BEOGRADSKA BANKA)
,1.11 "'08/)/1 7~ ,000 Berlon 21. German, (FRY
5&1011
• BEOGRADSKA BANKA d d (a k a ASSOCIATED BELGRADE BANK. a It. BEOBANIU.
d d a Ita UORUZENA BEOGRADSKA SANKA)
SokOlovSka 9312p. P~ue ~atl"'. Czec:fl RepubK (FRY 5&101]
• BEOGRADSKA SANKA d d (a k a ASSOCIATED BELGRADE BANK. alla BEOBANIU.
d d . a Ita UORUZENA BEOGRAOSKA SANKA).
40 Rue de rEeu.,.r. BTE 8 1000 BrusMIa BeIOU" (FRY 5&1011
• BEOGRAOSIU. BANKA d d (a k a ASSOCIA TEO BELGRADE BANK a Ita BEOBANIU.
d d alta UORUZENA BEOGRAOSKA SANKA)
~ 31 4000 OuNetOotf '. G .......ny
(FRY 5&1011
• BEOGRAOSIU. SANKA d d (. It a ASSOCIATED BELGRADE BANK. a Ita BEOBANIU.
d d alta UORUZENA BEOGRAOSKA SANKA)
Przacnl8WlC...-...o. Aleje Raz5. Waruw. Poland
(FRY 5&1011
• BEOGRAOSIU. SANKA d d (. k a ASSOCI~TED BELGRADE BANK aka BEOBANIU.
d d altl UORUZENA BEOGRAOSKA SANKA)
loe F enc:f\urCtI SIrMl london LE C ) .. 5 JJ Eng·
lane! (FRY 5&"1
• 8EOGRADSKA SANKA d d I. II a ASSOCIATED BELGRADE BANK a Ita BEOBANIU.
d d aka UORUZENA BEOGRACSIU. SANKA)
Lange R."..
2000 H.mbutg 1 G ...... .".,
(FRY 5&"1
ee
SPEOAUY DESIGNATED NATIONAlS & BlOCKED PERSONS
• BEOGRADSKA SANKA dd (ak.a ASSOCIA TEO BELGRADE BANK, a.It •. BEOBANKA
d d; a k.a. UORUZENA 8EOGRAOSKA SANKA),
85-93/1V Zed, 6000 F,..nkturt am Main. Germany
(FRY S&M\
• BEOGRADSKA SANKA d.d (ak.a. ASSOCIA TEO BELGRADE BANK; a Ila. BEOBANKA
d d; a.lla UORUZENA BEOGRAOSKA SANKA),
LandeltnlAe-Hauptatraue 11111, 1030 Venna,
Auslna (FRY S&MJ
• BEOGRADSKA SANKA d.d. (a.lta ASSOCIATED BELGRADE BANK; a.lla. BEOBANKA
d d , a Ita UDRUZENA BEOGRAOSKA SANKA).
Sonnenstraue 121111, 8000 MUnich 2. Germany
(FRY 5&101\
• BEOGRADSKA BANKA d d. (ak.a ASSOCIATED BELGRADE BANK. a Ita. BEOBANKA
d d . a Ita UORUZENA BEOGRAOSKA SANKA),
Drokatre Str 1(,,16.3000 Hannover " Germany
(FRY S&MI
• BEOGRADSKA BANKA d d (a k.a ASSOCIATED BELGRADE BANK, a.lta BEOBANKA
d d . a Ita UDRUZENA BEOGRADSKA BANKA).
POBox 3502. Harmre, ZImbabwe (FRY S&IoIJ
• BEOGRADSKA BANI(A d.d (alta ASSOCIATED BelGRADE BANK; alta. BEOBANKA
d d , a Ita UDRUZENA BEOGRADSKA BANKA),
Oamrak 28-30IIV, Amsterdam, Nethenanda (FRY
S&IoII
• BEOGRADSKA BANKA d d (aka ASSOCIATED BELGRADE BANK, a.lta. BEOBANKA
d d . a Ita UDRUZENA BEOGRADSKA BANKA),
38 Rue All AzII, Algie,.. Algena (FRY S&M\
• BEOGRADSKA BANKA d d (aka ASSOCIATED BELGRADE BANK. a Ita BEOBANKA
d d . a Ita UORUZENA BEOGRADSKA BAN:<A),
POBox 2869, Tnpo~, Libya (FRY S&MI
• BEOGRADSKA BANKA d d (a k a. ASSOCIATED BELGRADE BANK, a Ita BEOBANKA
d d , • Ita UORUZENA BEOGRADSKA SANKA),
Tubongeratraaae 72,7000 Stuttgart 1. Germany
(FRY S&t.II
• BEOGRADSKA BANKA d.d (a k.a. ASSOCIATED BELGRADE BANK. a Ita BEOBANKA
d d . a Ita UDRUZENA BEOGRADSKA SANKA),
PoaDa Velaaca 5. Wilen, I1aly (FRY S&IoI\
• BEOGRADSKA BANKA d d (a It.a ASSOCIATED BELGRADE BANK, a Ita BEOBANKA
d d a Ita UDRUZENA BEOGRADSKA BANKA),
71 Avenue de. Champa.-Elyaeea, 75008 Pan.,
France (FRY 5&1011
• BEOGRADSKA BANKA d d (a k.a ASSOCIATED BELGRADE BANK,a Ita BEOBANKA
d d a Ita UDRUZENA BEOGRADSKA BANKA)
Utan.. SlnIaae 141111, 8001 Zunch, SWItZerland
(FRY S&1041
• BEOGRAOSKA SANKA d d (II k.a ASSOCIATED BELGRADE BANK. a Ita BEOBANKA
d d a Ita UORUZENA BEOGRADSKA BANKA).
Kle1ne Budergaaae 13. 5000 Kotn 1. Germany
(FRY S&1041
BEOGRADSKA CYPRUS OFFSHORE BANKING
UNIT (COBU), NIOO8I11. Cyprus (FRY S&MI
BEOGRADSKA PLOVID6A (a Ita BEOPLOV),
Len,onov Bulev1lr 165,1.. 11070 Novi Beograd. Ser·
bIa (FRY S&MI
BEOIo4EDICINA. Belgrade. SertMa (FRY S&M)
BEOIo4EDICINA. Vo,aJava Ihea 1~5. 11()()() Bel·
g,..de Serbia (FRY 5&"'1
BEOPLOV (a It a BEOGRAOSKA PLOVIDBA).
Len,onov Bu..... r 165,1.. 11070 Novi f'eograd, Ser·
bIa (FRY S&MI
BERRUIEN. Dr Nun Atxs.I. do ARABIAN GULF
OIL COMPANY. PO Bol 263. Benghazi, Libya,
OOB 18 Mar 4e (ondMdual) (lIBYAI
BETTINA SHIPPING CO. ltd . Valetlll, M.tta
(CU SA I
BEWElL CORPORA TION. INC. Panama (CUBAI
BIG ARENA la k a BIGARENA TRADING LTD),
21 Koala Ou,..nl St. POBox 7001. Lwnanol, Cy·
prus (FRY S&1oI1
BIG ARENA TRADING LTD (a k a BIGARENA
TRADING LTD) Moscow Ruu .. (FRY 5&1.41
BIGARENA TRACING LTD (a k a BIG ARENA).
21 Koala Ou,..nl 51 PO Bol 7001. Lornanol. Cy·
prus (FRY 5&1011
BIGARENA TRADING LTD (a k a BIG ARENA
TRADING LTD) Moscow RUM .. (FRY 5&1041
BIJELO POWE (n.k .•. C. BLANCO) (9HSWl) Bulk
Cemer 17 ,46OGT Matte Flag (8.r Ove,...,.. ShiPpong Ltd.) (veuel) (FRY 5&101)
BIMEl LIMITED. Cyprus (FRY 5&101)
BINGO FRANCE (n.lta. SIMPO FRANCE). 28 Rue
du Pun DOrm. . Sennill 606, 94320 Thia.CEDEX. F,..nce (FRY 5&101)
BIP, BuleY., Vo,vode Putnlkll5. 11000 Belgrade.
Serbia (FRY 5&101)
BJELASICA, Bijeto PoIje, Serbia (FRY S&MI
BJELOJEVIC. Dlagom .. ; Deputy on 5RBH Auembly; Pale, BOMla-Herzegovlna (individual) [SRBHI
BLACK SEPTEMBER (a.k.a ANO; a.lta. ABU NIDAL ORGANIZA TlON; a.k.a. FATAH REVOLUTIONARY COUNCil; a.lta. ARAB REVOLUTIONARY COUNCil; a.k.a ARAB REVOLUTIONARY
BRIGADES; a.lta. REVOLUTIONARY ORGANIZATION OF SOCIALIST MUSLIMS). libya; Lebanon; Algena; 5ud.n; Iraq (SOT]
BLAGOJEVIC, Predrag; Diplomat for SRBH;
nla-Herzegovlna (ondlYidual) (SRBHI
BLAGOJEVIC. SlIInlcD; Deputy on SRBH Auembty,
Bosnla-Herzegovona (individual) (SRBHI
BNC (alta BANCO NACIONAl DE CUSA; a.k.a.
NA TlONAl BANK OF CUBA) Avenlda de Concha
EIIPona 8, E-28036 Madrid. Spain (CUBAI
BNC (ak.a BANCO NACIONAl DE CUBA; a.k.a
NA TIONAl BANK OF CUBA) Zweoeratraaae 35.
CH-8022 ZunCh, Swltzenand (CUBAI
BNC (aka SANCO NACIONAL DE CUBA; a.k.a
NA TIONAl BANK OF CUBA) Federico Boyd Avenue & 51 Street. Panama City, Panama (CUBA)
BNC (a k.a. BANCO NACIONAL DE CUSA; a.k.a.
NA TlONAL BANK OF CUBA) Dai-Iehi Bldg. 6th
FlOor, 10-2 Nlhombaahi, 2-ehome. Chuo-leu. Tokyo 103, Japan (Cuba)
BOILEAU, Poerre, 1078 Rue Champogny, Duvernay.
Quebec, Canada (mdIVldual) (CUBAI
BOJANA. Cebnle, Montenegro (FRY S&M)
BOKA (n Ita KING LION; f k.a. HANUMAN)
(9HUQ3) General Dry Cargo 13.688GT Matte
Flag (Worldwide Ocean Chartering Group (South
Adnabe Bulk ShipPing Ltd.1) (venel) (FRY S&MI
BOKA, Herceg Novi. Montenegro (FRY 5&101)
BOKA OCEAN SHIPPING CORPORATION, MonrOVia, Ubena, cJo Jugoalevenaka Oceanalal
PlOYidba BB, N,egoMYa, P.O. Box 18.85330 Kolar, 1oI0ntenegro (FRY 5&1041
BORIC. GruJO: loIa,or General and Commander,
Second Kra,lna Corp., SRBH Forces, baaed at Or.
Vllf; Bosnia-Herzegovina (mdIVldual) (SRBHI
BORKOVIC, Ratko; Deputy on SRBH Aasembly;
Bo&nla-Herzegovlna (IndiVIdual) (SRBHJ
BOROJEVIC, Siobodan; Colonel and Commander,
Eleventh Infantry Bngade, Forst Krallna Corps.
SRBH Forces; Bosnia-Herzegovina (ondMdual)
(SRBH)
BOR-TOPIONICA I RAFINERIJA BAKRA, Bor, Serbia (FRY 5&1011
BORTOlOTTI (ak.a. A. BORTOlOTTI & CO
S P AI, VIII Predore, 59, 2~067 $amICO, Bergamo, It4ly (L1BYA\
BORTOlOTTI (a k.a A BORTOlOTTI & CO.
5 P A I, Cremona, It4ty (L1BY A)
BOSIC, Bora, IoIln .. ter of Industry and Energy of
SRBH, Bosnia-Herzegovina (IndMdual) (SRBHI
BOUTIQUE LA MAISON, ~2 V,a BraSil, Panama
City, Panama (CUBAI
BRACA KARIC COMPANY (a Ita B K COIolPANY,
a k.a. B K HOLDING, a k a BRACE KARIC COMPANY; a Ita BRACA KARIC TRADE COIolPANY,
a k.a KARIC BROTHERS HOLOING), Palmore
To~aliia 3, 11070 NOYI Beograd. Serb.. , and aUa'fi~aled companIeS worldwide (FRY S&Ml
BRACA KARIC COMPANY, 1~ Uyanovakllya
~0I22 stroyenoe I, loIa.cow. RUUla (FRY S&MI
BRAGA KARIC TRADE COMPANY (ak.a B K
COIolPANY; a.lta B K HOLDING; a.k.a BRAGA
KARIC COMPANY; a.lta BRACE KARIC COMPANY; a.lta. KARIC BROTHERS HOLDING),
Palmira Toilltill 3, 11070 Novi Beograd, Serbia,
and aliamhated companies worldwide (FRY 5&101)
BRACE KARIC COIolPANY (alla B K COIolPANY,
ak a B K HOLDING; a.k.a. BRAGA KARIC COIol·
PANY, a Ita BRAGA KARIC TRADE COMPANY
lI.k.1I KARIC BROTHERS HOLDING), Palmore '
Tol,ab,a 3, 11070 NOYI Beograd. Serbia. arid aU III·
ti~ated companies worldwide (FRY SIMI
eo..
-7·
OFRCE Of' FOREIGN ASSETS CONTROL
BRADFIELD MARITIME CORP, Inc, P.n.m.
(CUBA)
BRDZANIN, R.do.l.v (.k.. BROJANIN, R.doslllv); Mln.ler of Houa.,g .nd Buddmg of
SRBH; POB Ce~NlC Donll, Boal'll.-Herzegov.,a,
Boenia-HerzegovlNI (individual) (SRBH)
BROJANIN, R.d~v (•. k.. BRDZANIN, R.doelav); Miniatar of Houaing .nd Bu~ding of
SRBH; PCB CeliNic Donji, Bosr"a-Herzegovln.,
Boanla-HarzegovlNI (individual) (SRBH]
BREGA INTERNATIONAL MARKETING COMPANY, AI N .... r Stntet. PO Box 4788, Tripoli,
Libya (lIBYA)
BREGA PETROLEUM MARKETING COMPANY,
AIn..ar Street. P.O. Box 402, Tnpoli, Libya
(lIBYA)
BREGA PETROLEUM MARKETING COMPANY.
Azz_iy. Km. 50, PO Box 402, Tnpoli. Libya
(lIBYA)
BREGA PETROLEUM MARKETING COMPANY,
PO Box 1278, Benghazi. Libya (lIBYA]
BREGA PETROLEUM MARKETING COMPANY.
Sayedl Street. PO Box 402, Tnpoll, libya (lIBY A]
BRISA (f.k.a. IVANGRAD) (9HTB3) General Dry
Cargo 13,651GT .. allll Flag (Oktotll OveFMu
Shipping Ltd) (veuel) (FRY SIMI
BRODOGRADllISTE NOVI SAD. Kamenlclca ada
1,21000 Novi Sad. Serb.. (FRY SIMI
BRODOIMPEX. Belgrade, Serbia (FRY SIMI
BUDVA (9HUH3) Bulk Carner 17.397GT Mallll Flag
(South Adnabe Bulk Shipping Ltd ) (veuel) (FRY
SUI)
BUDVANSKA RIVUERA, Budva. Monlenegro (FRY
S&IoI)
BUHA, Dr AleleU; ForelOn MIfII.ter of SRBH. DOB
21 Nov 39; POB GaclcD, Boanla-Herzegovlna.
Boenl.-Harzegovlna (lndMdual) [SRBH]
BUHLER, BNno. 57 Rue du Rhone. CH-1204 Ganev., Swrtzen.nd (indMdual) [IRAQ}
BULK STAR (T k a JUGOIoIETAL) (J8FN8)
OreJ9utklO~ Cemer 79.279GT S.ml Vincent Flag
(LiIIIl. Shipping SA) (\oIHSeI) (FRY S&IoI]
BUNDALO, R.tIeD. Colonel .nd Comm.nder. Flral
Combined Antrtank AltJllery Bnglde. Flral Kra~na
Corpa, SRBH Fon:ea. Boanl.-Herzegavlna (individual) [SRBH]
BURGAN INTERNA TIONAl. KUW1IIt [CUBA]
BUSENTI. loI.rcantonlO (. III BUSENTI. IoIlrcelo)
V. Alain 14 Rome. IIIIly. DOB 30 lollY 38 (ondMdu.l) (lIBYA]
BUSENTI. Marcelo (I .. I BUSENTI. MarcantonIO)
VII Alain 14 Rome Italy DOB 30 loIey 38 (ondMd·
u.') [LIBYA]
BUSHWESHA Abdula" (IndIVidual) [lIBYA)
BUZURGAN (HNBR) Tanker 36 400DWT Iraqi n.g
(Iraqi 0.1 Tanke" Company) (veuel) (IRAQ]
BYE lTD "'oney Hou.e 3'4-322 Regenl Su-t
LOndon WIR !lAE. Engl.nd (FRY S& ... ]
C BLANCO (T .. I BIJElO POLJE) (9HSW3) BuIll
Carner 17 460G T .... Ita F leg (Bar Overaeu St"pping ltd) ( _ I ) (FRY 5'''']
CABALLERO Roger loIonta"" (1 .. 1 Rogef "ON·
TANES .• " a Rage< E~ard DOOLEY). Panama
(IndMdual) [CUBA]
CAL TRAM (I Il I CO",PAGNIE ALGERO-UBY.
ENNE DE TR,t,NSPORT ... ARITI"'E) 21 Rue Oft
Frer" Bouedou 8o""and,.... Algoera AIQana
[lIBYA}
CANAPEL 5 A Plnaml [CUBA]
CANNED FRUIT AND VEGETABlE PRODUCTION OF PRQI(UPUE (_ ~;.. HISAR - FABRI(,t.
ZA PRERADU VQC,t. I POVRCA) Pn)kupIte Ser·
tHl (FRY S& .. )
CARBONICA S,t, Pena"'l (CUBA)
CARIBBEAN EXPORT ENTERPRISE (a II a
CARIBEX a .. a E",PRESA CUBANA DE PES·
CADOS Y "ARISCOS) Pane France [CUBA]
CARI88EAN EXPORT ENTERPRISE (I II I
CARlBEX I .. a E"PRESA CUBANA DE PES·
CADOS Y "ARISCOS) ~_ Ontano canIda rCUBA]
CARI88EAN EXPORT ENTERPRISE (a II a
CARIBEX a Il a E"PRESA CUBANA DE PESCADOS Y "ARISCOS) Cologne Gennany
[CUBA]
CARI88EAN EXPORT ENTERPRISE ,a II a
CARIBEX. a II a E"PRES,t. CUBANA DE PES
CAOOS Y "ARISCOS) TOIrfO J8D8n [CUBA}
APft1L 111 1-'
SPEOALlY DESIGNATED HI.TIONALS & BLOCI<ED PERSONS
CARIBBEAN EXPORT ENTERPRISE (ak.
CARIBEX; a.k.a. EMPRESA CUBANA DE PESCADOS Y MARISCOS) Madnd. Spam [CUBA]
CARIBBEAN EXPORT ENTERPRISE (ak..
CARIBEX, • k a E~PRESA CUBANA DE PESCADOS Y MARISCOS) ~oacow, RUMII (CUBA]
CARIBBEAN EXPORT ENTERPRISE (ak.a
CARIBEX, a k. •. EMPRESA CUBANA DE PESCADOS Y MARISCOS) MUan, IIIIIy (CUBA]
CARIBBEAN HAPPY LINES (a k a CARIBBEAN
HAPPY LINES CO ). Panama [CUBA)
CARIBBEAN PRINCESS (Canbbe.n Pnnoeaa Shipping. CypNa) (v_I) [CUBA]
CARIBBEAN PRINCESS SHIPPING, LTD, Lim.laol. CYPNI rCUBA]
CARIBBEAN QUEEN (Canbbean Queen Shippmg,
CYPNa) (vanel) [CUBA]
CARIBBEAN QUEEN SHIPPING LTD. limauol,
CyPNa (CUBA]
CARIBBEAN SALVOR (Anliliana Salvage Co lid,
~alta) (veuel) [CUBA]
CARIBERIA, SA, Spam [CUBA]
CARIBEX (a k.a CARIBBEAN EXPORT ENTERPRISE. a k.a EIoIPRESA CUBANA DE PESCADOS Y ~ARISCOS) ",lan. IIIIly [CUBA]
CARIBEX (a Ila CARIBBEAN EXPORT ENTERPRISE, a k.a E~PRESA CUBANA DE PESCADOS Y IoIARISCOS) MolCOW. RUl5la [CUBA]
CARIBEX (a Ila CARIBBEAN EXPORT ENTERPRISE. a k.. EIoIPRESA CUBANA DE PESCADOS Y MARISCOS) Downsvoew. Ontano, Caneda [CUBA]
CARIBEX (. Il. CARIBBEAN EXPORT ENTERPRISE. a Ila EIoIPRESA CUBANA DE PESCADOS Y MARISCOS) Cologne. Germany [CUBA]
CARIBEX (a Ila CARIBBEAN EXPORT ENTERPRISE. a Il. EIoIPRESA CUBANA DE PESCADOS Y "'ARISCOS) Tokyo. Japan [CUBA]
CARIBEX (a k.a CARIBBEAN EXPORT ENTERPRISE. a k.. EIoIPRESA CUBANA DE PESCADOS Y ~ARISCOS) P.... FnlnC8 rCUBA]
CARIBEX (. Il. CARIBBEAN EXPORT ENTERPRISE .• k.a EIoIPRESA CUBANA DE PESCADO$ Y ~ARISCOS) Madrid. Spain [CUBA]
CARIBSUGAR INTERNATIONAL TRADERS. SA,
125-133 Cemden High Street. London. NWI 7JR.
England rCUBA]
CARIBSUGAR. SA. Panama rCUBA)
CARISUB. S A Panama rCUBA]
CASA DE CUBA. MexICO. Spain rCUBA]
CASA DEL REPUESTO. P.nama City. Panama
[CUBA]
CASABLANCA (Epam.c Shipping Co . lid . ~alta)
, _ , ) [CUBA]
CASTELL. OlvalOo Anlonlo (VALDEZ). Panama (ondMdual) [CUBA}
CECOEX. SA. Panama City P.nam. (CUBA)
CENTRAL BANK OF LIBYA. A~Fatah Street P 0
Box 1103. T npoll libya [LIB YA]
CENTRAL BANK OF LIB'!' A. Bengl\aZl. Libya
[LIBYA}
CENTRAL BANK OF LIBYA. Sebha. Libya (lIBY A]
CENTRAL CO ..... ERZ CONSUL TING ENGINEERING TRADING G ... 8H. Zeppellnsllee 71, 6000
FnIInldurt go Gennany (FRY S&1oI)
CENTROCOOP (. k. I CENTROCOOP EXPORTI"PORT ENTERPRISE). [FRY S, ... }
CENTROCOOP - BElKA .. EN KavadarCt Serblll
[FRY S, .. }
CENTROCOOP EXPORT -I"PORT ENTERPRISE
(a k.a CENTROCOOP) (FR'!' S& .. )
CENTROCOOP FRANCE EXPORT I.. PORT. 31
Rue St Fa«!lnand. 75017 Pane. Fnllnce (FRY
S&"]
CENTROCOOP G .. BH. WlnlaMleldttf'ltrlllae 21.
4000 Ouueldotf 30 Gennany [FRY $1M]
CENTROCOOP - HLAONJACA BAR. Bar, ~onlene
oro (FRY S&"]
CENTROCOOP - INVEST. Belgnllde Serbia (FRY
5&")
CENTROCOOP IT ALIANA (br'encn oIf1ce). cJo Inlel
Sr1 V .. De.. Greppe 4. 34100 Tneate. IIIIly [FRY
5&"}
CENTROCOOP ITAlIANA. V. VItnMO 43.20124
",.n Italy [FRY 51"]
CENTROCOOP L TO 1151-1&8 Regenl Street. london W1 5TIIl England (FRY 5''']
CENTROCOOP PRAGUE, Gorkeho N16, P~ue,
Czech Republic (FRY 5&~)
CENTROCOOP - PROIZVODNJA, Belgrade, Serbia (FRY S&~)
CENTROCOOP WARSAW, Wervrw, Poland (FRY
SIMI
CENTROEXPORT, Belgrade, Serbia (FRY 5&M)
CENTROMARKET, Belgrade, Serbia (FRY S&M)
CENTROPROOUCT (.k.a. YUGOTOURS), Ellenberg BUltneaa Center, Houae Alia, Tel AvPtl, Iarael (FRY SIMI
CENTROPRODUCT, BARI (•. k.. YUGOTOURS),
VIII PnnCtpe Amedeo 25,70121 Ban, IIIIIy (FRY
SIMI
CENTROPROOUCT HELLAS SARl., Xanthou 5,
Kolonakl Square, Athenl 10673, Gntece (FRY
S&M]
CENTROPRODUCT, ROME (ak.a YUGOTOURS), Via B,uolati 76, 00187, Rome, Italy (FRY
S&IoI]
CENTROPRODUCT SA, cIOren .. 85, Eee. IV,
4A. Mlldnd, Spain 28020 (FRY SIMI
CENTROPRODUCT, SARl. (ak.a. YUGOTOURS S A Rl.), 39 avenue de Fnedland, 75008
Pans. Fnlnce (FRY SIMI
CENTROPRODUCT S.Rl. (ak.a YUGOTOURS),
VIII Agnello 2.20121 Mdan, IIIIIy (FRY S&M]
CENTROPRODUCT, TRIESTE, Vie F.brio Filzi 10,
Tnelle. Italy (FRY S&M]
CENTROPROJEKT, Belgrade, Serbia (FRY S&M]
CENTROPROM, Knez Mlhallova20, 11000 Belgrade, Serb .. (FRY SIMI
CENTROSLAVIJA, Novi Sed, VOfVodlTla (Serbia)
[FRY S&IoI]
CENTROTEKSTlL, Belgrade, Serbia (FRY SIMI
CENTROTEXTll AUSSENHANDELS GMBH, HochItnlS" 48.6000 Frankfurt am Main, Germany
[FRY 5&101]
CENTROTEXTIL AUSSENHANDELS GMBH, Karl'~S" 60. 8000 Munich, Germ.ny (FRY S&M]
CENTROTEXTIllNC, New Yorl<, NY, U.S.A. (FRY
5&M)
CE5TAR (Unknown) ROIRO CargoJFerry 121GT
YugoslaVia Flag (Mo.togradnja - Gradjl!Vno Preduzece) (v ....l) (FRY S&M]
CETINJE (nk.a PLAYA) (9HSY3) Bulk Carner
9.02BGT loIallll Flag (laveen Ove...81 Shipping
Ltd) (veesel) (FRY S&M]
CHAMBER OF ECONOMY OF MONTENEGRO
(II k.. PRIVREDNA KOMORA CRNE GORE),
Podgonca, Montenegro (FRY SIMI
CHAMBER OF ECONOMY OF SERBIA (a.ka
PRIVREDNA KOMORA SRBIJE), Belgrade, Serbia (FRY SIMI
CHAMBER OF ECONOMY OF YUGOSLAVIA
(e k.a PRIVREDNA KOIoIORA JUGOSLAVUE),
Belgrade. Serb.. (FRY S&IoI)
CHAMET IMPORT, SA, Panama [CUBA]
CHAO. Lazaro R , ExecutIVe Director, H.Vllna Inlernational Bank, 20 Iron monger lane, london
EC2V 8EY, England (indiVidual) [CUBA]
CHARALAMBIDES, Kyprol. CYPNa (IndIVidual)
[LIBYA]
CHEIoIPETROL (a k.a CHEIoIPETROLINTERNATlONAL), U5, FlIII 9, Tower Ro.d, Shema, 10111l1li
[lIBYA]
CHEIoIPETROllNTERNATIONAL (III k.1I CHEMPETROL). 145, Fla19, Tower Road. Slema, loIallll
[lIBYA]
CHEMPETROllNTERNATIONAL LTD, 28Lncoin', Inn Fieldl, london WC2A 3HH, England
[lIBYA]
CHEMPETROL INTERNATIONALL TO., 5th Floor.
QUllkty Court. Ch.neery L.ne, london WC2A
lHP. Engl.nd rUBY A}
CHESA. I, Bel. MagheN 24 eillt. AP 18, Sector 1,
Buchare.t, Romani. (lIddrna of EAST POINT
HOLDINGS) (indIVidual) (FRY 5&101)
CHINGUETTY BANK (a k. BALM; BAN QUE
ARABE lIBYENNE MAURITANIENNE POUR LE
COMMERCE EXTERIEUR ET LE DEVElOPPEIoIENT), Jam.1 Abdulnal ..r Street POBox 262.
Nouakchott. Mauntema (lIBYA]
CHOSUNBOHOM (a k a KOREA FOREIGN INSURANCE CO~PANY), 1080 Berlin Glinkaatralle 5. Germany [NKOREA]
CHOSUNBOHOIoI (a k a KOREA FOREIGN INSURANCE COMPANY), 123. Rue dM Ten-
-11-
0FfU OF FOREIGN ASSETS CONTROL
neroIM, 92210 Saint-CIoud, Paris, Flllnce (NKOREA)
CHOSUNBOHOM (a.ka KOREA FOREIGN INSURANCE COMPANY), Unt a.tter.weg 35, CH4008 a... " SWitzertlind (NKOREA)
CICALA, And,.., Plln Liberty No 8,20131 MIlan.
IIIIIy (~d.... at EAST POINT HOLDINGS) (indio
vidutll) [FRY S4M)
CICLON (Senanque Shipping Co, Ltd., Cyprua)
(vnMI) (CUBA)
CIDECO (a.ka. CORPORACION IBEROAMERICANA DEL COMERCIO), Spain [CUBA)
CIMECO, SRL, Milan, ltely (CUBA)
CIMEX (a.ka COMPANIA DE IMPORTACION Y
EXPORTACION IBERIA). Spain (CUBA)
CIMEX, Emenon No. 148 PIaO 7. 11570 MexlOO.
D.F. (CUBA)
CIMEX IBERICA, Spain (CUBA)
CIMEX, SA .. Panama (CUBAJ
CINEX, SingerltJ'e... 218. 1010 Vlanna. Auatna
[FRY S&M)
CIVIL AVIATION AUTHORITY, Shane EI Saidi. Tnpoli. Libya (lIBYAJ
COIBA (aka COMERCIAL IBEROAMERICANA.
S.A.). Spain (CUBA)
COLL. Gabfiel (PRADO). Panema (individual)
(CUBA)
COLLOMBEY REFINERY (a k a RSO; a k.a RAFFINER IE OU SUO-OUEST), CoIIombey. Vala •.
Swltzer1and [L1BY AJ
COLON, Eduardo (BETANCOURT). Panema (lndlviduel) [CUBAJ
COLONY TRADING. SA .. Paname [CUBA)
COMBICK AUSSENHANDELS GMBH. eU offioea
worldwIde. InCludIng. but not ~m.ed 10
• COMBICK AUSSENHANDELS GMBH. LUI..nItraue 46. 1040 Bertin. G8fTnany [FRY S&M)
• COMBICK AUSSENHANDELS GMBH. Thellm::t1enal'ltr1l&ee 2.8000 MunICh. Germany [FRY S&MJ
• COMBICK AUSSENHANDELS GMBH. WlI'Idmueh'-trasae 1. 0-6000. Flllnkfur1am Main. Germany
[FRY SUIJ
COMBICK GMBH. Nauer Mar'oCl1. 1010 Vl8nne.
AURna [FRY S&MJ
COMBICK GMBH. Poat 0ITi0e Box 322079. Io"be'ansae 90. 8004 Zunc::tl. 5wllzer1and (FRY 5&MJ
COMEI. SPA (a k.a COMPAGNIA MERCANTILE
INTERNAZIONALE). MIllin. IIIIly [CUBAJ
COMERCIAL CI"EX. SA. Panem. [CUBAJ
CO .. ERCIAL DE RODAJES Y .. AQUIN ... RIA. SA
(. k.a CRY .. SA). Joae Lazaro G.ldeeno~.
280HI Madnd Spa ... (CUBAJ
COt.lERCIAL IBEROA .. ERICAN .... S A (COIBA)
Spa ... (CUB"']
COt.lERClAl t.lURALLA. SA (. k.. MURALLA.
SA) Pan.ma City Panama {CUBAI
COMERClAllZACION DE PROOUCTOS VARIOS
(. k.a COPROVA. a k a COPROV'" SARl)
Pane Flllnce (CUBAJ
COt.lPAGNIA MERCANTILE INTERNAZIONALE
(. k.a CO"EI SPA). t.I~an. Italy (CUBAJ
COMPAGNIE AlGERO~IBYENNE DE TRANSPORT ..... RITI ... E (. k.a CAL TRA") 21 Rue deS
F _ aou.oou. Btrmandntta. AIgMtl'l. A!gene
rLiB U]
COMPANIA DE COAlICION DEL CO"'ERCIO DE
COREA S'" Panema {NKOREAJ
COMPANIA DE IMPORTACION Y EXPQATACION
I8ERIA (. k a CI ... EX) Spa... (CUBA)
COMPANIA F'ENIX INTERN"'CIONAl. SA Ceraca Venezuete (CUBA J
COMP ... NIA PESOUERA INTERNACIONAL. 5 A .
Panema(CUBAI
COMPRESSED lEATHER BOARD FIBRE PLANT.
TalOOn Libya (LlSYAJ
CONTE)( SA. P.nama (CUBAI
CONTRERAS ... ~ (a k. "Ine ContrwrM ROPERT) Pa,. France (tndMdutll) (CUBAJ
eONTROLBANI( a' oIf1Cft wonowlde (FRY S&MJ
COOBAR Hadl N "enema. a.hf"e.. (~
[l18 U)
COOBAR Hadt N TnPOlo LIIl.,. (Ind....,.,.,) (lI8 YA)
COOPERATIVE PODGORICA Poogonca Wontenegro [FR Y S& M)
C009EX .... l8nne AutItna (FRY S&"J
COPIA. 5 A (a k a CORPORACION ARGENTINA
DE INGENIERIA Y ARQUITECTURA SA) Sen
SPEaAUY DESIGNATED NATlONAlS & BlOCKED ~
Martin 323. 4th Floor, Bueno. Airn. Argenbna
rCUBA]
COPROVA (ak.a COPROVA SARL; a.k.a
COMERCIALlZACION DE PRODUCTOS
VARIOs), Pan.. Flllnce [CUBA]
COPROVA SARL (a k.a. COPROVA; a.k.a
COMERCIALlZACION DE PRODUCTOS
VARIOS), Pan.. Flllnce (CUBAJ
CORINTHIA GROUP OF COMPANIES, Heed Office. 22. Europe Centre, Flonana. "allll [lIBYAJ
CORINTHIA PALACE HOTEL COMPANY LIMITED, De Paule A\l'allue. Attard. lola.. [lIBYA)
CORPORACION ARGENTINA DE INGENIERIA Y
AROUITECTURA. S.A. (a.k.a COPIA). San Ma,bn 323. 4th Floor. Buenoa Aim. Argenbna (CUBA]
CORPORACION CIMEX, SA. Panama (CUBA)
CORPORACION IBEROAMERICANA DEL
COMERCIO (aka CIDECO). Spa., rCUBA]
COTEI. ",lIIn, IIIIly rCUBA)
COTRA BV. J Luykenltraat 12 3HG. 1071 CM Amaterdam. Netherland. (FRY S&"J
COTTY (Heywood N.vtgaoon Corp , Panama) (veeeel) rCUBA]
CREDIBEL. aA o1Ticea worldwIde [FRY S&M)
CRIOlLO (Senanque Shlppmg Co., Ltd, Cyprua)
(veeeel) rCUBAJ
CRNA GORA (9HUL3) Bulk Came, 36.223GT
Malta Flllg (Zeta Ocean ShIppIng Ltd) (v_I)
(FRY 5&MJ
CRNA GORA - NIKSIC. NlkSlC. Montenegro [FRY
s&M)
CRNAGORACOOP. Dlln~ovgrad. Montenegro
(FRY S&MJ
CRUZ. AntonIO Pedro (REYES). MIlan. Italy (indMdual) (CUBA]
CRUZ. Juan M de III. DIrector. Banc:o NaClOnal de
CUba. Dal-Ichi Bldg 6th FIoo,. 10-2 Nlhomba.h,.
2-chome. Chuo-ku. Tokyo 103. Japan (Individual)
{CUBAJ
CRY .. SA (a k a COMERCIAL DE RODAJEs Y
MAQUINARlA. SA). Joae Lazaro Galdaano 6-6.
28016 Madnd. Spam (CUBA]
CRY .. SA - ARGENTINA. SA. Bueno. Atre•. 1'.,_ genbn. rCUBA)
CUBACANCUN CIGARS AND GIFT SHOPS. Cancun .....xlOO (CUBA]
CUBAEXPORT. Spa ... (CUBA)
CUBAFRUTAS. SpaIn (CUBAJ
CUBAN CIGARS TRADE. Italy {CUBA]
CUBAN FREIGHT ENTERPRISE (ak.a CUFLET.
• k a LA Et.lPRESA CUBANA DE FLETES). Rostoek. Germany (CUB"'J
CUBAN FREIGHT ENTERPRISE (a k.a CUFLET.
a k a LA EMPRESA CUBANA DE FLETES). Buenoa AI," A,gentlne {CUBAJ
CUBAN FREIGHT ENTERPRISE (a ka CUFLET.
a k a LA E .. PRESA CUBAN ... DE FlETES). Rot~m. Nether1and. (CUBAJ
CUBAN FREIGHT ENTERPRISE (a k.a CUFlET.
a k a LA EMPRESA CUBANA DE FlETES).
Varna. Bulgan. {CUBAJ
CUBAN FREIGHT ENTERPRISE (a k.a CUFLET.
II k a LA EMPRESA CUBANA DE FlETES) ... oscow. Ruaaa (CUBA]
CUBAN FREIGHT ENTERPRISE (a k.a CUFlET.
a k a LA EMPRESA CUBANA DE FLETES).
Pyongyang. 1(0fM (peopIH Democratic RapubIIC) {CUBAJ
CUBAN FREIGHT ENTERPRISE (I k.a CUFLET.
II k.a LA E .. PRESA CUBANA DE FlETES). Me~100 (CUBAJ
CUBAN FREIGHT ENTERPRISE (. k.a CUFlET.
I l u LA E .. PRESA CUBANA DE FlETES). Sycleon. POland (CUBA)
CUBAN FREIGHT ENTERPRISE (a k.a CUFLET.
a k a LA e .. PRESA CUBANA DE FLETES).
Genoa. Italy (CUBA)
CUBAN FREIGHT ENTERPRISE (a k.a CUFLET.
PRESA CUBANA DE FLETES). Ba,a k a LA
celona. Spa.. (CUBA)
CUBAN FREIGHT ENTERPRISE (a k.a CUFLET.
• k a LA E .. PRESA CUBANA DE FLETEs).
"omr.el Canada (CUBAJ
CUBAN'" AIRLINES (a ka EMPRESA CUBANA
DE AVIACION).
1fl)Ort. Luanda. Angola
(CUBA)
e..
s... ...
CUBANA AIRLINES (a.k.a EMPRESA CUBANA
DE AVIACION). 32 Main Street. Georgetown.
Guyana (CUBA]
CUBANA AIRLINES (a.ka. E .. PRESA CUBANA
DE AVIACION), 24 Rue Ou Qutln Septembre.
Pana. Flllnce rCUBA)
CUBANA AIRLINES (a.k.a. EMPRESA CUBANA
DE AVIACION), c/o Anglo-Caribbean Shipping
Co. Ltd. Ibex Houee, The .. inori. ., London
EC3N 1DY, Englllnd (CUBA)
CUBANA AIRLINES (ak.a. E .. PRESA CUBANA
DE AVIACION), Flllnkturter TOR B-A, BertIn. Germany (CUBA)
CUBANA AIRLINES (a.k.a E"PRESA CUBANA
DE AVIACION), Corrien," S.5 Primer Piea. Buenos Ailft, Argenllna (CUBA]
CUBANA AIRLINES (a.k.a. E .. PRESA CUBANA
DE AVIACION). Dobrininakaya No.7, Sec 5. Moerow. RUMia (CUBA)
CUB ... NA AIRLINES (a.k.a EMPRESA CUBANA
DE AVlACION), 1 Plllce VIMe "arie. Suite 3431.
Montreal. Canada (CUBA)
CUBANA AIRLINES (a.ka. EMPRESA CUBANA
DE AVIACION), Panzaka 17, Plllgue, Cz~1o
\laloa (CUBA]
CUBAN ... AIRLINES (a.k.a E .. PRESA CUBANA
DE AVIACION), Perco AtrpOrt. Port au Prinoe,
Harti{CUBA)
CUBANA AIRLINES (ak.a. EMPRESA CUBANA
DE "'VIACION), Calle 29 y Avd. Juelo AroMmena. Panama City. Panama [CUBA)
CUBANA AIRLINES (a.k.a EMPRESA CUBANA
DE AVIACION), Norman Manley International Airport. Klnglton. Jamaoca rCUBA)
CUBANA AIRLINES (a.k.a EMPRESA CUBANA
DE AVIACION). Paaeo del. Repub~ce 126.
lima. Pe,u rCUBA]
CUBANA AIRLINES (a ka. EMPRESA CUBANA
DE AVIACION). Melchor Ocampo 469, 5DF .. exICO CIty. MexICO rCUBA]
CUBANA AIRLINES (a.k.a. EMPRESA CUBANA
DE AVIACION). M.dnd. Spain (CUBA)
CUBANA AIRLINES (a.ka EMPRESA CUBANA
DE AVIACION). Glllntley Adame Airport, Qllilt
Church. Barbadoa (CUBA]
CUBANI'. TUR, Balli California 255. Edificio B.
OrlClna 103, Cond... 06500, Mexico, D.F. (CUBA]
CUBATABACO, Spain (CUBA)
CUBATUR (a k.a. EMPRESA DE TURISMO NAClONAL Y INTERNACIONAL), Buenoa Aim, A,gentlna (CUBA)
CUENCA. Ramon Ceaa'. Panama {CUBA]
CUFLET (aka LA EMPRESA CUBAN A DE
FLETES. a k.a THE CUBAN FREIGHT ENTERPRISE). Genoa. Italy (CUBA]
CUFLET (aka LA EMPRESA CUBANA DE
FlETES; a.k a THE CUBAN FREIGHT ENTERPRISE). Pyongyang. Korea (peoplea Democratic
RepublIC) (CUBA)
CUFlET (a 1<.a LA EMPRESA CUBANA DE
FLETES, a k.a. THE CUBAN FREIGHT ENTERPRISE). Barcelona. Spain (CUBA)
CUFLET (a k.a. LA EMPRESA CUBANA DE
FlETES. a k a THE CUBAN FREIGHT ENTERPRISE). Syczeclfl. Poland (CUBA]
CUFLET (a ka LA EMPRESA CUBANA DE
FlETES. a k a THE CUBAN FREIGHT ENTERPRISE). Buenoa A ..... Argentln. rCUBA)
CUFlET (. k.a. LA E .. PRESA CUBANA DE
FlETES. a k.a. THE CUBAN FREIGHT ENTERPRISE). Vama, BOllgane (CUBAJ
CUFlET (a k.a LA EMPRESA CUBANA DE
FLETES; a k.. THE CUBAN FRElGHT ENTERPRISE). Roatock. Germany {CUBAJ
CUFlET (a.k.a. LA E .. PRESA CUBAN A DE
FlETES. a k.a. THE CUBAN FREIGHT ENTERPRISE). Moaoow. Ru...a (CUBA)
CUFlET (aka LA E .. PRESA CUBANA DE
FLETES. a k.a THE CUBAN FREIGHT ENTERPRISE). "ontreal. Caneda ICUBA)
CUFLET (a k.a LA EMPRESA CUBANA DE
FLETES. a k a THE CUBAN FREIGHT ENTERPRISE) "exlCo (CUBA]
CUFLET (a k.a. LA EMPRESA CUBANA DE
FLETES. a k a THE CUBAN FREIGHT ENTERPRISE). Rotterdam. Nether1ande (CUBA)
CUMEXINT. SA. 1649 Adolo Pneto. Colonia del
Valle. Mexloo City. Mexloo (CUBA]
OFFICE OF FOREIGN ASSETS CONTROl
CUREF METAL PROCESSING BV, Boezembolchl
23, Rotterdllm, Netherlanda (CUBA)
CVUANOVIC, ZeljlcD; Hud of Srpalea NOIIlnalea
Agena.. (SRNA) N-. Agency in Belgrade; Belgrade, SerbIa (individual) (SRBH)
DAFIMENT BANK, all oIficea woridwlde (FRY S&M)
DAGHIR, AI Aahour, 2 W . .em Road, WesI8m
GIMII, Thllm. . DIllon, Surrey, Englend (indMduel)(IRAQ)
DAHAIM, Ayed S, Vall Konagi Ced No 10,80200
NIaIantaa, letanbul, Turlcllly (IndlYidual) (LIBYA)
DAMASCUS (YIOS) Tug 1490WT Iraqi nag (Slate
Org. at l,..qi Porta) ( _ I ) (IRAQ)
DAMEN GORINCHEM 5716 (N/A) ServICe DWT
NIA Iraqi flag (Slaw Org at Iraqi Porta) ( _ I )
(IRAQ)
DAMEN GORINCHEM 5717 (N/A) ServICe DWT
NIA Iraqi flag (State Org or l,..qi Porta) ( _ I )
(IRAQ)
DAMEN GORINCHEM 5718 (N/A) ServICe DWT
NIA Iraqi nag (Slate Org or Iraqi Porta) ( _ I )
(IRAQI
DAN (Uta. GOLD STAR; rita AVALA) (J8FN7)
Bulk Cerner 27,069GT Denmark (Selnt Vincent)
Flag (Laoneia ShIPPing) «Sunbow ManllMe SA))
( - ' ) (FRY SaM)
DANILOVGRAD (n Ita. VEDADO) (9HSZ3) Ore
Cerner 15,396GT Malta Flag (LOIIcen O~raell&
Shipptng Ltd) ( _ I ) (FRY SaM)
DANJAN INC. (alta. DAN JAN INTERNATIONAL
INC), L4B 3H7 15 Wertheim Court. Suite 408.
Richmond Hili, Toronto. Onlano, Cenada (FRY
SaMI
DANJAN INTERNATIONAL INC (a Ita DANJAN
INC), L4B 3H7 15 Wertheim Court. Suite 408.
Richmond HIA, Toronto. Onlano, Cenada (FRY
SaM)
DANUBE (a k.a. DUNAV), Smederevo. Serb.. (FRY
SaM)
DE BOCCARD. Ph~lPpe (a Ila DE BOCCARD.
Ph~~pe). 44 Avenue Kneg. Ganevl. SwItZerland
(IIldMdual) (IRAQ)
DE BOCCARD. Ph~hpe (a Ie. a DE BOCCARD.
Ph.lPpe), 44 Avenue Kneg. Geneva. SwltZertand
(lndMdual) (IRAQ)
DE FRANCE. Naomi A . Cubanatur. Ba,. Celfomlll
255, Edlfloo B . Of1clf'la 103. Conde&a 06500.
MaxlCo. 0 F (IndIVidual) (CUBA)
DELGADO. AntoniO (ARSENIO) Panama (IndlVld·
ual) (CUBA)
DELVEST HOLDING S A (a Ila DELVEST HOLDING COMPANY). Cew Postale 236. 10 BII Rue
DuVoeUI CoUege 12·11. Geneva SwItZerland
(CUBA)
DEMOCRATIC FRONT FOR THE LIBERATION
OF PALESTINE (a k a DEMOCRATIC FRONT
FOR THE LIBERATION OF PALESTINE· HA·
WATMEH FACTION. a Ie. a OFLP). Lebanon.
Syna. larael (SOT I
DEMOCRATIC FRONT FOR THE LIBERATION
OF PALESTINE· HAWA TMEH FACTION (a Il.
DEMOCRATIC FRONT FOR THE LIBERATION
OF PALESTINE. a Ila OFLP). Labanon. Syna Ia·
rae! (SOT)
DEPROSA S A (a Ie. a DESARROLLO DE
PROYECTOS SA) Panama Cly. Panama
(CUBA)
DES-SUBOTICA. Gavnla Pnnaoa 8.24000
SubotJc;a. Safboa (FRY SaMI
DESARROLLO DE PROYECTOS S A (a Ie. a DEP.
ROSA. SA) Panama CIty Panama (CUBA I
DESARROUO INDUSTRIAL CUBANO ESPANOL
S A (a Ila DICE SA) Paaeo De u Ceatelana
157. Madnd Spalf'l (CUBA)
DESARROUO INDUSTRIAL CUBANO ESPANOL
S A (I Ila ~SA) JON Lazaro caldeano ~
28016 Madod SI)U' (CUBA)
DEYALA (YIBJ) Tug 3500WT iraq. nag (Sta18 Otg
of Iraq. Porta) (.....at) (IRAQI
DFLP (a Ila DEWOCRATIC FRONT FOR THE LIB
ERATION OF PALESTINE - HAWATWEH FAC·
TION. a Ila DEMOCRATIC FRONT FOR THE
LIBERA TlON OF PALESTINE) labllnotl Syna
lirael (SOT)
DIAl.. ROlandO (GONZALEZ) Frankfurt. G_.,..,
(IndMdual) (CUBA)
APltll18 1...
SPEOAllY DESIGNATED NATlONAlS & BLOO<ED ~SONS
DICESA (ak a DESARROLLO INDUSTRIAL CUBANO ESPANOL, SA), Joae Lazaro Celdeano,
6-6,28016. Madnd, Spain (CUBA)
DICESA (a k a DESARROLLO INDUSTRIAL CUBANO ESPANOL, SA), Paaeo De u Ceatelana
157, Madnd, Spalf'l (CUBA)
DIJLAH (HNDJ) Tug 3560WT lraqillag (Stata Org
ot Iraqi Porta) ( _ I ) [IRAQ)
DIKOMBAU GMBH (branch ofI'ice), Flendrictler
Straaae 13-15, 5000 KoIn, Germany (FRY S&M)
DIKOMBAU GMBH, Lager Wag Hi, 6000 Frankfurt
am Main, Germany (FRY SaM)
DIMONT GMBH (alla DIMONT MONTAGE UNO
BAU GMBH), Wtlheim-Leuachner-Straaae 68,
6000 Frankfurt am Malll, Germany (FRY S&M)
DIMONT MONTAGE UNO BAU GMBH (alta 01MONT GMBH), Wilheim-Leuachner-Straaae 68.
6000 Frankfurt. Germany (FRY S&M)
DINARA. Belgrade. Serbra (FRY S&IoI)
DIP (e k.a DRVNO INDUSTRIJSKO PREDUlECE). Belgrade. Serb.. (FRY S&M)
DIVING LAUNCH 1 (N/A) ServICe DWT NIA Iraqi
nag (State Org ot Iraqi Porta) ( v - I ) [IRAQ)
DIWANIYA (YIBK) Tug 350DWT Iraqi nag (State
Org or Iraqi Porta) ( _ I ) (IRAQ)
DJOKANOVIC. Dragan, Mlnllter or Veteranl' laauea or SRBH. Boanla-HerzegOll .... (lIldMdual)
(SRBH)
DJUKIC. D,ord,e. MaJOr General and Chief ot Logl5bCl, SRBH Fon:ea. Boan .. -HerzegOVina (IndIVidual) (SRBH)
DOCKAN (YIDN) lanker 528DWT Iraqi nag (Slate
Org or Iraqi Porta) ( _ I ) (IRAQ)
DODIK. M~rad. Deputy In SRBH Aaembly: Bania
Luk.a. Boanoa-Herzegovona (IndIVidual) [SRBH)
DOHAN. Anal Ma~k (a Ila. AL-HASSAN. Anas,
a Ita Al-HASSAN. Anal Ma~k Dohan, a.k.a DOHAN. Anaa. a Ila MALIK. Anas) , Baghdad. Iraq
(If'IdMdual) (IRAQ)
DOHAN. Anaa Wa~k (a Ila AL-HASSAN. Anal;
aka Al-HASSAN. Anal Makk Donan, a.lta DO·
HAN. An ... a Ila MALIK. Anas). Jordan (IndlVld·
ual) [IRAQ)
DOLPHINA BANK. all offices wol1Cwlde (FRY S&M)
DOMINGUEZ, caroa. V,nalea Toura. Oaxaca SO,
Roma. 1.4 ax 100. 0 F (IndIVidual) (CUBA)
DOMINION INTERNATIONAL. England [IRAQ)
DOOLEY. WlChaeI P , Panama (IndIVidual) (CUBA)
DOOLEY. Roger E~ard (a k.a Roger Montan"
CABAUERO. a k.a Roger WONTANES). Panama (If'IdMdual) [CUBA)
DRAKULIC loran DOB 15 Apr 53. Cap~ol Center.
81rl Floor. Noco.Ia Cyprul (If'IdMdual) (FRY S&M)
DRVNO INDUSTRIJSKO PREDUlECE (a k a
DIP) Belgrade Sertlta (FRY S&M)
DRVOIMPEX. Podgonca. Montenegro (FRY S&M)
DRY BATIERY PLANT. Libya (LIBYA)
DUMP BARGE I (JaIY) ServICe 1 .330DWT Glbra"er
!lao (Whale ShIPPIng Ltd . c/o Stata Org of Iraqi
POtts) (vessel) (IRAQ]
DUMP BARGE II (Jail) ServICe 1.l3OOWT GIbrIIter nag ('Whale SIlipponQ lid . c/o State 0 rg of
QQI POtts) ( _ _ I (IRAQ)
DUMP BARGE III (J8JA) 5efVIC8 1.33OOWT G,bral·
liar nag ('Whale sn.ppong lid . c/o Stall Org or
QQ. POtts) (..... ) (IRAQ)
DUNAII (a Ila DANUBE). Sm-..vo. $er1)oa (FRY
S&W)
DUNAV TISA DUNAII (a k a DUNAV·TlSA·DUNAV)
r Wa ... 1a Tna 25 21000 Novo Sad.
IIOfVodNl 'SertMa) (FRY S&W)
DUNAV· I ISA-OUNAII (a k a DUNAV TISA DU·
NAil). e..var Wa ... 1a llta 25. 21000 Novo Sad.
II OfVodona (Sarboa) (FR Y S& W)
DUQUE. caroa Jeen. Panama (If'IdMduel) (CUBA)
DURAND PROPERTIES LIMITED. H ....en Court. 5
Ltt".ry Ramp Gibraltar (IRAQ)
DURDA. Abu Zayd Umar. AMalan( Sectwtary of
L~ I G-.J PaooIe I Congrna. Libya (If'IdMd·
ual) (L!BYAr
DURGACO. lonoon. England (CUBA)
DURWITOR (9HUR3) Ganaql Dry cargo 12.375GT
"alta Flag (SouUI CIa. SIlippong Ltd ) (v-I)
(FRY saM)
OUVANSKA INDUSTRUA N. Sarboa (FRY S&M)
OUVANSKI KOMBINA T POdgOnCa Wontenegro
(FRY S&M)
au.....
EAST ISLAND SHIPPING CO, LTD., lImaaaol, Cyprul (CUBA)
EAST ISLANDS (Ealt lalend Shipping Co., ltd, Cyprul) (veaael) [CUBA)
EAST POINT HOLDINGS LIMITED, 8th Floor, Flat
803, 2 Archbtahop Malcano. Avenue, Cep..1 Centre, NlCOIia, Cyprus (FRY S&M~ a. otrlcn and aflihal" wOridwlde, If'ICludlng, but not ~mltad 10:
• EAST POINT HOLDINGS, Llindmartc Tow.ra,
Dong Sen Huan Beilu, No.8, 20th Floor, Room
2003. Poatal Code 1()()()()4, Baijing, Chl/lll (FRY
S&M)
• EAST POINT HOLDINGS, Belgrade, SerbIa (FRY
S&M)
• EAST POINT HOLDINGS, Bd MaghenJ 24 et lit,
AP. 18, Sector 1, Buchareat, Roman. (FRY SaM)
• EAST POINT HOLDINGS (a.lta. 1.4 POINT KFT),
Inlemabonal Trade Center, Baay-Zalhazlcy
12/304. Budapelt, V-1051 Hungary (FRY S&M)
• EAST POINT HOLDINGS, Vul. Pronz/lll 13,
POM 06. KIeV. Ukraine (FRY S&M)
• EAST POINT HOLDINGS, 17 Albemarle Street.
Mayfair. London WI)( 3BA, England (FRY S&M)
• EAST POINT HOLDINGS, Plaza Liberty No.8,
20131 Milan, Italy (FRY SaM)
• EAST POINT HOLDINGS, 20 Mantu~nlkaya
Street. App 16, Moscow, Ruara (FRY SaM)
• EAST POINT HOLDINGS, Dey Building, Buchareal Avenue, OIH Alley No. 1/17, Apt 8, Teheran,
Iran (FRY S&M)
ECHEVERRI, German, Panama (indIVidual) [CUBA)
EDICIONES CUBANAS, Spain [CUBA)
EDY JU. SA, Panama (CUBA)
EGGLETON. Wilrred, D'fec1or General, Cubanatur,
Baja Cal~orn .. 255, Edltioo B., Oticllla 103, Condeaa 06500, MeXICO, D.F. (individual) (CUBAI
EI BULL HN, Nil, Serbia (FRY S&MI
EI-FABRIKA RADIO CEVI, Nil, Serbia (FRY S&M)
EI-NIS. Nil. Serb.. (FRY S&M)
EL-AGELI. Dr Mukhlar All (alta. AL-AGELI, Dr.
Muktar All, a.lla. EL-AGELI, Dr. Muklar All), Apartment 10. Maida Vale, Little Venice, London, England, 15117 Lodge Road, St. Johnl Wood, London
NW8 7 JA, England: DOB 23 Jul « (individual)
(LIBYA)
EL AMIR. Bah,.t Fadel, 5 R~am Dell, Glftord
Pari<. Milton Keynel Buckl MK14 5JS, England;
DOB 01 Jan 42 (indIVidual) (LIBYA)
EL SADRI. Abdullah Salim, lnpob, Libya (indivklual) (LIBYA)
EL BAIDA ROADS AND UTILITIES CO., PO Box
2321561. EI Balda, libya (LIBYA)
EL FATAH AGENCY, P.O. Box 233, Tnpoll, libya
(LIBYA)
EL FERJANI, Abdalla 1.4 , libya; DOB 03 Jun 52 (indIVIdual) (LIBYA)
EL-FIGHI, EI Hadl 1.4, P 0 Bol 1114, DiplomallC
Area. Manama, Bahrain (IndIVIdual) (LIBYA)
EL-FIGHI, EI Hadl M , Jamal Abdulna..er Street.
POBox 262, Nouakchott. Mauntlln.. (mdMdual)
(LIBYA)
EL GHRABLI. Abdudayem, Libya (indivklual)
(LIBYA)
EL HUWEIJ, Mohamed A, Tnpoli, Libya (individual)
(LIBYA)
EL KEBIR, Mahmoud I , libya; DOB 24 Dec 48 (If'Idlvidual) (LIBYA)
EL~HALLAS. Kamel. Vah Konagl Cad No 10,
80200 Nlstanlaa. Istanbul, Turk.ey (IndlYidual)
(LIBYA)
EL~HOJA. Mustapha Ah. Seled Ibnu Zeld, Tnpol!,
libya (indIVIdual) (LIBYA)
EL~IB, AodullatJf, Manama. Bahrain (If'IdMdual)
(LIBYA)
EL~IB. AbduMatll. Tnpoli. Libya (IndIVidual) (LIBYA)
EL MAMOURA FOOD COMPANY, P.O. Box
15058. Tnpo~, libya. (branch) Tnpo~, Libya:
(branch) Benghazi, Libya (LIBYA)
EL NAill, Smelda EI-Hoah. 21 Redlanda Dove.
Loughton. W,1Ion Keynes Bucka MK5 8EJ, England. DOB 19 Feb 44 (IndIVidual) (LIBYA)
ELECTRIC WIRES AND CABLES PLANT, Libya
(LIBYA)
ELECTRICAL CONSTRUCTION CO , POBox
5309. Tnpo~, Libya. (branch) Benghazi, libya.
(branch) WllUrala, Libya. (branch) Sabha, India,
(branch) Dehll. India (LIBYA)
·10·
OFFICE OF FOREIGN ASSETS CONTROL
ELEKTRODISTRIBUCIJA, Belgrade, Serbia (FRY
S&M)
ELEKTROMETAL, Belgrade, Sem. (FRY S&M]
ELEKTRONSKA INDUSTRIJA, BuleYar Val~1c8 VIehovicll 80-82, 18000 Nis, Sarbl.e (FRY S&M]
ELEKTROPRIVEDA-PREDUZECE ZA PROlZVODNJU EL. ENERGIJE I UGUA, Belgrade, Serbia
(FRY S&M)
ELEKTROPRIVREDA CRNE GORE (alta MONTENEGRO ELECTRIC POWER COMPANY),
PocIgonca, Montenegro (FRY S&M)
ELEKTROPRIVREDA KOSOVA (alta KOSOVO
ELECTRIC POWER COMPANY), Pnstma, Ka.ovo (Sarbia) (FRY S&M)
ELEKTROPRIVREDA SRBIJE (alta SERBIA
ELECTRIC POWER INDUSTRY), Belgrade, Serbia (FRY S&M]
ELEKTROSRBIJA-DISTRIBUCIJA, KralJI!Yo, Serbl8
(FRY S&M)
ELEKTROTIMOK. Z.jecar, Serbia (FRY S&M]
ELEKTROVOJVODINA. Novi Sad, VO/Vodln. (Serbia) (FRY S&M]
ELIND, ValJI!Yo, Serbia (FRY S&M]
ELKHALEGE GENERAL CONSTRUCTION CO ,
P.O. Box 445, Aged.t., Libya; Sirti OlTice, PO
Box 105, SIrti, libya; Benghazi OITice, Benghazi,
Libya [LIBYA]
EMERALD ISLANDS (BeltJna ShiPPing Co, Ltd ,
Malia) (vesaeI) (CUBA]
EMNUHOOD EST. FOR CONTRACTS, POBox
1380, Benghazi, Llby. [LIBY A]
EMPRESA CUBANA DE AVIACION (a Ita CUBANA AIRLINES), 32 101.", Street. Georgetown,
Guyana (CUBA]
EMPRESA CUBANA DE AVIACION (a Ita CUBANA AIRLINES), 24 Rue Du Qu.1re Septem~,
P.n •. France [CUBA]
EMPRESA CUBANA DE AVIACION (a Ita CUBANA AIRLINES). Bela. AIrPOrt. Lu.nda, Angola
(CUBA]
EMPRESA CUBANA DE AVIACION (a Ita CUBANA AIRLINES) Dobnnon.lcaya No 7, Sec 5,
wa.cow, RUUla (CUBA)
EWPRESA CUBANA DE AVIACION (. Ita CUBANA AIRLINES), Coment" 545 Pnmer P*>,
Buena. Awn, Argenbna (CUBA]
EWPRESA CUBANA DE AVIACION (I Itl CUBANA AIRLINES), Franlcfurter TOR 8-A, Benn,
Germany (CUBA)
EMPRESA CUBANA DE AVIACION (I Ita CU·
BANA AIRLINES), 1 Place V.1e W.ne, Su"
3431, Wontre.' Canada (CUBA)
EMPRESA CUBANA DE AVIACION (I Ita CUBANA AIRLINES), Plnzaka 17, Prague Czecho.lOvakia [CU BA)
EWPRESA CUBANA DE AVIACION (a Ita CUBAN ... ""RLlNES). Pneo de Ia Repubhca 12t!
lima Peru (CUBA)
EWPRESA CUBAN ... DE ... VIACION (a Ita CU·
B"'NA AIRLINES), Plareo AIrport. Pot1au Prww;e
Ham [CUB"')
EWPRESA CUBANA DE AVIACION (a ka CU·
BAN ... AIRLINES), c/O Ang!o-Canbbean 5h~
Co Ltd Ibex Houee. The WlnonH. LondOn
EC3N 1DY England (CUBA]
EWPRESA CUBANA DE AVIACION (a ka CU·
BAN ... ""RLINES) Nonnln Wantey I n t _ - '
"'rpoIt Kongston, Jamaoc:. (CUB"')
EWPRESA CUBANA DE AVIACION (a ka CU·
BAN ... AIRLINES) WelchOf Ocampo ~ &)I<
WUICO City WaxlCO (CUBA)
EWPRESA CUBANA DE AVIACION (a ka CU·
BANA AIRLINES). Cale 211 y ... Yda JueID"'lOMm_ Panama CIty Panama [CUBA)
EWPRESA CUBANA DE ... VIACION (a ka CU·
BANA AIRLINES) Grantley Adam. Arpolt o.r.t
Churcfl Ba~ (CUBA)
EWPRESA CUBANA DE AVIACION la ka CU. BANA AIRLINES) Madnd Soaln (CUBA)
EWPRESA CUBANA DE PESCADOS Y MARIS·
COS ,a k a CARIBEX a k a CARIBBEAN EX·
PORT ENTERPRISE) Pa,. France (CUBA)
EWPRESA CUBANA DE PESCADOS '1 MARIS·
COS
kl CARIBEX. a It a CARIBBE ...N Ell·
PORT ENTERPRISE) Wllan llaly (CUBA)
EWPRESA CUBANA DE PESCADOS '1 WAR IS·
COS I I ka CARIBEX. a k I CARIBBEAN Ell·
PORT ENTERPRISE) WC*lOW R _ (CUBA)
'I
~l"
,l1li6
SPEOALLY DESIGNATED NATIONALS & BlOCKED PERSONS
EMPRESA CUBANA DE PESCADOS Y MARISCOS (. Ita. CARIBEX, a It. CARIBBEAN EXPORT ENTERPRISE) Wadnd, Spa," [CUBA]
EMPRESA CUBANA DE PESCADOS Y MARISCOS (a Ita. CARIBEX; a.k.•. CARIBBEAN EXPORT ENTERPRISE) Cologne, Germ.ny (CUBA)
EMPRESA CUBANA DE PESCADOS Y MARISCOS (a Ita CARIBEX; a k .•. CARIBBEAN EXPORT ENTERPRISE) Downavie'N, Ontario, Can.da (CUBA)
EMPRESA CUBANA DE PESCADOS Y MARISCOS (. Ita. CARIBEX; a.lta. CARIBBEAN EXPORT ENTERPRISE) Tokyo, Japan [CUBA]
EMPRESA DE TURISMO NACIONAL Y INTERNAClONAL (a It. CUBATUR), Buena. Aim, ArgenM. (CUBA]
ENDSHIRE EXPORT MARKETING, Engl.nd
(IRAQ]
ENERGOGAS, Novl Beograd, Serbl. (FRY S&M]
ENERGOPROJEKT, Belgrade, Serbia WRY S&M],
all olru:es wonc!Wlde, Includtng, but not limited to
• ENERGOPROJECT INZENJERING, Lenjinor
Bulevar, 12 Belgrade, Serbl. (FRY S&M]
• ENERGOPROJEKT (BOTSWANA) (PTY) L TO ,
PO Box 445, Gabarone, B~na (FRY S&M]
• ENERGOPROJEKT, INC" N_ York, NY, U,S A
(FRY S&M]
ENTERPRISE FOR CONSTRUCTION MACHINERY - RADOJE DAKIC (a k .•. RADOJE DAKIC),
Podgonca, Montenegro (FRY S&M)
EPA WAC SHIPPING CO, LTD, 60 South Street.
Valletta, W.1Ia (CUBA)
ERCEG, Ntkola, Deputy In SRBH A ..embly, Banja
Luka, Bosnl8-HerzegOVIna (IndIVldu.') (SRBH)
ETCO INTERNATIONAL COWWODITIES LTD,
Devon."ltre HOUR, 1 Devon.hlre Street. London,
England (CUBA)
ETCO INTERNA lIONAL COMPANY, LIM ITED,
K_llbe BUlkllng, 1-5 Kllnda N.hlkt-Cho, Chfyoda~u, Tokyo, J.pan (CUBA)
EUROW"'C EUROPEAN WANUFACTURER CENTER SRL. 'lIB Ampere 5,20052 Wonz., llaly
(IRAQ)
EUROWAC, LTD, 4 BIShops A"enue, Northwood,
lo"ddleHx. England (IRAQI
EUROW"'C TRANSPORT I INTERNATIONAL SRL,
v. "'mpef'e 5, 20052 Manza, llaly (IRAQ]
EUROP'" INTERNACIONAL (01 Belgrade), .U 01fIoH wor1<Iwlde (FRY S&W). includIng, but not bmlied ID
• EUROPA INTERNACIONAL (01 Belgrade).
Palmira Tolfatl!a 3, 11070 NOVI Beograd, Serbta
(FRY 5&i00i)
EXIWKOS (I It II KOSOVO EXPORT IWPORT
GWBH I Ita KOSOVO GWBH, II k a OMEGA
GWBH) Wliiongerwtraaae 34, 8000 MUniCh 2, Ger·
many (FRY Saw)
EXPORT IMPORT K05OVO. Trg Republtke 2,
38000 Pnetlna. KosoYo. SertlIB (FRY S&M)
EXPORTAOQRA DEL CARIBE, Wedlra, WexlCO
(CUBAI
FA PETROLI SPA. Italy [LIBYA]
FABEG. Belgrade Seft. [FRY S&MI
FABRII<.A KABLOV .... Za,ecar, Serbta (FRY S&W)
FABRIKA OPREWE I DELOVA, Sor, Serbl8 (FRY
S&W)
FABRIKA PUWPI JASTREBAC NIS. 12 Fllbruara
Bu.....r 82.18000 N •. Serbia (FRY S&W)
FABRIKA STAIQA - ZAJECAR, Za,ecar, SerbIB
[FRY 5&i00i)
FABRIKA VENTILA ZA PNEuw ... TIKU, Bor, Serbia
(FRY S&W)
FABRO INVESTWENT. INC . Plnam. (CUBA]
FACOBAT ... Panaml (CUBA]
FADlALLAH. Sl\aytm Wutlammad Husayn, Leadmg
IdeOIOgICII FlOura 01 HIZBALLAH, DOB 11138 or
1I1Je PCB Na, AI A.rv.f (Najllf), InIq (IndlVldu.')
(SOT]
F ... KUL TET ZA WENAOZWENT. Nllrodnog Fronta
4) 11000 Belgrade $eft)ca (FRY S&MI
FALCON SYSTEWS England (IRAQ)
FAM K~ Serb&I (FRY S&W)
FAMESA INTERN ... TIONAL SA, Plnam. (CUBA)
FAP~AWOS BeIg...oa SerbIa (FRY 5&i00i1
FARAJ SlmllWa,cS Wtnt&te< 01 Planning, Iraq (lndl""'us') (IRAQr
FARTRADE HOLDINGS SA, SwCZen.nd (IRAQ)
FATAH REVOLUTIONARY COUNCIL (a,lta. ANO;
a.k.a. ABU NIDAL ORGANIZATION; a,lta,
BLACK SEPTEMBER; a,lta, ARAB REVOlUTIONARY COUNCIL; ak.a. ARAB REVOLUTIONARY BRIGADES; a.lta, REVOLUTIONARY ORGANIZATION OF SOCIALIST MUSLIMS), Libya,
Lebanon; Algena; Sudan; Iraq (SOT]
FATTAH, Jum'a Abdul, P.O, Sox 1318, Amman, Jord.n (ind/\/idual) (IRAQ]
FAZANI, Juma, Secnttary 01 Arab Unity at the Government of Libya, Libya (IndIVidual) [LIBYAr
FC9063 LIMITED (nit •. TEKNICA (UK) LIMITED),
15117 Lodge Road, Sl Johnll Wood, London NWS
7JA, England; Ayon Houee, 360-366 Oxford
Street. London W1N 9HA, Englend; Tripoli, Libya
(LIBYA]
FCI HOLDING SA, 3 R1e de Sian, 3960 SiemI,
Switzen.nd (FRY S&M]
FEDERAL DIRECTORA TE OF SUPPLY AND PROCUREMENT, Belgrade, Serbl8 (FRY S&M)
FERJANI, ASA., Tnpoti, Liby. (Individual) [LIBYA]
FERONIKL - GLOGOVAC, Glogovec, KOIOYo (Serbl.) (FRY S&M]
FERROUS EAST CORPORATION, ElIZabeth, NJ
(FRY SiMI
FINCOMTRA ESTABLISHMENT, Pa.t Office Box
185, Vaduz, liechten.tein (FRY S&M)
FIRE BOAT No. 705 (N/A) ServICe DWT NIA Iraqi
nag (State Org. 01 Iraqi Porte) (\I-I) (IRAQ]
FIRE BOAT No. 706 (N/A) Service DWT NIA Iraqi
n.g (State Org. of Iraqi Porta) ("eael) (IRAQ]
FIRST CORPORA TE BANK. .11 olTices (bank ie
headquartered In Belgrade, Serbia) (FRY S&M]
FLIGHT DRAGON SHIPPING, LTD" 171 Old Bakery Street, V.lletta. Malta (CUBA]
FL YING DRAGON (Flight Dragon Shipping Ltd.,
Malta) (veuel) (CUBA]
FOLLOWERS OF THE PROPHET MUHAMMAD
(II Ita PARTY OF GOD; •. k, •. HIZBALLAH;
a k.a ISLAMIC JIHAD; •. It •. REVOLUTIONARY
JUSTICE ORGANIZATION; •. k .•. ORGANIZATION OF THE OPPRESSED ON EARTH; a.lta,
ISLAMIC JIHAD FOR THE LIBERATION OF PALESTINE; a.k.a, ANSAR ALLAH), Lebanon (SOT]
FOOTWEAR PLANT, M.urata, libya [LIBYA]
FOREIGN PETROLEUM INVESTMENT CORPORA TlON (alt., OILiNVEST; •. k, •. LIBYAN OIL
INVESTMENTS INTERNATIONAL COMPANY;
II k.lI. OIiC. a k .• OILiNVEST INTERNATIONAL
N V), Netnerland. AnbUe. [LIBYA]
FOREIGN PETROLEUM INVESTMENT CORPORA TION (. Itll. OILiNVEST: • k, •. LIBYAN OIL
INVESTMENTS INTERNATIONAL COMPANY;
a k II OIlC,. k a OILiNVEST INTERNATIONAL
N V), Tnpoh, libya [LIBYA)
FOREIGN TRADE INSTITUTE (ak. INSTITUT
ZA SPOLJNU TRGOVINU), Belgrade, Serbl.
(FRY SiMI
FOREL (HNFL) F.h 1, 163DWT Iraqi nag (R.M.,n
F.henes Co. Ltd, B.lII1Ih, Iraq) (\Ieuel) (IRAQ]
FRIGO HISPANIA (Ace IndlC NaVlg.bon Co" M.Ita)
( _ I ) (CUBA]
FRUNI TRADING, SA" P.n.ma (CUBA]
FUENTES, Fern.ndo (COBA), Cozumel, Mexico (indMdu.1) (CUBA]
FURAT (HNFT) Tug 350DWT Iraqi nag (Stete Org
01 Iraqi Porte) ( _ I ) (IRAQ)
FURNITURE AWERICANA, Hackenllck, NJ (FRY
S&MI
G L LEGIN, 21 Kosta Ouranl Street. Ltmaaoi, Cypru. (FRY S&M)
G L LEGIN, Bolahaya PochtO'l.ya Street Nr. 1,
Moscow, Ru .... (FRY S&M)
GAAC (. k .• GAAE .• k. GENERAL ARAB AFRICAN COMPANY; • k .•. GENERAL ARAB AFRICAN ENTERPRISE), PO Sox 8059, 219 Moh.mmed EI Meg.nel S1reet. Tnpoll, Libya [LIBYA]
GAAC (. k a GAAE, a.k a GENERAL ARAB AFRiCAN COWPANY, a k.a GENERAL ARAB AFRICAN ENTERPRISE), Na...r Street. Benghazi,
libya (lIBYA)
GAAE (. Ita GAAC; a k .• GENERAL ARAB AFRICAN COWPANY, a k a GENERAL ARAB AFRICAN ENTERPRISE), N.... r Street. Benghazi,
libya (lIBYA]
GAAE (.ltll GAAC,. k. GENERAL ARAB AFRICAN COWPANY, a k II GENERAL ARAB AFRI-
- l' .
SPECIAllY DESIGNATED NATIONAlS & BlOO<ED PERSONS
CAN ENTERPRISE}. P.O. Box 8059. 219 Mohammed EI Magarief Street. T~i. Libya [lIBYA)
GAGOVIC. MiI-.v; MajOr G_ral. SRBH Forces.
Boania-HerzegOYIRIl (individual) [SRBH)
GALAX INC. (a.ka. GAlAX TRADING CO. LTD).
5250 Ferner Str. .t. Montnlel. Quebec [CUBA)
GALAX TRADING CO .. LTD. (a.k.a. GALAX INC).
5250 Ferner Str. .t. Montreel. Quebec [CUBA)
GALIC. Stan.lav; Major General and a Co~ Commander. SerajeYo-Romanij Co~. SRBH Forces.
Boania-HerzegOYina (indIVidual) [SRBH)
GALLO IMPORT. Panama [CUBA)
GAMA'AT (a.k.a. ISLAMIC GAMA·AT. e.ka. GAMA'AT AL·ISLAMIYYA; a.ka. THE ISLAMIC
GROUP; a k.a. AL-GAMA'A AL·ISLAMIVVAl.
Egypt [SOn
GAMA'AT AL-ISLAMIYYA (a.ka. ISLAMIC GAMA'AT; a.k.a GAMA'AT; a ka THE ISLAMIC
GROUP; aka. AL-GAMA'A AL-ISLAMIYYA).
Egypt [SOn
GAMDENNS CONTRACTS AND UTILITIES EST
PO. Box 3038. Benghazi. Libya [lIBYA)
GARABULlI FODDER PLANT. Libya [lIBYA)
GARCIA. Damel. ManllQer. Promoaonea ... rtI.oC!!s
(PROARTE). Awmdalnsurgentea Sur No 421.
Bloque B De~chO 404. CP 06100. MexICO.
D F (individual) [CUBA)
GARCIA SANTA MARINA de la TORRE. Alfredo Rafael (ak a SANTA MARINA DE LA TORRE. Rafael Garcia) Panama (lndMdual) [CUBA)
GARIC. Nedelrko. Deputy in SRBH Auembly; Bo.nla-HerzagOYlna (lndMdual) [SRBH}
GAS. Novi Sed. Vo/yodlna (Serblll) [FRY S&M}
GATOIL SUISSE S'" (n k.a TAMOIL SUISSE
S.A . n k.a TAMOIL SWITZERLAND). Me 1.1Ing•. Swilzllf1and [lIBY"'}
GAZA (VIGZ) ServIce 2.422DWT Iraqi nag (State
Org. of Iraqi Porll) (veuel) [IRAQ}
GEMEX AUSSENHANDELS GMBH, Hanauer Land.tr 126-128.0-6000. Frankfurt. M.1n 1. Germany
[CUB"'}
GENERAL AR ... B AFRIC... N COMPANY (a Ita
GMC. a Ita GAAE .• k.a GENERAL ARAB "'F·
RICAN ENTERPRISE) POBox 8059, 219 Mohammed EI "'eganef Streel. Tnpoll, Llby. [lIBYA}
GENERAL AR ... B AFRICAN CO ... PANY (a Ita
GMC .• Ita G ... AE • It. GENERAL ARAB AF·
RICAN ENTERPRISE). Nauer Street Benghazi
libya [lIBY"'}
GENERAL AR ... B ... FRICAN ENTERPRISE (a k.a
GMC. a k. GAAE. a It. GENERAL ... RAB "'F·
RIC ... N CO ... PANY) POBox 8059, 219 "'OI'I.m·
mild EI "'eoanef Street Tnpoll libya [lIBYA}
GENERAL ... RAB ... FRICAN ENTERPRISE (. k a
GMC.aka G ... AE. a Ita GENERALARABAF·
RICAN CO ... P... NY) N. . .r Street. Benghazi.
libya [lIBYA}
GENERAL CATERING CORPORATION, P 0 BOI
491. Tnpai Llby. [lIBY ... )
GENERAL CLE .... NING CO ... P ... NY. P 0 Bol920
Tnpoh. Llby. [lIBY .... )
GENER .... L CO ...... ERCE G ... BH. Kau1inger Str. . .
35.8000 "'unod'l 2. Germany [FRY S&M)
GENERAL CO FOR .... GRICUL TURAL ....... CHINERY .... ND NECESSITIES. POBox 324. TnpoIl
Libya, (Drane") .... Il .... libya B.nghazlOffIOll
P 0 BOI 2<XM Benghazi Llby •. (tIrandl) Setlrla
libya. (Drancl'l\ Z __ libya [lIBY"')
GENER .... L CO FOR .... GRICUL TURAL PROJECTS. POBox 22&4 Tnpoll libya, (~ncI'I)
PO BOl2e5 G".. .n Ubya [lIBYA}
GENERAL CO FOR CERA ... IC AND GLASS
PRODUCTS Azll. A""n Bldg. Suanl Ben Adam.
PO Box 12~1 Dtlera-T~I. Libya [lIBYA)
GENERAL CO FOR CIVIL WORKS. POBox
3306, TnPOi Libya (brandl) POBox 12~
Benghazi L.,.,. [lI8YA)
GENERAL CO FOR CONSTRUCTION AND EDU·
CATIONAL BUILDINGS POBox 11ee TnpoIl
llbya.'(brane") PO B01I 4087. Benghazi L.,.,.
[LIBY .... )
GENERAL CO FOR ELECTRIC WIRES AND
PRODUCTS POBox 1177 Benghazi Libya
(branCh) PO Boa 12e~ TnpoII. libya [lIBYA)
GENERAL CO FORLANDRECU. ....... TIC)N PO
BOl 307. Soue"' RoecI TnPOi. Libya [lIBY"')
AAtll 1& 1185
GENERAL CO FOR LEA THER PRODUCTS AND
MANUFACTURE. PO Box 2319. Tf1lOIi. libya;
(branch) PO Box 152. B.nghazi. Libya [lIBYA)
GENERAL CO FOR ......RKETING AND AGRICULTURAL PRODUCTION. PO Box 2897, Hadba AI
Khadra. Tnpoli, Libya; (branch) PO Box 4251.
Benghazi. Libya [lIBYA}
GENERAL CO FOR TEXTILES, PO. Box 1816.
Benghazi. Libya, (branch) POBox 3257, Tnpoh,
libya [lIBYA}
GENERAL CO FOR TOYS AND SPORT EQUIPMENT, PO Box 3270. Tnpoll,lIbya [lIBYA}
GENERAL COMPANY FOR CHEMICAL INDUSTRIES, POBox 1001411. 10Ml71. Zu.ra. libya
[lIBYA,
GENERAL CONSTRUCTION COMPANY. P.O.
Box 8636. Tnpo •. Libya; (branch) Gh.n.n OtIice.
POBox 178, Ghanan, libya [lIBYA}
GENERAL CORPORA TlON FOR PUBLIC TRANSPORT. 2175 Sh.n. M.g.ryef. Tatanakll Bldg,
POBox 4875. Tnpoli. libya, (branch) P.O. Box
9528, B.nghazj. Libya [lIBYA)
GENERAL DAIRIES AND PRODUCTS CO . PO
Box 5318, Tnpoll, Libya. (branch) POBox 9118,
Benghazi, Libya. Tnpoh F.ctory, Tnpoh. libya;
B.nghazl F.ctory. Benghazi, libya, Khom. Factory, Khom., libya, Jebel Aktldar Factory, Jebel
Akhdar. Libya [lIBYA)
GENERAL ELECTRICITY CORPORATION, PO
Box 3047, Benghazi. Llbyll, (branch) PO Box
668. Tnpob. Libya [lIBYA)
GENERAL ELECTRONICS CO . POBox 12580.
Tnpob. Llby., (branch) POBox 2068, Benghazi
[lIBYA)
GENERAL EST FOR PUBLICATION DISTRIBUTION & .... DVERTISING. PO Box 113. Beirut.
l.banon [LIBYA}
GENERAL FURNITURE CO. Suanl Road. Km. 15,
POBox 12655, Tnpoll. libya [LIBYA}
GENERAllKl CORPORATION. Blauvelt NY.
USA [FRY S&M)
GENtR.... L LlBY ... N CO FOR RO .... D CONSTRUCTION AND "'AINTENANCE. POBox 2676.
Swanl Road Tnpoll. LlI>ya [LIBYA)
GENER .... L MOTORS YU. Belgrade, Serbia [FRY
S& ... }
GENERAL NATION.... L CO FOR FLOUR MILLS
AND FODDER. Beb Bin Ghaatur. POBox 984,
Tnpai, Libya, Benghazi Office, Gam.l ...bdumaaer
Street. POBox 209, Benghazi. Libya [lIBYA}
GENER .... L N .... TION .... L CO FOR INDUSTRIAL
CONSTRUCTION. PO 801953. Beida. Libya.
Tnpo~ Brandl. POBox 295. Tnpoh. libya, Benghazi Brane". G.m.l .... bd EI Nuer Street P 0
Box 9502. B.nghazl. Libya [LIBYA)
GENER .... L NA TlON"'L ... ARITI ... E TRANSPORT
CO (II k a THE N .... lIONAL LINE OF LIBYA),
POBox 80173. 2 ... hmed Sham Street Tnpoh.
libya (and at a. Libyan ports), (branch) P 0 BOI
2450. Benghazi. Libya [LIBYA)
GENER .... l N .... TION .... L ORG .... NISATION FOR INDUSTRlAliZA TlON. Sh.lra San.'a. P 0 BOI
4388. Tnpol, Libya (branch) POBox 2779.
Benghazi. LlOy. [LIBY"')
GENERAL ORGAN IS"" TlON FOR TOURISM AND
F .... IRS. POBox 891. Shana Haiti. Tripoli. libya
[LIBYA)
GENER ....L P .... PER .... ND PRINTING CO . P 0 Bol
8OG6. TnPOi. Libya (brandl) Bengl\azl, libya,
(Draneh) SetIrIa. Ley. [LIBY .... )
GENERAL POST AND TELECO ... MUNICATIONS
CORP .... OO.n.1 Jaz.lf. Tnpoh, libya [lIBY.\)
GENERAL RAHILA AUTO ... 08ILE CO. libya
[LIBY .... }
GENERAL TOBACCO COMPANY. GOIII Road Km
e. POBox e96. TnpoIl. libya. (Drane") BenghazI. libya. (Drancl'l) S.tIha. Llby •. (brandl)
ZaY\8, Libya. (tIrandl) G.nan. Llby •. (brandl)
Khoma. libya [lIBY .... )
GENERAL WATER \MOLL DRILLING CO . P 0
Box 2532. Shana am.r "'uktar. Morm ••h Bldg.
Tnpolt Llby. (brandl) P 0 BOl 2532. Benghazi.
libya [lIB YA)
GENERALEXPORT (a Ita GENEX). B.lgrade, Serbia [FRY S&"')
GENERALExPORT .... LEX .... NDRIA 43. $aphIS
ZaghlOul Street AIe.andns. Egypl [FRY 5&101)
GENERALEXPORT ALMA ATA. Alma"'lIi. Khazakalan [FRY 5&M,
GENERALEXPORT BAGHDAD. P.O. Box 2324 AIwlyah, Sa'adoun Street. Sh.h. .n BUilding. Den!
AI-Pa."'. Baghdad, Iraq [FRY S&M)
GENERALEXPORT BEIJING. Unit ~7. L.ng
Ma Tower. 8 NOI1h Dong San Huen Road. Chao
Yang DI&trict. Beijmg. China [FRY 5&M)
GENERALEXPORT BRATISLAVA (ak.a YUGOTOURS), Pahaady 31111. 81106 Brabalava, Slovak
RepublIC [FRY 5&M)
GENERALEXPORT BUCHAREST. PO 22, Bd N
Balcescu Nr. 26. Sector 1. Bucha,...t. Romanlll
[FRY 5&101)
GENERALEXPORT BUDAPEST. Vacl Ulca li-21
(5th Floor). 1052 Budapest V. Hungary [FRY 5&M)
GENERALEXPORT CAIRO. 21. Ahmed Hfthmet
Str Zamalelc, 1.t Floor. Suit. 4. Cairo. Egypt
[FRY S&IoI}
GENERALEXPORT DAMASCUS. P.O. Box 2883,
Ta,hlZ Streel Kardou. BUilding. Damaacua, Syna
[FRY SaM)
GENERALEXPORT ISTANBUL (a.k.a. GENERALEX PORT LIAISON OFFICE). Oag Apt Deire
No 10, Cumhunyel Cad. No. 10. Elmaclag, '-IIinbul. Turkey [FRY S&M)
GENERALEXPORT KHARTOUM (a.ka GENEX
L TO SUDAN; a Ita. GENERALEXPORT REPRESENT AliVE OFFICE). PO Box 6013. EI Nuguml
SIr 10 Khartoum, Sudan [FRY S&M)
GENERAlEXPORT KIEV. KIev. Ukraine [FRY S&M)
GENERALEXPORT KUWAIT. P.O. Box leel Setal. 13017, Satal AI Kuwart [FRY 5&M)
GENERALEXPORT LIAISON OFFICE (a.k.a. GENERALEXPORT ISTANBUL). Oag. Apt Deira No
10. Cumhuny.1 Cad. No. 10, Elmadag, lltanbul.
Turkey [FRY S& ... }
GENERALEXPORT LOME. (ak. GENEX LOME TOGO), PO. Box «10, Lome. Togo [FRY S&M)
GENERAlEXPORT MOSCOW. UI Raevakogo •.
1212<48 Moscow, RU'&la [FRY S&M}
GENERALEXPORT NORILSK. Nonllk, Ruaaill
[FRY SaM}
GENERALEXPORT PRAGUE (ak.a. YUGOT·
OURS). Stepan.kII57111. 11000 Pragu •. Czech
RepublIC [FRY S&M)
GENERALEXPORT REPRESENTATIVE OFFICE
(II KII GENERALEXPORT KHARTOUM; a.k.a.
GENEX LTO SUDAN). PO Box 6013. EI
Nuguml Str 10 Khllrtoum, Sudan [FRY S&M}
GENERALEXPORT RIGA. KlI'OWa21, 2 "oor. kv. 4,
Riga Latvia [FRY S&M)
GENERALEXPORT SAINT PETERSBURG. Klfow.10 Proapekt 26128 kv 101, St Peterabulg. RUUla
[FRY 5&101)
GENERALEXPORT SOCHI. PlrogOWII 30 a. Sochi.
RUSSlII [FRY S& ... }
GENERALEXPORT SOFIA .... Ielalandar SlIimbobIlkl 491111. 1000 Sofl8. Bulganll [FRY S&M}
GENERAlEXPORT TASHKENT. Taankenl Uzbeklstlln [FRY S&M}
GENERAlEXPORT TEHRAN, PO Box 113857633. Sir Khanm Knane ZlInd No. 1153. Tehran.
Irlln [FRY S&M}
GENERALEXPORT ULAN BATOR. 6 MlkrnralOn.
Dom 41. KvartJra9/4. Ullin Bator. Mongoha [FRY
5&101)
GENERAlEXPORT VOLGOGRAD. ChulkDw. 37.
<4 noor. kv <4. VOlgograd, RU"III [FRY S&M}
GENERALEXPORT WARS .... W, UI Wapolna 35 m
8,00-519 wary.wa, Poland [FRY S& ... }
GENERALEXPORT YEREVAN. Yerevan. Armenlll
[FRY S&M}
GENEX (a Ita GENERALEXPORT). B.lgrade, Serbill [FRY 5&M}
GENEX-AGRAR. POll Office Box 636. Vladlmlra
PopoviC!! 8, 11070 NOYI Beograd. Serbta [FRY
S&M}
GENEX-ENGINEERING. Poat OffICe Box 836.
Vladlmn POPOVICII 8. 11070 NOVI Beograd. Serbia [FRY S&M}
GENEX-INVEST. Poat OffICe Box 636. VI.d,","
PopoviC!! 8. 11070 Novi Beograd. Sertlla [FRY
S&M}
GENEX KRISTAL. Belgrade, S.rblll [FRY 5&"'1
GENEX LTD SUDAN (a Itll GENERALEXPORT
KHARTOUM, a Itll GENERALEXPORT REPRE-
- 12·
0FFlCE OF FORBGN ASSETS CONTROL
SPECIAllY DESlGNATEO NATlONAlS & BlOCl<ED PERSONS
SENTATIVE OFFICE), PO Box 8013, EI Nuguml
Str. 10 Kh8rtoum, Sudlln (FRY SiMI
GENEX MAGREB, Tun_ (FRY SiMI
GENEX-METALS, Po.( Oftice Box 636, N.rodnlh
HerojII 43, 11070 Novl Beogr.d, SeItH. (FRY
SiMI
GENEX-PHARM, CHEMICAlS AND CRUDE OIL,
Po.( Omc. Box 636, Vladmn Popoyicll 8, 11070
NOYi Beogr.d, Sert>ia (FRY S&M)
GENEX-REPRESENTATION, Po.( 01fice Box 636,
Dure o.lcoYlCa 31, 11000 Belgrade, Serbl. (FRY
SiMI
GENEX-TEXTILES, LEATHER AND FOOTWEAR,
Po.( 01fice Box 636, Vladimn POpoylCa 8, 11070
Novi Beograd, Serbia (FRY S&M)
GENEX-TIMBER, PAPER AND PRINTING, Post Office Box 636, N.rodnih Hero,. 43, 11070 Novi
Beograd, SeItH. (FRY S&M)
GEOINSTITUT, ROYIn,.ka 12, 11000 Belgrade, Serbi.- (FRY S&M)
GHAOAMSI, B. .hM', IIIIIy (indll/ldual) [lIBYA)
GHADBAN, Moh.mmed Muatafa, POBox 4647,
Shuhed. Square, Tnpoji, libya (lI1dlVidual) [lIBYA)
GHADBAN, Moh.mmeo Muatara, P.O Box 452,
Fed., Abu Om.r Square, EI-8erkha, Benghazi,
Libya (indlVldu.l) [lIBYA)
GHADBAN, Mohammed Muatara, Vah Konagl cad
No. 10,80200 Nreantaa, latanbul, Turtcey (indIVidual) [lIBYA)
GHAFUR Hum.m Abdel Khaleq Abdel (a k .• ABO
AL-GHAFUR, Humam Abd al~hahq), MIn.ler of
Higher Educabon .nd Sc.ntrfic ReaearCh; OOB
1945, Iraq (Indll/ldual) [lRAQr
GIBRIL, Muatara Saleh, PO Box 3224, Martyr
Street. Megref, Tnpojl, Libya (lndMdual) [lIBYA)
GIK KOMGRAP, Podgonca, Montenegro (FRY
SaM)
GLIMMER MARITIME SA, Pan.ma City, Panama,
c/o Beogradaka PIOYIdba. Len~nov Bulevar 165A,
11070 Novi Beograd. Sertua (FRY S&M)
GLOBAL MARINE OVERSEAS. INC. Panama
[CUBA)
GLOBAL. NOYI Sad. VOf"odln8 (Serbia) (FRY S&M)
GOLD STAR (n ka DAN. f k. AVALA) (J8FN7)
Bulk carner 27.069GT Denman.: (Salm VlnQent)
Flag (Leonela ShIPPIng) «Sunbow Mantlme SA»
( _ I ) (FRY SaM)
GOLDEN COMET NAVIGATION CO .LTD. P.nema [CUBA)
GONZALEZ. carlos Alfonso (. ka carlOs AlFONSO) P.nam. (lndMdual) [CUBA)
GORNJI IBAR. Rozaje. Montenegro (FRY sa ... )
GOSA. 11420 Smec:lerevskll Palanka. InduatT111i<a
70 SeltHa (FRY S&"'I
GOSA. Smederevo Sernla (FRY sa ... )
GOSTiC Uroa. DepU1)/ In SRBH Auembly. Soan.·
HerzegOVina (indIVIdual) [SRBH)
GRETE (Grete ShOPPing Co . SA. Panam.) (YHsel) [CUBAI
GRETE SHIPPING CO ... PANY. SA. P.nam.
[CUBAI
GRUBAC Raoovan. Colonel General and Com·
m.nder HerzegOVIna Corps. SRBH Fore.. OOB
1949 Bo.n.. ~erzaoovone(ondlVldual) [SRBH)
GRUPO ICO-P""'S-SG. Belgrade. SertMa (FRY
SaM)
QUACA EJ(PORT. P.nam. [CUBA]
GU" ... A TOUR (. k. AGENClA DE VIAJES
GUAM" • k. VlAJES GUA ... A TOURS .• k.
GUAMATUR SA) e.1 H.rtlour ShOpaonQ Center V..
P.na~. CIty. P.nam. (CUBA)
GUAMAR SHIPPIIIoG CO . SA. P.nam. (CUBA)
GUAMATUR Bueno. Awn. Argentina (CUBA)
GUAMATUR SA (. k. AGENClA DE VlAJES
GUAMA • k. VlAJES GUAMA TOURS .• k.
GUAMA TOUR) e.1 H.rtlour StIopptng Center.
V. l1li1. P.nam. City. P.nam. (CUBA)
GUAN" IT k. KOLA SIN) (IJ~) Bulk
t918<1T M.b Flag (loveen QverM. . Stll~
Lid) c-IJ (FRY S&M)
GU"'''PLAST Ind,.. VOf\'Oc:Ilna (Sert>ia) (FRY sa ... )
GUTIERREZ REYES Joae Vone," Tou" Oaxaca
80 Roma MulCO. 0 F (Indllllc:lual) (CUBA)
GVERO M .. n CoIone4 L~m G~I and
DeI)Ufy Army Comm.nder. SRBH ForCIH. ao.noaH.ruoov- (ndllllc:lual) (SRBH)
GVOZOENOVIC
OOB 22 Jut 4' XiINOI
Commerc.' Centre Arctlboahop M... roo. III A.,.
l1li_.
cam.r
z..o-
nue, Sun 504, N~•. Cyprua (add,.... of
J.U B HOLDINGS) (indlVldu.') (FRY SaM)
H & H METALFORM GMBH, PoathoCh 1160, Stronb.nrWtraaae 5, 4406 Orenatell1furt, Germ.ny (IRAQ]
HABANOS TRADING, Geneva, Switzerland (CUBA]
HABASH. George (a.k. •. HABBASH, George); Secretary Genenli of POPULAR FRONT FOR THE
LIBERA TlON OF PALESTINE (indll/ldual) (SOT]
HABBASH, George (a.k. •. HABASH, George); Secretary General of POPULAR FRONT FOR THE
LIBERA TlON OF PALESTINE (Indlllldual) (SOT)
HABIB, M0h8mmed Turta, Baghd.d, Iraq (Individual) (IRAQ)
HABUBI. Dr Sara Hadl Jawad (aka AL-HABUBI,
Dr. Sara Hadl Jawed; a.k.a. JAWAD, Dr. Sata
H.dl, •. ka. HABUBI, Dr Sara J......d; or •. ka. AL·
HABOBI. Dr Sara .• ka AL-HABOBI, Dr. Sara
Ha" J). Mln.ler of 011; DOB 01 Jul46; Flat 40
Thomey Court. Palace Gate, Kenalngton, England. Iraq (lndMdu.1) (IRAQr
HABUBI. Dr Sara Jawad (alla AL~ABUBI, Dr
Sara Hadl Jawed; aka JAWAD, Dr. Sata H.dl.
a.k a HABUBI, Dr Sata Hadl Ja..... d; or •. k. ALHABOBI. Dr Sara; a k.a AL-HABOBI, Dr Sara
Ha" J ). Mln.ter of Oil, DOB 0' Jul 46; Flat 40
Thomey Court. Palace Gate. Kenalngton, England; Iraq (lndMdual) [IRAQr
HAMADI. Hamed Yuuef (a Ila AL~AM"'ADI
Hamid Yuaif). Mon.ter of Culture and Informabon,
Iraq (indIVidual) [lRAQr
HAMAS (a k a ISLAMIC RESISTANCE MOVEMENT). Gaze; West Bank Termon"; Jordan
[SOT]
HAMDAN (YIHM) Tug 387DWT Iraqi nag (State
Org of Iraqi Porta) (.-eaael) [IRAQ]
HANUMAN (n k. KING LION; f.k.a BOKA)
(9HUQ3) General Dry cargo 13,688GT Malta
Flag (Worldwide Ocean Chartenng Group [South
Adnabc Bulk Shoppong Lid J) (.-eaael) (FRY SaM)
HAV"NA INTERNA TlONAL BANK. LTD. 20 Iron·
monger L.ne. Landon EC2V 8EY, England
[CUBA)
HAVAN"TUR. 54 Rue RlCheileu. Pa,., France
[CUBA}
HAVANATUR. SA. Hoaleah. FlOrida, U.S.A. [CUBA)
HAVANATUR. SA. Panama City. Panama (CUBA)
HAVINPEJ(. S A (a k a TRANSOVER. SA) Pan.ma City. P.nama [CUBA}
HAWA T... A. Nayt (a ka HAWATMEH. Naylt; a ka
HAW" TMAH. Neyt; a k a KHALID. Abu); Secretary General of DEMOCRA TIC FRONT FOR THE
LIBERATION OF PALESTINE - HAWATMEH
FACTION. OOB 1933 (lndMduan [SDT)
HAWATMAH. Nay" (a ka HAWA TMA. Nayd; a k.a
HAWAT ... EH. Naylt .• k a KHALID. Abu). Secre·
tary General of DEMOCRA TIC FRONT FOR THE
LIBERA TlON OF PALESTINE - HAWATMEH
FACTION. DOB 1933 (lndMdual) [SDT}
HAWAT"'EH. N.ylt (a Ila HAWATMA. Naylt; a k B
HAWATMAH. Nayot • k. KHALID. Abu); Secretary General of DE MOCRA TIC FRONT FOR THE
LIBERA TION OF PALESTINE - HAWATMEH
F"CTION. DOB '933 (lndMdual) [SOT}
HAY". FraooKO. P.nama (IndIVidual) [CUBA}
HEET (N/A) Tug 890WT Iraqi nag (State Org of
Iraqi Porta) ( _ I ) [IRAQI
HELFORD DIRECTORS L1""TED. Haven Court. 5
library R.mp Gibraltar [IRAQ}
HELINCO LTD. Amenloa 10. Altlena 134. Greece
(FRY S&M)
HELSER LTD. 7 L ....nl Street ThOHOa &4 Ampe·
IOIoPI. T 1'IeaU1on11o. Greece (FR Y S& ... )
HEMCL (. k. HOLBORN EUROPEAN MARKETING COMPANY LIMITED) Mnnda Court No '.
lplrou S~ POBox 897, L.maca. CYPNI
[lIBYA)
HEMCl (. k. HOLBORN EUROPEAN MARKET1NG COMPANY LIMITED). Hotpletn 33. 3011 AJ
Rotterdam. Nethertanda [lIBYA}
HEMOFARM. Vruc. VOf"odina (~rnoa) (FRY S&M)
HEMPRO Belgrade Serboa (FRY SaM)
HEMPRO BELGRADE .....,. Stepanakll15. Pregue Czadl Republic (FRY sa"'l
HEMPRO-BELGRAOE REPRESENTATION. SIr
Uillam Glacnton 38" '. 1000 Sofoa. Bulgana (FRY
SaM)
HE ... PRO . EXPORT UNO I... PORT GMBH, LUllenw.ue 4e rY. '040 Ber1tn. Germ.ny (FRY S&M]
HEMPRO EXPORT UNO IMPORT GMBH, L _ atreue 46 IV, 1040 BenIn, Germ.ny (FRY S&M]
HEMPRO-JUGOSLAWISCH-OEUTSCHE GMBH,
Eac'*-hetmer L.ndslra... 61,6000 Franlcfurt
.m Mam, Germ.ny (FRY SaM)
HEMPRO, KutuzOYSlOi Proapekl d 13 lev 2, Moacow,
Ru.... (FRY S&M]
HENDERSON, P.ul, 4 Copt O.k CIoM, Tlia Mil,
Coventry, WIIrwiclcahire, Engl.nd (individual)
[IRAQ]
HER (•. k.a. HOlBORN EUROPA RAFFINERIE
GmbH), MOOfburger Streue 16, 0-2100 H.mburg
90, Germany [lIBYA]
HER (a.k.•. HOLBORN EUROPA RAFFINERIE
GmbH), RothenbaumChauaaae 5, 4th Floor, 02000 Hamburg 13, Germany (lIBYA)
HERCEG NOVI (&HUN3) Ganeral Dry cargo
9,698GT Malta Flag (South Cmu ShipPing Lid.)
( _ I ) (FRY SiMI
HERMANN (Guamar Shipping Co, SA, P.nam.;
formerly owned by Hermann Shippll'lg Corp., Inc.,
Panama) ( _ I ) (CUBA]
HERMANN SHIPPING CORP, INC., P.nam.
[CUBA]
HERNANDEZ. Alaxil EneilO (CARBAllOSA),
Milan, IIIIly (indIVidual) (CUBA)
HEYWOOD NAVIGATION CORP., P.nam.(CUBA]
HIBOOB (nk.a AL-BAYAA) (HNHB) Barge
1.662DWT Iraqi nag (Iraqi State Entarpriae for
Water Trenaport) (Veaael) (IRAQ]
HICL (a ka HOLBORN INVESTMENT COMPANY
LIMITED), Miranda Court No. I, Ipfrou Stntet.
POBox 897, Lamaca, Cyprua [lIBYA)
HILLAH (YIAR) Service 6,709DWT Iraqi flag (State
Org of Iraqi Porta) (veasel) (IRAQ)
HIMREEN (YIHN) Service 508DWT Iraqi flag (State
Org of Iraqi Porta) (VHsel) (IRAQ]
HIP-PETROHEMIJA, Panoevo, Vo/Vodlna (SertlIa)
(FRY SaM)
HIPOZAL BANKA, aN offlC" worldwide (FRY S&M]
HISAR . FABRIKA ZA PRERADU VOCA I
POVRCA (aka CANNED FRUIT AND VEGETABLE PRODUCTION OF PROKUPLJE), Proku~e,
Sernla (FRY S&M)
HITTIN (HNHT) Tanker 155,210DWT Iraqi nag
(Ireql 011 Tankera Company) (veAel) [IRAQ)
HIZBALLAH (aka PARTY OF GOD; a.ka. ISLAMIC JIHAD; a.ka REVOLUTIONARY JUSTICE ORGANIZATION; a k.a. ORGANIZATION
OF THE OPPRESSED ON EARTH; a.k.a. ISLAMIC JIHAD FOR THE LIBERATION OF PALESTiNE, a k.a. ANSAR ALLAH; a.k.a. FOLLOWERS OF THE PROPHET MUHAMMAD), Lebanon [SDT}
HOlBORN EUROPA RAFFINERIE GmbH (a.ka
HER). Moornurger StraAe 16. 0-2100 Hamburg
90. Germany [lIBYA)
HOLBORN EUROPA RAFFINERIE GmbH (a k.a
HER). Rothenbaumchauaaee 5, 4th Floor, 0-2000
Hamburg 13, Germany [lIBYA}
HOLBORN EUROPEAN MARKETING COMPANY
LIMITED (ak. HE ... CL), Mirenda Court No.1,
Iplrou Street. PO Box 897, L.maca, Cyprua
[lIBYA]
HOLBORN EUROPEAN MARKETING COMPANY
LIMITED (a k a HEMCL). Hofpleln 33, 3011 AJ
Rotterdam. Netherlanda (LIBYA)
HOLBORN INVESTMENT COMPANY LIMITED
(a ka HICL). Moranda Court No 1, 'plrou Street
POBox 897. Lamaca. Cyprus [lIBYA}
HOTEL MILANO DUE, GZlre. Malta (FRY S&M)
HUNTSLAND (Huntaland Navlllabon Co, Lid,
Malta) (VHlel) (CUBA)
HUNTSLAND NAVIGATION CO ,LTD, Valetta.
Malta (CUBA]
HUNTSVILLE (Huntav~1e Navlllabon Co, Lid ,
Mallll) (YHsel) [CUBA}
HUNTSVILLE NAVIGATION CO,LTD, V.,Ietta,
Malta [CUBA)
HURACAN (Senanque Shlppong Co, Lid, Cyprus)
(VHsel) [CUBA}
HUSAYN. Saddam (a ka HUSSEIN Saddam.
a k a HUSSAIN Saddam). Prealdentand Pnme
Mlnoater. DOB 28 Apr 37; Iraq (indIVidual) (IRAQr
HUSSAIN Saddam (a ka HUSSEIN Saddam;
a k.a HUSA YN. Saddam). Prealdent and Pnme
Mln.ter. DOB 28 Apr 37, lreq (ondMdual) (IRAQr
- 13·
APftIl 1. '11815
OfFICE OF FOREIGN ASSETS CONTROl
HUSSEIN saddllm (•. k •. HUSAYN. 5add.m.
•. k •. HUSSAIN S~m). Prn.dent .nd Pnme
Minl8ler; DOB 28 Apr 37: Iraq (indiv1dU81) [lRAQr
HUSSEIN. Ud.i S.ddllm. 8Ilghdad. Iraq (indlllldu.')
[IRAQ)
HYAlITE ('M1~n Shipping Co. Ltd. Cyprus)
(Y8MIII) [CUBA)
I.G.C. LTD .. 57 Ledra Stntet NO.7. NIOONi. Cyprus
[FRY SaM)
I.P.C. INTERNATIONAL LIMITED. England [IRAQ)
I.P.C. MARKETING LIMITED. England [IRAQ)
I.P.T. COMPANY. INC .• WIlrmlnster. PA. US A
[FRY SaM)
IBN KHALDOON (HNIN) SelVice 12.670DWT Iraqi
IIIlg (Stlitil Org of Iraqi Ports) (veael) [IRAQ)
IBN MAJID 8 (N/A) ServICe OWl NIA saudi Arabllln
FIIlg (Iraqi StIlte Com peny for Oil P roJecU) (\IMMI)[IRAQ)
IBN SHA TWAN. F .thi. Secretllry of Industry of the
GCMlfTlment of LIbya. Libya: DOB 1950 (lndMdUBI) [liBYAr
IBRAHIM. Muh.mmad Ahmad. Secretary 01 Inform.tion. Culture .• nd MaN Mobilization of the Govamment of Liby •. Libya (Indlllidual) [LiBYAr
ICN-GALENIKA. Belgrade. Serbia [FRY S&M)
IGAlO (YUFC) Feny 2S19GT YugoslaVIa Flag
(Komunalno Poduz_) (ve_1) [FRY SaM)
IJlTC (•. k •. IRAQI-JORDANIAN LAND TRANSPORT COMPANY: a.ka. IRAQI-JORDANIAN
OVERLAND TRANSPORT COMPANY: a ka
IRAQ-JORDAN LAND TRANSPORT COMPANY). P.O. Box 513<4. 4th Circle. Jabal. Amman.
Jord.n [IRAQI
IKARUS. Belgrade. Serbia [FRY S&M)
IKl (aka INDUSTRIJA KOTRLJAJUCIH lEZAJA)
Kneza Danlla 23-25. 11000 Belgrade Serbia [FRY
SaM)
ILiC. Vladimir: [)tpIomat of SRBH. Bosnoa-Herzegovlna (lndMdual) [SRBH)
IMHEJRAN (YIMH) Tug 386DWT Iraqi flag (State
Org of Iraqi POtta) ( _ I ) [IRAQ)
IMI. Dragomlra Vukovoca BB. 38300 Pee. Kosovo
Serbl. [FRY 5&M)
IMI. P.lmn Tollllblll 3. 11070 Novi Beograd. Serbia
[FRY SaM)
IMK 14 OKTOBAR (. k ..... ET AlWORKING MACHINES AND CO ... PONENTS INDUSTRY 14
OCTOBER), Krvwvec. SctftI4. [FRY sa ... )
IMlEK. ZejeCllr Sertloa [FRY sa ... )
IMPERATORI Julto A . M.roaglng Otractor. Hev1Ina
Intem.bonal Bank. 20 lronmonger Lane. london
EC2V 8EY. England (ondMdu.I) [CUBA)
I"'PEX OVERSEAS CORPORATION. N_ Yorl(,
NY.USA [FRY5&M)
IMPEXPRODUKT Woppionoerwtraue 36 1010 VIenn •. Au.ln. [FRY sa ... )
I"'PREGNACUA DRVETA Kolaaln. "'onlenegro
[FRY SaM)
IMPRISA. S A Penam. [CUBA)
I"'PRISA SoIlln (CUBA)
''''R - INDUSTRUA "'OTORA RAKOVICA (. k.
MOTOR INDUSTRY OF RAKOVICA). Belg~
Serbl. [FR Y sa ... )
IMT - INDUSTRUA MOTORA I TRAKTORA (. k.
"'ACHINES AND TRACTORS INDUSTRY), Bel·
grade SettIoe [F R Y sa ... )
INCETRA ETABlISsewENT SA Corao E~
10111. lugano SwClefland [FRY 5&"')
INCETRA ETABllSsewENT 5 A VadUZ. L~·
stHl [FRY saW)
INDUSTRIAIWPEJI. WIlII<Il WI~ 17.81000
P~ Woo_oeoro [FRY sa ... )
INOUSTRIAIMPQRT VutIIl Ke~oca.' 81()OO
P~ woo''''oegIO [FRY saM)
INDUSTRIAL BANK 'e k. fllDUSTRIAL BANK OF
IRAQ) PO 8011 ~~ A~~ Sl ~
d.d Iraq (~ bUt not .... _ 10 btIlncr- 10c:aled In Wa.<II Iraq ~ Iraq H .... Iraq Kef·
bela IraQ s..retl Iraq A It)ol Iraq .... .,., Iraq Sulaym.noa Iraq I (IRAQ)
INDUSTRIAL BANK OF IRAQ ,. k. INDUSTRIAL
BANK) P 0 8OII!Ie~ AI-Jem'-"Ye St s.gr..
dad IraQ (onoudInCI bUt not .... 1IeCI 10 cw.nc_ 10CIlIed In Wa.<II Iraq IlJftruI<. Iraq H.. Ir"IlQ Kef
bela. IraQ a...." Ir"IlQ A /till Iraq ,...,., Ir"IlQ Su·
laym ..... 1r"IlQ) (IRAQ)
INDUSTRUA ALA TA T~ eo.n.-He<T.,..".
[FRY saW)
~ll&
t_
SPEOAllY oeSlGNATED NATIONAlS a BlOCKED PERSONS
INDUSTRIJA KABLOVA. Svetozarew. Serbia [FRY
sa ... )
INOUSTRIJA KOTRLJAJUCIH LEZAJA (ak.. IKL).
Kneza Danota 23-25. 1I 000 Belgrade. Serboa
[FRY sa ... )
INDUSTRIJAIMPORT. Podgonca. Montenegro
[FRY Salol)
INEC ENGINEERING CO lTD. 175 Regent
SlrHt. London WI. England [FRY S&M)
INEC UK lTD. RIO AlbIOn SlrHt london. W2 2AS
England [FRY Salol)
IN EX (.It.INEX-INTEREJl.PORT LTD: •. Ila. INTEREXPORT lTD CO). 27 Marta 69. Belgrade.
Serbia [FRY 5&101)
INEX AG. Bahnhofqual 15. 8001 Zunch. Swrtzerland [FRY 5&101) and all offices worldwide. IndudIng. but not ~mtec/ to
• INEX AG. Sc:nottengeNe 4117. 1010 Vienna. AU5Ina [FRY sa ... )
• INEX "'G, Md.n. Italy [FRY S&MI
• INEX AG. P.ns. France [FRY Salol)
• IN EX AG. IStanbul. Tur1cey [FRY 5&101)
INEX BANKA d d. all olTices worldwide [FRY Salol)
INEX FRANCE SARL 40 rue des Mathunns. 75008 Pans, France [FRY sa ... )
IN EX GMBH (.k.•. INEX IMPORT EXPORT
GMBH). all 01Tioea worldwide [FRY SaM). includIng. but not hm ~ed to
• IN EX GMBH (a Ita INEX IMPORT EXPORT
G ... BH). Fdoalgesc:haene '. 4330 Muelhelm. Germany [FRY S& ... )
• INEX GMBH (ak a INEX IMPORT EXPORT
GMBH). Noeder1assung. lUlSllnalnlue 46. 1040
Berlin. Germ.ny [FRY SaM)
• INEX GMBH (a k .• INEX IMPORT EXPORT
GMBH). StIftsIraMe 30/121. Frankfurt am "'am.
Germ.ny [FRY Salol)
• INEX GMBH (a k. INEX IMPORT EXPORT
GMBH). Schwanthaler Street 3W. 8000 MunICh.
Germany [FRY SaM)
INEX IMPORT EXPORT GMBH (a k a INEX
G ... BH) .• 11 offices worldwide [FRY SaM). includIng. but not ~mlled to
• INEX IMPORT EXPORT GMBH (e k a INEX
G ... BH). SbflstnlMe 30/121. Frwn/(furtam Main.
Germany [FRY Salol)
• INEX IMPORT EXPORT GMBH (a k. INEX
G ... BH). S<;hwanthaler Street 3W. 8000 MunICh.
Germany [FRY SaM)
• INEX IMPORT EXPORT GMBH (. ka INEX
GMBH). Fd.'geachaefte 1. 4330 Muelhelm. Germ.ny [FRY 5&M)
• INEX IMPORT EXPORT GMBH (a k a INEX
G ... BH). NlIlder1anung Lu.senalnllSll 46. 1040
Berlin Germ.ny [FRY Salol)
INEX-INTEREXPORT .•• offICes worldwide [FRY
SaM). Indudlng. but not Imlled to
• INEX-INTEREJl.PORT. Pruga. kOngr"'t e permebt 192-1~. Tnroa. Albenoa [FRY S&M)
• INEX-INTEREJl.PORT. 24. Boulev.rd Youcef Z~
rout "'Ig ••,.. A/gen. [FRY SaM)
• INEX-INTEREJl.PORT. Voenn •. Austroa [FRY S&IoI)
• INEX.INTEREJl.PORT. Road 7. House 42IF. BananliDheka-13. B.nglade&h [FRY SAM)
• INEX-iNTEREJl.PORT. Ul Obonale 9. Soroa. Bulgane [FRY SaM)
• INEX-INTEREJl.PORT .• -2-al J.. nguom.nw.,.
Be.~ng Ch ... [FRY 5&M)
• INEX-INTEREJl.PORT. Lonea No 5elNyO VedIlClo HllV1Ina. Cube [FRY S&1oI)
• INEX-INTEREXPORT. SoIc~ 931111. Prague
~erl,". Czedl RepublIC [FRY 5&M)
• .. EX-INTEREJl.PORT. 12 .... onamed T.Ia.t
Nooman StTHl Alnendna. EgypC [FRY S&1oI)
• fIIEX-INTEREJl.PORT. 16. Ghent StrMl .pp 2122. Cero. EgypC [FRY SaM)
• "EX-INTEREJl.PORT. Joanu IgngonadOU 6 atr
552Je. Theualontla. GtMOIl [FRY 5&M)
• INEX-INTEREJl.PORT. Done Gyorgy ut 92Jb. Bucsapest VI. HUI\OIlry [FRY SaM)
• INEX-INTEREJl.PORT. No '.9 A'I. /nInahahr.
Shom.~ Slog ~. ~ Floor. Tehran. Iran [FRY
sa ... )
• INEX-INTEREJl.PORT. e B (Duplex Annex) S.eet
Hed Roed .... A C H S . Karwen. P.lOstan [FRY
saM)
• INEX-INTEREJl.PORT SzpUlna e We,....... Po.nd [FRY salol)
• INEX-INTEREXPORT. Dumitn.l lem".. Nr. 313
.p 7. Buchllrnt, Rom.n.. [FRY S&M)
• INEX-INTEREXPORT. KraanogvardejskJ Pl'OjeZd
25. GostilrllCll SOjUZ II. MOKOW. R _ [FRY
5&M)
• INEX-INTEREXPORT. Kutuzavski Pro.peI(I7I4.
Korpua NO.6 BII'O 38. MOKOW. Ru_ [FRY s&M!
• INEX-INTEREXPORT. Lenine 2. Tyumen. Ruulll
[FRY sa ... )
• INEX-INTEREXPORT. CulanOYll 511. 381646 Bra"1I'1a. SIOYlIk Repubkc [FRY S&M)
• INEX-INTEREJl.PORT. P.'.Clo de Ia PrenllO.
Plaza Callao 4-70 B. 13 ... adrid. Spain [FRY 5& ... )
INEX-INTEREXPORT ENGINEERING. 4. Shawarbi
Street. Apt .s. C..-o. EQypt [FRY 5&M)
INEX-INTEREXPORT HIP DEVELOPMENT AND
ENGINEERING CONSORTIUM TRIPOLI. ThIlt AI
Emad Complex. Tnpob. libya [FRY Salol)
INEX-INTEREXPORT lTD (•. lta INTEREXPORT
L TO CO . a ka IN EX). 27 Marta 69. Belgrade.
Serbia [FRY S&M)
INEX ITALIANA SRL .•N offICIIS worlwide [FRY
S&IoI). Indudlng. but not limited to. the following:
• INEX IT AuIAN'" SRl. Via AntoniO de Recanle 4y.
20124 Milan. Italy [FRY SaM)
• IN EX ITAllANA SRL. xx Settambre 312.34121
Tneale. Italy [FRY SaM)
INEX PETROL AG. Kaminer Ring 17/15. A-1010 VIenna. Austroa [FRY SaM)
INEX PETROL AG. BahnhOfquai 15.8001 Zuric:n.
SwltZer1and [FRY S& ... )
IN EX TOURS INTERNA TIONAL SRl. VIII Vltor
PISani. 20124 Milln. Italy [FRY S&M)
INEX TURIST. Belgrade. Serbia [FRY sa ... )
INEXAMER COMMERCIAL CORPORATION. N_
Yorl<. NY. U.S.A. [FRY SaM)
INEXPRODUCT l TO .. 4~3. Chancery Lane. london W C 2. England [FRY S&M)
INFORMA TlKA. Belgrade. Serboa [FRY sa ... )
ING. Dr. Bd Magheru 24 et Ilf. AP. 18. Sector 1.
BucMreat. Romania (addreaa of EAST POINT
HOLDINGS) (individual) [FRY SaM)
INKOTEHNA. Belgr.de. Serboa [FRY sa ... )
INUT SRL. V Ie VlItono Veneto 24. 20124 MIlan. italy [FRY SaM)
INOS, Belgrade. Serboa [FRY 5&M)
INPEA. Kuraovol Per 1 KV 3. Moscow. Ru.... [FRY
SaM)
INPEA. Romanoa [FRY S&"'I
INPEA (OVERSEAS) lTD. 284 Archbishop
loIakanol III Avenue. Fortuna Bldg Block B. 2nd
FlOOr. lImauol. Cyprus [FRY S&IoI)
INPROM. Podgoroca. Montenegro [FRY 5&M)
INSTALACIONES INDUSTRIALES PENINSULARES. Calle 35 No 498-A. ZP 97. Menda .... exICO [CUBA)
INSTITUT B K. Palmira Tollabja 3. 11070 NOV;
Beograd. Serbia [FRY S&M)
INSTITUT MIHAJLO PUPIN. Belgrwde. Serbl. [FRY
SaM)
INSTITUT ZA SISTEME. Belgrade. Serblll [FRY
SaM)
INSTITUT ZA SPOLJNU TRGOVINU (.lte FOREIGN TRADE INSTITUTE). Belgrade. Serbia
[FRY SaM)
INSTITUTO NACIONAl DE TURISMO DE CUBA.
Spain [CUBA)
INTERCONSUl T. Panama (CUBA)
INTER EXPORT BRUXELlES. Blvd E Jacqmlln
162. WTC-V 1lie etage. 1000 BruNels. Belgium
[FRY sa ... )
INTEREXPORT. Belgrad~ ~rboa [FRY 5&MI
INTER::::XPORT COMPANY lTD. Mutende Road.
Woodland. Residential Are •. lusaka. Zambia
[FRY sa ... )
INTEREXPORT lTD CO (.k.• INEX:. Il. INEXINTEREXPORT lTD). 27 ....rta 69. Belgrade.
Serbia [FRY S&"')
INTERKOMERC. Belgrade. Serboa [FRY 5&"'1
INTERNA TlONAl GENEX BANK .• n offICIIS worldWide [FRY 5&M)
INTERNA TlONAL HOLDING CO ... PANY. luxembourg VIMe. Luxembourg [LIBYAI
INTERNA TlONAl PETROLEUM. S ..... (. ka IPESCO). ColOn Free Zone. Panama (CUBA)
INTERNATIONAL TRADE MARKETING. Belgrade.
Serbia [FRY S&M)
0f'F1CE OF FOAEION ASSETS CONmOl
INTERNATIONAL TRANSPORT CORPORATION.
Colon Free Zone. P.n.m. [CUBA)
INTERPROGRESS A.G, Renggel'ltrWue 50 CH8037, Zurich, Swltzen.nd [FRY S&M)
INTERPROGRESS EUROPE, 16 Avenue Hoche,
75008 P.ris, France [FRY 5&1004)
INTERPROGRESS FRANKFURT ( •. k. •. INTERPROGRESS G"'BH), Herm.nn-M.ttern Slreue
461111, Zweigstele, Bertin, Genn.ny [FRY S&M)
INTERPROGRESS FRANKFURT (. It. INTERPROGRESS GMBH), Reuterweg 93, 6000 Frankfurt em .... In, Germ.ny [FRY 5&1004)
INTERPROGRESS G ... BH (. k. •. INTERPROGRESS FRANKFURT), Herm.nn-M.ttern
SIre... 4M1I, Zwelgatele, BerlIn, Germ.ny [FRY
S&"')
INTERPROGRESS GMBH (ak.. INTERPROGRESS FRANKFURT), Reu1erweg 93. 6000
Frankfurt.m 1004.111, Germany [FRY S&M)
INTERPROGRESS I .. PORT EXPORT CO lTD.
63-86 Hatton Garden, ECIN 8lE london, England [FRY 5&1004)
INTERPROGRESS PRT. lTD, P.O Box 937. Pymble NSW 2073, Sydney, Auatralla [FRY S&M)
INTERPROGRESS S.T RI, 16 Avenue Hoche.
75008 P.ne. France [FRY 5&1004)
INTERPROGRESS TRADING CORPORATION.
N_ York, NY, USA. [FRY 5&1004)
INTERSERVIS, VClf\fOdIll. (SertMa) [FRY 5&10041
'NTERTEHNA. Belgrade. Serbia [FRY S&M)
INTYBRA REPRESENTACAO & COMERCIO SA.
Rua VI&C de Inhauma 134 51927, RID de Janel'o.
Braz. [FRY 5& .. }
INVERSIOOES lUPAMAR. S ..... (a Ita lUP ........ R
INVESTMENT COMP ... NY). Panama [CUB.l.1
INVEST-COMMERCE S ... Rl, 65 Rue de Pa"..
92110 CllChy France [FRY S&MI
• INVEST-IMPORT. Belgraae. Serb.. [FRY S&MI. aU
ofTioea worldwide. IOdudng. 1lu1 not limited to
• INVEST-IMPORT "'LGERIA. 2 Chemin "'lldelCnm
DZIn VIUa. s.m.rcande EI e.ar. "'Igoe", ... Igena
[FRY S&M}
• INVEST -IMPORT BURM .... Sule PagOda Road
136. Rangoon. Burma [FRY S&M}
• INVEST-I .. PORT CHINA, EmbaHY at II-. FRY.
CommerCIal Bure.u. 1-22 DopIomabc OffICe Bulld109. S.n LI Tun. Be~ong. ChIna [FRY 5&M}
• INVEST-IMPORT CZECH REPUBLIC. Prague
Czech RepUll~c [FRY 5&M}
• INVEST-IIoIPORT EGYPT. 21 Ahmed Orabl Str .
loIohanae-n ea.-o. Egypt [FRY 5&M}
• INVEST-I .. PORT. Herm.nn-Iolanem Sire... ~
1040 Benn Germ.ny [FRY S&M)
• INVEST -IIoIPORT IRAN. BMl No 202. 4th Foo<
Taleg"anl "'venue Sepahbod Gharanl Croaaroed
Tehran Iran [FRY 5&M)
• INVEST.I"PORT IRAQ POBox 631 Bagl'lded
Il'8q [FRY 5&M}
• INVEST.IMPORT LlBY .... Shara Omar "uutar
3101111 OffICe 11 Tnpoll.lobya [FRY 5&1oI}
• INVEST .IMPORT. SoomonovUu per 1 loIa.cow
R ..... [FRY SUI)
• INVEST.IIoIPORT -U EXPORT G"BH Gral·
"'OOII-Slreu. 72·74. 4000 0us&eI00I'I1 Gennan,
[FRY Salol)
• INVEST ·IIoIPORT UAE ArbIft Tower. OffICe No
1503 Dube. United Arab E", ...,.. [FRY SaW}
INVEST"'CAST PRECISION CASTINGS. LTD.
112 Clf'( RoecI London England [IRAQ}
INVESTBANIV< (a II e OSNOVN ... PRIVREONO-!N·
V EST IC IONA B.I. N IV.) .11 otfIon WOI\dWIde
(BaNI. hee6q... ".,aId on BaIgI'8Oe Sera) [FRY
Saw)
INVESTBAHIV< BELGRADE. all otfIon woMwlde
[FRY 5&W}
INVESTICIONA B.l.NIV. TITOGRAD (. II. a 10100·
TENEGR08ANIV< d d) •• otf'ICee ~
(Ban... '-dQuetterecl on P()(IOonc8 1oI~
'VrO) [FRY Salol) W\C~lng bUC nee ~"'Qd Ie
• INVESTICION ... B.l.NIV. TlTOGR"'D (I II. a WON·
TENEGROB ... NIV< d d) Bu_r R8"OIuo,. 1 P
Boll 183 111001 Poogonca M~ro [FRY
o
saM)
INVESTINZ£NJERING ~1'8Oe ~ [FRY
saM)
10 ... NNtO£S P.",oo. 2
~tr BIOg
~
Street 0 . . _
]f\d FIOot No ~ ... ~ C'/VV& (rI·
dMOuaI) [FR Y 51 M J
SPEOALLY DESIGNATED NATIONALS & BLOCKED PERSONS
IPESCO, Panama (. k.a INTERNATIONAL PETROLEUM. S.A ), Colon Free Zone, P.n.ma
[CUBA)
IRAQI AIRWAYS. 1211 Avenue of the Amenca.
New '1'00<, N_ York 10036, U.S.A (IRAQ)
,
IRAQI AIRWAYS, 25040 Southfield Road Southfield, Mlchlg.n 48075, U S A.[ IRAQ) ,
IRAQI AIRWAYS, 27, Uhca GroJI!Cka, Central W.rsaw, Poland [IRAQ)
IRAQI AIRWAYS. 4 lower Regent Street. London
SW1Y 4P, England [IRAQ}
IRAQI AIRWAYS, 5825 W Sunlel Blvd, 1218, Los
Ange"'. C.lifomltl 90028, U S.A. (IRAQ)
IRAQI AIRWAYS, Abu Dhabi, Un.ad Arab Emirate,
[IRAQ}
IRAQI AIRWAYS, Ankara, Tur1c8y [IRAQ}
IRAQI ... IRWAYS, Belgrade. SertHa(IRAQ)
IRAQI AIRWAYS, Building 68. J.F.K. Intemabonal
AIrPOrt. JamaICa. N_ '1'00< 11430. US.A.(IRAQ)
IRAQI AIRWAYS. Caaablanca ... orocco [IRAQ}
IRAQI AIRWAYS, Copenhagen, Denm.O< [IRAQ}
IRAQI AIRWAYS, General SerYlce Agent. Banglade·
.hl-Owned Travel Agency. Dhaka. Bangl.desh
[IRAQ)
IRAQI AIRWAYS, Jlanguomenwal Diplom.toc Hou5Ing Compound. BUIlding 7-1. 5th Floor, Aparttnent
4. Bel/lng. People'. RepublIC 01 ChIn8(IRAQ}
IRAQI AIRWA YS,
EIMnhuttenplatz 26, Frank·
turt 6. Germany [IRAQ)
IRAQI AIRWAYS. "oscow. Ru.... [IRAQ)
IRAQI AIRWA YS. Nelalzanka 3. Prague 1, CZecllellavaloa [IRAQ}
IRAQI AIRWA YS. Netherl.nd. [IRAQ)
IRAQI AIRWAYS, Opem(lt1g 6. 1010 Woen, Voenne.
Auatna [IRAQ}
IRAQI AIRWA YS. Prague AIrport. Prague. CZecho·
llavaloa( IRAQI
IRAQI AIRWA YS. RID de Janeiro. BrazIl [IRAQ)
IRAQI AIRWAYS. Rome. Italy [IRAQ)
IRAQI A IRWA YS. Seddam Intemabonal Aorport.
Baghd.d. II'8Q [IRAQ}
IRAQI AIRWAYS. Senall. Yemen (IRAQ)
IRAOI AIRWA YS. TOkYo. Japan [IRAQ}
IRAQI AIRWAYS. Tun •. Tunl ..a (IRAQ)
IRAQI ALLIED SERVICES LI .. ITED. England
[IRAQ)
IRAQI FREIGHT SERVICES LI .. ITED, England
(IRAQ)
IRAQI·JORDANIAN LAND TRANSPORT CO"·
P ... NY (a k a LJL TC. a Ita IRAQI-JORDANIAN
OVERLAND TRANSPORT CO .. P ... NY; a Itll
IR ... Q-JORDAN LAND TRANSPORT CO"PANY), POBox 51~. 4th CIrcle, Jabal, Amman
Jordan (IRAQ)
IRAQI-JOROANIAN OVERLAND TR ... NSPORT
CO .. P ... NY (a II a LJLTC. a 1<.11 IRAQI-JORDA·
NIAN LAND TR ... NSPORT CO .. PANY. a k.a
IR"'Q-JORDAN LAND TRANSPORT COMP ... NY) POBox 51~. 4th CIrcle. Jabal. Amman.
Jordan [IRAQ)
.
IRAQI REINSUR ... NCE COMP ... NY. 31-35
Fencnurct1 Street. London EC3 .. 3D, England
[IRAQ)
IRAOI STATE ENTERPRISE FOR FOODSTUFFS
TRADING. POBox 28.39. Calcutta 700001. In·
d.e [IRAQ}
IRAQI STATE ENTERPRISE FOR FOODSTUFFS
TRADING POBox 1308 ColombO 3. Sn Lankll
[IRAQ}
IR"'QI STATE ENTERPRISE FOR ..... RITI .. E
T~ANSPORT. Amman. Jordan [IR"'Q}
IRAQI STATE ENTERPRISE FOR MARITIME
TRANSPORT. Bremen. Germany [IRAQ}
IRAQI TRADE CENTER Oubal. UnI1ed Arab Em,,·
.t.. [IRAQ}
IRAQ-JOROAN LAND TRANSPORT CO .. PANY
(I II. a LJL TC a k. IRAQI-JORDANIAN LAND
TRANSPORT CO .. PANY. a k a IRAQI-JORD... ·
NIAN OVERLAND TRANSPORT CO .. P... NY)
PO B015134 4th em:te. J.bal. "'",m.n. Jordlln
[IRAQ)
ISLA .. BOULI Motlemmad Shawql M.ltary Le.der
at ISLAMIC G ........ ·A T OOB 15 Jan 1955. POB
EgypI Pa.aQOrt No 304555 (Egypt) (indIVIdual)
(SOT)
•
ISLA"IC G ........ ·... T (a II. a G ........ ·... T .• k..a GA·
IoIA ... T AL·ISLA .. IYY'" a k a THE ISLA"IC
".In
GROUP; a k .•. Al-GAMA'A AL-ISLA ... IVYA),
Egypt [SOT)
ISLA ... IC JIHAD (•. k.. PARTY OF GOD; •. k.a.
HlZB.l.lLAH; a.ILa. REVOLUTIONARY JUSTICE
ORGANIZATION; •. k.a. ORGANIZATION OF
THE OPPRESSED ON EARTH; •. k. •. ISLAMIC
JIHAD FOR THE LIBERATION OF PALESTINE;
a k .•. ANSAR ALLAH; a.k. •. FOllOWERS OF
THE PROPHET "UHAMMAD), lebanon [SOT)
ISLAMIC JIHAD FOR THE LIBERATION QF PALESTINE (.k.a PARTY OF GOD; a.k. •. HlZB.l.lLAH; •. k.. ISLA ... IC JIHAD; •. k. •. REVOLU·
TIONARY JUSTICE ORGANIZATION; a.k. •. ORGANIZA TlON OF THE OPPRESSED ON
EARTH; •. k.a. ANSAR ALLAH; •. k. •. FOllOWERS OF THE PROPHET MUHAMMAD), lebanon (SOn
ISLAMIC JIHAD OF PALESTINE (a.k. •. PU; •. It •.
PALESTINIAN ISLAMIC JIHAD - SHIOAQI; •. k..
PLJ SHIQAQVAWOA FACTION;. Ita. PALESTINIAN ISLA .. IC JIHAD), lintel; Jordan; lebanon
[SOn
ISLAMIC RESISTANCE MOVEMENT (•. k.. HA·
"AS), Gaza; WnJ. Bank Ternlo,..; Jordlin [SOT}
ITAlKOPRODUCT, Pl&lZa Cavour 3,20121 "ilan,
Italy [FRY S&M)
ITRANS, Serb.. [FRY 5&1004)
NANGRAD (n.It •. BRISA) (9HTB3) General Dry
Cergo 13,651GT Malta Flag (Oktoitl OvelHU
ShOPPing Ltd) (ve. . .l) [FRY SiMI
NO lOLA RIB.l.R - Beograd, Belgrade, Serbia
[FRY SiMI
J&K LTD. (alt. JNK LTD.), Wldwooda, Theobald5
Park Rd, Crawa Hdl, Enfoeld, 1004 Iddleaex , Engl.nd
[FRY SiMI
JIB INSPECTION LTD (.lta. JUGOINSPEKT
LTD .. a Ita. JUGOINSPEKT (CYPRUS) lTD.), 57
Ledrll St, No 7, NICO... , Cyprul [FRY 5&"'}
J U.B HOLDINGS LTD, 2 Soloul. . Street. Chanleclair Bldg .. 2nd Floor, No. 205, Nocoaia, Cypru.,
regIStered addr... : Xenloa Commercial Centre,
ArchbIShop ".kanoa III Avenue, Suite 504, NiCOllS, Cyprul [FRY SaM}
JABHA (YIJA) Tug 244DWT Iraqi nag (State Org. 01
Iraqi Porta) ( _ I ) (IRAQI
JABRIL, Ahmad (•. It •. JIBRtl, Ahmad); Sec:"'tary
General of POPULAR FRONT FOR THE liBERATION OF PALESTINE - GENERAL COM .. AND.
DOB 1938, POB R.mleh, IlnIel (IndMdual) [SOT)
JAMAHIRIYA B.l.NK (Ik.a .. ASRAF Al-GUMHOURIA), (38loc:al branch.. In llby.) (LIBY"')
JA .. AHIRIYA B.l.NK (I Ita. MASRAF AL-GUMHOURIA), Emhemed Megnel Street. Tnpoh, libya
[LIBYA}
JAMAHIRIYA BANK (Ik.a MASRAF AL-GUMHOURIA). POBox 3224 ... artyr Street, Megaroel. Tnpoll, Libya [LIBYA}
JAMAHIRIYA BANK (f k.. MASRAF AL-GU .. HOURIA), POBox 1291, Benghazi, libya
[LIBYA)
JA .. BUR (HNJM) Tanker 35,338OWT Iraqi nag
(I",ql 011 Tankera Company) (v_I) (IRAQ)
JA .. HORIA (yIJR) Tug 3680WT Iraqi nag (State
Org. 01 Iraqi Porta) ( _ I ) {IRAQI
JANUARY SHUHADA (MARTYRS) PLANT, Libya
[LIBYA}
JARACO S A (. Ita. SOKTAR; I k.a TRADACO
S ... ). <45 Route de Frontenex, CH-1207 Geneva,
Swltzenand (IRAQ)
JARDINE HOUSE. 6 Cru1ctIed Fnara, london
EC3N 2HT, England (LIBYA)
JASIM. Lel1l Nuuyytf (. k.. JASSEM labf Na..lf).
Mln.ter of l.bOr .nd Soc .. 1 AlTaI"; OOB 1941.
Baghdad. IraQ (lI'IdlYidual) [IRAQr
JASSEM L.tlf NaUlf (ak a JASIM, l.tt Nuuyylf),
",nlllter 01 labOr .nd Soc.. 1 AlTa,,,; OOB 1941,
Blghdad. Iraq (ondMdual) [IRAQr
JAT (ak.a JAVNO PREDUZECE ZA VAZOUSNI
SAOBRACAJ, • k.a JUGOSLOVENSKI AEROTRANSPORT •. k.. YUGOSLAV ... IRlINES),
Belgrade. Serb .... 11 oI'tioea worldwide [FRY SiMI
JAVNO PREDUZECE PTI SRBIJE (a k.. PUBLIC
ENTERPRISE OF POST. TELEGRAPH, ...ND
TELEPHONE OF SERBIA). Serb.. [FRY S& .. }
JAVNO PREDUZECE ZA VAZDUSNI SAOBRACAJ (a k.a JAT. a Ita JUGOSlOVENSKIAEROTRANSPORT, a Ita YUGOSLAV AIRLINES),
Belgrade. Serb .. , all offlcea wortdwlde [FRY S& .. }
.15·
OFFICE ~ .FOReIGN ASSETS CONTROL
JAWABY TECHNICAL SERVICES LIMITED (a k.a
TEKXElliMITED), london, England (lIBYA!
JAWAD, Dr. Sa,. Hadi (a k.a. Al-HABUBI, Dr Sata
Hadi~: a.lta HABUBI, Dr Sata Hadi J_ad,
a.lta. HABUBI, Dr Sa,. Jewad, or a.k.a. AlHABOBI, Dr. Sa,., alta. Al-HABOBI, Dr. Sata
Hajl J.), Min.ter at Oil: OOB 01 Jul 46: Flat 40
Thomey Court, Palace Gala, Kenamgton, England; Iraq (l1dMdual) (IRACr
JB INTERNATIONAL SHIPPING AND COMMERCIAL GMBH, Altar Wall 36, 2000 Hamburg " ,
Germany (FRY SaM!
JERMA PALACE HOTEL, Muruncala, Malta
(lIBYA!
JIBRll, Ahmad (alta JABRll, Ahmad): Secretary
General of POPULAR FRONT FOR THE LIBERA·
TlON OF PALESTINE - GENERAL COMMAND,
OOB 1838: POB Ramleh. larael (IndMdual) [SOT)
JIHAD GROUP (aka AL-JIHAD, a k a VANGUARDS OF CONCUEST, a ka TALAA'AL ALFATEH), Egypt [SOT]
JIK BANKA d.d. (a ka JUGOSLOVENSKA IZVOZNA I KREDITNA BANKA d d . a ka YUGOSLAV EXPORT AND CREDIT BANK INC ), P 0
Box 234, Knez Miha~ova 42, 11000 Belgrade, Serbia (FRY S&M). all oI'Iicea worldwide, Includl1g.
but not 11m lied to
• JIK BANKA d d (a ka JUGOSLOVENSKA IZVOZNA I KREDITNA BANKA d d . a Ita YUGOSLAV EXPORT AND CREDIT BANK INC ), 1040hren Strllne 171111, Berlin, Germany (FRY 5&104)
• JIK BANKA d d (a Ita JUGOSlOVENSKA IZVOZNA I KREDITNA BANKA d d . a Ita YUGOSLAV EXPORT AND CREDIT BANK INC ), VIII
CardUCCI 20-11, Plllno Seala A, 1-34122 Tneste, naly (FRY SaM!
JIMINEZ, G~lermo (SOLER), Panama (Indpvldual)
[CUBA!
JNA (a ka JUGOSLOVENSKA NARODNA ARMIJA, a k.a YUGOSLAV NATIONAL ARMY), Belgrade, Serblll (FR Y SUI!
JNK LTD (a k a J&K LTD). Wildwooda. Theobalda
Parll Rd , Crew. H~I, Enf1etd. Mlddleeex. England
[FRY S&M)
JOINT EXPLORATION, EXPLOITATION AND PETROLEUM SERVICES COMPANY (a ka JOINT
OIL: a ka JOINT OIL TUNISIA. a ka lIBYANTUNISIAN EXPLORA TION COMPANY, a ka
SOCIETE DE RECHERCHE ET D'EXPLOITATION COt.4t.4UNE ET DE SERVICE
PETROLIERE) Planning & Loglltlc Group complex Port of Zarz. Tun ... [LIBYA)
JOINT EXPLORATION. EXPLOITATION AND PE·
TROLEUt.4 SERVICES COt.4PANY (a ka JOINT
OIL, a I<. a JOINT OIL TUNISIA a I<.a LIBYAN·
TUNISIAN EXPLORATION COt.4PANY a I<.a
SOCIETE DE RECHERCHE ET D·EXPLOIT ... TION COt.4t.4UNE ET DE SERVICE
PETROLIERE) 7", of November oftahore held
Gulol Gabes [LIBY"')
JOINT EXPLORATION EXPLOITATION ... ND PE·
TROLEUt.4 SERVICES COt.4PANY (a ka JOINT
OIL. I I<. a JOINT OIL TUNISIA a I<. a lIBY ... NTUNISIAN EXPLORA TION COt.4PANY a I<.a
SOCIETE DE RECHERCHE ET D'EXPLOITATION COt.4 .. UNE ET DE SERVICE
PETROLIERE) B P 350 Houmt Souk 4180
o,.rtla _nd T un_ [L IB Y A)
JOINT OIL (a k I JOINT EXPLORA TlON EXPLOI.
TATION AND PETROLEU" SERVICES CO"·
PANY I II a JOINT OIL TUNISIA a I<.a LIBYAN·
TUNISIAN EXPLORATION CO"PANY aka
SOCIETE DE RECHERCHE ET D'EXPLOITATION CO .... UNE ET DE SERVICE
PETROLIERE) 7", 01 N~bef oItahcn I\atd
Gulol Gao.. (lI8YA)
JOINT OIL ,a II a JOINT EXPLORATION EXPLOITATION AND PETROLEU" SERVICES CO"·
PANY a II a JOINT OIL TUNISIA a I<. a LIBY ... N
n.iNISIAN EXPLORA TION CO .. PANY a k.a
SOCIETE DE RECHERCHE ET 0 EXPLOITA.
TION CO.... uNE ET DE SERVICE
PETROLIERE) B P 350 Moumt SOU1l4180
Dteftla _nd T_
[lIB YA)
JOINT OIL (a II a JOINT EXPLOR ... TION EXPLOI
TAT ION AND PETROlEU" SERVICES CO"
PANY I k.a JOINT Oil TUNISIA a II a LIBYAN
TUNISIAN EXPLORATION CO .. PANY a ... 1
SPEOAUY DESIGNATED NATIONAI.S & BLOO<ED OERSONS
SOCIETE DE RECHERCHE ET D'EXPlOITATlON COMMUNE ET DE SERVICE
PETROllERE), Planning & loglltlc Group complex. Port ot Zams. Tun ... [LIBYA)
JOINT OIL TUNISIA (a k.a. JOINT EXPLORATION
EXPlOITA TION AND PETROLEUM SERVICES'
CO .. PANY, a ka JOINT OIL: a ka. LIBYAN-TUNISIAN EXPLORATION CO .. PANY; a.lta SOCIETE DE RECHERCHE ET D'EXPLOITATION
CO .... UNE ET DE SERVICE PETROLlERE),
Planning & LoglRIC Group complex, Port ot ZarZIII, Tunl .. a [LIBYA)
JOINT OIL TUNISIA (aka JOINT EXPLORATION
EXPLOITATION AND PETROLEU .. SERVICES'
CO .. PANY, a Ita JOINT Oil, a ka LIBYAN-TUNISIAN EXPLORATION CO .. PANY, a Ita. SOCIETE DE RECHERCHE ET D'EXPLOITATION
CO .... UNE ET DE SERVICE PETROllERE), 7",
ot November offshore field, Gulf ot Gabea [LIBYA)
JOINT OIL TUNISIA (a k a JOINT EXPLORATION.
EXPLOIT A TlON AND PETROLEU .. SERVICES
COt.4PANY, a Ita JOINT OIL, a ka LIBYAN-TUNISIAN EXPLORATION CO .. PANY, a Ita SOCIETE DE RECHERCHE ET D'EXPLOITATION
CO .... UNE ET DE SERVICE PETROLlERE),
B P 350 Houmt Souk 4180, DJerna I.land, TUnl1118 [LIBYA)
JOINT REPRESENTATIVE OFFICE OF YUGOSLAV BANKS, .. olifiIJmovakaJ8 42, 7332
COW. Ruaalll [FRY 5& .. )
JOINT REPRESENTATIVE OFFICE OF YUGOSLAV BANKS, No 17 2nd Street PakIStan Avenue, Dr Beheahtl Avenue, Teheran, Iran [FRY
S& .. )
JOINT REPRESENTATIVE OFFICE OF YUGOSLAV BANKS, Piazza Santa ~ana Be~rade 2.
20121 ~Ilan. naly [FRY 5& .. )
JOiNT REPRESENTATIVE OFFICE OF YUGOSLAV BANKS. TIl Yuan Cun-(llpl Office bldg 2-81 Be~lng. China [FRY 5&~)
JOINT TURKISH LIBYAN AGRICUL TURAL LIVESTOCK CO~PANY. AnlCllra. Tur1<ey [LIBYA)
JOLDIC. ~lOdrag. De~ In SRBH Anembly:
DobOl Boan.-HerzegOY1!\l1 (Indpvldual) [SRBH)
JON. Hana Paul, 19 TudOf House. Wlndaor Way,
Brook Green. London. England (,"dlllidual) [IRAQ)
JOP (a k a JUGOOCEANIJA. a ka JUGOSLAVENSKA OCEANSKA PLOVIDBA BB: a ka
YUGOSLAV OCEAN LINES) Njegoaeva, P 0
BOI 18.85330 Kotor. t.4ontenegro [FRY S&~)
JOWFE (a ka NATIONAL COt.4PANY DRILLING
CHE~ICAL & EQUIP .. ENT). NOC BUilding. Ashfllra Square BenghllZl. Libya [LIBYA)
JUGOAGENT Belgrade Serbl. (FRY 5&~)
JUGO"'GENT HA~BURG REPRESENTATIVE OFFICE. Hamburg Germany [FRY S&t.4)
JUGOALA T. NOY1 Sad VOjVed .... (SerblB) [FRY
S&t.4)
JUGOAUTO. Belgrade Sert"a [FRY S&~)
JUGOAZBEST ~ •• novac SerbIB [FRY 5&t.4]
JUGOBANKA (a ... a BANK FOR FOREIGN
TRADE AD, a k a JUGOBANKA d d . a lI.a YUGOBANKA) all oIflOH wortdWlde [FRY S&t.4)",ClUOlng bu1 no! hm.ed to
• JUGOBANKA (a I<. a BANK FOR FOREIGN
TRADE AD • II a JUGOBANKA d d . a ka YUGOBANKA) Argenmenatrane 22I1V4-11. 1040
V,.nna ... .nlna [FRY S&t.4)
• JUGOBANKA (a I<. I B ... NK FOR FOREIGN
TRADE AD. a k I JUGOBANKA d d . a ka YUGOBANKA) Saloabul'1 HOUM FI~t FlOor (Room'
37S-379) LondOn EC2 .. 5RT. England [FRY
S&")
• JUGOBANKA (a ka BANK FOR FOREIGN
TRADE AD a It. JUGOBANKA d ct . a ka YUGOBANKA) 25 Rue lIIuMlDn. 751111 Pan •.
France (FRY 5&100II)
• JUGOBANKA (a II. a BANK FOR FOREIGN
TRADE AD. a II a JUGOBANKA d d a ... a YUGOBANKA) Kutfu~tenav.... 106111. 1000 Berlin
)() Germany [FRY S''')
• JUGOBANKA (a .... BANK FOR FOREIGN
TR"'DE AD • It a JUGOBANKA d d . a kl YUGOSANKA)
3411. 4000 euaaeldorf
Germany [fRY 5''')
• JUGOBANKA (a .... BANK FOR FOREIGN
TRADE AD alia JUGOBANKA d d . a ... a YU-
"0.-
1OoaI--.--
GOBANKA), Goether Strllue 2111, 6000 Frankfurt
am "aln I, Gennany (FRY SaM)
• JUGOBANKA (aka BANK FOR FOREIGN
TRADE AD; a.k.a. JUGOBANKA d.d.: a.ka. YUGOBANKA), Schleduwnbruecke 1~, 2000 Hamburg 36, Germany (FRY S&M)
• JUGOBANKA (a.ka. BANK FOR FOREIGN
TRADE AD: a.lta. JUGOBANKA d.d.; a.lta. YUGOBANKA), Georgntraue 3613, 3000 Hannover, Germany (FRY SaM!
• JUGOBANKA (aka BANK FOR FOREIGN
TRADE AD: a.k.a. JUGOBANKA d.d.; a.ka. YUGOBANKA), clo BFG .. -7 m No 16-17, eeoo
"annhelm, Germany (FRY S& .. !
• JUGOBANKA (aka. BANK FOR FOREIGN
TRADE AD: a.k.a. JUGOBANKA dd: a.ka. YUGOBANKA), Sonnenatrane 121111, 8000 "unlCh,
Germany [FRY S& .. !
• JUGOBANKA (a.ka BANK FOR FOREIGN
TRADE AD; a k.a. JUGOBANKA d.d.; a.ka. YUGOBANKA), Am Plaerer 2, 8500 Nuremberg, Germany (FRY 5& .. )
• JUGOBANKA (a Ita BANK FOR FOREIGN
TRADE AD: a k.a. JUGOBANKA d.d.; a.ka. YUGOBANKA). Koenlg.traaae 5418,7000 Stuttgart
'. Germany [FRY 5&")
• JUGOBANKA (aka. BANK FOR FOREIGN
TRADE AD, aka. JUGOBANKA d.d., a.ka. YUGOBANKA), clo Yugoslav Chamber ot Economy,
Saadoun Str., Shalen Bldg., Baghdad, traq (FRY
5&~)
• JUGOBANKA (a Ita BANK FOR FOREIGN
TRADE AD: a.k a JUGOBANKA d.d.; a.ka. YUGOBANKA), PO Box 2869, Tnpoll, libya (FRY
5&t.4)
• JUGOBANKA (a Ita. BANK FOR FOREIGN
TRADE AD, a.lta. JUGOBANKA d.d: a.lta. YUGOBANKA), S,"geI512, Amaterdam 1017 AX.
Netherlands [FRY 5&")
• JUGOBANKA (a ka BANK FOR FOREIGN
TRADE AD. a.k a. JUGOBANKA d.d., a.lta. YUGOBANKA). Kung.gatan 5513. 11122 Stockholm,
Sweden [FRY 5&101)
• JUGOBANKA (a. Ita. BANK FOR FOREIGN
TRADE AD, a k.a. JUGOBANKA d.d, a.lta. YUGOBANKA), Zwe,.r.traaae 16911, 8003 Zurich,
Swltzenand (FRY S& .. )
JUGOBANKA (aka BANK FOR FOREIGN
TRADE AD-SKOPJE; a.k.a. JUGOBANKA d d,
a k a YUGOBANKA), SkoPJe, Former Yugoalav
RepublIC of "acedonla [FRY S& .. )
JUGOBROD, Belgrade, Serblll [FRY 5& .. )
JUGODRVO, Belgrade, Serbll! (FRY 5& .. )
JUGODUVAN, NIIl, Serbia (FRY 5&"]
JUGOELEKTRO. Belgrade. Serbll! [FRY S& .. )
JUGOELEKTRO, BERLIN BRANCH OFFICE, Berlin, Germany [FRY 5& .. )
JUGOEXPORT, Belgrade, Serbll! (FRY S& .. )
JUGOEXPORT G .. BH, Bronne~trallw 17, 8000
Frankfurt am Main " Germany [FRY 5& .. )
JUGOHEMIJA, Belgrade, Sarbla [FRY 5& .. )
JUGOINSPEKT (CYPRUS) LTD (a ka. J.I.B INSPECTION LTD, a Ita JUGOINSPEKT LTD ),
57 Ledra St. No 7. NICOIIII!. Cyprus (FRY 5&")
JUGOINSPEKT LTD (a k a JIB. INSPECTION
L TO , a Ita JUGOINSPEKT (CYPRUS) L TO ), 57
Ledra St, No 7, N,COlI .. , Cyprua (FRY 5& .. )
JUGOINSPEKT, Serblll [FRY 5&")
JUGOLABORATORIJA, Belgrade. Serbia (FRY
S& .. )
JUGOLEK, Belgrade, Serbll! [FRY S& .. )
JUGO .. ETAL (f ka BULK STAR) (J8FN8)
OreJBulklO~ Cerner 79.279OT Saint VInCent Flag
(Lulla ShIPPing 5 A ) (venel) (FRY 5& .. )
JUGO .. ETAL. 92 Archblllhop .. akanoa III Avanue.
NICOlI", Cyprua [FRY
JUGOIoollETAl, Belgrade, Sarbla [FRY S& .. !
JUGO .. ONTANA (a k.a YUGOMONTANA), Bt»grade, Serbll! (FRY 5&104)
JUGOOCEANIJA (a k.a JOP, aka. JUGOSLAVENSKA OCEANSKA PLOVtDBA BB, a ka
YUGOSLAV OCEAN LINES), N,eooaeYl, P 0
Box 18, 85330 Kotor, .. ontenegro (FRY S& .. )
JUGOOCEANIJA, Kotor ... ontenegro (FRY S& .. )
JUGOPAPIR. Belgrade. Serbia (FRY S&M)
JUGOPETROL. Belgrade, Serbia (FRY S& .. )
JUGOPREVOZ, Belgrade, Serblll (FRY S& .. )
sa .. )
- 111 APRIL II
,~
OFFICE OF FOREIGN ASSETS CONTROL
JUGOSKANDIA A.B, Noemtbrogade 26,2200 C0penhagen N, Denmark [FRY S&M)
JUGOSKANDIA AB, RNdhuagt 17, 0158 Oslo 1,
NOIWIIY [FRY SIM)
JUGOSKANDIA AB, SvellVagen 59, 113 59 Stockholm, Sweden [FRY S&M)
JUGOSKANDIA AB, Tope~ukMnklltu 3b, A5,
002e0 HeI8lnld 26, Finland [FRY S&M)
JUGOSKANDIK d.d., all ot/icn wol1dwlde [FRY
SIM)
JUGOSLAVENSKA OCEANSKA PLOVIDBA BB
(a.lla. JOP; a.lla. JUGOOCEANUA; a.k.a YUGOSLAV OCEAN LINES), Njegoeeva, PO Box
18,85330 Kotor, Montenegro [FRY SIM)
JUGOSLOVENSKA BANKA ZA MEOJUNARODNU
EKONOMSKU SARADNJU (ak.a. YUBMES,
.. Ila. YUGOSLAV BANK FOR INTERNATIONAL
ECONOMIC COOPERATION), all of'/ioes worldwide [FRY S&M)
JUGOSLOVENSKA IZVOZNA I KREDITNA
BANKA d.d (alla YUGOSLAV EXPORT AND
CREDIT BANK INC; alla. JIK BANKA d d),
P.O. Box 23<C, Knez Mlhallova .2, 11000 Belg~, Serbia [FRY S&M), aN offices worldwIde, oncluding, but not ~m led Ie
• JUGOSLOVENSKA IZVOZNA I KREDITNA
BANKA d d. (a k.a. YUGOSLAV EXPORT AND
CREDIT BANK INC., a k.a JIK BANKA d d), 1010hren StnI_ 171111, Bellon. Germany [FRY s&M)
• JUGOSLOVENSKA IZVOZNA I KREDITNA
BANKA d d (aka YUGOSLAV EXPORT AND
CREDIT BANK INC., ak.a JIK BANKA d d ), VIa
carducci 20-11, P.no Scala A. 3<C122 Tneste, ttaly
[FRY SIM)
JUGOSLOVENSKA NARODNA ARMIJA (a k.a
JNA; a.k.a YUGOSLAV NA TlONAL ARMY), Belgrade, Serbia [FRY SIM)
JUGOSLOVENSKA POMORSKA AGENCIJA
(a k.a YUGOSLAV SHIPPING AGENCY). Belgrade, Sert)!a [FRY SIMI
JUGOSLOVENSKI AEROTRANSPORT (a k a
JAT, a k.a JAVNO PREOUZECE ZA VAZDUSNI
SAOBRACAJ .• k.a YUGOSLAV AIRLINES) Belgrade. Serbia. all oITion worldwide [FRY SIM)
JUGOTEHNA. Belgrade. Sertlla [FRY SIM)
JUGOVO (n k.a BLUE STAR) (JSFN4) OreJO~ carner 53.029GT Sa",t Vincent Fl.g (Ro.d Town
Shoppmg SA) ( _ I ) [FRY SIM)
JUHOMONYSNS (CYPRUS) LTD. 2 Sofou'"
SIrwet. Chantec"" Bldg. 2nd Floor. No 205. No..
co.I. Cyprua [FRY SIM)
JUME·AN George POBox 1318. Amman. Jaroan
(ondMdual) (IRAQI
KACH. tarael [SOT(
KADHUM Dr F.del J_ad. cJo A!v.ney Court. ~
Foncllley Ro.d. London. England (IndIVidual)
[IRAQ(
KAELBLE , GMEINDER COMPANY (a k. KAELBLE-GMEINDER G ... BHl. M.ubacner SIr.ue
100 Poatf.ell 1320. W-715O Beemang. GItt'·
m.ny [lIBYA(
KAELBLE-GMEINDER G ... BH (. k. KAELBLE'
G"'EINDER CO ... PANY) .... uNC"., Stre...
100. P~ 1320. W-715O Becknang. Getmany (1I8YA)
KAHANE CHAI IWMl(SDT]
KALiNIC Dr Dragen. "',n.te< of H.artrl of SRBH
e<?~ (ondMdual) (SRBHI
KA .. ENARI (Unkr\oOlltn) RO/RO CargolFerry 161GT
Yug0UaY\8 Fleg (l<omuNllno Poduzac:e) (veueI)
eo.n ......
[FRY S'''I
KAPETAN .. ARTINOVtC (lIHTY3) G .......I Dry
cargo 8 ~T .. arta Flag (SoutrI AdnabC Bulk
SII"",,"O Lid ) (_ _ ) [FRY S, ... )
KARADZtC. Dr Raoovan. P....:Ient of SRBH DOB
111 Jun.5 POB Pn-oca ... om.negro eo.ne.
He<?eQO¥lnII (ondMdual) (SRBH)
KARAGHULL Y Laoe.d A . G ....... I .... NIQe< of
-REAL E5TATE BANK nq (oncIOYldual)(IRAQr
KARIC ~ D08 17 Jen S4 POB Pac: K08OlIO. s..t. P ..... ". TOI,.n,. 3 11070 Noon
Beograd Se<tIoa (ond""ldua l ) [FRY S''''I
KARIC CQgomw D08 21 Od.1I P ....... TaI,aft,.
3 11070 Noon8eograd 5""" (I~) [FRY
5&"'(
KAIIIIC .. ,...... D08 16 s.o 57 IMICIWoCJoM The<>be~ P.". Rd
Ctwwa H~I ErQid .. odd _ _
England (~[FRY
5£"1
SPEOAU.Y OES1GNA1CD NATIONALS , BLOCICED PERSONS
KARIC, Olivera (n.k. NEOELJKOVIC, Olivera);
OOB 1960 (moves from country to country) [FRY
SIM)
KARIC, SlavlCa; DOB 28 Oct 58: POB Pee, KosOYo,
Serbl.; 7 Gevgeha Stree~ NICOSia, Cyprua (indIVidual) [FRY SIM)
KARIC, Sret.n; DOB 20 Jul48; POB Pee, Koaovo,
Serbl.; 7 Gevge~a Street. Nicoa., Cyprua (ind/\/Idual) [FRY SIM)
KARIC, Zoran, DOB 27 Dec 50; Palmira Tol,.ti,. 3,
11070 NOYI Beograd, Serbia (indIVidual) [FRY
SIM)
KARIC BANKA, P.lmlra ToI...... 3, 11070 Novi
Beograd, Serb.. [FRY 51101)
KARIC BANKA CYPRUS OFFSHORE BANKING
UNIT,66 Makeno. III Avenue, Crono. Court. 2nd
Floor, NICOSIa, Cyprua [FRY S&M)
KARIC BROTHERS HOLDING (.k. B K COMPANY .• k.. B K HOLDING; a k. •. BRACA
KARIC COMPANY .• k.. BRACA KARIC
TRADE COMPANY: a k .• BRACE KARIC COMPANY), P.lmlra Tol,.h,. 3. 11070 Novi Beograd.
Sertll •.• nd .n .fr~oated compan_ wol1dwlde
[FRY SIM(
KASPAR (K.spar Shlppmg. SA, P.Nlma) ( _ I )
(CUBA]
KARIC MASSIY (a k.. SP MASSIY KARIC; a k..
MASSIV K;. k.a MASSIV-KARITSCH; a.k..
MASSIV-KARICHI), 627720 RSFSR, Tyumenen·
akaya Obl.at. Sovyetatrayon. Y.gorka ul Mira.
.3. Ru .... [FRY 51101)
KASPAR SHIPPING. SA, P.nam. [CUBA)
KAT. PodgorJCa, Montenegro [FRY S&M)
KAVE. SA. P.nam. [CUBA)
KEENCLOUD LIM ITED. 11 Cattlenne Place. Westmlnoater. London, England [IRAQ(
KEFAL (HNKL) Fiah l,170DWT Iraqi flag (Rafld.,n
F.llenea Co Ltd) (v....,) (IRAQ(
KELECEVIC. Boako. M.,or General and Choef of
5tafT. FI"t Krapna Corps. SRBH Forces, Boanla·
Herzegovona (ondlVldu.1) (SRBH(
KERBALA IN/A) ServICe DWT N/A IraqI n.g (State
Org of IraqI Poru) (vessel) (IRAQI
KHALIO. Abu (a k a HAWATMEH. N.yt1. a k.. HA·
WA T ... A. Nay1f, • k.a HAWA TMAH, N.yif); Secre·
tary General of DE 101 OCRA TIC FRONT FOR THE
LIBERA TlON OF PALESTINE - HAWA TMEH
FACTION. DOB 1933 (lndlVldu.1) (SOT)
KHALID IBIN AL WALEEO (YIBM) ServICe
2.235D\NT IraqI n.g (State Org of IraqI Porta)
(Ye_I) (lRAQ(
KHALIL. Dr Ahmad Muruda Allm.d (a k. KHALIL
Allm.d MurtJldll. Allm.d). Mlnoater of Tranaport
.nd CommunlCatlona. IraQ (ondlVldua~ [IRAQ)"
KHALIL. Allmad "'urtJldlla Ahmad (a k.. KHALIL.
Dr Ahm.d MurtJld. Ahm.d). Mon,ster of Transport
.nd Communocatlon •. Iraq (ond'Ifldu.1) (IRAQr
KHANAQIN (HNKQ) Tankar 35.338DWT IraQI flag
(IraQ' 0.1 Tanke" Company) (ve..e~ [IRAQ(
KHAWLA BINT AL ZAWRA (HNKH) ROIRO
3.118~ IraQI nag (IraQI State Ent.rpnae for
W.ter Tranaport) (v_I) (IRAQI
KHO"S CEMENT PLANT KlIoma. LIbya (LIBYAI
KING LION (f k.. BOKA.I k. HANUMAN)
(9HUQ3) G-..I Dry Cargo 13 688GT M.1ta
Flag {Wor1dwIOe OO8.n Ch.rtenng Group (Sou1ll
AdNlbC Bulk SlIoppo"O Lid J) (veuel) [FRY SIMI
KIRKUK (HNKK) Tank.r 35.338D\NT IraqI flag
(Iraq, 0.1 Tanke<a Company) ( v - I ) (IRAQ(
KLUl. BeIg~ Sertlta [FRY 51 ... (
KOI"'PEX Noon Sad. VOjYOd'NI (S.rbIa) [FRY SIMI
KOL INVEST .. ENTS. INC . M.ml. FlOrid •. USA
(CUBA(
KQLASIN (n k.. GUANA) (Unknown) Bulk camer
111I1SGT .... ita Flag (Lov08n Qveraeaa Shlppong
Lid) (vnMI) [FRY 5£"'(
KOUEV IC. Dr NIIcDIa .• Vooa-Prnadent of SRBH .
DOBII Jun le. POB Ben,. Luke. Boan...... erze·
g<lY1NI Boan"~e<?1tgOY1nII (ondMdu.1) (SRBH(
KOLUBARA 1 (UnknOwn) Dr~ I158GT Yugasla·
.... F"g (Bege<-tI<o 8rod.~ Pr.cIuzece) (veaael) [FRY 5£"1
KO ... BINA T ALU .. INUU ... A PODGORICA (. k a
ALUMINU" COOPERA TIVE PODGORICA).
PO B 22.81000 PodgOnCII ... ontanegro [FRY
5'''1
KO ... GRAP (. k.. KO ... GRAP-GRO). Teraz~e 4.
POBox 4&8 11001 Belgrade Sertlta [FRY S&M(
KOMGRAP-GRO (Ik.a KOMGRAP), Terazije.,
P.O. BOll~, 11001 Belgrade, Serbta [FRY S&M(
KOMOVI (nk.a MONTE) (9HTD3) GeMrIIl Dry
Cargo 9,183GT M.tta Flag (Bar Ov_a Shipping Lid) ( _ I ) [FRY SIM)
KOMUNALNO PODUZECE, 5, HercegOYaCkB Bngad., 81J.W Hernao-NO\rl, Mont.negro [FRY
SIM)
KONSTRUKTOR, Plncew, VojYodlnll (Serbia)
[FRY SIM)
KOOPERATIYA, Novi Sad, VOjIIOdiNi (Sarbi.a)
[FRY SIM)
KOPAONIK, Belgrade, Serbi.a [FRY S&M)
KOPROOUCT LTD., 2 Albion PIaoa, King'a Tetrace, G.IeNl Road, London
COT, England
[FRY SIM)
KOPRODUKT (•. k .•. KOPRODUKT ZA UNUTRASNJU I SPOLJNU TRGOVINU I ZASTUPANJE
STRANIH PREOUZECA), BuieYar Marula Tita 6,
21000 Novi S.d, VO/YOdlna, Serbia [FRY SIMI
KOPRODUKT ZA UNUTRASNJU I SPOWNU TRGOVINU I ZASTUPANJE STRANIH PREDUZECA (.k.• KOPROOUKT), BuieYar Marui.
Tota 6, 21000 Novi S.d, VOjIIOdln., Sarbia [FRY
S&M)
KORDUN (9HSQ3) General Dry Cargo 38,!551GT
M.tta Flag (Kolor Ove..... Shipping Lid.) (ves~I) [FRY 51101)
KOREA FOREIGN INSURANCE COMPANY (•. k..
CHOSUNBOHOM), 1080 Bellon Ghnkllatraaee 5,
Germany [NKOREA)
KOREA FOREIGN INSURANCE COMPANY (•. k..
CHOSUNBOHOM), 123, Rue des T.nnerolles,
92210 Saint-Cloud, Pana, France [NKOREA)
KOREA FOREIGN INSURANCE COMPANY (.k..
CHOSUNBOHOM), Unt Batteri_eg 35, CH400S Basel, Swltzer1and (NKOREA)
KOSMAJ (9HSP3) Bulk carner 38,55OGT M.1ta
Flag (Kotor Ove..... ShipPIng Ltd) (v-I)
[FRY SIM(
KOSOVO ELECTRIC POWER COMPANY (a.k. •.
ELEKTROPRIVREDA KOSOVA), PnstiNl, Kosova (Sertll.) [FRY SIM]
KOSOVO EXPORT IMPORT GMBH (•. k.a. EXIMKOS, •. k.a KOSOVO GMBH; a.k. •. O ... EGA
GMBH), M.lllongeratraue 3<C, 8000 MunIch 2, Germany [FRY SIM]
KOSOVO GMBH (a.k.a. EXIMKOS; a.k.•. KOSOVO EXPORT IMPORT GMBH; •. k. •. OMEGA
GMBH), M.lllongeratraue 34,8000 Munich 2, Germ.ny [FRY SIM(
KOSOVSKA BANKA, .n ofrlCea (Benk is he.dquartered on Pnstin., Koaovo, (Serbl.n [FRY SIM)
KOSTIC, Boako, AY B.nk Ltd, 11/15 SI. M.ry ..tHIli. EeJR8EE London. England (IndlVldu.l) [FRY
SIM(
KOTOR OVERSEAS SHIPPING LTD, Valletta,
Malta. cia Jugoal.venaka Oceanaka PkMdba BB,
Nlegoaev., PO. Box 18,85330 Kotor, Montenegro [FRY S&M)
KOVACEVIC, Sveto; Monlster of Trade .nd Supply
of SRBH, Bosnla~erzegovon. (ondMdu.~ (SRBH]
KOZIC, Du .. n; Pnme "'onlster of SRBH; Boan.Herzegovona (ondlVldu.1) (SRBH)
KRAJISNIK, MomcMo; PrHldent of SRBH Auembly, DOB 20 J.n .5; POB Radovac, SaraJIIYo,
Bosnl.-Herzegovon., B.njB Luke, Boanla~.rze
govona (ondlVidu.l) (SRBH)
KRECA, M.enko; Dlplom.t of SRBH; Boan.-Herzegovona (indIVIdual) (SRBH)
KREDITNA BANKA BEOGRAD, .11 offices wortdwide [FRY S&M)
KREDITNA BANKA BEOGRAD CYPRUS OFFSHORE BANKING UNIT, NICOSIa, Cyprus [FRY
SIM)
KREDITNA BANKA PRISTlNA, an of'/icesworldWIde [FRY S& ... ]
KREDITNA BANKA SU80TlCA, all offICes woI1dwide [FRY S& ... )
KRUNIC. Goran; Dlplom.t of SRBH; Boania~erze
gov",. (ondMdu.l) (SRBH)
KRUSEVAC PROMET, Kru_c, Serbia [FRY
SIM)
KRUSIK, V.I,evo, Sertloa [FRY SIM)
KUFRA AGRICULTURAL CO .. PO Box 4239,
BenghazI. Llby •. Tnpolo OlTice. POBox 2306, Da·
mllacua Street. Tnpob, lIby. (LIBYA(
we
_17 .
~1"~
OFFICE Of' KJREiGN ~s CONTRol
KUFRA PRODUCTION PROJECT. PO Box 6324.
BenghaZI, Libya: (bnIndl) P.O. Box 2306, Tnpoll.
Libya (lIBYA)
KUGLEX, Belg~de. Serbia [FRY SUfI
KUPRES (n.k.a. RAMA) (9HUP3) Gene~1 Dry
cargo 13.888 GT Cyp!VS (Mallll) Flag (White Star
Sh~ng Co. Ltd.) ((South Adnatic Bulk Shlpptllg
lid.)) ( - ' ) (FRY 5&M)
KUWAYBAH, Muftah Muhammad, Secretary of Marine Resources ot the Governmenl of Libya. Libya
(individual) (lIBY Ar
KYOEIINTERNATIONAL COMPANY. LIMITED. Tokyo, Japan [CUBA)
LA EMPRESA CUBANA DE FLETES (a.ka CUFLET: a.k.a. THE CUBAN FREIGHT ENTERPRISE), Pyongyang. Kor. . (Peoples Dem0cr8bc
Republic) [CUBA)
LA EMPRESA CUBANA DE FlETES (a kll CURET: a.k.a THE CUBAN FREIGHT ENTERPRISE), Ma.cow. R _ (CUBA)
LA EMPRESA CUBANA DE FlETES (a kll CUFLET: ak.a THE CUBAN FREIGHT ENTERPRISE). Barcelona. Spain [CUBA)
LA EMPRESA CUBANA DE FlETES (a 1<.11 CUFlET: a k.a. THE CUBAN FREIGHT ENTERPRISE). Ra.lock. Germany [CUBA)
LA EMPRESA CUB ...NA DE FlETES (lIkll CUFlET; a k.a THE CUBAN FREIGHT ENTERPRISE). GenOll. IIII/Y [CUBA]
LA EMPRESA CUBAN A DE FLETES (II kll CUFlET; a IlII THE CUBAN FREIGHT ENTERPRISE). Syczecln. Poland [CUBA]
LA EMPRES... CUB ... NA DE HETES (II kll CUFLET; a.lla THE CUBAN FREIGHT ENTERPRISE). Rotterdam. Nether1llnda [CUBA]
LA EMPRES... CUBAN ... DE FlETES (alla CUFlET. II k.a THE CUBAN FREIGHT ENTERPRISE). MexICO [CUBA]
LA EMPRESA CUB ... N ... DE FlETES (II kll CU·
FlET. II kll THE CUBAN FREIGHT ENTER·
PRISE). Buena. ........ "'rgenbna [CUBA]
LA EMPRES... CUB ... N ... DE FlETES (II IlII CU·
FlET. II k II THE CUBAN FREIGHT ENTERPRISE). Montreal. Canadll (CUBA]
LA EMPRES'" CUBANA DE FlETES (II kll CUFlET; II k II THE CUBAN FREIGHT ENTERPRISE). Vllmll. Bulgllna (CUB"']
LAFB (II k II LIBYAN AR ... B FOREIGN BANK) Dat
Ellmlld Complex Tower No 2. POBox 2~2.
Tnpo~. llbYII (LlBY"']
LAFI TRADE .. Al T.... 14517 Tower ROIId. Sioemll
Malta !LIBYA]
LAFICO (II IlII LlBY ... N AR ... B FOREIGN INVEST·
MENT CO .. PANY). A!hena. Greece !LIBYA]
LAFICO (II 1111 LIBYAN ARAB FOREIGN INVEST·
MENT CO .. PANY) Rome Italy !LIBYA1
LAFICO (II 1111 LIBYAN ARAB FOREIGN INVEST·
MENT CO .. PANY) "11l1li !L'BYA]
LAFITRADE HOLDINGS BV. De Lalreueatrut
133 1075 HJ Amaterttam Netherlllnda POBox
752~ 1070 AG Amatertlam. Nether1llneta !LIBYA)
LAHMAR "Of\emmed. 0.1 EI 1m lid Admln.u.t_
Complex Towe< No 2. POBox 2~2. Tnpoll
libya (IndMdual) !LISYA)
LAJIC. NecJelfko "lnllllar of Tf1Inapottabon llnet
Com", unocatlon of S R BH. Bov"l1 4-IerzagovlNl ( .....
dMdual) (SRBH]
LAKE ST AR (n k II SERIFOS. t k II SKAOARUJA)
(JIFN3) 8uer Carner 15 647GT Panllma (Saont
Vncen1) Flag (BAllam Nlghl Shop()lng SA) «(Nov,
ShlPC)l"ll Company 5 .... ) (veueI) (FRY $&"]
LAKIC. NecJeljkO Secrwtary of SRBH. Boenaa4-l...,.·
(10'111'18 (~I) (SRBH)
LAKSH", Panemll (CUBA]
LAMEDON TRADING LTD Evagotall PaoecMatoufofou &rwI Them. Cout1 Bldg lat Floor.
PO Boa !leI LimeMOl C~ (FRY 5& .. )
LAMHCO (alia LleYAN ARAB .. Al TESE HOU>ING CO LTD) St .. a'" Hou. CaPOUCflat'
StrMt.· FlOoane ..... !LI8YA]
LAS COLORAOOS ( N - . "entlme Ge Arou
SI)II") ~ (CUBA]
LAURA ("-~ 5ntocMno ~ .. II") fv--'l
(CUBA]
LAYAS MOIIemm.c! H.-In T~I LlCya (1ndNOd
l1li1) !L18'fA]
~l"
I.e
SPEOALLY DESIGNATED Not.TIONALS & BLOO<ED PERSONS
LEBREDO. Jou .... Dtrector. Banco NaCional de
Cuba. Zwelerwtrll... 35. CH.aQ22 Zunch. SwllZerland (IndlllldulIl) [CUBA]
lEPETANE (Unknown) ROIRO CargolFerry 132GT
YugOlllIlVlII Flag (Komunalno Peduzece) (v_I)
(FRY S&M]
lETEKS - lESKOV... C (lIk.a WOOL ... ND TEXTILE INDUSTRY OF lESKOV... C). lnkoYac, Serbia (FRY 5&101]
.
lEVER... GE. SA. SlIn MllrIm 323. P.a 14. Buenos
Alfes. Argenbnll [CUBA]
lEVERYE. S A. ~frlenles 1386. 5th Floor. Buenos Au.... Argentina [CUB"']
lEYBDA CORPOR ... TION. S .... Pllnllmll [CUBA)
LIBERIAN LIBYAN HOLDING COMP ... NY. MonroVle. llbena !LIBYA]
LIBYA INSURANCE COMPANY. PO Box 2438.
U.. me Bldg. " ' September Street. Tnpoh. LIbya.
mllin branchn end 58 aub-branchn In libYII)
!LIBYA]
LIBYA INSURANCE COMPANY. CyprusOtrlCe. NICOIIIII. Cyprua !LIBYA]
LIBYA INSURANCE CO (CYPRUS OFFICE) lTD.
Cyprus [LiBY A]
LIBYAN ARAB CO FOR DOMESTIC ELECTRICAL "ATERlAlS. PO Box 12718. Tnpok. libYII;
(branch) POBox 453. Benghllll. libya (lIBY"']
LIBYAN AGRICULTURAL BANK (a k II THE AGRICUL TURAL BANK; II 1111 NATIONAL AGRICUlTUR"'L B... NK OF L1BY ... ). 52. Omllr EI Mokhtar
Streel. POBox 1100. Tnpoli. libya (LIBYA]
LIBYAN AGRICULTURAL BANK (II k II. THE AGRICUl TUR ... l B... NK; 11.1111 NATIONAL AGRICULTURAL BANK OF LIBYA). (1 CIty branch lind 27
b~nchn In libya) !LIBYA]
LIBYAN ARAB AIRLINES (Numeroua branch ottioea lind teCllrtlea abroad) !LIBYA]
LIBYAN ARAB FOREIGN BANK (II 1111 LAFB).DIII
Ellmlld Complex Tower No 2. POBox 2~2.
Tnpoh. Libya !LIBY ... ]
LIBYAN ARAB FOREIGN INVESTMENT COMPANY (II k a LAFICO). Rome, Italy !LIBYA]
LIBYAN ARAB FOREIGN INVESTMENT COMPANY (a k II LAFICO). Marta !LIBYA]
LIBYAN ARAB FOREIGN INVEST"ENT COMPANY (II ka LAFICO). Athenl. Greece !LIBYA]
LIBYAN ARAB .. AL TESE HOLDING CO LTD
(II kll LA .. HCO). 5t "1Ir1! House. CIIPpuchlln
Street. FlOnana, "1I1ta !LIBYA]
LIBYAN ARAB UGANDA BANK FOR FOREIGN
TRADE AND DEVELOP .. ENT (n k II TROPICAL
AFRICAN BANK LI .. ,TED) POBox 9485. Kampala. Ugandll !LIBYA]
LIBYAN ARAB UGANDA HOLDING CO lTD
(II II II UGANDA LIBYAN HOLDING CO lTD).
Kllmpala. Ugencte !LIBYA)
LIBYAN BRICK .. ANUFACTURING CO . POBox
10700 Tn~ libYII. (br1Inch) POBox 25. Km
17. Suanl Road. Suanl. libya !LIBYA)
LIBYAN CEMENT CO. P 0 Bol 2108. Beng hill I.
lib.,.. !LIBYA]
LIBYAN CINE .. A CORPORATION. POBox 878.
Tn~, Llby •. (branch) P 0 BOI 2076. Benghllli.
Libya !L'BYA)
LIBYAN ETERNIT CO .. PANY. P 0 Bol 6103. ZlInlour Km 17. Tnpo~. LlOya (LIBYA)
LIBYAN FISHING CO .. PANY. P 0 BOI 3749. Tnp011. libya !L'BYA]
L1BYAN-GREEK INVEST .. ENT CO .. PANY. Ath·
en. Greece !LJ8YA]
LI8YAN HOTELS AND TOURIS .. CO . POBox
2Qn, Tnpoll, Libya !LIBYA]
LIBYAN INSURANCE CO .. PANY. Queema Bldg.
la1 Septembet Street. POBox 2438. Tn~.
libya. (branch) BenghaZI. Llby •. (branch) Derna.
libya. (br1Inch) Sebha. libya (bI'.nch) Ghllnan.
libya. (br1Inch) .......,.g. Libya. (branch) Z_IYII.
Libya. (branch) Homa. libya !LIBYA]
LIBYAN .. ILLSCO .. PANY. S/'Iena la' Seplember.
POBox 310. TnpoIl. libya (lIBYA]
LIB YAN NATIONAL OIL CORPORAT ION (a k a
LNOC II II. NATIONAL OIL CORPORATION.
a k a NOC) Petroleum R_rch Centre ....1 Nil ..
aer StTHl P 0 BOI6431 TnpoIl libya [LIBYA]
LI8YAN NATIONAl OIL CORPORATION (II k a
LNOC 111111 NATIONAL OIL CORPORATION.
• II II NOC) (Subeldlllnn.net pont \/Wntur.. In
libya anet~) !LIBYA]
rr
LIBYAN N... TlON ... l Oil CORPORATION (ak.a
lNOC; II Ila. N ... TlON... l OIL CORPORATION;
a k.1I NOC). PO. Box 2978. Benghllll, libya
(lIBYA]
L1BY ... N NATIONAL Oil CORPORATION (1I.lla
lNOC; 1I.IlII. NATIONAL Oil CORPORATION;
II Il a NOC). Dahra Ga. Pro,ecta Oft'ice. o.hfa
Street PO Box 12221, Dah~. Tripoli, Libya
(lIBY"']
LIBYAN N... TIONAl Oil CORPORATION (1.lla.
LNOC; II ka. N ... TlONAL Oil CORPORATION:
lI.k.1I NOC). Baahl' Saad_1 Stntet. P,O. Box
2655. Tnpok, LlbYII (lIBYA]
LIBYAN NATlON"'l OIL CORPORATION (a.lla.
lNOC. 1I.lla. NA TlON ... L Oil CORPORATION:
II k.1I Noe), Petroleum Training lind Qualitytng InabMe. ZawlII ROIId. Km. 9, PO Box 6164. T~
oil. lib.,.. !LIBY... ]
LIBYAN Oil INVESTMENTS INTERN ... TlONAL
COMPANY (1I.1l1I FOREIGN PETROLEUM INVESTMENT CORPORATION; lI.ka. OIlC: ak.a
OlliNVEST; a k.a. OILiNVEST INTERNATIONAL
N V ). Tnpob. libya !LIBYA]
LIBYAN Oil INVESTMENTS INTERNATIONAL
COMPANY (II k II FOREIGN PETROLEUM INVESTMENT CORPOR... TION; a.kll. OIlC; 1I.1l •.
OILiNVEST. a.k.lI. OILiNVEST INTERNATIONAL
N V ). Nethertanda "'nliWea [LIBYA)
LIBYAN TRACTOR ESTABLISHMENT. P.O. Box
12507. Dllhra, libYII (lIBYA]
LIBYAN-TUNISIAN EXPlOR... TlON COMPANY
(I kl JOINT EXPLORATION, EXPLOITATION
AND PETROLEUM SERVICES COMPANY:
II k 8 JOINT OIL; II k.lI. JOINT Oil TUNISIA;
8 k II SOCIETE DE RECHERCHE ET D'EXPlOITAT ION COMMUNE ET DE SERVICE
PETROllERE). 7th ot November oll'ahof1l field.
Gu~ of Gllbea !LIBY ... ]
LIBYAN-TUNISIAN EXPLORATION COMP ...NY
(8 kll JOINT EXPLORATION. EXPLOITATION
AND PETROLEUM SERVICES COMP ... NY;
II k.1I JOINT Oil. lI.k.lI. JOINT Oil TUNISIA:
II k II SOCIETE DE RECHERCHE ET D'EXPlOITATION COMMUNE ET DE SERVICE
PETROLlERE), Planning & logistic Group complex. Port of ZlIrz ... Tun .... [LIBYA]
LIBYAN-TUNISIAN EXPlORA TlON COMP ...NY
(a lIa JOINT EXPLORATION. EXPLOITATION
AND PETROLEUM SERVICES COMP ... NY;
II k II JOINT OIL; II k.1I JOINT Oil TUNISIA;
II k II SOCIETE DE RECHERCHE ET D'EXPlOITATION COMMUNE ET DE SERVICE
PETROllERE). B P 350 Houml Souk 4180.
D,eroll Island. Tun .... (LIBYA]
lICOREXPORT SA. Qurto. ECUlldor (CUBA]
LILAC ISLANDS (\IlIllette Shlppmg Corp, Penllmll)
(velsel) (CUBA]
lIRIJA. pnzren. Koaovo (Serblll) (FRY 5&101)
lITALIA SHIPPING S .... Pllnllmll City. Panllmll.
cJo Beogradakll Plovidbll. lenJmov BuleYllr 165A.
11070 Novi Beograd. Serolll [FRY 5&101]
LITRACO IMPEX lTD., PO Box 5686. Benghllli.
libya. (branch ot) Nllllonlli Soft Dnnlca EST., P 0
Box 559. Benghllli. llbYII [LlBY"']
lIVNICA. Klkmdll. VOIVedlnll (Serb.. ) (FRY 5&101]
LNOC (II k II LIBYAN N... TIONAL Oil CORPORATlON.II.kll NATIONAL Oil CORPOR ... TlON;
II k II Noe). (Sub.. dlll~ and jom' ""nturn In
lib.,.. lind worldwide) (lIBY"']
lNOC (lIk.a LIBYAN NA TlON"'l Oil CORPORATION,II kll NATIONAL Oil CORPOR ... TlON,
••. 11 NOC). PO Box 2978. Benghazi. Libya
!LIB', ... ]
lNOC (II k.1I LIBYAN NATIONAL Oil CORPORATION, a k.a N ... TlONAl Oil CORPORATION;
II k.1I NOC). Dahra Gill ProjllCta OtTice. Dllhf1l
Street. PO Box 12221. Dllhra. Tnpok. libya
!L'BYA]
LNOC (II k.a. LIBYAN N ... TlON ... l OIL CORPORATION. II ka NATIONAL Oil CORPORATION.
II k II Noe). Petroleum Research Centre ...., Nil..
ller Street. POBox 6431. Tnpoli. LIbya (l'BYA]
LNOC (II k a LlBY ... N NATIONAL Oil CORPORATlON. II kll NA TlON ... l Oil CORPORATION.
II k II NOC). Petroleum Tramlng lind QUllllfylng Ina"lute. Z_III Road. Km. 9. POBox 6164. TnpOil. libya (lIBYA]
- 18-
OFRCE OF FOREIGN ASSETS c:clNmOl
LNOC (alta. LIBYAN NATIONAL OIL CORPORATION: a Ita NATIONAL OIL CORPORATION.
.. Ita NOC). Baahl' Saad_1 Street. POBox
2855. Tripo~. Libya rUBY AI
LOBATO. JuMo (a.lta. PRADO. Julio). Panama (individual) [CUBA)
LOPEZ. Miguel, A., Deputy Chairman. H.v.na International Bank, 20 lronmonger lane. London
EC2V 8EY, England (Wldividual) [CUBA)
LOPEZ, Quinno Gutierrez, c/o ANGLO CARIBBEAN SHIPPING CO., L TO, 7th Floor. Ibex
Hm.e, the Minorln, London, EC3N 1DY, England (indlVidu.') (CUBA)
LOTUS ISLANDS (Wadena Shipping Corp. Libena)
(-')(CUBA)
LOUTH HOLDINGS. S.A., P.n.m. (CUBA)
LOVCEN (9HTU3) General Dry Cargo 12.375GT
M allll Flag (South C~ Shipping Ltd ) (veMeI)
(FRY S&M)
LOVCEN OVERSEAS SHIPPING LTD. V.,Ietta.
Mallll. c/o Rigel Shiptn.n.gement Ltd. Second
Floor, Regency Hou... RepublIC Street. Va I1ettl!II.
M.IIII (FRY S&M]
LUCIANO HOPE (flta. POMORAC) (3EIE") Bulk
CarTier 20,~GT Liller. (P.n.ma) Flag (Cromar!<
ShipPIng Lmited) «OceanIC Bulk ShipPIng SA))
( _ I ) (FRY SUI)
LUKA BAR-PREDUZECE. 81350 B.r. Montenegro
(FRY S&M)
LUKIC. VI.dlmlr, Deputy In SRBH Auembly: DOB
Circe 1930: Pale. Ba.nI84-lerzegovlfI. (mdMdual)
(SRBH)
LUPAMAR INVESTMENT COMPANY (. It. INVERSIONES LUPAMAR. SA). P.n.ma [CUBA]
LZTK. Kliond •. VOjVOOin. (SertHa) (FRY 5&M]
M POINT KFT (. Ita EAST POINT HOLDINGS). Intemabon.' Trade Center. B.lcay-Z.,hazky 12130<4.
Bud.peat, V-1051 Hungary (FRY S&M]
MMDI. N . Day BUilding. Buchareat Avenue. OIH
Aley No "17. Apt 8. Teheran. Iran (lIddrna of
EAST POINT HOLDINGS) (IndIVidual) (FRY 5&M)
MACHINE INDUSTRY OF NIS (a Ita MIN - MASINSKA INDUSTRIJA). N, •. Serbia (FRY S&MJ
MACHINES AND TRACTORS INDUSTRY (II Ita
IMT - INDUSTRIJA MOTORA I TRAKTORA). Be~
grade. Serb.. (FRY S&MI
MADAN. Jorge (RIVAS). Frankfurt. Germany (indIvidual) (CUBAJ
MADI. Rag.b Saad. POBox 2297. Shaman
Street F ..tlloum. T nooh. LibYII (indIVidual)
[lIBYAJ
MAG INTERTRADE Serblll (FRY S&MJ
MAGCOBAR (LIBYA) LTD. POBox 867. TnPQII
LIbya (branch) BenghazI Lillyll [lIBYAJ
MAGHREBAN INTERNA TlONAL TRADE CO"PANY (a k a ,,'TCOl. 47. Avenue Khelrw<kll'"
Pacl'la 1002 Tun. Tun ... [lIBYAJ
MAGNOHROM KralfllVo. SertHa (FRY S&MJ
MAHARI GENERAL AUTOMOBILE CO . LI~
[lIBYAJ
MAKSIMOVIC. VOp-'lIV. Head of Srp.kII [)emOla81·
.kII Snno StpUtl Z"".'/II Deputy Group
MayC)( aI"Sartl Sarll,eovo". DOB 1939 POB U..,k·
ohn•. Ba.,ua-Herzegovlna SarajeVO Ba.nlllHerzegovina (IndMdual) (SRBHJ
MALIK. Ana. (a k a Al-HASSAN. Ana. a II a AlHASS ... N A" .. Mal. Donan alta DOHAN
A"•• a k a DOHAN. Ana. Mal.). Jordan (1ndMd·
ual) [lRAQJ
I.IAllK Ann (a It a Al4-l ... SSAN. Ana •. a II a AtHASS...N Ana. "al. Donan. a Ita DOH ... N
Ann • II a DOHAN. Ana. Malik). BaghCSeCI. nq
(IndMdual) (IRAQ]
.. ALIK. A • .., MoI'Iamme<l Raflq Abdul (a II a AS·
DUL ..... llI< Abdul Hameed a Ita RAFlQ A ..
Mft\) 1.. Almotaz Sad"" Deen SlrMt ... , Nozt\a
Cawo EImIt (IndMdual) [IRAOJ
I.I ... NA. Sa...., FranlCtutt. Germany (IndIVIdual)
-- [lIBYAJ
"ANA. s....., L~ (IndIVidual) [lIBYA]
"ANDAtI (f II a "'lKADISIYAH) (yICS) ~
8.1i1770WT '-"flag (Stala Org allr'8QI POIU)
(_ _ I (IRAQJ
.. ANZPER CORP Panama [CUBA]
..... R AZUL (s.nanque Shopping Co LIId C~)
(_ _ )(CUBAJ
SPEOAU.Y DESIGNATED NATIONAlS & BLOCKED PERSONS
MARIEL (f Ita BEOGRAD) (9HSYJ) Bulk Carner
15.396GT M.1ta Flag (Lovcen Ovaraeaa ShiPPing
Ltd ) (vessel) (FRY S&M]
MARINA SAN GORG CO LTD. (. Itl. MARINA
SAN GORG HOLIDA Y COMPLEX), Mallll (FRY
S&MJ
MARINA SAN GORG HOLIDAY COMPLEX (.It.
MARINA SAN GORG CO L TO). M.1ta (FRY
S&M]
MARINE REGISTRATION COMPANY. P.nama
[CUBA]
MARISCO (or MARISCOS) DE FARAllON. S.A .
Panama (CUBA]
MARKETING ASSOCIATES CORPORATION,
Celie 52 E. Campo Aleg~. Panama City, Panama
(CUBA]
MARKONIZONI. Sertl.. (FRY S&M]
MARUF. Taha MUhYl al-DIO. VICe P~dent: DOB
1924. Iraq (IndIVidual) (lRAOr
MARYOL ENTERPRISES. INC. Panama (CUBA)
MASINOKOMERC. Belgrade. SertHa (FRY S&MJ
MASINOKOMERC. Knez Mlhallova 1-3. P Fah
232. 11000 Belgrade. Sartl .. (FRY S&M]
MASLAKOVIC. Duun. lor DragovlCll. I.. NlCa.la.
Cypru •. Xenia. Commerc,,'e Centre. ArchbIShop
Maono. III Avenue Surte 504. NICOS.. , Cyprus
(add~" of J U .B. Holding.) (,"dMdual) (FRY
S&MJ
MASRAF AL-GUMHOURIA (n k II JAMAHIRIYA
BANK) . .ell hating. (38 local branel'le. In Libya)
[lIBYAJ
M... SSIV K (a k a SP MASSIV KARIC; • k.a MASSIV-KARITSCH. alta KARIC MASSIV: •. lta
MASSIV-KARICHI). 627720 RSFSR. Tyumenen.kaya Obla&l. SovyetRrllyon. Yagorkl ul. Mira.
43. Ru ... a (FRY 5&MJ
MASSIV-KARICHI (a k I SP MASSIV KARIC.
a k a M... SSIV K. a k a MASSIV-KARITSCH.
I k a KARIC MASSIV). 627720 RSFSR. Tyumenen.laly. OblaR, Sovyetstnlyon. Ylgor!<. ul MIra.
43. Ru...a (FRY S&MJ
MASSIV·KARITSCH (alta SP MASSIV KARIC.
a k a MASSIV K. a k a KARIC MASSIV. a k a
_ .. ASSIV-KARICHI). 627720 RSFSR. Tyumenen.laIy. Obla&l. Sovyetstrllyon. YlgoM ul. Mira.
43 Ru... a (FRY S&M)
MATRIX CHURCHILL CORPORATION. 5903
Harper Road. Cleveland. OhiO ~139. USA
(IRAQ)
..... TROZ - CELLULOSE AND PAPER INDUSTRY
(Ilta M... TROZ SREMSKA MITROVlCA). Srem• 1aI MrtrovlCll. VOJVO(llnl (SerbIa) (FRY 5&1.1)
MATROZ SREMSKA MITROVICA (a k a MATROZ
_ CELLULOSE AND PAPER INDUSTRY). Srem.
.1aI MrtrovlCll. VOJVOdlnl (Serbia) (FRY S& MJ
101 ... TUQ. MltuQ Muhammad. Seretllry of EducatIon.
YoutIl ScoentJfIC Reaeareh. Ind Vocabonal Educabon 01 II'Ie Govemmenl of Libya Libya. DOB 1956
(indIVIdual) [llBYAr
MAYSAlOON (YIMY) Tug 368DWT Iraqi nag (Stllte
Org oIlr.QI Ports) (....... ,) (IRAQ]
MEASAN (YIMN) Tug 3100wr IraQln.g (Stllte
Org 01 IraqI Pam) (veueI) (IRAQJ
I.IEDAVIA (a Ita MEDITERR... NEAN AVIATION
COMPANY. lTD) Mlita [lIBYA]
MEDCHOICE HOLIDAYS LTD (a Ita YUGOTOURS LTD) Cheshlm HOUH. 150 Regent
Street London WIR 588 Erlglarld (FRY S&M)
"EDICAL EQUIPMENT CO"pANY. P 0 BOI
12411i1. T"ooIt Libya. (branch) P 0 B0175O.
BenghaZI libya (branch) POBox 4&4. Sebha.
libya [lIBY"'J
MEDIFIN ... NCE BANK. III oIf~ (Blnk .. heldQuar·
tered In Belgrade. Semoa) (FRY S&M)
"EDINA. An.. (a Ita "'na Mlna "EDINA). Panami (IndMdual) (CUBA]
MEDISA SARAJEVO. SaraJeVo Boan.. -Herz&govlna (FRY SiMI
.. EDISAN lI",TED Rl SA. Qaum Indv.tnal.
limlJ tal RICllIdl. Kllkara "1l1li [lIBY"'J
"EDITERR ... NEAN AVIA TION COMPANY. L TO
(a Itl "EDAVIA) Malta [lIBYAJ
MEDITERRANEAN FEED SERVICES 5 A
Sehutzenglue 25 ZUrICh CH-8001. Swltlerland
[lI8 YA )
.. EDITERR ... NEAN OIL SERVICES GMBH (I Ita
MEDITERR ... NEAN SEA OIL SERVICES GMBH
Ilta MEDOll), PO Box 5601. Immermlnnatra... 40, Dusaeldorf 1, Germlny [lIBYA)
MEDITERRANEAN POWER ELECTRIC COMPANY LIMITED, A 18B, Indualrial Eltata, MI,...
MIIIII [lIBYA)
MEDITERRANEAN SEA Oil SERVICES GMBH
(a. It •. MEDITERRANEAN OIL SERVICES
GMBH; •. lta. MEDOIL), P.O. Box 5601, Immerm.nnltra ... 40, Du...ldorf 1, Germlny (lIBYA]
MEDITRADE LTD., all of'/ic:ea (he.dQuartered In Belgrade. Sarb_) (FRY S&M,
MEDOIL (•. ltl. MEDITERRANEAN OIL SERVICES GMBH; a.ltl. MEDITERRANEAN SEA OIL
SERVICES GMBH), P.O. Box 5601, Immermann.Ira... 40, Dusaeldorf 1, Germ.ny [lIBYA]
MEED INTERNATIONAL LIMITED. 3 MandeYlle
Place. london, Engl.nd (IRAQ]
MENll ENSTAlT COMPANY, Vaduz, Llechtanataln
[lIBYA)
MERCURIUS IMPORTIEXPORT COMPANY, PANAMA. S.A.. Calle C, EditiClo 18, Box 40<48, Colon
Free Zone, Panama (CUBA]
MERIMA. Kru ......c. Serbia (FRY 5&M)
MESOVITA BANKA d.d. (.k.I. PKB BANKA; a.lt.
POLJOPRIVREDNI KREDITNA BEOGRAD
BANKA), .H otrlCel (Bank ill headquartered in Belgrade. Serbia) (FRY 5&M]
METAL AND PLASTIC COMPONENTS PRODUCTION (a.k.a PROGRES PRIZREN), Pnz~, Ka..
ova (Serbia) (FRY S&M)
METAL UNO STAHL HANDElS GMBH, Seilergill.. 1... 1010 Vlllnna, Austria (FRY S&M)
METAL UNO STAHL HANDELS GMBH. Straae LuII'Ierana Corp 0-2, Buch.real Roman_ (FRY
S&MI
METALAC. Subobcka 23. 11050 Belgrade, Serbia
(FRY S&M]
METALCHEM BOMBAY. Yugoslav Trade Commil-.elM OlrlCe. Vlllw.nl Man~on 1&1 Floor, 1201.. Dfn.ha Caccha Road. Bombay. Ind .. 400020 (FRY
S&MJ
METAlCHEM DIS TlCARET LTD. lUele Cadd.,
lakele ArkII.,. Sokak No 13 (Ceml Y.nl). Uakud.rSalacak, latllnbul. Tur!<ey (FRY 5&M]
METALCHEM FRANCE SAR.L, 16 Avenue Franklin Rooaevelt, 75008 PartS. France (FRY 5&M]
METALCHEM INTERNATIONAL LTD., 79183 Great
Portland Street, London W1N 5FA. England (FRY
S&M]
METAlCHEMICAL COMMERCIAL CORPORATION. New York, NY. U.S A. (FRY 5&MI
MET ALIA S R.L. V .. Vittor P,unl 1... 2012" Mdan .
Italy (FRY S&M]
METAlllA HANDElS GMBH. Berbner AU" 61.
Po&tt 2005 20 ...000 Du ...'dorf 1. Germ.ny
(FRY S&M]
METAlLIA MADRID. Plaza Clltinia 311702. 2so.c6
Madrid. Spain (FRY 5&M]
METALLURGICAL COOPERATIVE OF SMEDEREVO (a k .•. MKS - METAlURSKI KOMBINAT
SMEDEREVO). Smaderevo. Sertl.. (FRY S&M]
METALOPLASTIKA. Jevrenova br 111. 15000 Sebac. Sertllll (FRY S&M]
METALSERVIS. Belgrade, Serbll (FRY S&M]
METALURSKO METALSKI KOMBINAT NIKSIC.
NlkllC. Montenegro (FRY 5&M]
METALWORKING MACHINES AND COMPONENTS INDUSTRY 14 OCTOBER (a.k. •. IMK 1~
OKTOBAR). KruHVIc. Sartl.. (FRY 5&M]
METHAQ (YIMQ) Tug 248DWT Iraqi nag (State
Org of Iraqi Porw) (va...l) (IRAQ]
METROVIA. Swl.zerland (LIBYA]
METTA TRADING lTD. 79-83 Gnll_t Portland
Street. london WIN 5FA. England (FRY S&M]
MG NORD TRADING COMPANY, Belgrade. Serblll
(FRY S&M]
MICIC. Momcilo: Deputy In SRBH Auembiy; Ba..
nla4-lerzegovlfIII (lndMdu.1) (SRBH]
MIOCO FINANCE SA. (a k .• MIOCO FINANCIAL
5 A, •. k. MONTANA .. ANAGEMENT INC). 57
Rue du Rhone. CH-120<4 Geneva. Swrtzerland
(IRAQ]
MIOCO FINANCE S A (a k. MIOCO FINANCIAL
SA .• k a MONTANA MANAGEMENT INC). Clo
Morgan & Morgan. Edifiao Torre SWIU B.nk,
PISO 16. CeWe 53 Eate. M.roella. P.nam. CIty .
RepublIC of P.nama [IRAQ]
-111·
~,.,-
OFRa: OF FOREIGN ASSETS ~
MIOCO FINANCIAL S.A. (.It . . . lOCO FINANCE
S.A.; •. It.... ONTANA .. ANAGE .. ENT INC.). cJo
M0fV8n & "org.n. Edlricio Torre Sw. . B.nk.
PI80 16. c..e 53 Eate. M.IbeIIII. P.n.ma City.
RepublIC of P.n.m. [IRAQ)
MIOCO FINANCIAL S.A. (.It . . . lOCO FINANCE
S.A.; .. It.... ONTANA .. ANAGE .. ENT INC ). 57
Rue du Rhone. CH-1204 Geneva. Switzerland
[IRAQ)
MIHIC. VUlcaain. OOB 17 Jul 26. UI "ajlc2 JfIVI'OIIme 39. Belgrade. Serbia (indlVldu.l) [FRY
51 .. )
MILANOVIC. P.nte~je; Deputy In SRBH Auembly.
P .... Boenie-HerzegovIM (indMdu.1) [SRBH)
MILENA SHIP .. ANAGE .. ENT CO LTD. (e k .•
.. ILENA LINES) ....
Building. 86. The
Strand. S~em .....Ita [FRY 51 .. )
MIWKOVIC. "~.n; Deputy in SRBH Aaaembly.
DoboJ. eoan.-HerzegOYln. (IndIVidual) [SRBH]
MILOSEVIC. Oregen (.k.. "ILOSEVIC.
er.gomlr);
~ral end Comm.nder. S.ra·
jeYO-Rom.n~ak1 Co~. SRBH Forces; Bosnia·
HerzegovIM (indMdual) [SRBH]
MILOSEVIC. Dregomir (.It. "ILOSEVIC, Ora·
gen); M.jor G_ral .nd Comm.nder, Sera,evaRom.ni,ald eorp.. SRBH Forces; Boenle-HerzegovIM (indIVidual) [SRBH)
MILOVANOVIC, ".no~o. "a/Or General and "~I
Dry Chief of Sta1f, SRBH Fon:es; DOB Circa 19<4:}'
1~; POB L~ P04,.. Boenla-Herzegovona,
Ba.ru.-Herzegovon. (ondMdual) [SRBH)
MIN - MASINSKA INDUSTRIJA (a k.a .. ACHINE
INDUSTRY OF NIS). Nla, Serbia [FRY S& .. )
MINEl, Belgrade, Serbia [FRY S&M)
MINEX AD CO, 33 Vaegradaka Street. Nla, Serbia
[FRY S& .. ]
MINING METALLURGY-CHE .. ICAL COMBINA·
TlON OF LEAD AND ZINC (a k.a TREPCA~OS·
OVSKA MITROVICA). KoeoYMe MlIrOYtca. Ko&ovo (Sertl4.) [FRY S&M]
MIOVCIC. Zdravko. Chef du Cabtnet 01 Prem .. r of
SRBH; Boenla-Herzegovona (ondMdual) [SRBH]
MISTRA VILLAGE LTD. 22 Europa Centre, FIonana. Malta (reg.tered addresa), Xemll8 HI •. St
Paura Bay. Malta (operatong addresa) [FRY $1M)
MISURATA GENERAL ROADS CO, P 0 BoI200.
Mieura... Lobya. (branctl) POBox 958, Tnpolo.
Libya [lIBYA)
MITCO (a k a MAGHREBAN INTERNATIONAL
TRADE COMPANY). 47. Avenue Khelre<ldlne
Pac:na, 1002 Tun •. Tun... [lIBYA]
MITSUKURA BOEKI KK (a k a MITSUKURA
BOEKI-KAISHA. LTD. a k.a MITSUKURA COR·
PORATION a k a .. ITSUKURA TRADING COM
PANY LIMITED). 2·26 Isobe~n 4-ctIome. ChuaKu Kobe Japan [CUBA)
MITSUKURA BOEKI K K (. k a MITSUKURA
BDEKI-KAISHA. LTD • k.a MITSUKURA COR·
PORATION • k. MITSUKURA TRADING COW·
PANY LIMITED) 4·'·13 Hadl,m.n.oon. Chuo-Ku
Kobe. Japen [CUBA)
MITSUKURA BOEKI-KAISHA. LTD (. k.. MIT·
SUKURA BOEKI K K • k.. MITSUKURA COR.
PORA TION • k . . . ITSUKURA TRADING COW·
PANY LIMITED) 4-1·13 Hedllman.oon. CI'IuO-Ku
Kobe Japan [CUBA]
MITSUKURA 8OEKI-KAISHA. LTD (."'a MIT·
SUKURA 80EKI K K • k.. MITSUKURA COR
PORATION • k. MITSUKURA TRADING COM·
PANY LIMITED) 2·~ ~. 4-d1Otne ChuaKu KObe JeQeII [CUBA)
MITSUKURA CORPORATION la k. MITSUKURA
BDEKI-KAISHA LTD .• "'. MITSUKURA
BOEKIK K • k. MITSUKURA TRADING COM·
PANY LIMITED) 2·~~. 4-dIOtne ChuoKu Kobe J~n [CUBA)
MITSUKURA CORPORATION I. k. MITSUKURA
BOEKI-KAISHA. LTD ...... MITSUKURA
BQEKIK I( • k. MITSUKURA TRADING COW
PANY LIMITED) 4-1.\3 Hec:homen4Ot1. OIuo-Ku
KObe. Jeoen fCUBA)
MITSUKURA TRADING COWPANY LIMITED
(. k.. MITSUKURA 8OEKI-KAISHA. LTD • k •
MITSUKURA 8OEKII( K & k& MITSUKURA
CORPORATION) 2·~~ 4 - a . ChucH<.u Kobe .MOen [CUBA)
MITSUI(URA TRADING COMPANY LIMITED
(..... MITSUKURA 8OEKI-KAISHA. LTD & k.
.an.
"./Of
SPEaALLY OESIGNATED NAnONALS , BLOCKED PERSONS
MITSUKURA 80EKI KK, & k.& MITSUKURA
CORPORA nON). 4-1.13 H&dllm.n-don. ChuaKu KObe. J.pan [CUBA]
...JESOVITO, Herceg NOYI .... ontenegro [FRY 51 .. )
"KS· METALURSKI KO ... BINAT S"EDEREVO
(a k.a ... ETALLURGICAL COOPERATIVE OF
S .. EDEREVO). SmederflVo, Serb. [FRY 51 .. )
"LADIC, RatleD, Colonel General and Army Com.
mander, SRBH Forces; DOB 12 .. ar 43; POB
BozlnOYlCl, BosnlU-HerzegOYlna; Bosn .. ·Herzegovooa (ondMdual) [SRBH)
MOA IT k.a VIRPAZAR) (9HT"3) General Dry
Cargo 9,201GT "alta Flllg (Bar Overaeaa Shipping ltd) (veuel) [FRY 5& .. ]
..OBIL OIL LIBYA, LTD (n k.. VEBA OIL LIBYA
G .. BH, n k.a VEBA OIL LIBYAN BRANCH;
n k a VEBA OIL OPERA TIONS B'I ). He ~.tJnga
(DeaognabOn appl_ only to /OInt venture located
In Lobya and offICe located on the Netherland.)
[lIBYA]
... OHA .. ED, Abdul Kader Ibrahom. J,anguomenw.,
DtplomlltJc Houalng Compound, BUilding 7-1. 5th
Floor. Apartment 4, Be~lng, People'a Repubhc of
Chona (IndIVidual) [IRAQ)
MONET TRADING CO .. PANY, Pllnama [CUBA]
.. ONTANA .. ANAGE .. ENT INC (a k.a .. lOCO FINANCIAL S.A., a.k a ... lOCO FINANCE S.A., 57
Rue du Rhone. CH·1204 Geneva. Swrtzerland),
CIO .. organ & Morgan, EdoflClO Torre Swl" Bank.
Poao 16. CaRe 53 Eate, Mamella. Panama City,
RepublIC 01 Panama [IRAQ)
.. ONT ANES, Roger (a k a Roger Montanea CA·
BALLERO .• k.a Roger Edward DOOLEY), Pan·
ama (ondlVldual) [CUBA)
"ONTANEZ. "lChael, Panama (IndIVIdual) [CUBA)
MONTE (f k.. KOMOVI) (9HTD3) General Dry
Cargo 9.183OT .. alta Flag (Bar Overaeaa Shopping Ltd ) lveuel) [FRY 5&104)
MONTENEGRIN RAILROAD TRANSPORTA TlON
ORGANIZATION (a ka ZELEZNICKO TRANSPORTNO PREDUZECE CRNE GORE) ... ontene·
gro [FRY $1M]
MONTENEGRO ELECTRIC POWER COMPANY
(a"'a ELEKTROPRIVREDA CRNE GORE).
Podgonc:a, Montenegro [FRY S&M)
MONTENEGRO EXPORT NIKSIC, 1052 VaCi u
19/21. Bud.peat Hung.ry [FRY 5& .. )
MONTENEGRO EXPORT YUGOSLAVIA. Kuru·
CMI ut 19Jto. Budllpealll Hungary [FRY S& .. ]
... ONTENEGRO OCEAN SHIPPING (n k.a
SOUTH CROSS SHIPPING lTD), VaNetta,
Mllita. cJo M"na Ship Management Co Ltd. "a·
aon. Bullthng. 86. The Strand. SI .. ma. Malta
[FRY S&M)
MONTENEGRO OVERSEAS NAVIGATION LTD.
P.nam. City. P.nam •. cJo Prekookllanaka
PlOvlCIbe. POBox 87. "arule T1llI46. 85000
Bar ... ontenegro [FRY S&M)
MONTENEGRO POST. TELEGRAPH AND TELEPHONE (. k. PTT CRNE GORE). Montenegro
[FRY S&M)
MONTENEGROBANKA COhiPANY. ~Ieeratra ..e
3 Frankfurt Germany [FRY $1M)
MONTENEGROBANKA d d (. k.. INVES·
T ICIONA BANKA TITOGRAD) . • 11 oIficea world·
wide (9.nk .. l'Ie.dqu.r1ered In Podgonca ... on·
tenegro) [FRY S'W) onclucllng. bUt not ~mlted to
• MONTENEGROBANKA d d (. k.. INVES·
TICIONA BANKA TITOGRAD). Ekol.... r RfIVOlu·
a .. 1. POBox 183.81001 Podgonca ... on.ene·
gro [FRY S&W)
WON ;ENEGROEXPORT PREDSTAVITELSTVO
FIRMY. (MONTENEGROEXPORT REPRE·
SENT AT tvE OFFICE). B P......vaICa .. d 7 lev
118. Woacow. R~ [FRY S&W)
MONTENEGROEXPORT STROIPLOSCADKA YU·
GO~VSKOI FIRMY, I .. Krnnogverdeyalol
Proyezd "'oacow. Ru.... [FRY S&W]
MONTENEGROEXPRES . BUOVA (. k. TOUR·
1ST ENTERPRISE MONTENEGROEXPRES).
BudW. Montenegro [FRY S&M)
MONTEX BANKA d d .• _ oIfICea (Bank. I'IelldQuartared on BeIg~ $efboe) [FRY 51"')
WONTEX. N*-'C. Wontenegro [FRY S&W)
MONTINVEST Bu ..... ' ravoluo/8 84 POBox 821
"001 Belg~ $efboe [FR'I' S'M)
WONTINVEST W._·Leuechner SITe... 68.
8000 Frankfu".m W.on 1 Germ.ny [FRY S&M)
.. OONEX INTERNATIONAL. SA. KIno-on. J••
m.,CII [CUBA)
.. OONEX INTERNATIONAL. SA. P.nam. [CUBA)
.. ORACA (9HTE3) General Dry Cargo 13.651GT
.. alta Flllg (Oldoth Overae•• Shipping Ltd.) (vas·
eel) [FRY 51 .. )
.. ORA VA, Serboa [FRY sa"J
...OSLAVINA (9HTW3) Genef1ll Dry Cargo
11.771 G T ..... Flag (South Adriatic Bulk Shipping Ltd) ( _ I ) [FRY S'''J
"'OSTOGRADNJA-GRAOJEVNO PREOUZECE.
VIe,kovlCflVll 19A. 11000 Balgrade. SertN. [FRY
S& .. )
"OTOR INDUSTRY OF RAKOVICA (•. lta. I.. R INDUSTRIJA .. OTORA RAKOVICA). Belgrade .
Serbia [FRY 51 .. )
"UBARAK. Umld .. idhat (.k. . . . UBARAK Umld
Medh.t), .. in"'r of He.lth; DOB CII. 1940; Iraq
(IndiVidual) [IRAQr
MUBARAK. Umld .. edh.t (a.k.a .. UBARAK Umld
Mldhat), "mlater of Health. DOB ca. 1940; Iraq (in·
dlVldual) [IRAQr
MUGHNIYAH, Imad Fa'jz (a.lta .. UGHNIYAH,
Imlld FIlYIZ); SenIOr InteUlgenee OtTioer of HIZBAL·
LAH, DOB 07 Dec 1962; POB Tayr Oobba. Lebanon, PaApo" No. 432298 (Lebanon) (indlVidu.1)
[SOT]
MUGHNIYAH, Imad F.ylZ (.ka WUGHNIYAH.
Imad Fa'IZ); SenIOr Intelhgence OtTicer of HIZBAl·
LAH, DOB 07 Dec 1962; POB layr Dibbe. Lebanon, PaApo" No. 432298 (Lebanon) (indIVidual)
[SOT)
MUHARIKAAT GENERAL AUTO .. OBILE CO .•
POBox 259, Tnpoh. Libya; (branch) P.O. Box
203, Benghazi. libya [lIBYA)
MURALLA, SA (a k.a. CO"ERCIAL "URAlLA.
SA), Panama City. Panama [CUBA]
N A I B (a.k.a. BANQUE ARABE D'AFRIQUE DU
NORD [BAAN]. a.k.a BANQUE ARABE OU
NORD-BAAN .•. k.a. NORTH AFRICA INTERNA·
TIONAL BANK; •. k.a. NORTH AFRICAN INTERNA TIONAL BANK). Avenue Khelreddlne Pacha
25, Tunoa. Tun .... [lIBYA)
N A I B (a.k.a BANQUE ARABE O'AFRIQUE DU
NORD [BAAN] ••. k .•. BANQUE ARABE DU
NORD-BAAN; a k.a. NORTH AFRICA INTERNA·
TIONAL BANK; •. k. •. NORTH AFRICAN INTERNA TIONAL BANK), PO Box 485, 1080 Tunia
Cedex. Tum.,a [lIBYA]
N A I B (ak.a. BANQUE ARABE O'AFRIQUE OU
NORD [BAAN). a k.a BANQUE ARABE DU
NORD-BAAN, •. k.a. NORTH AFRICA INTERNA·
TIONAL BANK; a k.a NORTH AFRICAN INTER·
NA TlONAL BANK). 25 Avenue Khereddme
Paella, Tun .. , Tun .... [lIBYA]
N A I B (ak.a BANQUE ARABE D'AFRIQUE OU
NORD [BAAN). aXa. BANQUE ARABE DU
NORD-BAAN, a.lta. NORTH AFRICA INTERNA·
TIONAL BANK;. k.e NORTH AFRICAN INTERNA TIONAL BANK). P 0 Bol 102. Le Belvedere.
1002 Tun .. , Tun ... [lIBYA)
NAAS, "ahmoud. libya (mdlVldual) [lIBYA)
NACIONAL. Serb.. [FRY S& ... ]
NACIONAL SHOP. Belgrade. Sertlla [FRY 51 .. )
NAFTAGAS, Novl Sad, Vo/VOdina (Sertlis) [FRY
S&M)
NAFTAGAS-PRO ... ET, Nov! Sad, Vo/Vodon. (Serbia) [FRY 5& .. ]
NAFT AGAS-REFINERIJA. PancflVO, Vojvodona
($erN) [FRY 51 ... ]
NAGROOR (N/A) Flah I<1ODWT Iraqi n.g (Govem·
ment 01 the RepublIC of Iraq. "1rI11try of Agricul.
ture & Agranan Refonn. St.te Flahenea Com·
pany, Baghdad. Iraq) ( _ I ) [IRAQ)
NAINAWA (YINW) Tug 3100WT Iraqi nag (State
Org of Iraqi Porta) (vaseel) [IRAQ)
NAJAH, Tahor .....n.ma. B.hraln (indIVidual)
[lIBYA)
NAJAH, lahOr, Tnpolo. Llby. (indIVidual) [lIBYA)
NAJI T.1II1 "uh.mm.d Raahld, Pmcopal Deputy of
PoPULAR FRONT FOR THE LIBERATION OF
PALESTINE - GENERAL CO .... AND. DOB
1930, POB AI N • .,na. Palntlne (indIVidual) [SOT)
NAMAN, Saahm (a k.a NAMAN. Sam), 33-043 Wood·
Lake Road. Weat Bloomfield, ... 1 48323
USA (mdMdual) [IRAQ)
v_
. 2D.
APftIl II I.e
OFFICE OF FOREIGN ASSETS CONTROl
SPEOAUY DESIGNATED NATIONALS & BlOCKED PERSONS
NAMAN. Su~m (aka NAMAN. Sam). 5903
Harper ROlid. Solon. OH 44139. U.S.A. (IndlVld·
ual) (IRAQ)
NAMAN. Su~m (a.ka. NAMAN. Sam). 800 Gnant
SlJwet 42nd Floor. Plbburgh. PA 15219. US A
(individual) (IRAQ)
NAMAN. S . .~m (a.ka. NAMAN. Sam). Amman.
Jordlin (individual) (IRAQ)
NAMAN. Saa~m (a.ka. NAMAN. Sam). lnaq (indMd·
ual)(IRAQ)
NAMAN. SuMm (aka. NAMAN. Sam). PO Box
39. Fletchamatud Highway. Coventry. England
(individual) (IRAQ)
NAP-COMBICK OEl GMBH. WlI1dmuehlalnlaae 1.
6000 Frankfurt am Main 1. Germany (FRY S&M)
NAPETCO (a.ka. NATIONAL PETROCHEMICALS
COMPANY; r.ka. NATIONAL METHANOL COM.
PANY). P.O. Box 5324. Garden City. Benghazi.
Libya (lIBYA)
NAPETCO (aka NATIONAL PETROCHEMICALS
COMPANY; r.ka. NATIONAL METHANOL COM·
PANY). P.O. Box 20812. Ma,.. Brega. libya
(lIBYA)
NAPETCO (a ka. NATIONAL PETROCHEMICALS
COMPANY; f.ka. NATIONAL METHANOL COM·
PANY). Duueldorf. Germany (Office Cloud)
(lIBYA)
NAROONA BANKA CRNE GORE (a Ita NA·
TlONAl BANK.OF MONTENEGRO). Podgonca.
Montenegro (FRY S&M)
NAROONA BANKA JUGOSLAVUE (alta
BANQUE NATIONAlE DE YOUGOSLAVIE.
a.ka. NATIONAL BANK OF YUGOSLAVIA), Bel·
gnade. Serbia (FRY S&M)
NARODNA BANKA SRBUE (a k.a NATIONAL
BANK OF SERBIA). Belgnade. Sertl.. (FRY S&M)
NASCO (a kaNA TlONAl SUPPLIES CORPORA.
TlON). POBox 3402. Shana Omar Muktttar. Tnp011. libya. (bnanch) PO Box 2071. Benghazi.
Libya (lIBYA)
NASRAlLAH. Ha .. n. Secretary Genef'lll at HIZBAl·
LAH. DOB 31 Aug 15160 or 1~ or 1955 or 1~.
POB AI a..unyah. lebanon. Pa..port No
042833 (lebanon) (lndlYidual) [SOT)
NATIONAL AGRICUl TURAl BANK OF LIBYA
(I Ita THE AGRICUl TURAl BANK. a k a LIBYAN AGRICULTURAL BANK). (1 city bnlnctI and
27 bntncnea In libya) (lIBYA)
NATIONAL AGRICUl TURAl BANK OF LIBYA
(alla THE AGRICULTURAL BANK. a k a LIBYAN AGRICUL TURAl BANK), 52. amar EI ... oictI·
tar Street. POBox 1100. Tnpo~. libya [LIBYA)
NATIONAL BANK OF CUBA (a k a BANCO NA·
ClONAL DE CUBA. a Ila BNC). Del·letu Bldg
6th Floor. 10-2 N,hOmba.hl. 2-chome. Ch~
T()I(yo 103. Jepan [CUBA)
NATIONAL BANK OF CUBA (a k a BANCO NA·
ClONAL DE CUBA. a Ila BNC). Z _ _
35. CH.a022 Zunr::fl. Swrtzan.nd) [CUBA)
NATIONAL BANK OF CUBA (a k a BANCO NA·
ClONAL DE CUBA. alla BNC). FedenCO Boyd
Avenue & 51 Street. Panama City. Panama
(CUBA)
NATIONAL BANK OF CUBA (a k a BANCO NA·
ClONAL DE CUBA • Ila BNC) AventCSa de Con·
Cha E~ 8 E·2803e ....drld. Spain [CUBA)
NA TIONAl BANK OF ... 0114 TENEGRO (. k a
NAROONA BANKA CRNE GORE) PodgonCa
... ontenegro (FRY 5&M)
NATIONAL BANK OF SERBIA (. k a NAROOHA
BANKA SRBUE) Belgnlde SertMa (FRY 5&"')
NATIONAL BANK OF YUGOSLAVIA (a k a
BANQUE NA TlONAlE DE YOUGOSLAVIE
a k a NAROONA BANKA JUGOSLAVUE).
gnlde ~ (FRY 5& ... )
NA TIONAL CE"'ENT ANO BUILOING ... A TERIALS
EST PO 801 418 Sha". H.yab 21. TnpoIo
libya IliB VA )
NA TlONAL CO ...... ERClAl BANK 5 A l .
bntncMa In Libya) (lIBYA)
NA TIONAL CO'" ... ERCIAL BANK 5 A L . POBox
HI6 Benghazi L~a [lIBYA)
NA TIONAL COM MERCIAL BANK 5 ALP 0 Box
4&47 Shuf\eda SQ...,. TnpoIl. lJOya [lIBYA)
NATIONAL COMPANY ORILLING CHEMICAl &
EQUIP ... ENT (a ka JO~E) NOC 8uotcSong A,.,...
llna 5QUIIW Benghazi. l~a (lI8YA)
s..
en
APRIL l'
,~
NATIONAL CO FOR CHEMICAL PREPARATION
AND COSMETIC PRODUCTS. PO Box 2442.
Tnpoli. libya; Benghazi Office. Benghazi. libya
[lIBYA)
NA TlONAl CO FOR CONSTRUCTION AND
MAINTENANCE OF MUNICIPAL WORKS, P.O
Box 12908. ZaVla Street Tnpo~, libya, (branch)
PO Box 441. Benghazi. libya (lIBYA)
NA TlONAl COMPANY FOR FIELD AND TERMI.
NAlS CATERING, Airport Road. Km. 3. P.O. Box
491. Tnpo~. libya (lIBYA)
NATIONAL CO. FOR liGHT EQUIPMENT. P.O
Box 8707. Tnpob. libya. (bnanch) P.O. Box 540,
Benghazi. libya [lIBYA)
NATIONAL CO FOR METAL WORKS. P.O. Box
2913, Tnpoh. libya; (bnanch) PO. Box 4093,
Benghazi. libya; lift Department P.O. Box 1000,
Tnpok, libya [lIBYA)
NA TIONAl COMPANY FOR OilFIELD EQUIP.
MENT, PO Box 8707, Tnpoh. libya (lIBYA)
NA TlONAl CO FOR ROAD EQUIPMENT. PO
Box 12392, Tnpo~, libya. (bnanch) P.O. Box 700,
Benghazi. libya [lIBYA)
NATIONAL CO FOR ROADS AND AIRPORTS,
PO Box 4050. Benghazi, libya; (bntnch) PO
Box~, Shane AI Janaba. Tnpoli. libya (lIBYA)
NA TlONAl CO FOR TRADING AND MANUFACTURING OF CLOTHING, libya (LIBYA)
NA TlONAl CO OF SOAP AND CLEANING MATE·
RIALS, POBox 12025. Tnpoll. libya; (branch)
POBox 246. Benghazi, libya (lIBYA)
NATIONAL CONSTRUCTION AND ENGINEER·
ING CO , POBox 1060, Shana Sldl I.... Tnpoh
libya, (branch) PO Box 259, Benghazi. lIbYII
(LIBYA)
NATIONAL CONSULTING BUREAU, P.O. Box
12795, Tnpolt, libya, Sirte City Branch OffICe,
S"e City, libya (lIBY A)
NATIONAL CORPORATION FOR HOUSING, P 0
Box 4829. Shana el Jumhunya, T~II, libya
[lIBYA)
NATIONAL DEPARTMENT STORES CO .. PO
Box 5327. Shana el Jumhunya, Tnpotl. Libya
[LIBYA)
NA TlONAl DRILLING CO ... PANY (lIBYA) (I Itll
NATIONAL DRilLING COMPANY, a.lta. NA·
TIONAl DRilLING WORKOVER COMPANY),
208 Omar EI ... oIehtar Street POBox 14~, Tnp011, libya [lIBYA)
NA TlONAL DRIUING WORKOVER COMPANY
(a Ila NATIONAL DRilLING COMPANY, •. lta
NATIONAL DRILLING COMPANY (LIBYA)), 208
Om.r EI "'oIehtar Street POBox 14~. Tnpoll,
libya [lIBYA)
NATIONAL DRilLING COMPANY (a k.a NA·
TIONAl DRilLING COMPANY (LIBYA). a Ita
NATIONAL DRIUING WORKOVER COMPANY).
208 Omar EI "'oIehtar Street POBox 14~, Tnp·
011. libya [lIBYA)
NA TIONAl FOODSTUFFS I... PORTS. EXPORTS
AND ... ANUFACTURING CO SAL, POBox
111 14. Tn~, Libya. (bnIndI) POBox 2439,
Benghazi libya [lIBYA)
NA TIONAL GENERAL INDUSTRIAL CONTRACT·
ING CO , Shana al Jumhouna, POBox 295, Tripoil libya [l IB YA )
NA TIONAl GENERAL INSURANCE CO lTD,
S.lIIh Aldin AI Ayubt Street Delra·Dubal, Unrted
A,.b E m _ (NKOREA)
NA TIONAl LIVESTOCK AND MEA T CO , POBox
389. Silane Z-1eI Dehmanl. TnpoIl. Libya.
(bnlnch) POBox 4153. Shane Jamal Adulnaa·
_
Benghazi. libya [lIBYA)
NA TIONAL ... ETHANOl CO ... PANY (n k a
NAPETCO. n k a NATIONAL PETROCHEMI.
CAlS COMPANY) .... nbnv- [lIBYA)
NATIONAL OIL CORPORA TION (alla LIBYAN
NA TIONAl OIL CORPORA TlON, a k a lNOC,
a k a NOC). (Sut.Id.,.. .nd pm venturea In
libya and WOt1I)wlde) (lIB YA)
NATIONAL OIL CORPORATION (alta LIBYAN
NA T IONAL OIL CORPORA T ION. a k I lNOC.
a k a NOC) Petroteum Tra,"lng and aua~fy1ng In·
.tJlU1e Z_. Road Km ~. POBox 61~, Tnp011. Libya [lI8YA)
NATIONAL OIL CORPORATION (alla LIBYAN
NATIONAL OIL CORPORATION. a ~a lNOC.
a.~a. NOC). P.O, Box 2~78. Benghazi. libya
(lIBYA)
NA TlONAl Oil CORPORA TlON (aka. liBYAN
NATIONAL Oil CORPORATION; al<.a. lNOC.
a.lta NOC). Dah,. Ga. PfOjeCIs Office. Dahra
Street PO. Box 12221. Dehra, Tnpo~. libya
(lIBYA)
NA TlONAl Oil CORPORA nON (aka LIBYAN
NATIONAL Oil CORPORATION; a.l<.a. lNOC;
a.lta. NOC). Petroleum R_arch Cenlnl. AI Nu.
aer Street. P.O. Box 6431. TnpoIi. Libya (lIBYA)
NATIONAL Oil CORPORATION (a.ka. liBYAN
NA TlONAl Oil CORPORA TlON; a.ka. lNOC;
a.lta. NOC). a.ahir Sead_i Street P.O. Box
2655. Tripoli. libya (lIBYA)
NA TIONAl PETROCHEMICALS COMPANY (a.lta
NAPETCO; f.ka. NATIONAL METHANOL COM·
PANY). P.O. Box 20812. Ma,.. Brega. libya
[lIBYA)
NATIONAL PETROCHEMICALS COMPANY (alta
NAPETCO; f.~a. NATIONAL METHANOL COM.
PANY). Du..eldorf. Germany (Office CIoaed)
[LIBYA)
NATIONAL PETROCHEMICALS COMPANY (a.ka
NAPETCO; fka. NATIONAL METHANOL COM·
PANY), P.O. Box 5324. Garden City. Benghazi.
libya (lIBYA)
NA TlONAl PHARMACEUTICAL CO. SAL. 20 Jalal
Bayer Street PO Box 2296, Tripoli. libya;
(branch) Jamahiriya Street P.O. Box 10225. Tnp011. libya; (branch) P.O. Box 2620. Benghazi.
libya [LIBYA)
NA TlONAl SOFT DRINKS EST .. P.O. Box 559.
Benghazi. libya; (bnanch) litnlco Impex lid. P.O
Box 5686, Benghazi. libya (lIBYA)
NATIONAL STORES AND COLD STORES CO.
POBox 84~, Tripoli. Libya; (branch). P.O. Box
9250. Benghazi. Libya (lIBYA)
NATIONAL SUPPLIES CORPORATION (aka
NASCO). PO. Box 3402. Shana Omar Muktttar.
Tnpoh, Libya; (branch) P.O. Box 2071. Benghazi,
libya (lIBYA)
NATIONAL TELECOMMUNICATIONS CO .. P.O.
Box 886. Shara Zawis. Tnpoll. Libya; (branch)
POBox 4139. Benghazi, libya (lIBYA)
NAVARRO. Samuel (MARTINEZ). Frankfurt. Ger·
many (Individual) (CUBA)
NAVIERA MARITIMA DE AROSA. SA. Paaeo de
Pereda 36, Apartedo 141. J9OO4 Santander.
Spam [CUBA)
NAVIGABLE WATER CORP" lTD. Panama
[CUBA)
NDO (ak.a NORDDEUTSCHE OEllEITUNGSGE·
SEllSCHAFT MBH; a ka. NORTH GERMAN
Oil PIPELINE), Moortlurger SlnIsae 16. 02000
Hamburg-Hartlurg 90. Germany (lIBYA)
NDO (a k.a. NORDDEUTSCHE OEllEITUNGSGE·
SEllSCHAFT "'BH; aka. NORTH GERMAN
Oil PIPELINE), Wdhelmahaven 10 Hamburg Pipe·
Ime, Germany (lIBYA)
NEDELJKOVIC, Olivera (f Ita KARIC, Olrvent).
DOB 1960 (mov.. from country 10 country) (FRY
SaM)
NEDIC, Md.dlll; Deputy In SRBH Auembly; Ozran,
Bo.,."a-Herzegovllla (indIVIdual) (SRBH)
NESSI. Ferrucao, PllUa Grande 26. 6600 locemo, SwltZer1and (IndIVidual) (IRAQ)
NEUTRON INTERNA TlONAl, Tnpok, libya (lIBYA]
NIDAL, Abu (a Ila. AL BANNA. Sabn Khal~ Abd AI
Qad ..). Founder and Secretary General of ABU 1141·
DAL ORGANIZATION, DOB May 1937 or 1940,
POB Jana. larael (indIVidual) (SOT)
NIGERIAN ENGINEERING AND CONSTRUCTION
CO lTD, Ebu1e-"'elta. lagoa. Nlgena (FRY
SaM)
NIKSA BANKA .•1 offices (Bank _ headquartered
In Belg,.de. Serbia) (FRY SaM)
NIKSIC (nlla BAYAMO) (9HTF3) Bulk Cemer
9.916GT M.1ta nag (lovcen Oversea. ShlPplng
lid) (veael) (FRY S&M)
NINKOVIC, Milan; M,n_ler of Defen.. of SRBH,
POB Dobol Region. SoanIl·Herzegovlna. Soanll·
Herzegovlna(lndlVldual) (SRBH)
NINKOVIC, ZlVom .. , Malor General and Com·
mander. Air Foroe and Air Delen .. , SRBH
Forees, Bo.nta-HerzegovW1a (mdlVldual) [SRBH)
·21 .
OR'ICE OF FOREIGN ASSETS CXlN1'ROl
NIPE (f.lla. ULCINJ) (IIHTL3) Bulk carner 9,028OT
M.IIII Flag (LOYCen OverN. . Shipping Ltd ) (YeaMf) (FRY 5&M)
NIPPON-CARIBBEAN CO., LTD. Chuo-Ku, AkIIukl~huo 1-1 Akauld Bldg., Tokyo, Japan
[CUBA)
NIREF, Boezembolcht 23. Rotterdam, Netherland.
[CUBA)
NI~AFTA INOUSTRIJA SRBIJE (a.ka. SERBIAN
PETROLEUM INDUSTRY), NOY! Sad, VOjVodlf1a
(SerbIa) (FRY 5&M)
NISR (YISR) Servicle 744DWT Iraqi nag (State Org
of Iraqi PoIta) ( _ I ) [IRAQ)
NISSAL, BuieYllr Veljka VlahOYica bb, 18000 Nil,
SeItIia (FRY 5& M)
NO.1 (H/A) SelVice 300WT Iraqi nag (State Org of
Iraqi PoIta) ( _ I ) [IRAQ)
NO.2 (H/A) S8fVice 300WT Iraqi nag (State Org at
Iraqi Porta) ( _ I ) [IRAQ)
NOC (a.lla. LIBYAN NATIONAL OIL CORPORATION; a.lla. LNOC; a.k.a. NATIONAL OIL CORPORA TlON), Oahra G . . Pro,ects OffICe, Oahra
Street. P.O. Box 12221, Dahra, Tnpok, Libya
[LIBYA)
NOC (a.k.a. LIBYAN NATIONAL OIL CORPORATION; a.k.a. LNOC; •. Ila. NATIONAL OIL CORPORA TlON), Petroleum Training and Qualifying
In.titute, Z__ Road, Km 9, PO Box 61s.., Tripoil Libya [LIBYA]
NOC (•. k.a. LIBYAN NATIONAL OIL CORPORATION; a.k. •. LNOC: • k.. NATIONAL OIL CORPORATION), Petroleum Rne.rch Centre, AI Nal.... Street. PO Box 6431, T~h, Libya [LIBYA]
NOC (.Il. LIBYAN NATIONAL OIL CORPORATION: •. k. •. LNOC: • k.. NA TIONAL OIL CORPORATION), POBox 21178, Benghazi, Liby.
[LIBYA)
NOC (a.k.a. LIBYAN NATIONAL OIL CORPORATION: •. k.a LNOC, a k.. NATIONAL OIL CORPORATION), Ba.h .. Saad_, Street POBox
2855, Tnpoh, Libya [LIBYA]
NOC (ak.a LIBYAN NATIONAL OIL CORPORATION: • k.. LNOC, a ka NATIONAL OIL CORPORATION), (Su~d.~ .nd pnt venturlll In
Libya .nd worldwide) [LIBYA]
NOLIVEL, Balgrade. Serbta [FRY S&MI
NORDDEUTSCHE OELLEITUNGSGESELLSCHAFT ... BH (. ka NOC .• II. NORTH
GERMAN OIL PIPELINE). W.helmahaven to
Hamburg plpelone. Germany [LIBYA]
NOROOEUTSCHE OELLEITUNGSGESELLSCHAFT "'BH (. k. NOC .• II a NORTH
GERMAN OIL PIPELINE). Moorburger Straue
16. 02000 Hamburg~artlurg 90. Germany
[LIBYA)
NOROSTRANO LTD. LJechtenlte", [CUBA]
NOROSTRANO ... ARITI ... E AND TRADING CO"'PANY. 33 Akti "'aouh. 185-35 P,rea. cPneva)
Greece [CUBA)
NORIEGA. M.nuel AntonIO. Panama (IndMdual)
[CUSA)
NORTH AFRICA CO ...... ERCIAL BANK SAL
(t k. ARAB LIBYAN TUNISIAN BANK SAL)
PO Bo. e57~"
'at Floor. P.oca(Uy Centre
H.mra su.et. BeIrut Lebanon (lIBYA)
NORTH AFRICA INDUSTRIAL TRADING AND
CONTRACTING CO . POBox 245. T~ LIOyW
[LIBYA)
NORTH AFRICA INTERNATIONAL BANK (....
BANOUE ARABE O'AFRIQUE OU NORD
[BMN) .... BANOUE ARABE OU NORDBMN .• " . N A I B a ... NORTH AFRICAN
INTERNATIQIIIAL BANK) ~ Avenue Khefec:ldone
P.cha Tun. Tun_ [LIB"A]
NORTH AFRICA INTERNATIONAL BANK (.11.
8ANQUE ARABE O'AFRIQUE OU NORD
[BMN) • k. BANQUE ARABE DU NORDBMN .• It. N A lB .• II. NORTH AFRICAN
INTERNATIQIIIAL BANK) POBox'02 Le &eovedefw HlOZ Tu~ Tun_ (lI8YA)
NORTH AFRICA if'ITERNATIONAl BANK (.11.
BANOUE ARABE
AFRIQUE OU NORD
[BMN) • It. BANQUE ARABE OU NORDBMN .• " . N A I B .11. NORTH AFRICAN
INTERNA T IQIIIAL BANK) Avenue K'~""OCI.".
P.cha ~ Tun. Tun_ (lIBYA)
NORTH AFRICA INTERNATIONAL BANK (I II.
BANOUE ARABE 0 AFRIQUE OU NORD
o
APRIL 11Ji1115
SPEOAllY DESIGNATED NATIONAlS & 8L00<ED PERSONS
[8MN): • k.a. BANQUE ARABE OU NORDBAAN; a k.. N AlB, a k.a NORTH AFRICAN
INTERNATIONAL BANK), POBox 485, 1080 TuOIl Cedex, Tun.lla [LIBYA)
NORTH AFRICAN INTERNATIONAL BANK (.k.a
BANQUE ARABE O'AFRIQUE DU NORD
[8MN): a.k. •. BAN QUE ARABE DU NORDBAAN: a.k.a. N.A.I.B : •. k a NORTH AFRICA INTERNA TlONAl BANK), POBox 485, 1080 Tunil Cedex, Tuniaia (lIBYA]
NORTH AFRICAN INTERNATIONAL BANK (ak.a
BANQUE ARABE D'AFRIQUE DU NORD
[8AANI; a k.a. BANQUE ARABE DU NORDBAAN,. ka N AlB: a.k.. NORTH AFRICA INTERNA TIONAl BANK), Avenue Khelntddine
P.cha 25, Tun., Tun._ (lIBYA)
NORTH AFRICAN INTERNATIONAL BANK (•. k.
BAN QUE ARABE D'AFRIOUE DU NORD
[8AAN), a k.a BANQUE ARABE OU NORDBAAN. a ka N A I B ,a k.a NORTH AFRICA INTERNA TlONAl BANK), POBox 102, le Belvedere, 1002 Tuni., Tun.Sla (lIBYA)
NORTH AFRICAN INTERNATIONAL BANK (.k.a
BANQUE ARABE O'AFRIQUE DU NORD
[8AANI, a k. BANQUE ARABE DU NORDBMN: • k. N.A I B , • k a NORTH AFRICA INTERNA TIONAl BANK), 25 Avenue Khentddine
Picha, Tun •. Tun .. _ [LIBYA)
NORTH GER ... AN OIL PIPELINE (. k. NOC:
• k a NORDDEUTSCHE OEllEITUNGSGESELLSCHAFT MBHl. Wllllelm.haven to Hamburg
plpe~ne. Germany [LIBYA)
NORTH GERMAN OIL PIPELINE (a k. NOC:
I k a NORODEUTSCHE OEllEITUNGSGESElLSCHAFT "'BH), Moorburger Straue 16,
02000 Hlmburg~arburg 90. Germ.ny (lIBYA)
NORTH ISLAND SHIPPING CO . lmallOl, Cypru6
(CUBA)
NORTH ISLANDS (North laland. Shlppmg Co, Cyprua) (veael) [CUBA)
NOVI SAO RAILROAD TRANSPORTATION ORGANIZA nON (a ka ZElEZNICKO TRANSPORTNO PREOUZECE NOVI SAO). Novi Sad,
Vorvodona (Serblll) [FRY S&M)
NOVI SHIPPING CO ... PANY SA. Panama c.y,
P.nama. cJo Beograd .... PlOvIdba. LenJonov BuleVIIr '85,1.. , '070 Nevi Beograd Serbia [FRY S& ... )
NOVINSKA AGENCUA TANJUG (a k. TANJUG),
Belgrade. Serbia [FRY S&M)
NOVKABEL. Nov. Sid. VOlvocllna (Serb.a) [FRY
S&M)
NOVOSADSKA BANKA d d .• 1 01f1C1II (Bank 15
headQuan~ In NOV1 Sad. Vorvodll\ll [Serbia])
[FRY 5& ... )
NOVOSADSKA FABRIKA KABELA. NOV1 Sad, VoJ"Odlna (Se1tloa) [FRY SUI)
NUWAIBI (N/A) F." 1400wr Iraq' nag (Iraq' State
FIlM".. Co ) (v_I) [IRAQ)
OBOO (n II. AIRE F) (QHTG3) General Ofy Cargo
13.851GT .... Ia nlg (Ok1otll C>ve<ae •• Shlppong
Ltd ) (veuef) [FR" 5& ... )
OBOD CETINJE - ELEKTROINOUSTRUA, Cebnje.
"'onte~ro [FRY S& ... )
OCEANIC BULK SHIPPING SA. P.nam. City,
Panam •. cJo JugoaI~ ac.anlk.a PlovIdba
BB NJeOOWV. POBox '8.85330 Kolar. "'onIienIIOro [FR Y
OCTOBER HOLDING COMPANY (a k. OCTUBRE HOLDING SOCIETE ANONIME) Vaduz.
L oec:trtenateon (CU BA)
OCTUBRE HOLDING SOCIETE ANONIME (. 11..
OCTOBER HOLDING COMPANY). V.duz, LlIIChtenaleon [CUBA)
OEl< DRINKS CO . POBox 10'. Ibn EI J.rnah
Strael T"poII L~y. (l1B"A)
OHOO 5 (N/A) SelVJCe t:JtNT NIA S.ud. Arabl.n flag
(qq. State ComPllny lot O~ Prorecb) (veaael)
[IRAQ)
OHOO 8 ""'/A)
t:JtNT N/A S.ud. Araboan nag
(I~. Stala Company lot O~ Prorecb) ( _ I )
(IRAQ)
OHOD 7 (NJA) SeIVc. t:JtNT NIA S.ud. Arabian nag
(I~I State ComPllny lot O~ Prorecb) ( _ I )
[IRAQ)
OIlC (a". FOREiGN PETROLEUM INVEST... ENT CORPORATION a ka LIBYAN OIL INVESTMENTS INTERNATIONAl CO ... PANY.
sa ... )
s..v.ce
a.k. OILiNVEST: •. k.a. OILINVEST INTERNATIONAL NV), Tnpo~, libya (LIBYA)
OIiC (a.k •. FOREIGN PETROLEUM INVESTMENT CORPORATION; •. k.a. LIBYAN OIL INVESTMENTS INTERNATIONAL COMPANY;
a.k.a OILiNVEST: ak.a OILiNVEST INTERNATIONAL NV), Nettlertanda Antil. . [LIBYA]
Oil ENERGY FRANCE, France (LIBYA)
OIL ENERGY SPAIN (a.k-a. OILiNVEST SPAIN;
a k.a. OILiNVEST ESPANOLA), Spain [LIBYA)
OILiNVEST (a.k. •. FOREIGN PETROLEUM INVESTMENT CORPORATION; a.IlL LIBYAN OIL
INVESTMENTS INTERNATIONAL COMPANY;
• ka OIlC: a.k.a. OILiNVEST INTERNATIONAL
N V), Netherland. Antil. . [LIBYA)
OILiNVEST (a_k.a. FOREIGN PETROLEUM INVESTMENT CORPORATION; a.k.a. LIBYAN OIL
INVESTMENTS INTERNATIONAL COMPANY;
a II a OIlC: a.k. •. OILiNVEST INTERNATIONAL
N V ), Tripo~, Libya rUBYA)
OILiNVEST (NETHERLANDS) BV (.k •. OILlNVEST HOLLAND B V.) Muaeumpln 11, 1071 OJ
Amsterdam, Netherland. [LIBYA)
OILiNVEST ESPANOLA (a.k. •. OILiNVEST
SrAIN: a k.a. OIL ENERGY SPAIN), Spain
[LIBYA)
OlliNVEST HOLLAND BV (a.k. •. OILiNVEST
NETHERLANDS BV), Muaeumpln 11,1071 OJ
Amsterdam, Netherland. [LIBYA)
OlliNVEST INTERNATIONAL N.V. (•. k-•. OILlNVEST, a k.a. FOREIGN PETROLEUM INVESTMENT CORPORATION, •. k. •. LIBYAN OIL INVESTMENTS INTERNATIONAL COMPANY.
II k II OIlC), Nethertand. Antilles (lIBYA)
OlliNVEST INTERNATIONAL N.V. (a.k.a. OILINVEST. a.k.a. FOREIGN PETROLEUM INVESTMENT CORPORATION, a.k. •. LIBYAN OIL INVESTMENTS INTERNATIONAL COMPANY,
8 k a OIlC), Tnpo~, libya (lIBYA]
OlliNVEST SPAIN (aka Oil ENERGY SPAIN:
a k a OILiNVEST ESPANOLA), Spain [LIBYA)
OKBA FOOTWEAR PLANT, Taloura, Libya [LIBYA)
OKTOIH OVERSEAS SHIPPING LTD .• V.IIetta,
Malta. cia Rigel Shlpmanaoement Ltd., Second
Floor. Regency HOUle, Republic Street V.IIetta,
Malta [FRY S& ... )
OMEGA G ... BH (. k •. EXIMKOS, •. ka. KOSOVO
EXPORT IMPORT G ... BH: •. Ila KOSOVO
GMBH), Mallllf1geratnaae 34, 8000 ... unich 2. Germany [FRY S&M)
OMEISH. Ramadan M, Tripoli, Libya: Abu Dhabi,
U A E. (individual) [LIBYA)
OMNIAUTO, Belgrade, Serblll [FRY S&M)
OMNIKOMERC, Belgrade, Serbia [FRY S&M)
O ... RAN, Kanm Dhalda., Iraq (IndIVidual) [IRAQ)
OMRANI, Abuzeld Ramadan, Admlniltrative Manager at libyan Arab ForelOn Investment Company, Libya (.ndlVldual) (lIBYAr
ONYX ISLANDS ( .... ryel Enterpnlel, Inc., Panama) (vessel) [CUBA]
OPTIKA - BEOGRAD, Belgrade. Serbia (FRY 5&M]
ORE STAR (t k. •. S ... EDEREVO) (J8FN9) OreJOil
Carner 86.401GT Saint V.noent Flag (G~mm.r
Mantlme S.A) (v_I) [FRY 5&M)
ORGANfL(TION OF THE OPPRESSED ON
EARTH (aka PARTY OF GOD, •. k_a. HlZBALLAH,. ka ISLAMIC JIHAD:. k .•. REVOLUTIONARY JUSTICE ORGANIZATION: •. k.a. ISLAMIC JIHAD FOR THE LIBERATION OF PALESTINE, a .... ANSAR ALLAH: a.k. •. FOLLOWERS OF THE PROPHET ... UHA ... MAD), Lebanon [SOT]
ORIENT SHIPPING LIMITED, Lot 18, Bay Street.
Kongltowne, 51. Voncent .nd the Grenedonee
[IRAQ)
ORJEN (9HS03) Bulk camer 38,551GT Mallll Flag
(Kotor Overae. . Shipping Ltd) (veaael) [FRY
S&M)
OROOBA (YIOB) Tug 368DWT Iraqi nag (State
Org at Iraq. Porta) (veaael) [IRAQ)
ORS. Joae AntonIO Rago, Tokyo, Japan (individual)
(CUBA]
ORTEGA. Dina (PINA) Edifiao SaldIVar, Panaml
City. Panama (indIVidual) [CUBA]
ORTIZ, Guadalupe, Cubanatur, Balli Califomlll 255.
Edlfiao B, OflCma 103, Condeu 06500. "'exlCO,
OF (indIVidual) [CUBA)
- 22-
OFRCE OF FOREIGN ASSETS CONTROl
SPEOAUY DESIGNATED NATlONALS & BLOOCED PERSONS
OS OlllNVEST SERVICES A.G. Loewen.traue
ISO. Zurich. Switzerl.nd [lIBYA)
OSA CHARTERING. Belgrade. Serbia [FRY S&/Ol)
OSA CHARTERING. Cypru. [FRY S& .. ]
OSBORNE TRAOING CO .. PANY LTD .. Berengaria Bldg. 25 Spyrou A ...ouzou Street. lim.acl.
Cyprua (FRY S& .. )
OSNOVNA BANKA POLJOPRIVEDNA BANKA.
NOYI Sad. VojYodlna (SertII.) [FRY S& .. )
OSNOVNA PRIVREDNO-INVESTICIONA BANKA
(•. k •. INVESTBANKA) .•• ofric:ea (Bank _ he.dquartenld In Belg ...de. Sefbie) [FRY S& .. )
OSTOJIC. B ... nko; Deputy Prime .. inialer .nd Economics .. inialer of SRBH; BO.,.II.-HerzegOllIl\8 (individual) (SRBH)
OSTOJIC. Velibor; Deputy in SRBH Auembly.
OOB 1945; POB Foca-Calebto. Boan.-HerzegOllIl\8; B.nJIILuka. Boan.-HerzegOllln. (indl\/Idual) (SRBH)
OTORI .. ARU No 2 (N/A) Sel'V1ce OWl NIA (Slele
Org. of I...qi Porta) (veuel) (IRAQ]
PADRON. Am.do (TRUJILLO). Panama (lndMduan
(CUBA]
PAK-LIBYAN HOLDING CO .. PANY LTD. K.rachl.
P.lliaten [lIBYA)
PALESTINE (YIFN) Sel'V1ce 4.649OWT I... ql n.g
(Stllte Org of Iraqi POIta) ( _ I ) (IRAQ)
PALESTINE LIBERA TlON FRONT (. ka PALESTINE LIBERA TION FRONT - ABU ABBAS FACTION; a ka PLF-ABU ABBAS; aka. PLF). Iraq
(SOT]
PALESTINE LIBERA TION FRONT - ABU ABBAS
FACTION (a k.a PLF-ABU ABBAS. a k a PLF.
a.ka PALESTINE LIBERATION FRONT). Iraq
(SOT]
PALESTINIAN ISLA .. IC JIHAD - SHIQAQI (a k a
PIJ; a k a ISLA .. ,C JIHAD OF PALESTINE.
a k a PIJ SHIQAQUAWOA FACTION. a k a PALESTINIAN ISLA .. IC JIHAD). I....el. Jordan. Lebli.
non (SOT]
PAL .. A .. OCHA (NlMera "lIritlmll de Arose.
Spain) (veael) [CUBA]
PALO .. A ~ST HANDELS G .. BH. Franktur1.m
"lIln. Germany [FRY S& .. ]
PA .. IT C (Pamrt C Shipping Co . Ltd . Cypnn)
( _ I ) [CUBA]
PA .. IT C SHIPPING CO . LTD. LlmaMOl. CyptUa
[CUBA)
PAMUCNIKOMBINAT YU"KO. V ... nll!. SefbIa
[FRY SiMI
PANAMERICAN IMPORT AND EXPORT CO"MERCIAL CORPORA TION. Pllnamll [CUBA)
PANCEVO HE ... IJSAA INDUSTRIJA. SpoIrnoslarCl!Y1lclal 80 26000 P.ncevo. Serbia [FRY S&")
PANDORA SHIPPING CO SA. Honduras [IRAQ)
PANOA"ERICANA Panama [CUBA)
PANONSI(A BANAA d d . all of'floea (Bank .. ~
Quar111f'e<! In NOIII Sed. VOjYOOInII [Sel'btllD [FRY
S&")
PAPADOPOULOS. Tauoc DOe 1933.2 Sofoutn
S~. Chanteclaor Bldg, 2nd Floor No 205 N ..
coa.a Cyprus (IndMduan (FRY S& ... ]
PARADISSIOTlS Chnalolora. P.vIou. ~ G....,..
110( Street. London W1X ~G, England (IndMd·
usl) [lIBYA)
PARADISSIOTIS ChnGolora. Pavlou. Lamec:.a Cyprua (IndMdual) [lIBYA]
PARTY OF GOO (. Ila HIZBALLAH. aka ISLA .. IC JIHAD. Ila REVOLUTIONARY JUSTICE ORGAN(V. TION,. k. ORGANIZA T~
OF THE OPPRESS[D ON EARTH • k a ISLA .. IC JIHAD FOR THE LIBERATION 0fC PALESTINE a k a ANSAR ALLAH. a k. FOlLOW·
ERS OF THE PROPHET .. UHA .... AD). Lao.non rSDT]
PBS BOSANSKA GRADISKA 00. Ba.a.....
Grad . . . Boan.-Ha<ZeQlMna [FRY S& .. )
PCL PELCA .. TRADE LTD (a k a USB INVESTloIENTS & FINANCE). 2 SoIoules 5tra.(
Cia" Bldg 2nd FlOat. No 205, NICOeI8 Cygrua
[FRY 5& .. )
PEJIC "omCllO SABH N8bona1 Bank ~
n"-Ha<Z~"" IIndMdual) rSABH)
PEJIC Rank[) ...n_tIaf 01 FINln08 01 SRBH DOe
12 Jun 3!\ POB " ... Sa...,....o Boan.. ~
gOY1na Boan .. -HBfHOOV.... (nOoYodual) [SA8HI
PENA JoN {TORRES) P-",a (1t\CSN1OuaI1
rCUBAI
cr---
ao.
PENA. Victor. Panama (lndMdual) (CUBA]
PEONY ISLANDS (peony ShIPPing Co. Ltd. Cypru.) (v_I) (CUBA)
PEONY SHIPPING CO . LTD. lImaacl. Cypru.
(CUBA]
PERAST (Unknown) ROIRO CargolF.ny 131GT
Yugoalllll1a Flag (Komunalno POOuzece) (v-I)
[FRY S& .. ]
PEREZ. Allon8O. Panama (individual) (CUBA)
PEREZ. Manuel "arun, Pllnama (IndMdual) (CUBA]
PEREZ. O.valdo (CRUZ). Panama (individual)
(CUBA]
PERIC, NIIeu, Deputy In SRBH Auembly. Boanla.
HerzegOllIflS (indIVidual) (SRBH)
PERIC. Vltoollr; Secretary of Judloall.-a of
SRBH, Boanla4-lerzegOllIna (lndMdual) (SRBH]
PEROVIC, 0 . Kuraovoi Per 1 KV 3. "oaoow, Rus•• laddreu 01 INPEA) (lndMdual) (FRY S&M)
PESCABRAVA, SA, France (CUBA]
PESCABRAVA, SA, Italy [CUBAI
PESCABRAVA, SA, Spain [CUBAI
PESCADOS Y ... ARISCOS DE PANA .. A, SA
(II Ila PES ... AR; a k a PEZ ... AR. SA). Panama
City, Panama [CUBA)
PES"'AR (or PEZ"'AR), S A (a Il. PESCADOS Y
MARISCOS DE PANA"'A. SA.), Pllnama City,
Pan.ma [CUBAI
PETRA NAVIGATION & INTERNATIONAL TRADING CO LTD. (a k.a AL PETRA CO .. PANY
FOR GOODS TRANSPORT LTD ). Hal AI WIIMII
"'lIhalal 906, 906 Zulllk SO, Houee 14. Baghdad
Iraq [IRAQ]
PETRO ... ED LTD, 18b Charle& Street. London
W1X 7HD. G~al Bnteln [FRY S&"')
PFLP (a k a POPULAR FRONT FOR THE LIBERATION OF PALESTINE). Lebanon, Syna, l&I1Iel
[SOT]
PFLP-GC (II IlII POPULAR FRONT FOR THE LIBERATION OF PALESTINE - GENERAL CO!.!·
MAND), Lebanon, Syna, Jordan [SOT]
PIECAS. Stanko, Day Bu.lchng. Bucharesl Avenue.
OIH Alley No 1117. Apt 8. Teheran. Iran IlIddreu
01 EAST POINT HOLDINGS) (Indl\/ldual) [FRY
SiMI
PIJ la Il. PALESTINIAN ISLAMIC JIHADSHIQAQI .• Ila ISLAMIC JIHAD OF PALESTINE, a k. PIJ SHIQAQUAWOA FACTION;
a k. PALESTINIAN ISLA ... IC JIHAD), larael, Jord.n, LeDanon [SOT]
PIJ SHIQAQVAWOA FACTION (II k a PIJ, II Ilil
PALESTINIAN ISLA ... IC JIHAO - SHIQAQI, a k.a
ISLAM'C JIHAD OF PALESTINE. II k a PALESTINIAN ISLA .. IC JIHAD) tarael. JOrdlln, Lebanon
[SOT]
PIK BECEJ. Bacel VO!VOdINl (Serb.a) [FRY SiMI
PIK POZAREVAC POZllrl!Y1lc. Serbll! [FRY SiMI
PIK SIR .. IU .... Sremslal MIITOIIIca. IIO/llOOma (Ser.
boa) [FRY S&"')
PIK SOWBOR. Somber. VOjYOOIn. (Serblll) [FRY
S&"'I
PIK TAKOVO. Gornl' ".lanov.c. Serblll [FRY SiMI
PIK T,1. .. '5 Pancevo. VOIYocSon. (Serb.lI) [FRY
S&"I
PILOT 383 (N/Al 5eNIoe OINT NIA Iraqi nag (Stllte
Org 01 Iraq. POIta) (.....eel) [IRAQ)
PILOT J8.C (NIA) SeI'V108 OWl NIA Iraqi nag (StIlle
Org 01 Qq. POIta) ( _ I ) [IRAQI
PINO DEL AGUA (Nev.ra 1.1 a",,", a de Arosa
SDaon) (veuel) rCUBA]
P~EER (Tramp Pooneef Sh.ppong Co , Ltd . Pllnam.) (veuel) (CUBA)
PIONEER SHIPPING LTD. 171 Old Bakery Streel,
lIaletta ...... (c/o AnglO Carlbbe.n ShipPIng
Co Ltd .th FlOat South PI\a.. 2. South Quay
Piau 2 183 W.~ Well. London E14 9SH. England) [CUBAI
PIRA .. IDE INTERNATIONAL PanamarCUBA]
PIRANHA NAVIGA TION CO LTD, lIm.acl, Cyprua rCUBA]
PrIIA (n k. RIO B) 19HTH3l G-...I Dry Cargo
9.32~ T ..... Flag (Bar OYerMaa ShipPIng Ltd )
(wuel) [FRY saWI
PKB (. k. POUOPRrvREDNI KOWBINAT
BEOGRAD) Pad....... Slcela Serbta (FRY 5&"'1
P1(8 BANAA (a k. "ESOVIT A BANKA d d . a k II
POlJOPRrIIREDNIKREDITNA BEOGRAD
BANKA) a. oIfocft (Bank _ headquar1ered on Be"
~ 5eftMa) [FRY
PKB CO.... ERCE. Belg... de. Serbia [FRY S& .. ]
P1(8 HERCEG NOVI. Herceg NOIII, .. ontenegro
[FRY SI .. )
PLAVSIC. B~jana; a Vice-President 01 SRBH; DOB
7 Jul 30; POB Banja Luka. Boanla4-lerzegovina;
BoanIB-Herzegovina (indIVidual) (SRBH)
PLAYA (f.ka CETINJE) (9HSY3) Bulk carner
9.028GT ..... Flag (Loycen
ShiPPIfIQ
Ltd.) (v-I) (FRY S& .. )
PLF (a.k. PLF-ABU ABBAS; a.ka. PALESTINE
LIBERA TION FRONT - ABU ABBAS FACTION;
•. ka PALESTINE LIBERATION FRONT). Iraq
(SOT]
PLF-ABU ABBAS (a.k.a. PALESTINE LIBERATION
FRONT - ABU ABBAS FACTION; •. In. PLF;
•. k.a. PALESTINE LIBERATION FRONT). Iraq
(SOT]
PLJEVANSKA BANKA. all ot'/ioea (Bank Is headQuartered in POOgonca. Monlenegro) [FRY S& .. )
POCHO NAVIGATION CO .. LTD .. lim • ..,I. Cyprus (CUBAI
POLICE 1 (N/A) Patrol DWT NIA Iraqi nag (State
Org. 01 Iraqi Porta) (veuel) (IRAQ)
POLICE 2 (N/A) Patrol DWT N/A lraqillag (State
Org 01 Iraqi Porta) ( _ I ) (IRAQ)
POLICE 3 (N/A) Patrol OWl NIA lraqillag (Stllte
Org 01 I"'Qi POIta) ( _ I ) (IRAQ]
POLl .. KA. lvang ... d. "onlenegro [FRY S& .. ]
POLJOPRIVREDNA BANKA OSNOVNA BANAA.
all ot'/ice. worldwide [FRY S& .. ]
POLJOPRIVREDNI KO .. BINAT BEOGRAD (a.ka
PKB), Padlnalal Skela. Serbia [FRY S& .. ,
POLJOPRIVREDNI KREDITNA BEOGRAD
BANKA (a Ila .. ESOVITA BANKA d.d.; a.lla.
PKB BANAA). all ot'/ioea (Bank i. headquartered
In Belgrade. Serbia) [FRY SI .. )
POMORAC (nka LUCIANO HOPE) (3EIE4) Bulk
Carner 20.904GT liberia (Panama) Flag (Cltimark
ShiPPing limited) ((Oceanic Bulk ShIPPIng S.A»
(ve&eel) [FRY S& .. ]
PONCE DE LEON. Lazaro (GO"EZ). "edfra ... exICO (mdlVidual) [CUBA]
PONS, Alber1o, Executllle Rep~.entatille. Banco
NaClOnal de Cuba, Fedenco Boyd Avenue & 51
Street. Panama City. Panama (individual) (CUBA]
- hcen.ed pending removal by FAC
POPOVIC. Vltomlr; Deputy In SRBH Auembly;
BllnJa Luka. Boanlll-HerzegOllina (individual)
[SRBH)
POPULAR FRONT FOR THE LIBERATION OF
PALESTINE (aka PFLP). Lebanon; Syria; l&I1Iel
[SOT]
POPULAR FRONT FOR THE LIBERA TION OF
PALESTINE - GENERAL COMMAND
(a Ila
PFLP-GC). Lebanon; Syna; Jordan [SOT)
PRAOO. JulIO la Ila JUliO LOBA TO). Panama (individual) [CUBAI
PREDUZECE ZA GAlDOVANJE SU .. A .. A - SRBIJASu"'E (a kll. PUBLIC FORESTRY ENTERPRISE - SRBIJASUME). Serblll [FRY 5& ... )
PREDUZETNICKA BANKA d d. all ot'/ioea (Bank i.
helldQuartered In Belgrade. Serbia) [FRY S&MI
PREKOOKEANSKA PLOVIDBA. PO Box 87 ... ar..III Tita 46. 85000 Bar. "ontenegro [FRY SIMI
PRELASA. MeXICO [CUBA]
PRELIC .... Vul. ProriZna 13, POM 06. K_.
Ukraine (add rea or EAST POINT HOLDINGS)
(lndMdual) [FRY 5&i00i]
PRENSA LATINA CANADA LTD. 10100 Rue Ste
Cathenne, Montreal PQ H303 IGI, CanadarCUBA)
PRENSA LA TINA. Spain (CUBA)
PRESA. SA. Panama rCUBA)
PRIMA EXPORTII ... PORT. Jamaica (CUBA]
PRIMROSE ISLANDS (Piranha NaVigation Co .
Lid . Cypru.) (.....eel) rCUBA)
PRISTINSKA BANKA d d .•11 oIYioea (Bank Is headQUllrtered in PnatJna. Ko_o (Serblll» (FRY S&"']
PRIVA TNA PRrIIREDNA BANAA. a. oIrlCH (Bank
.. headQuar1ered In "ontenegro) [FRY S&M]
PRrIIREDNA BANKA BEOGRAD d d . all of'flCft
(Bank ia helldquar1ered In Belg... de, Serb., (FRY
S&MI
PRrvREDNA BANKA NOVI SAD d d. all ot'/ioea
(Bank _ headquartered In NOIII Sad. VOJVOdma
[Serblll)) [FRY S&"')
PRIVREDNA BANKA SARAJEVO DO (B~eijlna). B,JI!~lna, Bovlla4-lerzegOllma [FRY SIM)
ev.r.e••
sa"l
- 23-
OFFICE OF FOREIGN ASSETS CONTROl.
PRIVREDNA BANKA SARAJEVO DO (BrclcD). Brcleo. BOM~~erzIlOOYII\8 (FRY SiMI
PRIVREDNA BANKA SARAJEVO DO (Cobo,).
Doboj. eo.n18-HerzIlOCMne (FRY S&M)
PRIVREDNA BANKA SARAJEVO DO (Foca).
Foca. BOM~~erzIlOOYII\8 (FRY S&M)
PRIVREDNA BANKA SARAJEVO DO (pri/lldor).
Prijedor. eo.n.-HerzIlOCMne (FRY S&M)
PRIVREDNA BANKA SARAJEVO DO (TitOY Drvar).
TIIDV Drv1ir. BOM.. ~erzegovine (FRY S&M)
PRIVREDNA BANKA SARAJEVO DO (Treblnle).
Tl8inJl. BOMje~erzllOOYlne (FRY S&M)
PRIVREDNA BANKA SARAJEVO DO (Zvomik).
Zvomlk. eo.nie- HerzllOCMne (FRY SiMI
PRIVREDNA KOMORA CRNE GORE (elt.
CHAMBER OF ECONOMY OF MONTENEGRO).
Podgorlca. Montenegro (FRY SiMI
PRIVREDNA KOMORA JUGOSLAVIJE (.It.
CHAMBER OF ECONOMY OF YUGOSLAVIA).
BeIg~. Serb. (FRY SiMI
PRIVREDNA KOMORA SRBIJE (. k .• CHAMBER
OF ECONOMY OF SERBIA). Belgl'llde. Serbia
[FRY S&M)
PROARTE (.It •. PROMOCIONES ARTISTICAS).
MexICO (CUBA)
PROGRES BAGHDAD BRANCH OFFICE. Section
929 Street. 12 HOUN 3519135. Baghd.d. IraQ
[FRY S&M)
PROGRES. Belgrade. Serb.. (FRY SiMI
PROGRES BUCUREST (. It. PROGRES BUCHAREST). B-Oul Balcesku No 32-3<411. Buch.rest
Rom.nI. (FRY S&M)
PROGRES INTERAGRAR. Belgrade. Serbia [FRY
S&M)
PROGRES PRIZREN (. It •. METAL AND PLASTIC COMPONENTS PRODUCTION). Pnzren.
Kosovo (SertH.) (FRY SiMI
PROGRES TRADE REPRESENTATION IN IRAN.
Ayattol.h Telegh.nl Ave No 202N. Teheran. Iran
[FRY SaM)
PROGRESS BEOGRAD (. k a PROGRESS
BEOGRAD PREDSTAVITEL YSTVO). St GorIQ:)g
56 kv 112. 1250 47 Ma.c:ow. RuUlll [FRY SiMI
PROGRESS BUDAPEST. K.pv_1et 6. F ....nczl
Istvan 1211. 1053 BudaPftl. Hungary [FRY S&M)
PROGRESS REPRESENTATION OFFICE. Sipka
No 7. So" 7. Bulg.na [FRY SlIot)
PROGRESS REPRESENTATIVE OFFICE. Szl*
taln. 6. Przed.tawlCoelaYo .. Waraz_oe. WarlaW. Pol.nd [FRY 5&M)
PROITAL S R L. F~.le Ot Tneste. 3<4122 Tneste. n·
aly [FRY SaM)
PROITAL S R L V. n.po Tomenl 3LJ1. MIllin. Italy
[FRY SiMI
PROMET. N,ksll:: Montenegro [FRY S&t.4)
PROMI ... PRO EXPORTS AND IMPORTS LTD. 70
An::hb./Iop Makanoa III Avenue. Afemla Bldg.
3rd Floor. NICIO&. Cyp",. [FRY S&M)
PRO ... OCIONES ARTlSTICAS (a k. PROARTE)
A"."lda Insurgentn Sur No 421. BloQu. B
OnpaCho~. C P 0600. MexICO. 0 F (CUBA)
PROMOTORA ANDINA. SA. Qurto. EcuadOr
(CUBA)
PRIIA PETROLETKA. Tratenllt Serbia (FRY S&M)
PRIIA SRPSKA KOMERCIALJNA BANKA .•• 01·
~ces (8.nk .. heedquertertKl In N •. ~) (FRY
SiM)
PRill FEBRUAR (IIHTZ3) Bulk camer 17.233GT
Walta Flag (Sout7I Adnebc Bulk Shlpp,"g Ltd )
(YftMI) [FRY SiMI
PRill WAJ 18300 Prot. Serb. [FRY S&M)
PRIIOBORAC NokaIC. Montenegro [FRY S&M)
PRZEDST AWIGIELSTWO JUGOSLOWIANSKIEJ
HANDlU ZAGRANICZNEGO HEM PRO Szl*
talne 15 m 115 ............ POiend [FRY 5&M)
pn CRNE GORE .a II a MONTENEGRO POST.
TELEGRAPH AND TELEPHONE). Montenegro
[FRY saM)
pn JUGOSLAIIUE (a II. YUGOSLAV POST.
TELEGRAPH AND TELEPHONE) (oncludlng a.
S8IbIen.nd Montenegnn alf~.tn) Belgraoe Se,·
bta [FRY S&M)
pn SRBUA (a ka SERBIA POST. TELEGRAPH
AND TELEPHONE) Belgrade. S..t>Ie (FRY 51'"
PUBLIC CO"PANY FOR GAR .. ENTS PO 8m
4152. BenghaZI L~ya!lIBYA)
APfttL ". , 1116
SPEOALlY DESIGNATED Not.TIONALS & BlOO<ED PERSONS
PUBLIC ELECTRICAL WORKS CO. PO Box
8539. Sh.n. H.lab. Tnpoh. Llby.; (branch) PO
Box 328". Benghazi. LlbY.!lIBYA)
PUBLIC ENTERPRISE OF POST. TELEGRAPH
AND TELEPHONE OF SERBIA (. k .•. JAVNO'
PREDUZECE PH SRBIJE). S.rb.. [FRY SiMI
PUBLIC FORESTRY ENTERPRISE - SRBIJASUME (. It. PREDUZECE ZA GAZOOVANJE SUMAMA - SRBIJASUME). SertHe [FRY
SIIoI)
PUBLIC SAFETY COMMODITY IMPORTING CO.
(. It. SILAMNIA). POBox 12942. Tnpoh. libya
!lIBYA)
PUTIC. MdenlcD; Oepu1y 111 SRBH A ...mbly; Basno.~erzegovlI\. (lndMdu.l) (SRBH)
PUTNIK. Belgrade. S.rbl. [FRY S&M)
QAFALA GENERAL AUTOMOBILE CO. libya
!lIBYA)
QASE .... T.I.I Fou.d. Propag.nd. Le.der of ISLA MIC GA",A'A T. OOB 02 Jun 1957 or 03 Jun
1957. POB AI Min •. Egypl (lndlVldu.l) (SOn
QUALITY SHOES COMPANY. UB33. Indultnal EIIIlIte. S.n Gwllnn ..... Ita !lIBYA)
QUIMINTER GMBH. V,enn •. Au.tn. (CUBA)
RAD GRADJEVINSKO PREDUZECE. Belgrade.
Serbl. (FRY 51101)
RAOHWA 18 (N/A) Tug OWl NIA IraQI flag (IraQi
Stllte Company for Od Pro)eC1a) (ve.. el) (IRAQ)
RADHWA 19 (N/A) Tug OWl NIA Iraqi flag (IraQI
SllIte Company for 011 Projects) (vellael) (IRAQ)
RAOHWA 20 (N/A) Tug DWl NIA SlIudl Arabian
nllg (11'lIql SllIte Company for 0,1 ProjeCts) (ve&-lIel) (IRAQ)
RADIO SERVICE. SA. Pan.ma (CUBA)
RADIO TELEVlZlJA BEOGRAD (. k.. RTB). Belgrade. Serbia [FRY SiMI
RADIO TElEVlZlJA CRNE GORE (. k.1I RTV
CRNE GORE) (oncludlng all .ffillates). Podgonca.
Montenegro [FRY S&IoI)
RADIO TELEVlZlJA NOIII SAD (II k .• RTV NOVI
SAD). NOV! Sad. VOIVodln. (Serbia) [FRY S&M)
RADIO TELEVlZlJA PRIST INA (. It. RTV PRISTINA). Pnatln •. Koaovo (S.rbl.) [FRY S&M)
RADIO TELEVlZUA SRBIJE (. k.1I RTII SRBIJE)(onCiudlng.U 1I1f,Il.tn). Belgrade. Sert118
[FRY S&t.4)
RADNIK (n k.. SOPHIE HOPE) (3ELK3) Bulk carner 17.882GT lIben. (pllnllm.) FI.g (Pocatelo
ShOPPing Ltd ) «Oce.nlc Bulk ShiPPing SA» (Ye5IIeI) [FRY 5&M'
RAOOJE DAKIC (. It. ENTERPRISE FOR CONSTRUCTION t.4ACHINERY - RAOOJE DAKIC).
Podgonca. ",ontenegro [FRY S&t.4)
RAFFINERIE DU SUD-OUEST (a k a RSO .• k..
COLLOlolBEY REFINERY). Collom bey. V.I.I5.
SwItZerland (lIBYA)
RAFIDAIN BANK. 114 Tahreer Sir Elduklo.
POBox 239 Omran GIZ. C.lro. Egypt (IRAQ]
RAFIOAIN BANK. 2nd Floor S.d.t Tower. PO Box
1891. Beorut Lebanon (2 bf.ndln 111 L.b.non)
(IRAQ)
RAFIDAIN BANK. Malraq. Jordan (IRAQ)
RAFIOAIN BANK. N_ B.nkS Street. POBox
11360 .......nt. Bllghd.d. IraQ (227 branchn In
Il'lIq) (IRAQ)
RAFIDAIN BANK. POBox 10023. Sen ••. Yemen
Arab R.publlC (IRAQ)
RAFIOAIN BANK. POBox 1 194. CWlem. 111Huneln Street. Amm.n. Jord.n (IRAQ)
RAFIOAIN BANK. POBox 607. t.4.n.m •. B.hraln
(2 fnnchn In BahraWl) (IRAQ)
RAFIOAIN BANK. POBox 685. AQ.ba. Jord.n
(IRAQ)
RAFIOAIN BANK. POBox 8150401. J.bal Amm.n.
Jorden (IRAQ)
RAFIOAIN BANK. RaM.on Blink Bu~dong. 7-10
LMClenhall SlnIet LonOOn EC3V lNL. England
(IRAQ)
RAFIOAIN BANK. ShHIto Kha". Street. POBox
2727. Abu Ohabt. United Arab Emirates (IRAQ)
RAFINERLIA. NOV! Sad. 1I000odtna (Serb.) [FRY
S&"')
RAFIO 1 0 _ (. II. ABDULt.4AlIK. Abdul
H.meed. II k. MALIK. Allam Mohammed R.r'Q
Abdul). '4 Almotaz S.d AI Deen Street AI Nozha.
cairo. Egypt (on<IMduel) (IRAQ]
RAHIM 3 (PIOneer StuppWlg Ltd . "'.Ita) (vellael)
(CUBA)
RAJBROOK LIMITED. England (IRAQ)
RAKIC. ZlvlcD; MIII"er of the Intenor ot SR8H; Bosno.-HerzegovlII. (ondrviduel) (SRBH)
RAMA (tit. KUPRES) (9HUP3) Genel'lll Dry
cargo 13.688 GT CYp/u. (M.Ita) Fleg (White SllIr
ShIPPing Co. Ltd.) «(South Adnabc Bulk ShipPIng
Ltd» (veuel) (FRY SiMI
RAMADAN. T.ha Y• .., (•. It •. RAMAOAN Taha
Y...",). Vice Prealdenl.nd Depu1y Prime Mini.
ler. OOB 1936; IraQ (indlVidu.1) [lRAQr
RAMADAN. T.ha YU8In (•. It •. RAMAOAN T.ha
Y.llln). Voce P~denl.nd Depu1y Prime Min_I.r;
OOB 1936; IraQ (Indlvldu.l) (IRAQr
RANK XEROX YU. Belgrade. S.rb.. (FRY S&M)
RAOUF. Kh.hd Moh.mmed. Praca PIO X. 54-100
And.r. CEP 20091. RIO de J.nelro. Brazil (indlvldu.l) (IRAQ)
RAPID. Belgrad•• Serblll [FRY SiMI
RAPID CO. Studenlslo trg 4. 11000 Belgrade. Serbl. [FRY S&M)
BengRAS HILALIoIARITIME CO. P.O. Box
hazi. libya !lIBYA)
RAS LANUF OIL AND GAS PROCESSING COMPANY. LTD. (.It. RASCO). Benghazi Compl.x.
POBox 1971. G.mel Abdul N....r Street. Benghazi. libya !lIBYA)
RAS LANUF OIL AND GAS PROCESSING COMPANY. LTD (.k.. RASCO). P.O. Box 75071.
Tnpoll. Llby. (LIBYA)
RAS LANUF OIL AND GAS PROCESSING COMPANY. LTD (.It. RASCO). R.sL.nufComplex
lind Termm.l. Ghoul EI Sh•• I. libya !lIBYA)
RASCO (II k.• RAS LANUF OIL AND GAS PROCESSING COMPANY. LTD). PO. Box 75071, TripOli. libya (lIBYA)
RASCO (•. k .• RAS LANUF OIL AND GAS PROCESSING COMPANY. LTD.). Benghazi Complex.
POBox 1971. Gllmel Abdul N....r Street. Benghazi. libya !lIBYA)
RASCO (II k. RAS LANUF OIL AND GAS PROCESSING COMPANY. LTD.). Raa Lanuf Complelr
and Termln.l. Ghout EI Sh•• I. libya !lIBYA)
RASHEED BANK (. k .•. AL-RASHID BANK; •. It •.
AL-RASHEED BANK). P.O. Box 7177. H.ifa
Street B.ghd.d. IraQ (including. bul nol ~mited to.
brandies Iocaled",' AI-Rusati Br.nch. No. 505.
AI-t.4.sarit Street B.ghd.d. IraQ. Credrt CommerCial Bl'lIndl. No 506. Kh.hd bin AIw.leed Street.
B.ghd.d. IraQ. B.lII'1Ih Bl'lInch. AI Th_rah
Street. No 88. PO. Box 116. B.arah. IraQ; Mosul
BranCh. No.3. P.O. Box 183. MOllul. IraQ) [IRAQ)
RASUO. Nede~ko. Deputy In SRBH A...mbly: S.n110 t.4ost. Bosnl.-Herzegovm. (Ifl<IMdu.l) (SRBH)
RA TAR. Podgorx:: •. 1oI0ntenegro [FRY S&M)
RATKO IoIITROVIC - BEOGRAD. Belgrade. Serb..
(FRY S&M)
RAVENS (Anlam.llo ShiPPing Co" Lid. M.Ita) (veslIel) (CUBA)
READY-MADE SUITS PLANT. Oem •. libya !lIBYA)
REAL ESTATE BANK. H.... n Bm Th.b~ St Baghd.d. IraQ (IRAQ)
RECICLAJE INDUSTRIAL. SA. P.n.m. (CUBA)
REDESTOS SHIPPING CO . LTD. lImaasol. Cypruli (CUBA)
REKORD. Belgrade. Serbl. [FRY SiMI
RENT-A-CAR. SA. P.n.m. (CUBA)
RENOVICA. M~.nko: Spea.1 Advisor to Presidenl
of SRBH; BO.",II-H.rzegovm. (lndMdulIl) (SRBH)
REIIOLUTIONARY JUSTICE ORGANlZA TlON
(. k.. PARTY OF GOO; •. It •. HlZBAlLAH;
• k • ISLAIoIIC JIHAD; • It •. ORGANlZA TlON
OF THE OPPRESSEC uN EARTH: •. k .•. ISLAMIC JIHAD FOR THE LIBERATION OF PALESTINE .•. k .• ANSAR ALLAH .•. k .•. FOLLOWERS OF THE PROPHET MUHAMMAD). Lebanon (SOT)
REVOLUTIONARY ORGANlZA TlON OF SOCIALIST MUSLIMS (Ilk.• ANO; . k . ABU NIDAL
ORGANIZATION .•. It •. BLACK SEPTEMBER.
II It •. FATAH REVOLUTIONARY COUNCIL.
• k. ARAB REVOLUTIONARY COUNCIL;. It.
ARAB REVOLUTIONARY BRIGADES). libya.
Lebanon. A!g.na. Sud.n; IraQ (SOT)
REYES. Gu~lermo (VERGARA). P.n.m. Ct'(. Plln.m. (lndIVldu.l) (CUBA)
REYNOLDS AND WILSON. LTD. 21 VIC10na
Road. Surbllon. Surrey KT6 4LK. England [IRAQ)
'.96.
OFFICE OF FOREIGN ASSETS CONTROl
RICKS, Roy, 87 st. "'ry'l Fnce, Benlleet. EMex,
England (individual) [IRAQ)
RICA, Karim H ....n ('.IlI. AL-RIDA Kanm
H...n), "tniater of Agri<:UItu",; D08 1~; I~Q
(individual) [lRAQr
RIECKE, Dr. Hlnl Guenter, H.mburg, Germlny (Individual) (LIBY A)
RIGEL SHIP .. ANAGE .. ENT LTD., Second FloOr,
Regency Hou.., Rapublic Str..t. V.!lelll, .....
[FRY sa .. )
RIO 8 (t.Il •. PIVA) (9HTH3) G_~I Dry Cargo
1I,324GT ..... Flag (8.r Ow,... . Shipping Ltd)
( - ' ) [FRY sa .. )
RIO G (Till TARA) (9HTK3) General Dry Cargo
1I,201GT ..... Flag (8.r Ow,.... Shipping Ltd )
( - ' ) [FRY sa .. )
RISAN (IIHUD3) General Dry Cargo 9,698GT ... Ita
Flag (2'" Ocean Shipping Ltd) (v_el) [FRY
S&M)
RIVA.. ED SHIPPING LTD, 2 Sofoulea Street.
Chanteclair Bldg., 2nd FloOr, No. 205, NicOlia. CyPrill [FRY 5&101)
ROBIAN (N/A) FIVI129DWT Iraqi flag (Iraqi State
Fiahenea Company) (V_I) [IRAQ)
ROBNE KUCE BEOGRAD. Belg~. Sertlla [FRY
5& .. )
ROCHA. AntonIO, Panama City. Panama (individual) (CUBA)
RODRIQUEZ . .Jesua (BORGES or BORJES). Panama (lndMdual) [CUBA)
RODRIQUEZ. Joae Julio. Chairman. Havana Internabonal Bank, 20 lronmonger Lane. London
EC2V 8EY. England (indIVIdual) [CUBA)
ROMEO. Char1ea (a.ka. Chal1. . Henri Robert ROMEO). Plnama (IndIVidual) (CUBA)
ROPERT. MIna Contreral (aka CONTRERAS.
Mlna). Pane. F~noe (indMdual) (CUBA)
ROQUE. Roberto (PEREZ). Panama (IndIVidual)
{CUBA]
ROSE ISLANDS (Shipley Shlpptng Corp . Panam.)
(WlNeI) (CUBA]
ROSIC. Jovo. "''''Ieter of JUlbce SRBH; Boan.. Herzegovll1l (indIVIdual) (SRBH]
ROZAJE. PoIImlte. Serbll [FRY 5&"']
RSO (I III RAFFINERIE DU SU~UEST. a k I
COLLO"'BEY REFINERY). CoUombey. Val ••.
SwCZerland (lIBYA)
RTB (I k.1 RADIO TELEVlllJA BEOGRAD). Be~
grade. Serbia [FRY
RTB BOR. Bor. Serbia [FRY sa ... )
RTV CRNE GORE (. k.a RADIO TELEVIZUA
CRNE GORE) (oncluc:hng •• Itfilllt.. ). Poogonca
Montenegro [FRY SaM)
RTV NOVI SAO (I k a RADIO TELEVllUA NOVI
SAD). NOVI Sad. Vorwoolna (Serbia) [FRY 5&W]
RTV PRISTINA (I ka RADIO TELEVllUA PRIS·
TINA) P,...",. Koeovo (Serbia) [FRY 5&"'}
RTV SRBUE (. kl RADIO TELEVlZlJA SRBIJE)(onc::ludlng ., atfillltea). Belgrade. Serbia
[FRY Salol}
RUBY ISLANDS (GOlden Comet N8VIg'tIOn Co .
Ltd . Pln.ml) (CUBA)
RUDEX INTERNATIONAL LTD. 37-38 .... rg.ret st
LOndon WIN BPS. England [FRY 5& ... )
RUOI CAJAVEC. Ban,. Lukll. Ba.nIl-Herzegoyll1l
[FRY 5& ... )
RUDIWEX G"'BH. Landmll... H.u~_ Ill25. 1030 V..,na. Auatna [FRY sa ... )
RUDNAP 00 (I k. I RUDNAP EXPORT -IMPORT)
10 ul VukllKarMzlCI. 11001 Belgrade. 5ettMa
(FRY S& ... ~ al ~ woODwlde. tnealdlng. bUt
sa .. ]
not limite<! ID
-1"-
• RUDNAP 00 (a ka RUDNAP EXPORT
PORT) AIg_ branch office. 12 Rue Trman. AIg... A toer- [FR Y SUI)
• RUDNAP DO (. Il a RUDNAP EXPORT ·1101PORT) ~1I1g ~tJv. office. BetIl"Cl.
ChII1II (FR Y
M)
• RUDNAP 00 (. Il. RUONAP EXPORT .1101POR T) 8e<1on bt'Inc:tI offICII. e.mn. Germany
(FRY
• RUDNAP 00 (. 11.1 RUDNAP EXPORT -1"'PORT). J.karta ~tIItJve otf>oe. J.karta Indone-. (FR Y
101)
• RUDNAP 00 (. Il. RUDNAP EXPORT -I ... ·
PORT) Katowc:e rwpr_taw. otfIOI. KatowcI
Poland (FRY salol)
sa
sa ... )
sa
APRIl'l '1Il6
SPECIAlLY DESIGNATED NATIONALS & Bloc:KED PBtSOHS
• RUDNAP 00 ('.ka RUDNAP EXPORT-IMPORT). Moacow representative 01Tioe. MOIOOW.
Ruaa. [FRY 5&M)
• RUDNAP DO (.ka RUDNAP EXPORT-IMPORT). Prague branch ol'/ioe. U Obecniho Ovora
2. Prague I. Czech Repub~c [FRY 5&M)
• RUDNAP DO (. ka RUONAP EXPORT -IMPORT). RIO de Janllro branch oI'/ice, RIO de
Janllro. Braz~ [FRY 5&101)
• RUDNAP 00 (ak. RUDNAP EXPORT-I ... PORT). Teh~n representatrve ol'/ioe. Teh~n. I~n
[FRY sa ... )
RUDNAP EXPORT -IMPORT (a.Il •. RUDNAP DO).
10 ul Vulal KaradzlC8. Yu-ll00l Belgrade. Serbia [FRY 5&M). all ol'/ices wol1dwlde, Including,
but not 11m rted to.
• RUDNAP EXPORT-IMPORT (ak.• RUDNAP
DO). Algllra branch ol'lice. 12 Rue Trman. AIglera, Aigena [FRY 5&M)
• RUDNAP EXPORT -I ... PORT (a k.a. RUDNAP
00). Billing repruentallVe OlflCe, Beiling. China
[FRY S&M)
• RUONAP EXPORT-IMPORT (aka RUDNAP
00). Bel1m branch ol'/iee. Berlin. Germany (FRY
5& ... )
• RUONAP EXPORT ·I ... PORT (.k.a RUONAP
DO). Jakllrta representatrve ol'/iee. J.kllrta. Indon"" [FRY SaM)
• RUONAP EXPORT-IMPORT (aka RUONAP
DO). KatowICe representative olflee. KatOWICe. Polend [FRY S&M)
• RUDNAP EXPORT ·I ... PORT (a k •. RUONAP
DO). Mo.cow representabve ol'/ice. MOIOOW. Rus·
&la [FRY sa ... )
• RUONAP EXPORT -I ... PORT (aka RUDNAP
00). Prague branch ol'/iee. U Obecniho Ovora 2.
Prague I. Czech Repubkc [FRY S&M)
• RUDNAP EXPORT -I"'PORT (a k.a. RUDNAP
00). RIO de Jamero branch ol'/iee. RIO de Jamero.
Brazil [FRY 5&M)
• RUONAP EXPORT -I"'PORT (II k a RUONAP
00). Tehran repreaentabve olflee. Tehran. Iran
[FRY sa ... )
RUDNICI SAKRA I NEMETALA. Bar. Sertl.. [FRY
SaM)
RUDNICI BOKSITA. N ....c. Montenegro [FRY S&"'I
RUDNIK BAKRA. "'ald.npek, Sertlll {FRY 5&M}
RUDNIK - GORNJI MILANOVAC. Gomji Milanovac.
Serbia [FRY 5& ... )
RUDNIK UGUA. PIte'vIIil. Montenegro [FRY S&"'J
RUll. Ramon Miguel (POO). Panama (ltIdMdual)
(CUBA]
RUL - LESKOVAC. Leskovac Sertlll (FRY 5&"')
RUMAILA (HNR"') Tanker 36.3300WT Iraqi flag
(IraQI 011 Tankers Company) (veuel) (IRAQ)
RU"'UA (IIHTI3) General Dry Cargo 8.954GT Malta
Flag (Laveen Overae •• Shipping Ltd ) (v_I)
[FRY SUI]
RU ... UATRANS. Bar. Montenegro [FRY S& ... )
RWR INTERNATIONAL INTERNATIONAL LTD
(n k. ATE INTERNA TlONAL LTD ). 3 "'.n.,.".Ie PIIICI. London. England (IRAQ)
RIOCKI. Hanna. Charm.n of REAL ESTATE
BANK. Iraq (1IIdIY1dual) (IRAQr
5 A V MUENCHEN (a k. SAV SYSTEM AGROVOJ\IOOINA VERTRIEBS G ... BH .• k a SEVERAGROVONODINA GMBH), Germ.ny [FRY
S& ... \, .11 ~. InCludIng. but nol ~mrted to
• S A V ... UENCHEN (I k e SAV SYSTEM AGROVONODINA VERTRIEBS GMBH. a k a SEVER,&r;ROVOJVOOINA G"'BH). W.oenlager Bo"'g.u.ue ~ 7. 5()Ij() Levefl(usen. Germ.ny [FRY
5&M}
• S A V MUENCHEN (I k I SAV SYSTE ... AGROVOJVOOINA VERTRIEBS GMBH .• k. SEVERAGROVONODINA GMBH) Auglntln StnI... 33.
8000 Munldl. Germany [FRY SaM)
S ... I SEWING MACH INES IT AL Y S P .A .. Italy
(IRAQ)
SABTINA LIMITED. 530-532 Elder HOUle. Elder
Gate. Central ""Ion Keynea MK9 lLR. England
{lIBYA}
SAHABI OIL FIELD PROJECT. POBox 982. T~
011. 1I~ {lIBYA}
SAHARA BANK. (22 1Qnct\ea '" Libya) [LIBYA)
SAHARA BANK. 10 FIrat September SlnIel P 0
Box 270 Tnpol!. Libya [LIBYA]
SAIF SAAD (NIl.) 5eMoe 742DWT Iraqi flag (State
Org 01 Iraqi Porta) (veueI) (IRAQ)
SALEH. "'ohammed "ahdi ('.ka AL-SALIH Muhammad Mahdi). Miniater ot T~de; OOB 1~7;
Iraq (indlVidu.l) (IRAQr
SALEH Abdel 1010""" Ahm.d (alla. SALIH. Abd atMunim Ahmad), Min.... of Awqal and Reljgioul
Atran; DOB 1e43; Iraq (individual) [IRAQr
SALGUIOIA ('.Ila. SOCIETE ARABE LIB YOGUINEENNE POUR LE DEVELOPPEMENT AGRICOLE ET AGRO-INDUSTRIEL), Conakry.
GUIne. (LIBYA)
SALIH. Abd al-Munlm Ahmad (a.ka. SALEH Abdel
"'oneim Ahmad). Minister of Awq.t and ReligiOua
Arran; DOB 1~3; Iraq (individual) (IRAQr
SALIMAURE ... (a.lla. SOCIETE ARABE LIBYENNE MAURITANIENNE DES RESSOURCES
MARITI ... ES). Nouadhibou .....uritllnia [LIBYA)
SAMARRA (YIBC) Ferry DWT N/A Iraqi flag (StIlle
Org 01 Iraqi Porta) ( _ I ) [IRAQ)
SA"'ARRAI, Ahmad HUlllyn Khudayir (a.kl. ALKHODAIR Ahmad Huaein), Minieter of Finance;
DOB 19<41; Iraq (Individual) [IRAQr
SANABUL (n.k.a. ALABIO) (HNOB) e.rge
1.662DWT Iraqi flag (Iraqi State Enterpnse for
Water T~nlport) (v-I) (IRAQ)
SANAM (VISM) Service 5080Wf I~ql illig (State
Org 01 Iraqi Porta) ( _ I ) (IRAQ)
SANITAS. Cabnje, ... ontenegro (FRY salol)
SANT AMARINA DE LA TORRE, Rafael Garcia
(a ka Alfredo Rafael GARCIA SANTA ... ARINA
DE LA TORRE) P.nama (individual) [CUBA)
SANTO. Anabel. Avenida Inlurgentea Sur No. 421,
Bloque B Deapacho 404. C.P. 06100, "exlco, O.F
(IndIVidual) [CUBA)
SARENAC. Stobodan. Inu-tnterexport Lid., 27
Marta 69. Belg~de. Serbia (individual) [FRY 5&M)
SAUDI. Abdullah Ammar, Manama. Bahrain (individual) (LIBYA)
SAV SYSTE ... AGROVONODINA VERTRIEBS
G"'BH (aka S.AY MUENCHEN; a.ka. SEVERAGROVOJVODINA GMBH), Germany [FRY
SaM). all ol'/ices. including. but not hmlted to:
• SAY SYSTEM AGROVONOOINA VERTRIEBS
GMBH (a.ka S.A'\/' MUENCHEN; '.k.a. SEVERAGROVOJVOOINA G ... BH). W.gen"ger Borsigatraue 5-7. 5090 LeverkuMn. Germany [FRY
5&M)
'. SAY SYSTEM AGROVONODINA VERTRIEBS
GMBH (aka. S.A'\/' MUENCHEN; a.ka. SEVERAGROVOJVODINA GMBH). Auguatin StnIue 33.
D-8OOO ... unlCh. Germany [FRY 5&MJ
SAVA. SertllS [FRY 5&MJ
SAVIC. M~orad; Ll Colonel and Commander. Second Krallna Bngade. First Krapna Corps. SRBH
Forces; Bosma-Herzegovlna (individual) (SRBH)
SAVIC .... ~o.; Secretary of SRBH Auembly; Boa·
nlS-Herzegovllla (lIldlVldual) (SRBH)
SAVING AND REAL ESTATE INVESTMENT
BANK. P.O Box 2297. Shom.n Street. F. .n.
loum. Tripob. Libya. (24 branch. . in Libya) [LIBYA)
SBOOR (HRN2) Fish 129DWT Iraqi flag (Iraqi Stale
FIShene. Company) (veuel) IIRAQJ
SBS. Belgrade. Sertlla [FRY 5&M)
SCH ... ITT. RagerlO Edu.rdo. Prace Pia X. 54-100
Andar. CEP 20091. Rio De Janeiro. Braz~ (individual) (IRAQ)
SDK (a ka SLUZBA DRUSTVENOG KNJIGOVODSTVA; •. k a SOCIAL ACCOUNTING SERVICE).
Belgrade. Sertlll! [FRY SaM)
SEABANK (flu Iraql-OWned AL·BAHAR ALARABI) (HQHR4) F.hlCargo 6.953DWT HOndura. flag (Trading & Manttme Inveatmenta. Hondu~. Managed by Arab T~n. Trade Co. S.A.E .. A~
eundna. Egypt) ( _ I ) (IRAQ)
SEABANK (n k •. ALBAHR ALARABI; n.ka.
BAROON. MV; fk. BAHAR AL ARABI) (V3ML6)
FshlCargo 6.9530Wf BelIZean flag (dlaputed
ownership Baroon Shipping Co Ltd. Haven Port.
Gibraltar. T.L O.Ua.& Co. Ltd, Bradford. England. Iraqi State Enterpnae lor Water Tranlport.
Baghdad. Iraq) (ves&el) (IRAQ)
SEA"'USIC II (9HYH2) Cargo 26.732DWT Malta
flag (Seamu&lc ShIPPing Co. Ltd .. cia Thenamana
Shtpl .... nagemenllnc . Athen •. Greece. V _ I
seIZed by Govemment of Iraq) ( _ I ) (IRAQ)
SEBM NISSAN (YISN) Tug 3680WT '~qi nag
(State Org of I~qi Ports) ( _ I ) [IRAQJ
·25-
0FFa OF FOREIGN ASSETS CXlHTROl
SEBHA FODDER PLANT. LibY8 [lIBYA,
SEBHA GRAIN MILL. Liby. [lIBYA,
SEBHA ROADS AND CONSTRUCTION CO . P 0
Box 82. Sebha. Liby.; (branen) PO Box 82s...
Tnpoli. LibY8 [lIBYA,
SECYCO. fS6 Archbiahop M."-noc III Avenue.
Cronoc Court. 0fI'ice 23-24. Nicocla. Cyprus (FRY
S'M,
SEKULAREC. MirtcD. Plaz. Liberty NO.8. 20131
Milan. Italy (.dd,... of EAST POINT HOLDINGS)
(individual) (FRY saM,
SEME. Belgrade. Serb.. (FRY S'M,
SENANQUE (Senanque Shlpptng Co. Ltd .. Cyprua)
(veueI) [CUBA'
SENANQUE SHIPPING CO .. LTD .. Lim.uol. Cy.
prua [CUBA'
SERBIA ELECTRIC POWER COMPANY (. k.•
ELEKTROPRIVREDA SRBUE). Belgrade. Serbia
(FRY saM,
SENDIC. BOllYOj; MllllGar of Agnculture .nd For·
..uy at SRBH; Bocn.·HerztlQOV1na (indIVidual)
[SRBH,
SERBIA POST. TELEGRAPH AND TELEPHONE
(•. It •. PTT SRBUA). Belgrade. Serbl. (FRY sa .. ,
SERBIAN PETROLEUM INDUSTRY (a k. NIS·
NAFTA INDUSTRIJA SRBIJE). NOYI S.d. VotyOd·
ina (5ertlI.) (FRY S'M,
SERBIAN RAILROAD TRANSPORTATION OR·
GANIZATION (alta. ZELEZNICKO TRANS·
PDRTNO PREDUZECE SRBIJE) Belgrade. Ser.
bi. (FRY saM,
SERIFOS (rk. LAKE STAR; r k. SKADARLUA)
(JIFN3) Bulk camet' 15.847GT P.nama (Saini
Vincent) Flag (Bnlllani NIQh1 ShIPPing 5 A ) «NOYI
ShIPPing Company 5 A (veuel) (FRY sa .. ,
SERVI .. PEX. SA. P.nama [CUBA'
SERVINAVES. 5 A. P.nama (CUBA,
SERVISIPORT. POCIgonca ... ontenegro (FRY 5& .. ,
SERVO "IHALJ. ben,.nln. VOf'/Odlna (Serbia)
[FRY S& .. )
SEVER-AGROVONODINA G .. BH (. k .• 5 A V
"UENCHEN .• k. SAV SYSTEM AGROVO·
JVODINA VERTRIEBS G .. BH) Germany (FRY
SUI,. all Orr,OH. IIIcludlng. but not ~mrted to
• SEVER.AGROVONODINA G .. BH (a k .• 5 A V
MUENCHEN .• k. SAV SYSTE .. AGROVo..
NODINA VERTRIEBS GMBH). AuguatJn Staue
33.0-8000 "unlCh Germany (FRY S& .. ,
• SEVER.AGROIIONODINA G .. BH (. k. 5 A V
"UENCHEN .• k. SAV SYSTE .. AGROIIO·
NODINA VERTRIEBS G .. BH) Wagenlager Bof·
IIgm.... 5--7.5090 L.... encu.en. Germany (FRY
S& .. ,
SEVER. SubotJca VOf\I'Odlna (Serbia) (FRY S&",
SEVOJNO OVERSEAS CORPORA T ION. Engle·
woOd. NJ USA (FRY sa .. )
SHABOOT (HNLK) FISh ,. 163DWT IraQIllag (R.fld·
aln F,ahe... Co LIIl) ( _ I ) [IRAQ}
SHALLOUF. F.rag AI Am 111 PO BOI95751".,.,
Floor. PICCII<I.y Centre. H.mra Street. BeHvt
Labanon V.~ ConaOI Cad No 10.80200 N,san·
1..,. P 0 BOI380 802323 S.~. ISIIInbul Tun.ey
(IIldMdu.~ [lIBYA)
SHANAB Tanq Abu MU8he<fetl. POBox 7ee.
Z.rke. JorOlin (IndNldu.l) [IRAQ}
SHANSHAL Abel .h)a~, KI\III. Mllliater of St.'10' .....'" A".".. DOB 11120 Iraq (II1CIMdu.~
(IRAQr
SHAQAQI Fatr\o Seaet.", G-'1II 01 PALESTIN·
IAN ISLAMIC JIHAD -SHIQAOI (1nCI",ldual) (SOT)
SHARIF Baatw M Det EI ""eel Admrn~ov.
Complex lowe< No 2 POBox 2~2. T~.
libya (lI1dMcIuaI) [lIBYA)
SHARIF. SaarI_ M . VIIII~' Cad No 10.80200
NIIIa",.. -"'OUI Tunr, (tndlVldU. l ) [lIBYA,
SHERLALA K _ M POBox 2438 Usam.
Bldg. ta,~.,.. StrNl Tnpoa LibY8 (.ndNlIJ.
USI) [lIBYA}
SHAlT-AL BASRAH (HNSR) FISh 404DWT QQ'
flag (Qqt 5 _ 10.__.. Company) (....-)
(IRAQ)
SHELL PETROLEuM D£VELOPMENT CO OF
LIB YAP 0 8011 1410 BenQI\alI lIC.,. [lIS v A,
SHIPLEY SHIPPING CORP Panem.ICUBA}
SHOROOK (VIS"') s-nce 4030WT nQ' flag
(Sta,- Org d Ir'8QI POIta) ,....-) (IRAQI
SHU' ALAH (N/A) Tug OWl N/A ~ flag (S~
Oro 0I1r'8QI POIta) (....-) (IRAO)
»
APftil II '--'
SPEOALLY DESIGNATED NATIONAlS' BlOCl<ED PERSONS
SIAF SA. 1 I. rue du C Beaux. caublanca. Morocco (FRY S& M,
SIALA. "ohamed T.her Hammud•. Tnpob. Libya
(lIIdMdual) [lIBYA'
SI80NEY INTERNACIONAL. 5 A . EdlficlO B.Imoral. 82 V. Argenbna. Pan.ma City. P.n.ma
(CUBA,
SIBONEY INTERNACIONAL. SA. Vanezuela
[CUBA,
SIEIRO DE NORIEGA. Fahadad. Pan.ma (indMd·
ual) [CUBA}
SILAMNIA (a k.a PUBLIC SAFETY CO .... ODITY
I .. PORTING CO). PO Box 12942. Tnpoll. Libya
[lIBYA'
SIHAN (yISI) Tug 387DWT Iraqi nag (State Org or
Iraqi Ports) (veuel) [IRAQ'
SILOWAT (n k. ALFIDAA) (HNFD) Barge
I.662DWT Iraqi nag (Iraqi State Enlerpnae for
Waler Tranaport) (v_I) (IRAQ)
SIM. Gdberto 10 . Praca PIO X. ~·IOo And.r. CEP
20091. RIO De Janeiro. BI1IZ~ (IndIVidual) (IRAO'
SIMA POGACAREVIC-SI .. PO (a k.a SI .. PO).
Vran)e. Serbia (FRY S& .. ). all orrlCn worldwide.
Indudlng. but not IImlled to
• SI .. A POGACAREVIC-SIMPO (a k a SI .. PO).
Stepanaka 5711 1 (clo GENEX). Prague. Czech
Repubhc [FRY sa .. ,
• SI .. A POGACAREVIC·SIMPO (a k a SI .. PO). 9
Ovenecka. Prague 17000. Czech RepublIC (FRY
5&",
• SI .. A POGACAREVIC·SI .. PO (a k a SI .. PO).
Stapln Comer West. 7 I 7 North Circular Road.
London. England (FRY S&M)
• SI .. A POGACAREVIC·SI .. PO (a k a SIMPO). 2
Rue Ernest p ..enan. Pans. France (FRY 5& .. ,
• SIMA POGACAREVIC-SI .. PO (a k.a SIMPO).
49 BIOCkdammweg. Be"", C 1157. Germany
(FRY 5&1104,
• SI .. A POGACAREVIC·SI .. PO (a k.a. SI .. PO).
Roberta K.rolya 67. BudaP"t. Hungary (FRY
S& .. ,
• SI .. A POGACAREVIC·SI .. PO (. k a SIMPO).
Via Tre caae 69-1A. Llmena. Italy [FRY S&M,
• SI .. A POGACAREVIC·SI .. PO (a k a SI .. PO). 22
Via S Sofill. Milan 20122. Italy (FRY S&",
• SI .. A POGACAREVIC-SI .. PO (a k a SI .. PO).
Tunn. Italy (FRY 5&")
• SI .. A POGACAREVIC-SI .. PO (a k a SIMPO) .
Cte<:h-Stoml. 7.22 lIpcaat. Poland (FRY 5& .. ,
• SI .. A POGACAREVIC·SI .. PO (a k a SIMPO). Ry·
bex-Odroweze I. Szc:zeon. Poland [FRY S& .. }
• SIMA POGACAREVIC·5IMPO (a k a SI .. PO).
Paged. W.ruw Poland (FRY 5& .. ,
• SI ... A POGACAREVIC·SI ... PO (a k a SI .. PO).
POCIv.1e 27. W.ruw. POland [FRY 5&"}
• SI .. A POGACAREVIC-SI .. PO (a k. SI .. PO). c/o
GENEX. Kutazovalu p' 13 POCIezd 3. lev 1 I 1.
"'oaoow. Ru.... (FRY 5&"1
• SI .. A POGACAREVIC-SI .. PO (a k a SI .. PO). Kv
103. 82 .. oclcv. Dam. Bol&lleya Gruz",akaya.
"'oacow. Ru.... (FRY 5& .. )
• SI ... A POGACAREVIC·SIMPO (. k a SI .. PO).
Svelon*oIalo Trg 6. Belg,ade 11000. Serblll (FRY
5&"1
SI ... IC. JovIC8 ..... /0' G_ral .nd Commande,.
E.atam Boan.n Corpa. SRBH FO<'CH. baaed.t
B,.e_tnII. Boan .. ~erzegOYllla (II1CIMdu.1) (SRBH)
SI"'IC. R.to"",-. Co!onel.nd Comm.nde'. F-aa A,·
mored 8ngaGe. F,..c Kra,na Cotpa. SRBH
Force.. Boan.. ~erzegovtnll (II1CIMdual) (SRBH,
SI .. 1l G .. BH. 1010 K."84>I.tz 112. Venn •. Auatna
(FRY S&'"
SIMIT G .. BH. Raprnentabve orrlCe. Sun LI Tun
Ooplom.bC Ofrloe Bldg 1·21. Be',ng. 100600
Dllna (FRY saMI
SI .. PO (. k. SI .. A POGACAREVIC-$IMPO).
Vrante SertlIe [FRY 5&1104 L •• offICeS wor1dw1de.
oncIudtng. bu1 noIl.nrted to
• SI .. PO (e k. 5,lMA POGACAREVIC·SI .. PO).
St_naiCa 5711 I (c/o GENEX) Pregve. Czectl
Republic (FRY saW)
• SI .. PO (. k. SI .. A POGACAREVIC-SIMPO). 9
0YenecIca. Prag .... 17000 Czectl Rapublic (FRY
S&W)
• SIMPO (. k. SI ... A POGACAREVIC·SI .. PO).
Stapln Comet w ... 7 I 7 NOf17I Crcula, Road.
London England (FRY Sa"l
• SIMPO (•. It •. SIMA POGACAREVIC-SIMPO). 2
Rue Em. . PlIIChari. Paris. France (FRY S'MI
• SIMPO (•. It. SIMA POGACAREVIC-SIMPO).
49 BIOCkdammweg. Bertlll C 1157. Germ.ny
(FRY S'M,
• SIMPO (a.It •. SIMA POGACAREVIC-SIMPO).
Roberta K.roI.,. 67. Budapest, Hungary (FRY
S&M,
• SIMPO (a. It •. SIMA POGACAREVIC-SIMPO).
Via Tra ca.e 69-1A. Lmen •. Italy (FRY saM,
• SI .. PO (a. Ita. SIMA POGACAREVIC-SIMPO).
22 Via 5 Solia. Milan 20122. Italy (FRY saM,
• SIMPO (a Ita. SIMA POGACAREVIC-SIMPO).
Tunn. Italy (FRY saM,
• SI .. PO (•. It •. SIMA POGACAREVIC-SIMPO).
Cte<:h-StomIH 7422 Lipcalt. Poland (FRY S'M,
• SI .. PO (.It. SIMA POGACAREVIC-SIMPO).
Rybex-Odroweze 1. Szczecin. Poland (FRY saM,
• SI .. PO (ak. SIMA POGACAREVIC-SIMPO).
Paged. W.ruw. POland (FRY S'M,
• SI .. PO (a Ita SIM'" POGACAREVIC-SIMPO).
POCIvale 27. Waruw. Pol.nd (FRY S'M,
• SIMPO (a It •. SIMA POGACAREVIC-SIMPO).
clo GENE)(. Kutozovaldl pro 13 Podezd 3. ltv. 111.
Moacow. Ru.... (FRY saM,
• SIMPO (aka. SIMA POGACAREVIC-SIMPO).
Kv 103. 62 Moclev. Dom. BoIahay. Gruzinalclly•.
Moscow. Rua .. a (FRY saM)
• SIMPO (alta. SI .. A POGACAREVIC-SIMPO).
5vetonlkolaki Trg 6. Belgrade 11000. Serbia (FRY
S&M)
SIMPO (UK) LTD. 14-15 Berne,. Street. London.
England (FRY S&M,
51MPO BRO. "oH-Straue 10. 1020 Bertin. G.r·
many (FRY 5''',
SIMPO FRANCE (tk.a. BINGO FRANCE). 28 Rue
du Pun Dllm" Sennia 606. 9<4320 ThilliaCEDEX. France (FRY 5&M,
SI .. PO FURNITURE (CYPRUS) LTD .. 1 Mytdu
Street Flal 303. NiCoaiII. Cyprus (FRY S'M,
SIMPO FURNITURE (CYPRUS) LTD .. Ntco.ia. Cy.
pru. [FRY 5& .. ,
SIMPO·INDUSTRIJA NAMESTAJA TAPETARIJE.
Deuaeka I. Belgrade. Serblll (FRY S'M,
SIMPO INTERNATIONAL (BRANCH OFFICE).
DufourwtnlllH 107. Zunch. SwItZerland (FRY saM,
SIMPO INTERNATIONAL. London. Engl.nd (FRY
S& .. )
SIMPO SPOL GMBH. Prague. Czeen Republic
[FRY S& .. }
SI .. PO SRL. Bauano Del vl.ne Dele Foue 30.
GrapPII. Italy [FRY sa .. ,
SINAI (N/A) SelVlce 1.286DWT Iraqi nag (State
Org 01 Iraqi Porta) (vessel) [IRAO,
SINJAR (VIAY) ServICe DWT N/A IraQI n.g (Stale
Org of Iraqi Ports) (veuel) [IRAO,
SINTELON. Bela Palanlal. Serbia (FRY S& .. ,
SIRM HOLDING 5 RL. Rome. Italy [lIBYA,
SIRTE OIL CO FOR PRODUCTION MANUFACTURING OIL & GAS .. ARSA EL BREGA (a ka.
SIRTE OIL COMPANY). PO Box 2582. Tnpo~.
Libya (LIBYA,
SIRTE OIL CO FOR PRODUCTION "ANUFACTURING OIL & GAS MARSA EL BREGA (.It •.
SIRTE OIL CO .. PANY). Benghazi. Libya [lIBYA'
SIRTE OIL CO FOR PRODUCTION MANUFACTURING OIL & GAS MARSA EL BREGA (.lta
SIRTE OIL CO .. PANY). Ma,.. EI Brega. Liby.
(LIBYA)
SIRTE OIL CO FOR PRODUCTION MANUFACTURING OIL & GAS .. ARSA EL BREGA (alta
SIRTE OIL CO .. PANY). SII1e Field. Llby. [lIBYA'
SIRTE OIL CO FOR PRODUCTION MANUFACTURING OIL' GAS MARSA EL BREGA (. Ita
SIRTE OIL CO .. PANY). P.O. Box 385. Tnpok.
libya [lIBYA,
SIRTE OIL COMPANY (a It. SIRTE OIL CO FOR
PRODUCTION MANUFACTURING OIL' GAS
.. ARSA EL BREGA). POBox 2582. Tripoli.
libya [lIBYA}
SIRTE OIL COMPANY (alt. SIRTE OIL CO FOR
PRODUCT/ON MANUFACTURING OIL' GAS
..... RSA EL BREGA). Benghazi. Llby. [lIBYA'
SIRTE OIL COMPANY (a ka SIRTE OIL CO FOR
PRODUCTION MANUFACTURING OIL' GAS
.. ARSA EL BREGA). Sirte Field. Libya [lIBYA'
SIRTE OIL CO .. PANY (a ka SIRTE OIL CO FOR
PRODUCTION "ANUFACTURING OIL & GAS
. 2e.
OFFICE Of' FOREIGN ASSETS CONTROl
a
.. ARSA
BREGA), PO Box 385, Tripoli, libya
(lIBYA)
SIRTE OIL CO .. PANY (•. Il. SIRTE OIL CO FOR
PRODUCTION .. ANUFACTURING OIL & GAS
.. ARSA
BREGA), ...,.. EI Breg., Libya
(lIBYA)
SKADARLUA (nil •. SERIFOS; f.Il •. LAKE STAR)
(JIFN3) Buk carrier 15,84GT P.nam. (S.,nt Vincant) Flag (Brilh.nt Night SnippIng S.A) «Novi
Shipping Company S.A.)) ( _ I ) [FRY 5& .. )
SKORIC, .. ,lan; Ll Colonel .nd Comm.nder, Second Armored Brig.de, Firat Krajln. Corpa, SRBH
Forcas; Boania~erzegovin. (indIVidual) [SRBH)
SKY SEA (f.Il •. Iraql-OWTled AlRAZI) (HNRZ)
cargo 8,334 DWT Honduraa flag (P.ndora Shipping Co. S.A., Hondura. ...n.ged by Petra N.vlgatiOn & 'ntemabon.' Trading Co. ltd., Amm.n,
JonMtn) (v-I) [IRAQ)
SLAVEN (YT"P) Tankar 126GT Yugoal.Vla Flag
(Komunalno Poduzeoe) (v-I) [FRY S&M)
SLAVUA BANKA, .M oIflcaa (Bank. headquartered
In Belgrade, Settlia) [FRY S& .. )
SLUlBA ORUSTVENOG KNJIGOVOOSTVA
(.Il. SOl<; •. Il •. SOCIAL ACCOUNTING SERVICE), Belgrade, Serbia [FRY S&M)
S .. EDEREVSKA BANKA d.d, .11 ofticea (B.nk "
headqu.rtered in Belgrade. SerbIa) [FRY 5&101)
S .. EDEREVO (nil •. ORE STAR) (J8FN9) OreJOil
carner 86,401GT s.tnt Vlncant Flag (Gbmmer
Maribme S A) (v_I) [FRY 5&101)
S .. IP (a.k.a SOCIETE MAGHREBINE D'INVE5TlSSE .. ENT ET DE PARTICIPATION). ~7. Avenue Khandeltne P.dla. 1002 Tun •. Tun • •
(lIBYA)
SOCIAL ACCOUNTING SERVICE (a k. 501<.
• Il •. SLUZBA ORUSTVENOG KNJIGOVOOSTYA). Balgrade Serbia [FRY 54101)
SOCIALIST EST FOR SPINNING AND v.£AVING.
Z.nzour Km 15. POBox 30186. Tnpoli. Libya.
(branch) POBox 852. Benghazi. lIby. (lIBYA)
SOCIETA CO ...... ERCIA MINERALI E "'ETTAUI.
SRL (. k. SOCOMET. SPA). "',lan. Italy [CUBA)
SOCIETE AGRICOLE TOGOLAISE ARABE L1BYENNE. Lome. Togo (lIBYA)
SOCIETE ARABE L1BYENNE-CENTRAFRICAINE
O·I ... PORT -EXPORT. B.ngul. Central Alncan Repubic (lIBYA)
SOCIETE ARABE LlBYENNE ... ALlENNE POUR
L'AGRICUL TURE ET L'ELEVAGE (. Il.
SOLI'" A) Bam.ko ..... " (lIBYA)
SOCIETE ARABE L1BYENNE MAURITANIENNE
DES RESSOURCES WARITIWES (. k.a SAU... AURE ... ) NouadhlbOu. Mauntan .. (lIBYA)
SOCIETE ARABE lIBYO.cUINEENNE POUR LE
DEVELOPPE ... ENT AGRICOLE ET AGRO-INOUSTRIEL (a k. SALGUIDIA). ConaICry. Gu.[LIBYA)
SOCIETE ARABE L1BYO~IGERE POUR LE DE·
VELOPPE ... ENT ET LA COMMERCIALISATION
DES PROOUITS AGRICOLES. N.mey NCje<
(lIBYA)
SOCIETE ARABE L1BYO-TUNISIENNE DE
TRANSPORT ... ARITI"'E. Tun •. Tun_ (lIBYA)
SOCIETE D·ECONO ... ,E ... tXTE CENTRE AFR~
CAINE 1I8YENNE DES PROC~J1TS AGR~
COLES Banoul Central Alncan RepublIC (lIBYA)
SOCIETE DE RECHERCHE ET D'EJ(PLOITA TION
CO .... uNE ET DE SERVICE PETROLIERE
,. k. JOINT EXPLORATION EXPLOITATIQfoI
AND PETROLEU" SERVICES COWPANY
• II a JOINT 011.. • k. JOINT OIL TUNISIA
• k. LIBY .... TUNISIAN EXPLORATION CO'"
PANY) p.....-g & LoglIIbC GI'OUCI complex POll
01 Zarz. Tun_ (lIBYA)
SOCIETE DE RECHERO-IE ET D,£)(PLOITATION
CO ..... uNE ET DE SERVICE PETROLIERE
(. II a JOINT EXPLORATIQfoI EXPLOrTATIQfoI
AND PETROLEU" SERVICES CO"PANY
. , k. JOINT Oll • II. JOINT Oll TUNISIA
• II. LIBYAN· TUNISIAN EXPLORATION COW·
PANY) B P ~t Souto ~180 DteftIe..-ncl T...
n_ (lIBYA)
SOCIETE DE RECHERCHE ET DUPLOrTATION
CO ...... u .... E ET DE SERVICE PETROLIERE
(..... JOINT EXPLORATION EXPlOIT ... TIQfoI
AND PETROLEU'" SERVICES CO ... PANY
• It a JOINT Oll • Il. JOINT 01. TU .... ISIA
..... LIBYAN-TUNISIAN EXPLORATION COW·
a
SPEOAlLY DESIGNATED NIlTIONALS & 8L0CI<ED PERSONS
PANY), 7th 01 November otrahore field. Gulf 01 Gabes (lIBYA)
SOCIETE GENERAlE YUGOSLAV BANK d.d. Belgrade. Serb.. [FRY 5& .. )
SOCIETE INTERAFFRICAINE DU BAN QUE (.ka
BAl TEX .• Il •. BANQUE ARABE lIBYENNE TOGOLAISE DU COMWERCE EXTERIEUR). PO
Bo)( ~7~, lome. Togo [lIBYA)
SOCIETE lIBYENNE CENTRE AFRICAINE DES
',tiNES. BangUI. Cenlnll Alncan RepublIC (lIBYA)
SOCIETE MAGHREBINE D'INVESTISSEMENT ET
DE PARTICIPATION (alta S"'P), ~7, Avenue
Khenddllle Padla. 1002 Tunia, Tunia. (lIBYA)
SOCIETE MIXTE RWANDO-ARABE lIBYENNE
DE PROMOTION HOTELIERE ET TOUR 15TlQUE AU RWANDA. KigalI. Rwanda (lIBYA)
SOCIETE MtXTE RWANDO ARABE LIBYENNE
POUR LE DEVELOPPE ... ENT ET LA CO .... ERCIA LISA TlON DES PROOUTS AGRICOlES ET
D·ELEVAGE. Klgah. Rwanda (lIBYA)
SOCIETE TOGOLAISE ARABE lIBYENNE DE
PECHE. Lome. Togo (lIBYA)
SOCOMET. SPA (a Ila SOC lETA COM ... ERCIA
MINERALI E METALLI. SRL). Milan. Italy [CUBA)
SOt<TAR (. Ila JARACO SA. Ill. TRADACO
SA.). ~5 Route de Frontenax. CH-1207 Geneva.
SwtlZ&t1and [IRAQ)
SOll ... A (a Il. SOCIETE ARASE L1BYENNE MAL1ENNE POUR L'AGRICUL TURE ET l'ELEVAGE). BamakO. Millo [LIBYA)
SOLNECHNIK (UOJE) F.h ~04DWT Iraqi nag
(Iraqi State F.nenH Company) (veasel) [IRAQ]
SOMSOR PRO ... ET -AGROSAVEZ, Sombor. Vo/Vodlna (SerbIa) [FRY S& ... ]
SOPHIE HOPE (f k.a RADNIK) (3ELKJ) Bulk Carner 17.882GT ltbena (Panama) Flag (pocatelo
ShIPPIng Ltd ) «(OceanIc Bulk ShlPPtng S A» (ve5HI) (FRY 54M]
SOR ... AN FODDER PLANT. Llby. [lIBYA)
SOUK EL KHAMIS CEMENT CO. Libya (lIBYA)
SOUK EL KHAMIS GENERAL CEMENT AND
BUILDING ... ATERIALS CORP. Tarlluna. Shana
Bou H.nd•. POBox 108-4. Tnpob. Lollya [lIBYA]
SOUK EL KHA ... IS LI ... E FACTORY. Libya [lIBYA)
SOUSA SHIPPING AND STEVEDORING EST.
POBox 2973. BenghazI. Lollya (lIBYA)
SOUTH ADRIATIC BULK SHIPPING LTD. Vallelia. Waita. cJo Jugoalavenal<a Oceanalal
PkJvldba BB. N'eQoaevl. POBox 18. 85330 Ko!of. Montenegro [FRY 54M)
SOUTH CROSS SHIPPING LTD (T Ita MONTENEGRO OCEAN SHIPPING) VaNetta. Malta. c/o
Mllena Shop ".nagemenl Co Ltd . MalOn. BUIldIng. 86 The Strand. S~emll ... alta [FRY S4M)
SOUTH ISLANDS (Soutn I&lanoa Co . Ltd . Cyprus)
( - I ) [CUBA)
SOUTH ISLANDS CO . LTD. LomallOl. Cyprus
[CUBA)
SOUZA. Franasco AntonIO. Praca PIO X. ~-100 Ancar. CEP ~1. RIO De J.neoro. BrazIl londMdual)[IRAQ)
SOIINA (yTCS) TUO 1I19OT Yuoo-tav. (Lulal BarPre<luz_) tv....,) (FRY 54"')
SP ONJEPRO-KARIC (. II. SP ONYEPROKARIC) ul N.barazn.y. LenIN! 33. kom 3'3.
Oroye~1t 320081 UkraIne (FRY 54M)
SP ONJEPRO .. ETALIN (II .... SP ONYEPRO·
"ETALlN) ul A"elyoneya 10. Oroyepropetrovalt
320081 Ukral". (FRY 5& ... )
SP ONYEPRO-KARIC I' k. SP ONJEPROKARIC). ul N.barezn.y. LenIN! 33. kom 313.
OroYeQ<'Opetroy&k. 320081 UkraIne l'ORY 5& ... )
SP ONYEPROMETAlIN I ' . ' SP ONJEPRO"ETALIN). ul A"elyoneya 10. Oroyepropetrovak.
320081 Ukral'" (FRY 5&")
SP .. ASSIV KARIC (....... ASSIV K .• k.' MASSIV~RITSCH. a .... KARle "'ASSIV. a k..
"ASSIV~RICHI) 827720 RSFSR. Tyumenen....ya 0bInt. Sovyeatrayon YaQOI'ka ul MIra .
~3 R _ [FRY 5&W)
SP WKT ~RIC. ul Tra~ya Com 10. Odlncove .... O&OOW 143000. R _ [FRY S&W)
SPASIC. Andraa GeMral s.c..tBry of SRBH. Boanoe-Herzegovona (ondMdual) [SRBH)
SPECK .. AN Jeanl". England "ndIVtduel) (IRAQ)
SPLITSKA BANKA DO SPLIT (Knln) Knon. Croat..
[FRY S&"]
SRBIJA - KRAGUJEVAC. KraguJeYac, SerbIa [FRY
S&M)
SRBIJATURIST. Ni•. Serb,. [FRY 5& .. )
SRBOCOOP. Belgrecle, Serbia [FRY 5& .. )
SRDIC, $rdo; Deputy In SR8H AlMmbly; Pn,iedor.
Boan,.-Herzegovlna (indIVidual) (SRBH)
SREMO. Vlado; "1IIOl General and Chief 01 Staff.
EaG Harzegovlna Corpa, SRBH Forcas; OOB
1935; POB "oatllr. Boanll-Herzegovina; Boan,.Herzegovln. (indlVidu.1) (SRBH)
SRPSKA FABRIKA STAKLA, Param. Serbia [FRY
S&M)
STANDV'f£AR (Standwear ShIPPing Co., Ltd., Cypru.) tveuel) [CUBA)
STANOv.£AR SHIPPING CO., LTD .. Um.aoI, Cyprue [CUBA)
STAR 1 (can.pel. SA, Panama) ( _ I ) [CUBA]
STAVROU, Stllvroe. Cypru. (individual) (lIBYA)
STELJIC ....rko; 008 10 Oct 35; BuleYar Ma",,'a
Tila 11. 11000 Beograd, Serbia (tndividual) [FRY
5& .. )
STERN. Alfred K.ufman, Prague, CzecflO&lovekl.
(ondMdu.') [CUBA)
SUAN~GYPSUM PLANT, Libya (lIBYA)
SUKO. Plrol Settlia [FRY S&M)
SULAIMANIYAH (YIAG) 5eMce DWT NIA IlIIqi flag
(State Org of Iraqi Ports) ( _ I ) [IRAQ)
SU"'ADIJA (9HUI3) Bulle carner 17,939OT ...Ita
Flag (Sou1ll Adnate Bulk Shipping Ltd) ( _ I )
[FRY S&M)
SUNBOW MARITIME SA. P.nama City. Pan.ma.
clo Beogradaka PIOVIdba, LenJlnov BuleYar 165.6..
11070 Novl Beograd. Serbl. [FRY 5&M)
SUPLIDORA LATINO AMERICANA, SA (a.lla
SUPLILAT. S.A.). P.nama City, P.n.m. [CUBA)
SUPLILAT, SA. ('.Il •. SUPLIDORA LATINO
A ... ERICANA. SA). P.n.ma City. P.n.m.
[CUBA)
SURVEY LAUNCH No.1 (N/A) R....rch DWT NIA
(State Org of Iraqi Porta) ( _ I ) [IRAQ)
SURVEY LAUNCH No.2 (N/A) R...arch DWT N/A
(State Org. of Iraqi Porta) ( _ I ) (IRAQ)
SURVEY LAUNCH No 3 (N/A) R....rch DWT N/A
(State Org of Iraqi Porta) (veuel) [IRAQ)
SUT JESKA (9HSN3) Bulk carner 38.551GT ...Ita
Flag (Kotor Overseas Shlpptng Ltd.) (v-I)
[FRY S&M)
SVAJCARSKO-JUGOSLOVENSKA BANKA .•1 office. (Bank II he.dquartered In Serblll) [FRY
S&M]
SVETI STEFAN (9HT J3) PaxlROIRO cargo/Ferry
1.637GT Malta Flag (Lovcen Overse •• ShlPPlIIg
lid) (veuel) [FRY 54M)
SWAN LAUNDRY AND DRY CLEANING COMPANY . LTD, 55. Racecourse Street, .. arsa.
"'alta (lIBY A)
SYLICO (a k II ARAB LIBYAN SYRIAN INDUSTRIAL & AGRICULTURAL INVESTMENT COMPANY;. Ila. SYRIAN LIBYAN COMPANY -INDUSTRIAL & AGRICULTURAL INVESTMENTS).
9 Mazze. Autoatrade. Damaacu., Syria (lIBYA)
SYRIAN LIBYAN COMPANY - INDUSTRIAL & AGRICULTURAllNVESTMENTS (a.k.a. ARAB LIBYAN SYRIAN INDUSTRIAL & AGRICULTURAL
INVESTMENT COMPANY; • k a SYLICO). 9
Mazze. Autostrade. Damascu •. Syria (lIBYA)
TN K FABRICS LIMITED. England {IRAQ!
T.D.G (aka TECHNOLOGY AND DEVElOP... ENT GROUP lTD ). Cenlnc House 3901391.
Strand. london. England [IRAQ]
T.E G LIMITED. 3 MandfMiIe Place. London. England (IRAQ)
T MG ENGINEERING LIMITED. ca.tIe Row, Horticultural Place. ChiawlCk. London. England [IRAQ)
T.S 101. LTD .. China HK City Tower II 1109.33 canton Road, T.S T. (Tun She Taui). Kowloon. Hong
Kong [FRY 5&101)
TACON GROUP. Serbia [FRY 5&101)
TADMUR (HNTD) Tanker 3.627DWT lraqilleg
(1lIIqi OIl Tankera Company) (v....1) [IRAQ)
TAHARAR FOOTWEAR PLANT. Tripoli. libya
(lIBYA)
TAHREER (YITR) SerVIce ~.849OWT lraqilleg
(State Org of IraqI Po".) (veuel) [IRAQ)
TAJOURA MODERN TANNERY. lolly. (lIBYA)
TAKOVO. Belgrade. SerbIa [FRY 5&101)
- 71-
OFFICE OF FOREIGN ASSETS CONmOl
TAlAA'Al AL-FATEH (a ILa. JIHAD GROUP; a.ILa
Al.JIHAD; a.ILa. VANGUARDS OF CONQUEST), Egypt (SOn
TAllC, Momir; Ll Colonel Genlraland Comminder, Fir'll Kra/1111 Co~, SRBH Forces, baaed
IIBlnil Luka; DOe 15 Jul"2; POB Vll)eYo, Serbia; Boenia-HerzlgOYINI (individual) (SRBH)
TALL, Aldtlam, P.O. Box 1318, Ammln, Jordln (indMdual) (IRAQ)
TALLER DE REPARACIONES NAVALES, S.A
(I. Ill. TARENA), Plnlml City, Plnaml [CUBA]
TAMOIL HUNGARIA, Hungary [LIBYA]
TAMOIL ITALIA SP.A., Cremona Refinery, Italy
[LIBYA)
TAM OIL ITALIA S.P,A, Piazzetta 90Mi 3, 1-20121
Milln, Italy [LIBYA]
TAM OIL PETROLIITALIANA S PA , (1,977 glaoline r"'~ 0IIIIeU In Italy) [LIBY A]
TAMOIL PETROLIITALIANA SP A , M~an, Italy
[LIBYA]
TAM OIL SUISSE S.A (a ILl TAMOll SWITZERLAND; fltl. GATOIL SUISSE S A), Geneva,
SwlZer1and [LIBYA]
TAMOIL SUISSE S.A (I Itl TAMOIL SWITZERLAND; fill, GATOll SUISse SA,), (330 ga.oline reta~ 0IIIIeU In Swltzenand) [LIBYA]
TAMOIL SUISSE S A. (I ILa TAMOIL SWITZERLAND; f,k.I. GATOll SUISSE SA), (RSO refinery In CoHombey) [LIBYA]
TAMOIL SUISSE S.A (I Ita TAMOll SWITZERLAND; f.lta. GATOIL SUISse SA), Zug, SwllZerlind [LIBYA]
TAM Oil SWITZERLAND (a Itl TAMOll SUISSE
S.A" fk,l GA TOIL SUISSE SA), (330 gasoline
r1III~ outlets In Switzerland) [LIBYA]
TAMOll SWITZERLAND (a It,a TAMOll SUISSE
SA, flt.l. GA TOIL SUISSE SA), Zug, SWItZer,
land [LIBY A]
TAMOll SWITZERLAND (a It I TAMOIL SUISSE
SA, f It. a GA TOIL SUISSE SA), (RSO refinery
In CoIombey) [LIBY AJ
TAM Oil SWITZERLAND (I It a TAMOIL SUISSE
S.A ; flt.1 GA TOil SUISSE SA), Geneva, Sw.,
ze~and [LIBY AJ
TAM Oil TRADING lTD (f Itl T AMOIL [UK]l TO),
25 Sc:nutzenglae CH 8001, Zunch, SWltZenand
(lIBYAJ
TAMOll TRADING lTD (f Itl TAM OIL [UK] LTD)
1 Sl PIUI'I Churt:hyard, London Ec.cM 8SH, England (lIBY AJ
TAMOIL TRADING LTD (f Itl TAMOIL [UKJ LTD)
24 Boulevard Pnnoeu ChII r10tte , Monte Car1o,
Monaco (lIBY AJ
TAM OIL [UKJ LTD (n It a TAMOIL TRADING
LTO ) ....a:bngl (LIB YA J
TANJUG (I k I NOVINSKA AGENCIJA T ANJUG)
Belgrade Serboa [F R Y S& M J
TARA (CETINJA) CeM,., Montenegro [FRY S&MJ
TARA (n It I RIO G) (9HTK3) General Dry Cargo
9,201GT lolita Flag calr Overwl. Shlppong Ltd )
( _ I ) [FRY 5""'1
TARA (PLJEVLJA) PI.-v_1 Montenegro (FRY 84MJ
TARENA. S A (I It I TAUER DE REPARACIONES NAVALES SA) Plnaml (CUBAJ
TARIK IBN ZIYAD (HNTZ) Tanker 118 1390WT
IraQl"-g (IraQI O. Tin.,. Company) ( _ ' )
(IRAQJ
TARIQ ABU SHANAB EST FOR TRADE & COMMERCE (Iltl TARIQ ABU SHANAB EST
I It I TARIQ ABU SHANAB METALS EST ASLlSHMENT) M.,.,.."et\ " 0 Sox 78e, ZIn.a
Jorden (IRAQ)
TARIQ ABU SHANAS EST TARIQ ABU SHANAS
METAlS ESTABlISHMENT (Iltl TARIQ ABU
SHANAB EST FOR TRADE' CO" MERCE
Ikl TARIQ ABU SHANAB .. ETALS ESTABLISHMENT) ..........h POBox 78e, z.,q,
Jorden (lRAQJ
TARIQ ABU SHANAB .. ETALS ESTABlISH .. ENT
(Ikl TARIQ ABU SHAHAB EST, I l t l TARIQ
ABU SHANAB EST FOR TRADE' CO"MERCE) M~ POBox 78e Zinea JOf'
din (IRAQJ
TASLAW NO"'NEES LTD 2 Sdouln StrNt
C"-n1ecIe" BIOg 2nd FIOOf No 205 NC()aj1 Cy,
Prua [FRY S'MJ
~l Ie 111l!>
SPEOAUY DESIGNATED NATIONAlS & BlOQ(EI) PERSONS
TASLAW SECRETARIAL LTD, 2 Sotouln Street.
Chantecleor Bldg, 2nd Floor No 205, NICQIII, Cyprue (FRY S&MJ
TASLAW SERVICES LTD, 2 Sofoules Street.
Chanleclaor Bldg, 2nd Floor No. 205. NICOSIa, Cy_
prus [FRY SIMI
TAT TRADING lTD, Lmauol, Cypnua (FRY 5&M]
TAVEIRA, A Amaldo G , Praca PIO X, 54-100 Andar, CEP 20091, RIO be JaneIrO, Brazil (indIVidual) [IRAQ]
TECHNIC DIGEMEX CORP, calle J.4 No 4-50, Offioe 301, Plnama City, Panama [CUBA]
TECHNIC HOLDING INC, caUe J.4 No 4-50, Offioe
301, Plnama City, Panama (CUBA)
TECHNICAL CO FOR AGRICUL TURAL PEST
CONTROL, N_ Gourgy Road, POBox fl.4.45,
Tnpo~, Libya; (branch) Nloer Street Benghazi,
libya [LIBYA)
TECHNOLOGY AND DEVELOPMENT GROUP
L TO (a It a TOG), Canlnc Houae 3901391,
Strand, London, England {IRAQJ
TECNOPROM (CYPRUS) LTD, 57 Ledra Street,
No 7, Noe::osoa, Cypru. (FRY 5&MJ
TEHNOGAS, :(ra~evo, SerbIa [FRY S&MJ
TEHNOHEMIJA, Belgrade, SerbIa [FRY S&M]
TEHNOPROMET, Belgrade, Serbll [FRY S&M]
TEHNOSERVIS, Belgrade, Serboa [FRY S&MJ
TEKING-INVEST, Belgrade, Serboa [FRY 5&M]
TEKNICA Oil SERVICES (OVERSEAS) LIMITED,
Cypru. [LIBY AJ
TEKNICA PETROLEUM SERVICES LIMITED,
Suite 1100, 736 SIXth Avenue S W , CIlgary, Alberta T2P 3T7, Canada [LIBYAJ
TEKNICA (UK) LIMITED (f ka FC9063 LIMITED),
15117 Lodge Road, St Johnl Wood. London NW8
7JA, England, Avon Houae, 360-366 Oxford
Street London WIN 9HA, England, Tnpo~, Libya
(lIBYAJ
TEKNOX, Belgrade Serboa [FRY S&MJ
TEKSTILNI KOMBINA T RASKA, Novl Pazar, SerbIa [FRY 5&MJ
TEKXEL LIMITED (a ka JAWABY TECHNiCAl
SERVICES LIMITED>. London, England [LIBYA]
TELEOPTlK, Belgrade, Serboa [FRY S&MJ
TEMIS SHIPPING CO, Panama (CUBA]
TEX TILE INDUSTRY OF GRDELICA (a It •. TIG TEKSTILNA INDUSTRIJA GRDELlCA), Grdeloca,
Sertloa [FRY 5&M)
THE ISLAMIC GROUP (a It a ISLAMIC GAMA'AT,
.ka GAMA'AT.alt. GAMA'ATAL-ISLAMIYYA,. Itl AL-GAMA'A AL-ISLAMIYYA), Egypt
(SDTJ
THE MODERN FASHION CO FOR TRADING
AND MANUFACTURING OF CLOTHING, Libya
[LIBYAJ
THE NA T IONAL LINE OF LlBY A (. ka GENERAL
NA TIONAL MARITIME TRANSPORT CO ), P 0
Box 80173 2 Ahmed Shlnt Street Tnpolo, libya
(lind .t •• Llbyln porta), (branch) POBox 2450.
BenghazI Libya (lIBYAJ
THEEQAR (YIAC) Tug 2200WT Iraql"-g (State
Org of IraqI POtII) (_eel) (IRAQJ
THRIFTFINE LTD 47 Grell .... rlbOfOUgh Street.
LondOn WIV 2AS England [FRY S&MJ
TIBESTI AUTOMOBILE GENERAL CO . POBox
8-456, Tnpoll, libya (brancn) POBox 5397,
BenghazI, Llby. (br.nch) o.trn., Libya. (branch)
M_rata, Llbyl (br.nctl) Khum. libya. (branch)
Sebhll Llby. (brancn) Ghllr.n. libya. (branch)
z.w., libya, (branch) TrIPOlI libya (lIBYAJ
TIFON (Senanque Shoppong Co. Ltd Cypnua) ( v aeI) (CUBAJ
TIG - TEKSTILNA INDUSTRIJA GRDELICA (. k.
TEXTILE INDUSTRY OF GRDELICA), Grde~,
S~[FRY 5&MJ
TIGAR AMERICA, JKIcaOrMIe, Flonda. USA
[FRY 5&MJ
TIGAR. Prot. 5ertMa [FRY 5& .. )
TIGRIS TRACING INC, 2 StratfOfd PIaca, London
W1N QAE England (lRAQJ
TIGRIS TRADlNG."C ~3 Hlrper Road, Soon,
OH «1:W USA (IRAQJ
TIGRIS TRACING "C &00 Grant SI1Wet 42nd
FlOor Plttabufgh PA 152'~ USA (lRAQJ
TtVA T (9HUM3) G.-ral D<y Cargo 9 e98G T "'1I1Ia
Flag (zeu Oceen Shlppong Ltd) ( v - I ) [FRY
saMJ
TOHOLJ, Mi~; Minister of Infonmabon at
SRBH, DOB 11 Apr 57, POB L/ubin/l,
HerzegOVina; Boanla-Herzegovtna (lndMdual)
{SRBH]
TOLEDO, RF., Mlnaglng Dtnector, Havana Intemabona I Bank, 20 Ironmonger Lane, London EC2V
8EF, Englllnd (individual) (CUBA]
TOLMETHA SHIPPING ESTABLISHMENT, P,O.
Box 208, Cerna, Libya [LIBYA]
TOPIC, Vlado; Ll CoIonellnd Commander, Sixteenth ArbNery Brigade, Fir'll Krajlnl ~.
SRBH Fon:n; DOB 1a55; POB Prijedor, BoenillHerzegovltll; Boania-Herzegovina (indIVidual)
(SRBH)
TOPOLICA (Unknown) Tug 169GT YugoeIavi8
(Luka Bar-PrlduzlCl) ( _ I ) (FRY S&M)
TORRES, Manuel, ReprnentalMt, Blnco Nacional
de Cuba, Fedenco Boyd Ave & 51 Street. Panama City, Plnaml (indMdual) (CUBA]
TOSCO. Amaldo (GARCIA), Panama (individual)
(CUBAJ
TOURIST ASSOCIATION OF YUGOSLAVIA (1,k.I.
TURISTICKI SAVEZ JUGOSLAVIJE), B~rade,
SerbIa [FRY 5&M]
TOURIST ENTERPRISE MONTENEGROEXPRfS
(e ka MONTENEGROEXPRES - BUDVA),
Budvll, ,",ontenegro (FRY S&M]
TRADACO S.A. (nk,a, JARACO S.A,; n,lta, SOKTAR), 45 Rou1e da Frontenlx, CH-1207 GanlYll,
Swotze~and [IRAQ]
TRADING & MARITIME INVESTMENTS, San
Lorenzo. Honduras [IRAQ]
TRAFI HOLDINGS LTD" 18 AylOl DometiOi Street.
NIC05oa. Cypru. [FRY 5&M]
TRAMP PIONEER SHIPPING CO, Plnaml (c/o
Anglo Canbbean ShIPPIng Co., Ltd., 4th Floor,
South Phale 2, South Quay Plaza, 183 Ma"'"
Wall. London E14 ~SH, England (CUBA]
TRANSIT, SA, Panama [CUBA]
TRANSOVER, SA (a It.a HAVINPEX, S.A.), Panama City, Panama {CUBA]
TRANSPORT, Kalaaln, Montenegro (FRY 5&M]
TRANSSERVIS, BI,.,lo POlje, Montenegno [FRY
5&"'J
TRAVEL SERVICES, INC, Hialeah, Florida, U.S.A
{CUBAJ
TRBOJEVIC, M~an, Couneelor to Premier of SRBH,
BosnIa-Herzegovina (lndlvidull) {SRBH]
TREBJESA, NikOlIC, Montenegno [FRY S&M]
TREPCA-KOSOVSKA MITROVICA (a.lta MINING
MET ALLURGY-CHEMICAl COMBINATION OF
LEAD AND ZINC), Kosovska MltrOVIca, KOIOYo
(Sertloa) [FRY 5&M]
TREVISO TRADING CORPORATION, Edlfiao
Banco de Boston, Panama City, Panama [CUBA]
TRGOPRODUKT, Pancevo, VOl"od,"a (Sertlla)
[FRY S&M]
TRGOPROMET, Cetinje, Montenegro [FRY S&M]
TRGOVACKA BANKA d d, Belgrade, Sertloa [FRY
5&101]
TRGOVINA KOSOVO, Pnzren, Koaovo (Serbta)
[FRY S&M]
TRINAESTI JULI (a k a 13th JULY) (OHTQ3) Built
Carner 17,233GT Malta Flag (Zeta Ocaan ShippIng LId ) (veuel) [FRY S&M]
TRIPOLI CEMENT SILOS, libya [LIBYA]
TRIPOLI GRAIN MilL, Libya [LIBYA)
TROBER. S A (a It.a TROVER, SA), Edificlo
SaldlVlr, Panama City, Panama [CUBA)
TROPIC TOURS GMBH (a k,a TROPICANA
TOURS GMBH), Lletzenburger Shill 51, Berlon,
G.mnany (CUBA]
TROPICAL AFRICAN BANK LIMITED (f.k.1 LIBYAN ARAB UGANDA BANK FOR FOREIGN
TRADE AND DEVELOPMENT), PO Box ~,
Kampala, Uganda [LIBYA]
TROPICANA TOURS GMBH (a k.a. TROPIC
TOURS GMBH), Uetzenburger SInIIII 51, Benin,
Genmany (CUBA]
TROVER. SA. (alta TROBER, S.A), Edificoo
SaldlVlr, Panaml City, P.nama [CUBA]
TRUST IMPORT-EXPORT, SA, Panaml (CUBA]
TUBIN, DUlin, Ll Colonel and Commander, Fifth
Kozaraka Bngade, Fnt Kral,"a Co~, SRBH
Fort:ea, BOUlla-Herzegovona (ondMdual) [SRBH]
TUFAYLI, Subhl; Former Secretary General and
Current SenIOr FIgura 01 HIZBALLAH; DOB 1947,
POB BIQa Valley, Lebanon (Indl\lldual) [SDTI
ao.n.-
- 28-
OFAU: Of" FOReoN ASSETS CONTROL
TULIP ISLANDS (pocho Navigation Co., ~s)
(--')[CUBA)
TURISTICKI SAVEZ JUGOSLAVIJE ,aka TOURIST ASSOCIATION OF YUGOSLAVIA), Belg~, Serbill £FRY 5&M)
TURKISH-tIBYAN JOINT MARITIME TRANSPORT STOCK COMPANY ,aka. TURLlB), Kem. .iii C.ckIe8l99, 80020 ~"'lcOy, Istanbul, Turkey [lIBYA)
TURLIB (a.ka. TURKISH-LIBYAN JOINT MARITIME TRANSPORT STOCK CO"'PANY), Kemeralii C.ddHllXI, 80020 Ka ... koy, Istanbul, Tur1<ey
[lIBYA)
T'V\EPICO LTD., 208 ArctIbIWIop "'alalno. III Avenue, Fytides Bldg., Apt 102, Limauol, Cyprus
[FRY S&M)
TYRE PLANT, Libya [lIBYA)
TYRES RETREADING CENTRES. Libya (lIBYA)
U.I. INTERNATIONAL, England [IRAQ)
UBB INVEST"'ENTS & FINANCE 'lIkll PCL PELCA'" TRADE LTD ), 2 Sotoules Street. Chanleclair Bldg., 2nd Floor, No. 205, NlCosill, Cyprus
[FRY S&"')
UDRUZENA BEOGRADSKA BANKA (alla. ASSOCIATED BELGRADE BANK; •. ka BEOBANKA
d.d.; 1I.1l1l. BEOGRAOSKA BANKA dd.), IIA offices wOl1dwde [FRY S&"') including, but not km;ted 10'
• UDRUZENA BEOGRADSKA BANKA '1I1lII ASSOCIATED BELGRADE BANK; lI.k.a. BEDBANKA d.d ; II k.1I. BEOGRADSKA BANKA d d )
PO BOl( 3502, HllrT1Ire, Zimbabwe [FRY S&"')
• UDRUZENA BEOGRADSKA BANKA (1IIlil ASSOCIATED BELGRADE BANK, II Ilil. BEDBANKA d d . 1I.k.II. BEOGRADSKA BANKA d d )
Kungagaten 32M. PO Bol( 7592, 103113 StocktI<m\, SWeden [FRY 5&"')
• UDRUZENA BEOGRADSKA BANKA (a k.1I ASSOCIATED BELGRADE BANK II k.1I BEDBANKA d d , • IlI1 BEOGRADSKA BANKA d d )
Paaul Velll..ca 5, M,lIIn. Italy [FRY S&"']
• UDRUZENA BEOGRADSKA BANKA (II k.. ASSOCIATED BELGRADE BANK. II k .• BEDBANKA d d .• k.. BEOGRADSKA BANKA d d )
DroQtre Str 14-115.3000 Hannover " Germlny
[FRY S&Io.]
• UDRUZENA BEOGRADSKA BANKA (II k.1 ASSOCIA TED BELGRADE BANK .• Ila BEDBANKA d d .• k.. BEOGRADSKA BANKA d d )
SokOiovUa 9312p P~ue 84<.rlIn, Czech Rapubkc [FRY 5& ... ]
• UDRUZENA BEOGRADSKA BANKA (I k.. ASSOCIA TED BELGRADE BANK .• k. BEDBANKA d d • k.. BEOGRADSKA BANKA d d )
Kleone Buderg.ue 13, 5000 KOin 1, Germ.ny
[FRY sa ... )
• UDRUZENA BEOGRAOSKA BANKA (. It. ASSOCIATED BELGR:ADE BANK. I k. BEDBANKA d d i l l . BEOGRADSKA BANKA d d )
loe Fanc:nurdl Street London LEC 3 ... 5 JJ. Eng·
land [FRY 5&"'1
• UDRUZENA BEOGRADSKA BANKA (. k.. ASSOCIA TED BELGRADE BANK. k. BEDBANKA d d I k.. BEOGRADSKA BANKA d d )
L . - . . . . ..... uptatBaee 11111 1030 Voenna
Austna [FRY S&"')
• UORUZENA BEOGRAOSKA BANKA (. k. ASSOCIA TED BELGRADE BANK .• k I BEDBANKA d d ..... BEOGRAOSKA BANAA d d )
P~coeWwo Aleje Roz 5 ........... POland
[FRY 5&"')
• UORUZENA BEOGRADSKA SANKA (..... ASSOCIA TED BELGRADE BANK, • k. BEDBANKA d d • It. BEOGRAOSAA BANAA d d )
KilrIalrMIIe 31 4000 ()uueIdorl 1 c;.rmeny
[FRY S&"']
• UORUZENA BEOGRAOSKA BANKA ,. k. ASSOCIA TED BELGRADE BANK • k. BEDBANKA d d • k. BEOGRAOSKA BANAA d d)
o.m,.. 2~lOiIV Am-..oem N~nda [FRY
5&"')
• UORUZENA BEOGRADSKA BANKA (. 11.. ASSOCIA TED BELGRADE BANK • k. BEDBANKA d d • k. BEOGRADSKA BANAA d d )
~ 12"11
Munch 2 Gemlan,
[FRY 5&"',
• UORUZENA BEOGRADSKA SANKA ( ..... ASSOCIA TED BE LGRADE BANK • It. BED-
eooo
"""'L ,. ' "
SPEC1AU.Y DESIGNATED NAnONAlS & 8l.00<ED PeRSONS
BANKA d d . a k.1I. BEOGRADSKA BANKA d.d)
38 Rue All AzII, AlgIe", Aigenll [FRY S&"')
• UDRUZENA BEOGRADSKA BANKA ,.Il. ASSOCIATED BELGRADE BANK .• Il •. BEDBANKA d d , a Il. BEOGRADSKA BANKA d.d)
Lange Rethe 66, 2000 Hamburg 1, Germany
[FRY S&"']
• UDRUZENA BEOGRADSKA BANKA ,a.ll. ASSOCIA TEO BELGRADE BANK; alla BEDBANKA d d ,/I Ila BEOGRADSKA BANKA d.d)
Alt "'oaM 74.1000 Berlin 21, Germ.ny [FRY
5&"')
• UDRUZENA BEOGRADSKA BANKA (all. ASSOCIA TED BELGRADE BANK; a.k. •. BEDBANKA d.d ; a Il. BEOGRADSKA BANKA dd)
85-93JTV Zed, 6000 Franldurt .m "'ain, Germ.ny
[FRY SaM]
• UDRUZENA BEOGRADSKA BANKA (a.1l1l ASSOCIA TED BELGRADE BANK: • k.•. BEDBANKA d.d ; II k.a BEOGRADSKA BANKA d.d )
Uranls Straue 14/111, 6001 Zunch, SWrtzerland
[FRY SIMI
• UDRUZENA BEOGRADSKA BANKA (a.k.a ASSOCIA TED BELGRADE BANK, II k.a. BEDBANKA d d , • IlI1 BEOGRADSKA BANKA dd)
40 Rue de l'Ecuyer, BTE B. 1000 Bruuell. BelgIUm [FRY S&M)
• UDRUZENA BEOGRADSKA BANKA (II 1<.11. ASSOCIA TED BELGRADE BANK; II k.lI. BEDBANKA d d , II 1<.11 BEOGRADSKA BANKA d d )
T uClngel"ltTaue 72, 7000 StutlQart 1, Germany
[FRY SaM)
• UDRUZENA BEOGRADSKA BANKA (a k.1I. ASSOCIA TED BELGRADE BANK, II k.lI. BEOBANKA d d . a 1<.11 BEOGRADSKA BANKA d.d )
PO BOl( 2869, Tnpo~, LtDya [FRY SIMI
• UDRUZENA BEOGRADSKA BANKA (II k.1I. ASSOCIA TED BELGRADE BANK. a k II. BEDBANKA d d .1<.11 BEOGRADSKA BANKA d d)
71 Avenue des Chllmps-Elysees. 75008 Pllns,
France [FRY S&M,
UDRUZENA KOSOVSKA BANKA (II k. •. ASSOCIA TED BANK OF KOSOVO) .11 offices worldwide
[FRY SaM ,. includIng CU1 not kmtted to
• UDRUZENA KOSOVSKA BANKA. Roumar1ct
'4" ", 6000 Franklurt 11m MIlIn 1, Germllny
[FRY sa ... ]
• UDRUZENA KOSOVSKA BANKA, Scnlluenberglltnlue B. eo.ce Zuncn. SwItZerland [FRY S&M)
UORUZENJE YU VISA. Belgrade. Serb. [FRY
salol,
UGANDA LIBYAN HOLDING CO LTD (a 1<.11. LIBY AN ARAB UGANDA HOLDING CO LTD ), Kampalll Ugllnda [LIBYA]
UGUETO. Lu. DIIVld (MOROS), Cyprus (IndlllldulIl)
(lIBYA'
ULCINJ (n k. NIPE) (9HTL3) Bulk Carner
1I.026GT .... ta FI.g (Laveen "-fUllS ShIppIng
Ltd) ( v - I ) [FRY 5&""
UMM AL..JAWABY OIL SERVICE COMPANY,
LTD. 33 C""""'lsh SQuare London ..... ,M 9HF.
England (lIBYA)
UMM Al-JAWABY PETROLEUM CO SAL, Niltoora F1II1d. lIC.,- (lIB YA,
U ..... Al-JAWABY PETROLEU'" CO SAL, PO
Box e93. Tnpolt. Libya (lIBYA)
UMMA BANK SAL, (31 tlranc:hft tnroughout
Lttl.,-) (lIBYA)
UM ... A BANK SAL, 1 G..cIde1 Om.r MOIChmr,
PO BOl( 685. T~I, Ltb.,- (lIBYA)
UNIFARIoI Po<Igonca "'ontenegro [FRY 5&M)
UNION BANAA d d . 8eIO"'" Serbl. [FRY sa ... )
UNIONPROWET. NOV! S.d VOf"OOIM (S.rbIII)
[FRY 5&"')
UNITED CONSUL TlNG CO LTD CeIIIer Ho. Third
Fl. Luu.. Zamboll [FRY S&"'I
UNITEO FAIR AGENCIES 1202 Climen Center.
151 G~ Road Wanchal. Hong Kong
(CUBA)
UNIVERSAL SHIPPING AGENCY. BenghaZI, libya
(lIBYAI
UNIVERSAL SHIPPING AGENCY, Me,.. EI Bregll.
LtCIyII (l IS YA 1
UNIVERSAl SHIPPING AGENCY. M.urata. Libya
(lISYA,
UNIVERSAl SHIPPING AGENCY. Tnpolt. lib.,(lISYA)
UNIVERSAL SHIPPING AGENCY. Zuebna, Libya
(lIBYA)
UNIVERZAL. Belgrede. Serbia [FRY 5&t.t)
UNIVERZAL, "'JllVroame 51, 11000 Belgrade. SerbIll [FRY S&"')
UR (YIUR) Tug 3680WT lreqlllllg (State Org. C1I
lreqi Ports) ( _ I ) [IRAQI
UTVA. Pllncevo. VOjVoclina (Serbia) [FRY S&"'I
VALJAONICA ALUMINIJUMA. SlIVOjno UZica. Sarbill [FRY S&"')
VALLE ITA SHIPPING CORP. Panama [CUBA)
VANGUARDS OF CONQUEST (a.k.•. JIHAD
GROUP; 11.1<.11. AL-JIHAD; a.l<.lI. TALAA'Al ALFATEH). Egypt [SOn
VASIC, ZorIIn, Palm ire T~tija 3, 11070 NeM
Beograd, Serblll (IndIVidual) [FRY S&M)
VASQUES (or VAZQUEZ), OIIatr D., Panama (lnd~
vldulIl) [CUBA]
VAl, Jose, Mllnagong D.-ector. HllVllna Intamational
Blink, 20 Ironmonger Lllne, London EC2V 8EY.
England (lndividulIl) [CUBA)
VEBA OIL LIBYA GMBH (II I<. a VEBA OIL LIBYAN
BRANCH; 1I.k. •. VEBA OIL OPERA TIONS B.V.;
, k II. MOBIL OIL LIBYA, LTD.), PO. Box 2357.
Tnpoll, Libya [lIBYA)
VEBA OIL LIBYA G"'BH (1I.k.a. VEBA OIL LIBYAN
BRANCH; IIka. VEBA OIL OPERATIONS BV.;
, k.1I MOBIL OIL LIBYA, LTD.), AI Maghartlll
Street, PO BOl( 690. Tripoli, Llb.,- [lIBYA)
VEBA OIL LIBYA GMBH (II.Ka VEBA OIL LIBYAN
BRANCH; II k.a. VEBA OIL OPERATIONS BY;
, k II MOBIL OIL LIBYA. LTD.), The Hllgue. NettIenands (DeslOnllbon applies only 10 joint venture
located In LibYIl and offICe located in the Netherlands) (lIBYA)
VEBA OIL LIBYAN BRANCH (lIk.a. VEBA OIL
LIBYA GMBH; lI.k.a VEBA Oil OPERATIONS
B V , I.Ka. MOBIL OIL LIBYA, LTD.). AI
Maghllrbll Street. P.O. BOl( 690, TnpoU, Libya
(Deslgnlltlon IIppl_ only 10 joint venture located
'n LtDYIl lind offICe located 10 the Netherlands)
{lIBYA)
VEBA OIL LIBYAN BRANCH (1I,k.II. VEBA OIL
LIBYA GMBH; lI.k.a. VEBA OIL OPERATIONS
B.V , l.k.lI. MOBIL OIL LIBYA. LTD.). The Hague,
Netherlands (Designlltion IIpphes only 10 joint venture located in Llb.,- .nd office lOcated In the Netherlands) (lIBYA)
VEBA OIL LIBYAN BRANCH (II k. •. VEBA OIL
LIBYA GMBH: II k .•. VEBA OIL OPERATIONS
BY: l.k.1I MOBIL OIL LIBYA, LTD), P.O. Box
2357, Tnpoli. LIbYIl (DealOnllbon IIPP~es only 10
lomt venture located In LIbYIl lind office located In
ttle Netenands) (lIBYA)
VEBA OIL OPERATIONS B V (IlKa VEBA OIL
LIBYAN BRANCH; 1I.k.a VEBA OIL LIBYA
GMBH; 1k.1I MOBIL OIL LIBYA. LTD.), PO Box
2357, Tnpoh, LibYIl (deslOnllbon IIpphn only 10
JOInt venture located In Libya lind offICe located In
ttle Nettler1ands) [LIBYA)
VEBA OIL OPERATIONS B V. (ak.1I VESA OIL
LIBYAN BRANCH; •. 1<.11 VEBA OIL LIBYA
GMBH; 1.k.II. MOBIL OIL LIBYA, LTD). The
Hllgue, Netherlands (DeslOnlltion IIPpkes only 10
lomt venture located in LibYIl lind offICe Iocatedln
the Nettlerlands (lIBYA)
VEBA OIL OPERATIONS B V , •. k. •. VEBA OIL
LIBYAN BRANCH;. k.a. VEBA OIL LIBYA
GMBH: I.k.. MOBIL OIL LIBYA, LTD.), AI
MlIgharba Street PO BOl( 890, Tnpoli, Llby.
(Deslgnlltlon IIppl_ only to JOint vanture located
In LIbYIl and of[ ':8 ~t4'd In the Netherlanda)
(lIBYA]
VEDAOO (1k.1I DANILOVGRAD) (9HSZ3) Ore Clirner 15,396GT Millta Flag (Laveen Overaeaa Sh!ppIng Ltd) ( _ I ) [FRY S&M)
VELETRGOVINA. Kolllllln, Montenegro (FRY S&M)
VEUMIR JAKIC, PI,ev_a, Montenegro [FRY S&M)
VERIMPEX GMBH - IMPORT AND EXPORT. Bohmeratrasae 6, 6000 F,.nkturt 11m Main 1. Germany [FRY SaM]
VETPROM, Belgrade, Serblll [FRY S&M)
VIACON INTERNA TlONAL, INC. Apartment 7B
Torre Mar BUIldIng, Punlll P.itiBIl Area, Panamll
City, Pllnamll (CUBA)
VIACON INTERNATIONAL, INC, Fral1Cle Fteld, CeIon Free Zone, Pllnama [CUBA)
VlAJES GUAMA, SA. Spain (CUBA)
- 28·
SPEOALlY DESlGNATEl NATIONALS a BLOCKED Pl:RSONS
VIAJES GUAMA TOURS (.k •. AGENCIA OEVIAJES GUAMA; •. Il •. GUAMA TOUR; .Il •. GUAMATUR. S.A.). a.1 H.rbour ShopPing Center. VIII
ltal•. P.nama City. P.nam. [CUBA)
VINALES TOURS, Cancun, MexlOO [CUBA)
VINALES TOURS, GuadalaJara, MexlOO [CUBA)
VINALES TOURS, Mexico cay, MexICO [CUBA)
VINALES TOURS, Monterey, Mexico [CUBA)
VINALES TOURS, Roml, Mexico [CUBA)
VIOLET ISLANOS (VlOIat Nevlgllbon Co., Cypru.)
(\/ftMI> [CUBA)
VIOLET NAVIGATION CO., LTD., LimlUOl, Cypru.
[CUBA)
VIRPAZAR (n.k .•. MOA) (llHTM3) General Dry
Cargo 1I,201GT Melta Flag (a.r Overae•• Shipping LIII.) ( _ I ) [FRY SaM)
VISCOSE AND CELLULOSE INDUSTRY OF
LOZNICA (•. Il. VISKOZA - LOZNICA), Loznicll,
Seft)ja [FRY S&M)
VISKOZA - LOZNICA (.k. VISCOSE AND CELLULOSE INDUSTRY OF LOZNICA), LoznlC8, Ser·
bia [FRY S&M)
VOCARCOOP - UNION, Belgrade, Serboa [FRY
SaM)
VOJVODINA· SREMSKA MITROVICA, $remaKe
MitroYica, Vojvodlna (Sert»a) [FRY S&M)
VONODINA TOURS, NeM Sad, Vojvooona (Serbia)
[FRY SaM)
VOJVODINA BANK·ASSOCIATED BANK, NOVI
SAD (nk •. VOJVOOJANSKA BANKA, d d,
n.ka. BANK OF VONODINA), .U OtrlC" world·
wide, including, but not ~mlted to
• VOJVODINA BANK·ASSOCIATED BANK, NOVI
SAD (n.ka VOJVOOJANSKA BANKA, d d,
n.ka BANK OF VONODINA), POBox 391,
BuleYar M.rula Trill 14, 21001 NOV! Sad, '101"00ina, Serbia [FRY SaM)
• VOJVODINA BANK·ASSOCIATED BANK. NOVI
SAD (nk. VOJVOOJANSKA BANKA, d d ,
n.k •. BANK OF VONODINA), Langham HOUle,
308 Regent Street. London, WIR SAL. England
[FRY SUI)
• VONODINA BANK·ASSOCIATED BANK. NOVI
SAD (nk. VOJVODJANSKA BANKA. d d .
nk. BANK OF VONODINA). K._r Straue 3.
l1OOO Frankfurt.m ".on. Germany [FRY sa .. )
VOJVOOJANSKA BANKA. d d (. k. BANK OF
VOJVODINA. f k. VOJVODINA BANK.ASSOCI·
ATED BANK. NOVI SAD) .• 11 offooes wOl1dwde. In·
eluding. but not _mled to
• VONOOJANSKA BANKA. d d (. k a BANK OF
VONODINA. f k. VONODINA BANK .... SSOCI·
ATED BANK. NOVI SAD). PO BOI 391. Bulev.r
"arule Tota u 21001 NOV! Sad. VOl"ooona. S ... ·
boa [FRY S&"')
• VOJVODJANSKA BANKA. d d (a k. BANK OF
VOJVODINA f k. VONODINA BANK .... SSOCI.
ATED BANK. NOVI SAD). L.ngh.m HoOJae. 30e
Regent Street. London. W1R SAL. England [FRY
S&M)
• VOJVODJANSKA BANKA. d d (I k. BANK OF
VONODINA. f k. VONODINA BANK .... SSOCI·
ATED BANK.. NOVI SAD). Kaowr Straae 3. &000
Franldurt.m
Germ.ny [FRY sa .. )
VaLAS. Cado Prnoent of AI.nee of SRBH T~
UnIOn. Boan .. ~ltf7egovna (ondMClu.1) (SRBH)
VRACAR .. 1IeniIO • Govemot of SRBH N.bOneI
B.nk". Boarua~8fHOCl'Y1n8 (ondMClual) (SRBH)
VRSACKA BANKA d d Vrue. Se<boa [FRY sa .. )
'lUCie. 80rtca 2 K nez .. ot\aJlOVa. 1000 Belgl'8Oe
Seltlia (IndNGual) [FRY
VUCUREVIC Bozoaar. ~ on SRBH Auembty
M.yor of T~. ooe 22 Sep 3e POB T~
"eon.
sa .. }
B_~1tf78QO¥""
Trebon,..
ao.n.. ~en.
goyona (onGNOCI"l) (SASH)
VUJ"IOVIC .. 1ICnd OOS 20
57.21 KMIa
Ouranl ~ POBox ).410. L .....aaot. Cy~
(~of .. PEA (OVERSEAS) HOLDING LTD
of LImHaOl) (ondMduel) [FRY
VUKOVARSKA SANKA 00 VuloDvar. CroetJa [FRY
SaM)
VUKOVIC Vilado A~nt .. ,n.... of Def_ of
SRBH POB Oooot Regoon Boen.·HetZegow.e
B_~8(l~ (~ueI) (SRSH)
VULCAN Oil SPA. Den. EnergylERG ~
MrVICe Genoe Italy (LIS YA)
VULCAN OIL 5 P A ... llano 2 c.ntro o....z p.,
Canova. 20080 SeQ""
Italy (LIBYA)
".r
sa .. )
".n.
APRIL ,. , IIIIe
VULCAN OIL SPA., United Kingdom (olYahore)
(LIBYA)
VUNKO, Bljelo POIII!, Montenegro [FRY SaM)
VUP, DanoloYgrad, Montenegro [FRY SaM)
WADENA SHIPPING CORP, "onrovoa,lIbena
(CUBA)
WAHA OIL COMPANY, Inll Bu~dlng, Om.r EI
Moktltar Street. Box 395, TnpO/l, Libya (LIBYA)
WAHA OIL COMPANY, PO Box 1075, Tnpoll,
Libya (LIBYA)
WAHA OIL COMPANY, PO Box 221, Benghazi,
Libya (LIBYA)
WAHA OIL COMPANY, Sidi I... Street. P.O. Box
915, Tnpo~, Libya (LIBYA)
WAHDA BANK.. (37 branch. . throughout Libya)
(LIBYA)
WAHDA BANK.. Jlmel Abdul N. .ler Street. PO
Box 452, Fadlel Abu Omar Square, EI-Berhka,
Benghazi, Libya (lIBY A)
WAHDA BANK, PO Box 1320, Benghazi, Llby.
(LIBYA)
WAHDA BANK, POBox 3427, Tnpoh, Libya
(LIBYA)
WEAVING, DYEING AND FINISHING PLANT,
libya (LIBYA)
WEST ISLANDS (West I.lands Shipping Co., Cy.
pru.) (ve_l) (CUBA)
WEST ISLANDS SHIPPING CO, LmllSOl, Cyprus
(CUBA)
WHALE SHIPPING LTD, clo Government ot Iraq,
State Orglnlzatlon of Ports, "aqal, Ba.rah, Iraq
[IRAQ)
WHITESWAN SHIPPING CO. LTD, lImaaol, Cy.
pru.[CUBA)
WITTGREEN, Canoe (a ka Canoa WlTTGREEN
Antonon; • k.a Canos WITTGREEN A ; a.k •. Car·
los AntonIO WITT GREEN), Panama (mdlVidual)
[CUBA}
WOOL AND TEXTILE INDUSTRY OF LESKOVAC
(a kl LETEKS· LESKOVAC). Leakovac, Serbia
[FRY S&M)
WOOL WASHING AND SPINNING PLANT, Mal),
libya (LIBYA)
WORK BOA T No 6 (NIA) Barge OWl NIA Iraqi flag
(State Org of qQI Porta) (veu.') (IRAQ)
WORKSHIP 3 INIA) ServICe OWl NIA Iraqi flag
(State Org of Iraqi Porta) (veuel) (IRAQ)
YAM, Melvlllubel GaHegos. "enda. "exlco (ondl·
vidual) [CUBA}
YAIoiARU TRADING CO ,LTD, ToKyo, J.pen
(CUBA)
YANBU 31 INIA) ServICe OWl NIA Siudl Arabian
flag (Iraqi State Company for O~ ProjeCtS) (ve ...
ael)(lRAQl
YASIN. Shaykto Ahm.d. Founder .nd Chief Ideologl·
cal Fogure of HAMAS. DOB 1931 (ondlVldual)
(SOT)
YATZO Group Serb.. [FRY S&M)
YES HOLDING INTERNA TlONALL TO, ArctI·
btahoO M.kanoa /II Avenue. XenlOl CommerCial
Center. 5tto Floor. No 501. N I00I.. , Cypru. [FRY
S& .. }
YESIC LTD, 57 L&CIra Street. Nocoaaa. Cyprull (FRY
S&M)
YOUGO .... RAB COMPANY LTD 58-&0 Doghenl.
AkrU. Avenue. Ghln. Building. lrd. 8tI'I .• nd 9th
FIOorI. POBox 2217. NICOSI •. Cyprva [FRY
sa .. )
YOUSEF, .. Ohamed T . Lobya (ondMCluln (LIBYA)
YOUSIFAN (YIYN) Tug 1860Wl Iraqi flag (Stete
Org of
Porta) ( _ , ) (IRAQ)
YU Ku'-'ERC B K, Jevratlika ul 7. 11000 Beograd,
Sertloa [FRY S& .. )
YU POINT LTD .11 otfooH wor1dw1de [FRY S&M}
YUCHI. Kunlun Hotel. 2 Xon N.n Lu Chao Y.ng 0..
!nct.. s..,ng Chona [FRY sa .. )
YUCICO (. k. YUCYCOl, e6 Arct\bIahOCI
...kanoa III Allenue. CronoI Court II, Nocoao., Cy·
prus [FRY SaM)
YUCYCO (. k. YUCICO) 66 ArctlbolhOp
... kanoa III Allen .... Cronoa Court /I NlCOIIa. Cy·
prus [FRY
YUGO CANADA INC (. k. YUGOCANADA INC
TORONTO .• It. YUGOTOURS OF CANADAl,
100 Adelaide StrHi W Sle 1350. Toronto, On.
tano .. ~ IS3 Ca'*'l [FRY S&IoI)
'""1'
sa .. )
YUGO CARS (a.k •. ZASTAVA (GB) L TO.),
Giouceater HOUN, Baaongltoke Road, Readong,
Berbhlre, RG2
England [FRY S&M)
YUGOBANKA (•. Il. BANK FOR FOREIGN
TRADE AD; .k.•. JUGOBANKA; . k •. JUGOBANKA dd.), •• otricn wor1cIwlde [FRY 5&M) in·
cludlng, but not ~miled to:
• YUGOBANKA (•. k •. SANK FOR FOREIGN
TRADE AD; •. k •. JUGOBANKA; •. k. •. JUGO·
BANKA d.d.>, ArgentineMtrll_ 2211V...ll, lIMO
Voenna, Au.tna [FRY 5& .. )
• YUGOBANKA (•. k. BANK FOR FOREIGN
TRADE AD; •. k .•. JUGOBANKA; •. k., JUGO·
BANKA d.d.), S.~abury HOUle, Firit Floor
(Room. 378-379), London, EC2M5RT. England
[FRY S&M!
• YUGOBANKA (Ik •. BANK FOR FOREIGN
TRADE AD; •. k •. JUGOBANKA; •. ka. JUGO·
BANKA dd.), 25, Rue Laurlaton, 75116 P.,.,
France [FRY S&M)
• YUGOBANKA (I.k •. BANK FOR FOREIGN
TRADE AD; •. k .•. JUGOBANKA; a.ka. JUGO·
BANKA dd), Kurfurlten.tre_ 106111, 1000 Ber·
Ion 30, Gennlny [FRY 5&M)
• YUGOBANKA ( •. k •. BANK FOR FOREIGN
TRADE AD; a.k •. JUGOBANKA; •. k •. JUGO·
BANKA d.d.), K"'-teratreue 34/1, 4000 DuaaeI·
dorf, Genn.ny [FRY S&M)
• YUGOBANKA (•. k •. BANK FOR FOREIGN
TRADE AD; •. k .•. JUGOBANKA; •. k •. JUGO·
BANKA d.d.), Goether SIre..e 2111, 6000 Frankturt
11m Mllin I, Genn.ny [FRY S&M)
• YUGOBANKA (a.k •. BANK FOR FOREIGN
TRADE AD; a.kl. JUGOBANKA; a.k •. JUGO·
BANKA d.d.), Sc:nledulenbruecke 1-4, 2000 H.m·
burg 36, Genn.ny [FRY s&M!
• YUGOBANKA (ak •. BANK FOR FOREIGN
TRADE AD; a.k.a. JUGOSANKA; a.k •. JUGQ·
BANKA dd), Georgeltraue 3613,3000 H.".
nover, Gennany [FRY S&M)
• YUGOBANKA (aka. BANK FOR FOREIGN
TRADE AD; a.k.a. JUGOBANKA; •. ka. JUGO·
BANKA dd.l, c/o BFG M-7 m No 18-17, 8800
t.4l1nnhelm, Genn.ny [FRY SaM)
• YUGOBANKA (•. k •. BANK FOR FOREIGN
TRADE AD .• k .• JUGOBANKA; •. k •. JUGO·
BANKA d.d.), Sonnenltnl_ 12/111, 8000 Munic:n,
Germany [FRY SaM)
• YUGOBANKA (aka. BANK FOR FOREIGN
TRADE AD; •. k.a. JUGOBANKA; a.ka. JUGO·
BANKA dd), Am Plaerer 2, 8500 Nuremberg,
Germllny [FRY S&M)
• YUGOBANKA (a kl. BANK FOR FOREIGN
TRADE AD; a.k.a. JUGOBANKA; aka. JUGO·
BANKA ddl, Koenlg.tra..e 5418,7000 Stuttgart
1, Germllny [FRY S&M)
• YUGOBANKA (a.ka. BANK FOR FOREIGN
TRADE AD; a k.a. JUGOBANKA; a.ka. JUGO·
BANKA dd.), c/o YugOilav Chamber of Economy,
Saadoun Sir., Shalen Bldg., Baghdad, Iraq [FRY
S&M}
• YUGOBANKA (.k. BANK FOR FOREIGN
TRADE AD; a.k.a. JUGOBANKA, •. ka. JUGO·
BANKA dd), PO Box 2869, Tnpoll, Libya [FRY
S&M)
• YUGOBANKA (a ka BANK FOR FOREIGN
TRADE AD; • k .• JUGOBANKA;. k •. JUGO·
SANKA d dl, Slngel512, Amlterdam 1017 AX,
Netherland. [FRY S&M!
• YUGOBANKA (a ka. BANK FOR FOREIGN
TRADE AD,. k.a JUGOBANKA, a kll JUGO·
BANKA dd.), Kungagatan 5513, 11122 Stock·
holm, Sw&CIen [FRY S&M)
• YUGOBANKA (aka BANK FOR FOREIGN
TRADE AD; •. k.a JUGOBANKA; •. ka JUGO·
BANKA d d " Zwele"tre..e 169/1, 8003 Zunc:n,
SwItZerland [FRY 5&M)
YUGOBANKA (. k •. BANK FOR FOREIGN
TRADE AD-SKOPJE; .k.•. JUGOBANKA; •. Il.
JUGOBANKA d d ), Skopre, Fonner Yugoalev RepublIC of Macedonia [FRY SaM!
YUGOCANADA INC. TORONTO (.ka YUGO
CANADA INC, •. k. YUGOTOURS OF CAN·
ADAl.100AdelaodeStreetW Ste 1350, Toronto,
Ontano .. 5H 1S3, Canada [FRY S&M)
YUGOEXPORT, New York, NY, US A. [FRY SaM)
YUGOMONTANA (I kll JUGOMONTANA), Belgrade. Serblll [FRY SaM)
oaw
-30·
OFFICe OF fORSGN ASSETS CONTROl
YUGOSLAV AIRLINES (a.k.a JAT; a.k.a JAVNO
PREOUZECE ZA VAZOUSNI SAOBRACAJ,
a.k.a. JUGOSLOVENSKI AEROTRANSPORT),
Belgrllde, Serbia, all oII'ices worldwide [FRY SaM)
YUGOSLAV BANK FOR INTERNATIONAL ECONOMIC COOPERATION (a.k.a. JUGOSLOVENSKA BANKA ZA MEDJUNAROONU EKONOMSKU SARAONJU, a.k.a. YUBMESJ, .11 offices
worldwide [FRY saM)
YUGOSLAV EXPORT AND CREDIT BANK INC.
(•. k. •. JIK BANKA dd., .k .•. JUGOSLOVENSKA IZVOZNA I KREDITNA BANKA ddJ, PO
Box 234, Knez MihaMow 42, 11000 Belgrllde, SertQ [FRY saMl.1I offices worldwide, Induding,
but not lim ited to:
• YUGOSLAV EXPORT AND CREDIT BANK INC
(•. k. •. JIK BANKA d.d.; •. k. •. JUGOSLOVENSKA IZVOZNA I KREDITNA BANKA d d ), Va
Carducci 20-11, Pano Scala A, 1-34122 Tneste, italy [FRY SaM)
• YUGOSLAV EXPORT AND CREDIT BANK INC
(.k.. JIK BANKA d.d ,a.k. •. JUGOSLOVENSKA IZVOZNA I KREDITNA BANKA dd), Mohntn Straue 171111. BeI1lf1, Germany [FRY S&M]
YUGOSLAV NATIONAL ARMY (a k.. JUGOSLOVENSKA NAROONA ARMIJA .•. k.. JNAI. Belgrllde. SerbIa [FRY SaM)
YUGOSLAV OCEAN LINES (. k. •. JOP, a k.. JUGOOCEANIJA; •. k.., JUGOsLAVENSKA
OCEANSKA PLOVIDSA BBI, N,egoseva, P 0
Box 18, 85330 Kotor, Montenegro [FRY SaM)
YUGOSLAV POST, TELEGRAPH AND TELEPHONE (. k .• PTT JUGOSLAVIJE) (ondudlflg."
Serot.n .nd Montenegnn .lTill.t.. ), Belgrllde, Serbt. [FRY saM}
YUGOSLAV SHIPPING AGENCY (. k.. JUGOSLOVENSKA POMORSl<A AGENCIJA), Belgrllde. Serba [FRY SaM}
YUGOSLAVIA COMMERCE. Belgrade, Serba
[FRY SaM}
YUGOTOURS, Selgrade. Serb.. [FRY S&ML •• 01Iioas WOfIdwlde, Including, but not I"" lied to
• YUGOTOURS (a k.. GENERALEXPORT PRAGUE). Stepanaka 57111, 11000 Prague, Czecn R&public [FRY SUI}
• YUGOTOURs, N~broo.de 26, 2200 ~
hagen N Denman.: [FRY SaM}
• YUGOTOURS, 39 avenue de Fnedland, 75008
Pa,., France [FRY S&M}
• YUGOTOURS, W.merdor1er Slraue 134, 0-1000
Benn 12. G."".ny [FRY saM}
• YUGOTOURS Huttenalraue 3, 4000 Ouaaeldorf
'. G.""any [FRY SaM}
• YUGOTOURS. Schwenmaleralraue a3 8000 "'u·
n'" 2. Genn.ny [FRY 54"'}
• YUGOTOURS Stetnalraue 15, 7000 stutto&rt 1,
Genn.ny [FRY SUI}
• YUGOTOURS (a k.a CENTROPROOUCT) E ....
enberg Busoneu Center. Hou .. Aut. T.. AVfV, ....
rael [FRY s&"'}
• YUGOTOURS (a k.a CENTROPROOUCT,
BAR I), V. Pnna~ Amedea 25,7012' Ban. Italy
[FRY S&W}
• YUGOTOURs (a ka CENTROPROOUCT
S R l ) V.. AgnellO 2,20121 .... n Italy [FRY
5&W,
• YUGOTOURS (. k.. CENTROPROOUCT
ROWE) V .. s.uo.b 76. 00187, Roma Italy
[FRY S&"}
YUGOTOURS A B S _ _ ~ 5lj 113 5lj SIr.x*holm 9weden (FRY saW)
YUGOTOURS A G ,
110 8004 ZlIncI'I ~ (FRY 5'''']
YUGOTOURS AB POBox J()g7, 0101 p.lm"
GR 24 103e 1 Stodtt'ooIm. Sweden fFR Y sa .. )
YUGOTOURs B V , BuoQIotennMfl*tt\ 6. 1~
EX Am...-aam. N~nds fFRY
YUGQTOuRS G"BH, Poet Offtoe Box '&&ee
WnSfftuef\~'
Franldvrt..,. ...... 1
c._.ny (FRY sa .. ]
YUGOTOURS LTD. 115 8atrI StrMl GIeagOIr
ScIoGend G2 2SZ fFR Y sa W)
YUGOTOURS lTD 37. G ...t Cha.- ~Mt
YOIII H _ Bnt'lWlgh8ln 83 J.JY England (FRY
5& .. )
YUGQTOuRS lTD (. k. WEOCHOa HOUOA YS l TO) C'-'&m HOUM 150 Regen!
StIWl londOn W1R eee England [FRY 5&")
"'.1NratTUM
sa",
eooo
~,.,-
SPECIAllY DESIGNATED NATIONALS & BlOO<ED PeRSONS
YUGOTOURS lTD, Chflhtre Houae. 1M! Booth
Street. M.nchester M2 4AN. England [FRY 5&M)
YUGOTOURS OF CANADA (a k.a YUGOCANADA INC TORONTO,. ka YUGO CANADA
INC I. 100 Adelaide Street W 5te. 1350, Toronto
Onlllno M5H 153, Can.da [FRY SAM)
,
YUGOTOURS-REISEN GMBH, Kaemtneratntue
26, Vienna, AURna [FRY S4M)
YUGOTOURS S.A , Rue de Pnnoes 8-10, 1000
Bruuels, Belgium [FRY SaM]
YUGOTOURS 5 A R L (a k.a CENTROPROOUCT, 5 A RL.), 39 avenue de Fnedland, 75008
Pans. France [FRY SUII
YUMBES (a k.. JUGOSLOVENSKA BANKA ZA
MEDJUNAROONU EKONOMSKU SARAONJU.
a k .• YUGOSLAV BANK FOR INTERNATIONAL
ECONOMIC COOPERA TlON) .• 11 oITioes worldwide [FRY 5&MI
YUNIVERSAL, Singer Stru.. 2/15, 1010 Vienna,
Auatna (FRY SiMI
YUSACO, Serbia (FRY S&M)
ZAHRAN, Yousuf, PO Box 1318, Amm.n. Jordan
(tndlVlduell [IRAQ)
ZAIN AL QAWS(HNZQI C.rgo 9,247DWT Iraqi nag
(Iraqi State Enterpnae for Water Transport) (v. .
"I) [IRAQ)
ZAINAL, Akram, Ch.trm.n and General Manager of
AGRICUl TURAL CO-OPERATIVE BANK. Iraq
(tndlVldu.l) [lRAQr
ZAJEONICA JUGOSLOVENSKIH ZELEZNICA
(. k.. ASSOCIA nON OF YUGOSLA V RA ILWAYS) Belgrade, Serbia [FRY S&M)
ZAMBIA ENGINEERING AND CONTRACTING
CO , Zecco Bldg Mukwa Road. Luuka, Zambia
[FRY S&M}
ZAMETICA. Javan, Advtaor and Spokeaman for
President of SRBH, Boanla-Herzegovln. (IndlVldu.l) (SRBH)
ZAMZAI.I (YlAZ) T.nker 544DWT Iraqi nag (State
Org of Iraqi Porta) (vessel) [IRAQI
ZANOOBIA (HNZN) Cergo 3,549DWT Iraqi nag
(IraQI State Enterpnle for Water Tranaport Repre.. nted by Ceylon ShtPp<ng Co , ColOmbo, Sn
lanka) (""'MI) [IRAQ)
ZASTAVA (a k., AUTOMOBilE INDUSTRYCRVENA ZASTAVA, a It. ZAVODI CRVENA
ZASTAVA - KRAGUJEVAC), Kragu,teV.c, Serbia
(FRY SiMI
ZASTAVA (GB) lTD (a ka YUGO CARS),
GlOuce.:ter House, Ba .. ngstoke Road, Re.dlng.
BeI1cat1ln!. RG2 OQW England (FRY 5&1.1)
ZASTAVA IMPEX, Belgracle Serbia [FRY SiMI
ZASTAVA JUGO AUTOMOBILI, Kragu,evac. Serbia [FRY 5& M)
ZASTAVA-PRIVREONA VOZlLA. Kragulev8c, SerN [FRY 5&M}
ZAVOD ZA E EKSP . Belgrade Serbta (FRY 5&MI
ZAVODI CRVENA ZASTAVA - KRAGUJEVAC
(. ka AUTOMOBilE INDUSTRY - CRVENA
ZASTAVA,' k a ZASTAVA), KragujeVac, Serbta
(FRY saW)
ZAYDAN. loIuhammad (s k. ABBAS. Abu), Director d PALESTINE LIBERATION FRONT - ABU
ABBAS FACTION. OOB '0 Dec 1~8 (tndrvtdual)
[SDT1
ZCZlYUGOWEDICA Kregu,teVac Serbl. (FRY
saW)
ZORAVuE. leU<0V8C. Serbta [FRY S&M}
ZECEVIC. Woodrag Banque Franco Yugoslav, 18
Rue de THIll 750 17 Pa,. F ranee (Ind"'ldu.l)
[FRY 5&,,]
ZELA TRANS POCIgonca .. ontenegro (FRY 5& M)
ZELENGORA. Belgraoe Sarbl. (FRY S&M1
ZELEZARA BORIS KIORIC. NtksIc, Wontenegro
(FRY 5&"1
ZELEZNICKO TRANSPORTNO PREDUZECE
BEOGRAQ (. k. BELGRADE RAILROAD
TRANSPORTATION ORGANIZATION). Belg...:te SertMa (FRY 5&"1
ZELEZNtCKO TRANSPORTNO PREDUZECE
CRNE GORE (. k a "ONTENEGRIN RAILROAD TRANSPORTATION ORGANIZATION).
"ontenegro (FRY S&M,
ZELEZNICKO TRANSPORTNO PREDUZECE
NOVI SAO (a ks NOVI SAD RAILROAD TRANS·
PORTATION ORGANIZATION), Novi Sad, Vo,..ootna~) [FRY SaM)
ZELEZNICKO TRANSPORTNO PREOUZECE SRBIJE (ak.a SERBIAN RAILROAD TRANSPORTATION ORGANIZATION) Belgrllde, Sertlia
[FRY saW!
ZEUAJA, Radmilo; Colonel .nd Comm.nder. Fortythird r.tototiZed BrIgade, Firal KraJin. Corpc,
SRBH Forces; Boanta4iarzegovN (tndMdual)
[SRBH!
ZETA ~TV3) General Dry Cargo 9.862GT .....
Flag (South Crou Shipping Lid,) (v-r) [FRY
S&M)
ZETA OCEAN SHIPPING L TO .. V.IIetta, W.Ita. c/o
Jugoelaven&kll Ocean,ka Plovldbli BB. HiegONYa. P.O, Box 18, 85330 Ketor, Wont.negro
[FRY S&M,
ZIGIC, Bran_lava; Secrelllry of Mlniatry 01 Trade
and Supply of SRBH; Boan.-Herzegovina (individual) [SRBH)
ZIVANOVIC. Milenko; Malor General and Comm.nder. Dnna Corpa, SRBH Forces; BoanlaHerzegOVina (indIVidual) [SRBH)
ZUTEN FODDER PLANT, Libya /lISYA)
ZUTEN GRAIN MIU, Libya /lIBYA!
ZUTNI, Dr. Abdul Hatid MahmO'Jd, Abu Dh.bi,
UAE. (indIVidual) /lIBYA)
ZliTNI. Dr. Abdul Hand Mahmoud, Tripo•. LIb~ (indMdual) /lIBYA)
ZORKA, Sebac, Serba [FRY S&M)
ZTP BELGRADE, Belgrade. Serbta [FRY SaM)
ZTP, Podgonca, Montenegro [FRY SaM)
ZUMIDY (YIBO) F_h OWl NIA Iraqi nag (State
Org of Iraqi Porta) (lfeuel) [IRAQ)
ZUEITINA OIL COMPANY. Gas Proceaaing Planta,
Tnpolt, lIby. /lIBYA)
ZUEITINA OIL COMPANY, Mitchell Cotta Building,
POBox 2134, Tnpoli. Libya /lIBYA)
ZUEITINA OIL COMPANY, Plant allnlilar Field A,
Tnpolt, LlbYIi /lIBYA)
ZUEITINA OIL COMPANY. Zueilin. Building "A,"
Stdl I.... Dahra, P.O Box 2134, Tnpoh. Libya
(liBYAI
ZUGHAID, H.... n Senouat, 15117 Lodge Road,
SI. Johns Wood. london NW8 7JA, England (indIvidual) /lIBYA]
ZUKOVIC. LJUboml~ MtnlSier of Educ.tion. Science .• nd Cunure of SRBH, Boanta-HerzegOYtna
(IndIVIdual) (SRBH)
ZU~AR. ColOnel Abbud (a.k.. AL-ZUMAR, Abo
bud); FactIOnal Leader of JIHAD GROUP; Egypt;
POB Egypt (Ind",idual) [SOT)
ZUPA - KRUSEVAC, Kru..v.c, Serbia [FRY S&M]
ZUPUANIN. SlObod.n, Ll Colonel and Commander, Twenty-second Inlantry Bngade, Fnt
Krallna Corpll, SRBH Forcea; Bosru.-Herz&govln. (indIVIdual) [SRBH]
• No U 5 peraen may deal with any Lib~n or
Iraqi government offlQal whether hIS name appeara on thIS I_t or not. As. aervlCe to the users
of thlll_t. II 1_ of Libya's and Iraq's highest-level
government offiCi •• h.ve been I_ted as SON'. of
Libya .nd Iraq Thill II not an exh.ustive
of
libyan or Iraqi government offlCtaia. and the abo
..nce of the name of. libyan or Iraqi government offiCial from this hilt does not reheve U S.
peraens from the rellPOnaib,~ty to retrain from dealIng with that offiCIal
'.1
President Cltnton signed .n Executive Order, eflect"'e J.nuary 24, 1995. "Prtlhlbttlng Transacbona with Terro,.ta Who T hre.ten to Dtsrupt the
Middle EaSi Peace ProcflII" 1SDTT Slanda for
"SpectaHy Designated Terrorllll"
U S ftn.nctal tnllbtutlona mllY now raly on originatora or beneflCanell of lunds Iransfers with legard
to compll.nce with sanctlona ag.lOsl North Korea
.nd lire autnonzed by general hcen.. to ~
the poat-February 14, 1995 lransfer of lundsln
which North Korea or a nabonalthereol ha••n tnterest Peraen. subl8C1 to U 5 ,unschctJon who
are onglnatora or ultimate beneflCtanell of such
funds lransfera, however, tncludlng US banktng
InstitutIOns that are them ........ ongmatora or
benefICl.n.., m.y not tnlbate or rece",e such
- 31 .
OFRCE OF FORSON ASSETS CClNTROl
SPEOAllY OESIGNATED NATlONAlS & 8L0CI<ED ~SONS
1nI~
If the undeftying InInuctJons to which
they ,..... ant prohibited
SpecIfiC IicleMn mey be IMUed on e Cllle-by-
buia to eutnonze the unblocking of funds
Ih8t ..,. bIocIaId by !lnane.1 lllatilutiOM purwuent
to Ihi8 . .It bec8UM d en Internt of North Koru
or e II8bOnaI theIW, h I ClIme II1to the finencqll
IMtitutiOn'. ~on or control by wire InInlifer
or check ~lIance prior to the effective dete of
the gener.llicenee euthOriZlng .uch ectJvity
Such ~ will only euthonze the return of
lunda to ~Itbng . .rtJn, provided thet no fund.
ere I'8Ieaed to the Gowmment at North Koru, to
enyentity controlled by the GCMlmment of North
Koree, to eny peraon located In or controlled from
North KOfM, or to eny entity orgenlZed under the
len at North Ko .....
CII88
- 32-
APRIL 111.'_
UBLIC~!pDEBT
Department of the Treasury
j:L Bu;;;u\Jt~~ ~u~iEPebt
NEWS
• Washington, DC 20239
FOR IMMEDIATE RELEASE
_.. ,,:\\\crONTACT: Office of Financing
June 27, 1995
urn.Oi-ll\t- \r·~·-"
202-219-3350
C"-
RESULTS OF TREASURY'S AUCTION OF 2-YEAR NOTES
Tenders for $17,753 million of 2-year notes, Series AF-1997,
to be issued June 30, 1995 and to mature June 30, 1997
were accepted today (CUSIP: 912827U34).
The interest rate on the notes will be 5 5/8%. All
competitive tenders at yields lower than 5.690% were accepted in
full.
Tenders at 5.690% were allotted 3%. All noncompetitive and
successful competitive bidders were allotted securities at the yield
of 5.690%, with an equivalent price of 99.879. The median yield
was 5.660%; that is, 50% of the amount of accepted competitive bids
were tendered at or below that yield. The low yield was 5.630%;
that is, 5% of the amount of accepted competitive bids were
tendered at or below that yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$42,314,722
Accepted
$17,753,477
The $17,753 million of accepted tenders includes $914
million of noncompetitive tenders and $16,839 million of
competitive tenders from the public.
In addition, $780 million of tenders was awarded ~t the
high yield to Federal Reserve Banks as agen~s,for forelgn,an?
international monetary authorities. An addltlonal $692 mllllon
of tenders was also accepted at the high yield from Feder~l
Reserve Banks for their own account in exchange for maturlng
securities.
RR-396
DEPARTMENT
OF
THE
TREASURY
1REASUR)ful~~.j:···~!.~~6NE W
.............
~/'.. .
I
S
...............
/~
~~.~
.... ~
17Ky .....
ornCE OF PL'BLIC AFFAIRS • 1500 PE~l\s.JlJif'\1i; a[-\ I'a~Gf. ~y, tI U,.(~'ASHINGTON. D.C. • 20220 • (202) 622·2960
FOR RELEASE AT 2:30 P.M.
June 27, 1995
~ONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $27,200 million, to be lssued July 6,
1995.
This offering will provide about $825 million of new cash
for the Treasury, as the maturing bills are outstanding in the
amount of $26,365 million.
Federal Reserve Banks hold $7,038 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,838 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C.
Due to the early closing of the
securities market on July 3, the closing times for the auction
will be 11:30 a.m. EDST for noncompetitive tenders and 12:00 noon
EDST for competitive tenders.
This offering of Treasury
securities is governed by the terms and conditions set forth in
the Uniform Offering Circular (31 CFR Part 356) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Because of the Federal holiday on July 4, the offering
announcement for the weekly bills to be issued on July 13, 1995,
will be made on Monday, July 3.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
RR-397
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED JULY 6, 1995
June 27,
Offering Amount
.
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
1995
$13,600 million
$13,600 million
91-day bill
912794 V2 7
July 3, 1995
July 6, 1995
Octobel S, 1995
April 6, 19':15
$12,206 million
$10,000
$ 1,000
182-day bill
912794 W4 2
July 3, 1995
July 6, 1995
,January 4, 1996
July 6, 1995
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Maximum Recognized Bid
at a Single Yield
Maximum Award .
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms .
Accepted ill full up to $1,000,000 at the averag~
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2)
Net long position for each bidder must be
repented when tlw sum of the total bid
amount, elt all discount rates, and the net
long position is $2 billion or greater.
(3)
Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
j ')
'i:,
.3 5 %
"!
0
! \d i "
t tJ U b 1 1 ,_.
,1
u
i
il
f l eli II 'J
Prior to 11:30 a.m. Eastern Daylight Saving
time
on auction day
Prior to 12:00 noon Eastern Daylight Saving time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
DEPARTMENT
OF
THE
TREASURY
.
TREASURY ~.-.<..',~. sN E
WS
..
~.~~
'('~'t-
.~7 9~'~"""""""""""""""""".
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
raE
B.1 •••• UROD p.liytrv
IXptcttd at 10:00 A.H.
J\me 28, 1995
Hacta.e Chair and distinquished MeaDers ot the SUbc:a.ai tt.e:
I . . pl_ed to pc. .tnt the view. ot the -rr...w:y Oepartlllent
The
baain. . . to the
ec:ona.y and haa stroftcJly suppo1'ted, and vill continue to support,
the CJOal ot uaiRinq and strenqtheninCJ _11 buain.... The
~ovt!I ot _11 buain. ._
i. an ilIIportant objec:tive tor this
Ad-iniatration, and VI art continually explorinCJ ways to reduct
their Qx and =-plianc. Durdent.
011 the iwpac:t ot payroll tax. . on _11 baain....
)dwj n 1.u&tion rec:o;niz. . the ilIportance ot _11
Pa~ll taxu art the 1M&na Uttd to fiDanc:a tA. Nation's
vi tal aoc:ial i.nauranc. proqr_. Th. revtnu_ colltCttd art
tranaten-ed c:lirec:tly into ~ tuna and art utacI to provid.
r.ti£-.rt, surlivaJ:'S, diM.bility, b_lth, and (in conjunction
vith stat. PZ'OCJZ'''') unaployll8llt c:oJIPeIUI&tion ben.tit. for
llillicmt ot ~icana. c::un-tntly, OYU haU ot the tldtrly rtly
on Social Stc:aZ'ity rtt~t benttits to )ctap troa Ii vinCJ in
~.
'1'ht tutu-. tinancial condition ot t h _ prOCJZ'''' is
ext.r_ly important. Aa you know, til. Padual Old-ACJ' and
SUZOVivcrs tn.urance prOCJZ''' and tht Fadaral Oisal:aili ty Insuranct
pcoqraa (OASDI) is projtCttd to be in 10nCJ-tera d.ticit, althouqh
1:bt outlooJc 1:hrcuqb t'OUCJhly th. first quarter ot th. 21st century
ia still qood. t..t YtU", the secrttary ot H_lth and II\man
SC'Tict8 appointed ttle QUadrenDial AdvUoZ'y COWIcil on Social
Security and c:h&rged it vittl acIdZ"-inCJ tbt 10nq-raftCJe financial
statut ot the OASDI pcogzaa. fte Advisory COWIcil is tXptCted to
c:aIIPlt'Ca i 1:8 warJc lata' this ytU, and v. looJc torward to it.
t1Jld1nCJa and r--=-nciationa.
Bri., gyvyin
0' rld'n
1 'ural1
'l',x"
fte first Social security Act w_ enacted in 1935 and
included, aJIOnCJ othtr tl-.,ts, progr_ pEOvidinCJ benetit. for
retir-.tt and untllployaent. ftt Medicart prog:a: . . va. added in
the Social sec:urity Act ot 1ge5. fte Social Sec:urity prQCJr'"
include the Federal Old-ACJe &ftCl surv1vcrs InsUrance prOCJraa
RK 398
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
- 2 -
(OASI) and the Federal Disability Insurance program (DI). Each
of these programs, as well as the Federal Hospital Insurance
program (HI) (often referred to as Medicare "Part A") is funded
through a separate trust fund. CUrrently, the programs are
almost completely funded from payroll taxes paid by employers,
employees, and the self-employed pursuant to the Federal
Insurance contributions Act (FICA) and the Self-Employment
Contributions Act (SECA). In addition, unemployment insurance
benefits are provided under a Federal-State unemployment
compensation system. I
FICA imposes a tax on employees and employers that applies
to earnings from covered employment. The tax under FICA includes
OASOI and HI. OASOI is imposed on earnings up to a maximum
annual dollar amount, ~, the taxable wage base, which is
$61,200 for 1995. The taxable wage base changes automatically
each year pursuant to a statutory formula. The employer and
employee each pay a tax of 6.2 percent of earnings up to the
taxable wage base, which results in a combined OASOI tax of 12.4
percent. In addition, the employer and employee each pay an HI
tax of 1.45 percent on all earnings -- a combined HI tax rate of
2.9 percent on total wages. The employer portion of the taxes is
deductible in computing the employer's Federal income tax and
excluded from the employee's income subject to Federal income
tax.
Under SECA, self-employed workers pay a tax on their
earnings from self-employment that corresponds to the combination
of the employer and employee shares of FICA. One half of SECA
taxes (the portion that corresponds to the employer portion of
FICA) is deductible for Federal income tax purposes.
The earnings bases and tax rates under FICA and SECA from
1937 through 1994 are shown in Table 1.2
Employers withhold income tax and one half of FICA tax from
employee wages. Periodically, employers deposit -- generally at
IThis unemployment compensation system, established by the
Social Security Act of 1935, is currently funded by federal and
state payroll taxes. Generally, the Federal Unemployment Tax Act
(YOTA) tax covers the cost of administering the system, and state
unemployment taxes cover the cost of nearly all benefits. In
general, FUTA imposes what is effectively a 0.8 percent tax on
the first $7,000 paid annually by covered employers to each
employee. The FUTA wage base has been $7,000 since 1983.
~he fiqures shown in Table 1 are from page 25 of the 1994
Annual Statistical Supplement to the Social Security Bulletin
published by the Social Security Administration.
-
3 -
their local banks -- the employer and employee shares of FICA tax
along with withheld income taxes.
Employers also make separate
deposits of FUTA taxes.
At the Subcommittee's request, we have prepared Table 2
which shows the percentage composition of Federal receipts f~om
1965 through 1994. As shown in the Table, in fiscal year 1965
Social Insurance Taxes and Contributions, which include FICA, '
SECA, and FUTA revenues, and contributions to railroad and other
retirement programs, represented 19 percent of Federal receipts,
but by 1994 they accounted for nearly 37 percent. Their relative
growth is due, in part, to the growth in benefits in the earlier
part of the period, and to increases in the later part of the
period in payroll tax rates and taxable wage bases required to
fund promised benefits. These increases were necessitated by
demographic factors, such as changes in the relative ages of the
population and the increased life expectancy of the elderly.
The Subcommittee has expressed interest in the extent to
which the Social Insurance Taxes and contributions component of
Federal tax revenues is specifically attributable to small
businesses. Table 3 provides a breakdown of total Social
Insurance Taxes and Contributions into its FICA, SECA, FUTA,
railroad retirement, and other retirement components for the
period 1990 to 1994. Although it may reasonably be assumed that
SECA payments are attributable to small business activities, we
do not have tax data that directly allows us to disaggregate FICA
and FUTA contributions by size of firm. Nevertheless, the Small
Business Administration's 1994 Handbook indicates that firms with
less than 500 employees account for about 48 percent of payroll,
which implies that these firms would also account for
approximately that same percentage of FICA taxes.
Incidence and Impact of Payroll Taxes
As noted, employers generally pay one half of social
security taxes and withhold the other half from employees' wages.
Self-employed workers pay all of the social security taxes on
their net earnings from self-employment: one half attributable to
their role as employees and the other half attributable to their
role as employers.
Employers also pay FUTA taxes to finance the
unemployment system.
It is generally accepted, however, that the true incidence
of both the employer and the employee portions of social
.
insurance taxes ultimately falls on the worker. Most econom~sts
view the employer portion of payroll taxes as a component of
workers' total compensation.
If payroll taxes increase,
.
businesses may in principle raise prices, accept lower prof~ts,
or pass the costs back to the worker. As~uming that workers do
not increase their hours of work greatly ~n response to a
reduction in net wages, firms are generally expected to pass the
- 4 -
increased costs of payroll taxes back to employees by reducing
other forms of compensation (wages or fringe benefits).
Labor
contracts and other constraints may delay the adjustment,
although a number of empirical studies indicate that, in general,
firms are able to shift nearly all of the costs to their workers
within a year or a year and a half.
Even if minimum wage
requirements and other labor market constraints make such a shift
more difficult in some cases, it is believed that, in general,
the cost of payroll taxes is ultimately borne by the worker,
rather than the employer. Therefore, it is anticipated that
increases in payroll taxes are more likely to reduce wages (or
limit wage increases) than to reduce employers' demand for labor.
Although the impact of lower wages on the supply of labor is
uncertain -- lower wages make work less attractive, but they also
may induce more hours of labor in order for workers to support
their families -- most economists would agree that payroll taxes
have limited macroeconomic effects on employment, at least over
the range of rates observed in this country. other factors
(including changes in the strength of the economy) appear to play
more of a role in determining year-to-year changes in aggregate
levels of employment.
Taxes and Small Business
You have asked whether the Treasury Department has any
specific recommendations or proposals to relieve the burden of
payroll taxes on small business. As noted earlier, the Advisory
Council on Social Security is currently reviewing the status of
the trust funds in relation to the long-term commitments of the
Social Security programs, including financing issues and the
long-range financial status of the programs.
In order to
evaluate any possible changes in payroll taxes, it is important
to view them in the context of financing requirements for the
entire Social Security system. Accordingly, we believe that we
should wait to see the Advisory Council's report.
In the meanwhile, the Administration has been working to
reduce general tax compliance burdens on small business and has
provided significant tax relief for small business and for lowincome workers.
I have noted that most economists believe that
the cost of payroll taxes generally falls on the worker in the
form of lower after-tax wages. The Administration is concerned
about the increasing difficulty that low-income workers have
experienced in raising their standard of living and has taken
active steps to assist them.
In 1993, the Administration
proposed, and congress enacted, a major additional expansion of
the earned incom 7 c~ed~t. (EITC), which may be claimed by
taxpayers on the~r ~nd~v~dual returns. The Administration
opposes reduction of the EITC. The EITC is a refundable tax
credit that is available to low- and moderate-income workers who
have earned income and meet certain income thresholds.
The
- 5 -
credit increases significantly if an individual has one or two
qualifying children.
The Administration has also taken a number of steps to
provide overall tax relief for small businesses and lessen their
administrative burdens.
For example, we have
•
supported the permanent extension and increase of the
tax deduction for the cost of health insurance for
self-employed individuals and their families;
•
clarified that subchapter S corporations may enter into
partnerships with partners that could not themselves
qualify as S corporations, including nonresident
aliens, thereby providing S corporations with
flexibility in raising additional capital and
structuring their business relationships;
•
proposed in 1993 an increase in the amount of capital
investment that businesses can expense from $10,000 to
$25,000 in 1993 in order to reduce the cost to small
business of items that increase their productivity,
such as office machinery, computers, and copiers
(Congress increased the expensing limit to $17,500);
•
supported enactment of a provision that exempts 50
percent of the capital gains from the sale of small
business stock;
•
supported enactment of a provision encouraging
investment in small businesses by allowing gain from
the sale of publicly traded stock to be invested taxfree in specialized small business investment
companies;
•
issued guidance that simplified the calculation for
computing the individual alternative minimum tax;
•
issued guidance to simplify the determination of
depreciation deductions, allowing taxpayers to group
certain assets in one or more "general asset accounts";
and
•
provided that the rules governing the timing of hedging
gains and losses do not apply to small cash-method
taxpayers, even though such taxpayers receive the
benefit of the character provisions in those
regulations.
In addition we have made several recent proposals to reduce
administrative a~d legal compliance costs imposed on small
businesses. We recently proposed that an unincorporated entity
-
6 -
be permitted to elect to be treated as a partnership by simply
checking a box on its tax return.
This simple election will
replace application of a complicated set of criteria that had
resulted in complexity and uncertainty. This new "check-the-box"
rule has been uniformly applauded by taxpayers. Also, we
recently proposed a Simplified Tax and Wage Reporting system that
will ultimately enable an employer to file a single return
providing payroll information electronically, thus eliminating
the need to file similar data in multiple places.
On the legislative front, the President has proposed further
increasing the self-employed health insurance deduction to 50
percent. This will further reduce the disparity in tax treatment
between self-employed individuals and employees.
Just two weeks ago at the White House Conference on Small
Business, the President proposed a package of pension
simplification reforms including several elements of particular
benefit to small employers. Among other things, the package
proposed elimination of the family aggregation rule, which
greatly complicates non-discrimination testing, particularly for
family-owned or operated businesses, and unfairly prevents family
members from receiving the full retirement benefits they could
have if they were unrelated employees.
The proposal also includes a new, very simple retirement
plan specifically designed for businesses with 100 or fewer
employees--the National Employee Savings Trust, or "NEST."
Currently, tax-favored retirement plans maintained by small
businesses are generally subject to the same tax qualification
rules as tax-favored retirement plans maintained by large
employers. However, the administrative costs or complexities of
complying with these rules are sometimes burdensome for small
businesses -- in many cases discouraging them from having a plan
at all.
The NEST is designed to address this problem.
It would
operate through individual IRA accounts for employees and would
be subject to much simpler rules than ordinary 40l(k) or other
tax-favored employer retirement plans. The NEST program will
allow small businesses to provide owners and employees with taxdeferred 401(k)-type retirement savings without having to perform
complex non-discrimination rule testing (including compliance
with the so-called "top-heavy" rules), file employer reports with
the government, or make investment decisions on behalf of
employees.
Conclusion
The Administration has taken important steps to reduce
compliance and tax burdens on small businesses.
- 7 -
Reforms to the current Social Security system, including
possible changes in the method of its financing, are currently
being considered by the Advisory Council on Social Security. Any
proposals to reduce payroll taxes for small business should take
into account the potential impact on the financial health of the
programs funded by the payroll tax and the need to maintain the
integrity of the Social Security and Medicare trust funds.
We
would be happy to work with the Congress in examining
alternatives that can satisfy these objectives.
Madame Chair, I appreciate the opportunity to appear before
this Subcommittee today to discuss these important issues, and
would be happy to answer any questions you or other members of
the Subcommittee may have.
Table 1
-
-Annual maximum taxable earnings and actual contribution rates , 1937 94 and thereafter
ConInbuaan , .
~muimum
EmpIOywr Md ~. MdI
' ' ' ' ' ' earNngI
VHf
OASeI )
1137 ...........................
llSO
'
1~
...........................
13.000
3.000
3.800
3.800
1955
1157
1951
lHO
1982
...........................
...........................
...........................
..... .... ·
............
......... .. . .. .........
•. 200
• .200
•. 800
•. 800
•. 800
.........................
1151 ...........................
I_
1983
'"
'
.
.... . .
.... ..
· .. ............
......
· ..... , .
..... ' , , - . ' .. ..... ........
.......... .. . . . . . . . . . . . . . .
(PIR*II)
HI
'"
...
...
'"
...
...
'"
...
..
'
...
T~
)
OASI )
01
1.0
1.5
1.5
2.0
1.0
1.5
1.5
2.0
2.0
2.25
2.5
3.0
3.125
2.0
2.0
2.25
2.75
2.175
3.825
•. 2
4.•
.25
.35
.35
.475
.475
.55
SeIf-«nployed person
I
HI
Tot8l
1
OASI
I
01
'"
...
...
...
'"
...
2.25
3.0
2.25
3.0
...
.. .
3.0
3.375
3.75
•. 5
4.7
3.0
3.0
3.375
4.125
4.325
...
0.35
.5
.&
.&
5.•
e.15
e .•
e.4
U
5.025
5.275
5.375
5.0875
5.5875
.375
.525
525
.7125
.7125
'"
...
'"
. ..
...
...
. ..
0.25
.25
.25
.25
...
...
."
...
I
HI
...
'"
...
.. .
'"
0.375
.375
.375
.375
.. .
'"
.......... ..... ..........
4.800
1.800
&.800
7.800
7.800
se.800
e.800
7.800
7.800
•••
4.1
3.375
3.5
3.55
3.325
3.725
1970
...............
1971 ....... ....... . . . . . . . . . . . . .
......... .... . .. _ ...
1972
1973
.
· . ...
1974
...
7.800
7.800
9.000
10.800
13.200
7.800
7.800
9.000
10.800
13.200
4.1
5.2
5.2
5.85
5.85
3.15
4.05
•. 05
4.3
4.375
.55
.55
.55
.575
.1
.&
.&
1.0
.1
e.I
7.5
7.5
8.0
7.9
5 .•75
e.075
e.075
e.205
e.l85
.825
.825
.825
.795
.815
22.!JOO
5.15
5.85
5.85
1.05
1.13
•. 375
4.375
4.375
'.275
4.33
.575
.575
.575
.775
.75
.9
.9
.9
1.0
1.05
7.9
7.9
7.9
8.1
8.1
e.115
e.115
1.115
1.01
e.Ol
.115
.815
.815
1.ot
1.04
1.13
1.15
1.7
1.7
27.0
4.52
•. 7
'.575
4.775
5.2
.51
.15
825
.825
.5
1.05
1.3
1.3
1.3
1.3
1.1
9.3
9.35
9.35
214.0
1.2725
7.025
e .• 125
7.1125
10.4
7775
.975
1.2375
.9375
1.0
1.3
2.6
10.4
10.4
10.•
11.08
11,08
1.0
1.0
1.0
108
1.08
2.7
2.9
2.9
2.9
2.9
1987
,gea
1981
.,
"
1975
1978
1977
1978
1979
1910
1981
1912
1983
1984
"
.....
. ..
·
....
. .....
"
.'
......
..
..
..
· .. . ....
· . .....
......
..
1985
19M
987
911
989
22.!JOO
25.!JOO
, 21.700
32.~
, 35.700
,
.,
37.800
31.800
42.000
, 43.800
,
,
990
991
992
993
994
.. ...
, 14.100
, 15.300
, le.5OO
, 17.700
, 14.100
, 15.300
, 18.500
, 17.700
45.000
.... 000
3 51.300
353.400
355.500
, 57.800
, SO.800
FUMe SCI'IeGuIe
,,,
'995·91
2000 and . , . . . " .
,.,
"'*'
,
,
25.too
21.700
, 32.~
, 35.700
37.100
-
"'*'
.S
.8
.8
.S
1.0
.9
.9
.9
.9
1.0
1.05
1.05
1.3
1.3
•, 31.100
7.05
1.15
7.15
7.51
7.51
5.2
5.2
5.2
5.53
5.53
.5
.5
.5
.53
.53
1.35
t.45
t.45
t.45
145
214.1
214.3
214.3
2 15.02
215.02
3 51.300
• 125.000
130.200
,3 135.000
7.&5
7.85
7.65
785
7.85
5.8
5.6
5.8
Hi
5.6
.e
.1
.&
.e
1.• 5
1.45
1.45
145
t.45
15.3
15.3
15.3
15.3
15.3
11.2
11.2
11.2
11.2
11.2
1.2
1.2
1.2
1.2
1.2
2.9
2.9
2.9
2.9
2.9
7.85
1.15
5.8
5.'9
145
.71
15.3
15.3
11.2
10.91
1.2
1.42
2.9
2.9
42.000
•, 43.800
45.000
, ....
000
III
II.
CII
, BaNd an eutOINIC . , 1"'"'.
lIn. Act e.. modified tJy 19n.
illO 1173t1 Acta •. 1ft DlOIIOIDOn 10 *10 . . . . en
I Inc:IUOSI 1M CfSOll . . . ~ 2.M
l8aMG an
11._.
lIn. Act (. . modified tJy
illO 19731) Acta......... If. . . . . . . . Ms.......... tJy . . 0rMIDua BUdQet
autOfftMIC.
0.35
.5
.6
.-.va weos .......
ttn.
IS
e
'4$
ReconaIIaIIOn Act cOBRA) of '911. lor ccmputIn9 a "CIHmsd" _ave annu.&
• • lor 1911. 'Nt. and 1910.
• BuIld an 1110 IS9II IIOil.
, 00tIet
an ""'*'91 1uD!sd 10 HospuI lnauranc. (HI) WI.. • ..
It,,,,,
r. . . . by 08RA 1983.
~ Security Bulletin • Annual Statistical SUDOltam.."t • 1 QQ4
25
Table 2. Percentage Composition of Federal Receipts by Source, 1965-1994
Fiscal
Year
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Individual
Income
Taxes
Corporation
Income
Taxes
41.8
42.4
41.3
44.9
46.7
46.9
46.1
45.7
44.7
45.2
43.9
44.2
44.3
45.3
47.0
47.2
47.7
48.2
48.1
44.8
45.6
45.4
46.0
44.1
45.0
45.3
44.4
43.6
44.2
43.2
21.8
23.0
22.8
18.7
19.6
17.0
14.3
15.5
15.7
14.7
14.6
13.9
15.4
15.0
14.2
12.5
10.2
8.0
6.2
8.5
8.4
8.2
9.8
10.4
10.4
9.1
9.3
9.2
10.2
11.2
Social Insurance
Taxes and
Contributions
19.0
19.5
21.9
22.2
20.9
23.0
25.3
25.4
27.3
28.5
30.3
30.5
29.9
30.3
30.0
30.5
30.5
32.6
34.8
35.9
36.1
36.9
35.5
36.8
36.3
36.9
37.6
37.9
37.1
36.7
Excise Taxes
12.5
10.0
9.2
9.2
8.1
8.1
8.9
7.5
7.0
6.4
5.9
5.7
4.9
4.6
4.0
4.7
6.8
5.9
5.9
5.6
4.9
4.3
3.8
3.9
3.5
3.4
4.0
4.2
4.2
4.4
Source: Historical Tables, Budget of the U.S. Government, Fiscal Year 1996
Other
4.9
5.1
4.7
5.0
4.7
4.9
5.4
6.0
5.2
5.2
5.4
5.8
5.3
4.8,
4.8
5.1
4.8
5.3
5.0
5.2
5.0
5.2
4.9
4.8
4.8
5.4
4.7
5.0
4.3
4.6
Table 3. Composition of Social Insurance Taxes and Contributions
(in $ billions)
Fiscal Year
Type of Tax or Contribution
1990
I 1991 I
1992
I
1993
I
1994
FICA taxes
328.4
341.3
357.1
372.1
400.7
SECA taxes
21.8
25.5
24.4
20.6
24.4
FUTA taxes
21.6
20.9
23.4
26.6
28.0
Railroad Retirement accounts l
3.7
3.8
4.0
3.8
3.7
Other retirement contributions 2
4.5
4.6
4.8
4.8
4.7
380.0
396.0
413.7
428.3
461.5
Social insurance taxes and contributions
Department of the Treasu ry
Office of Tax Anal ysis
IIncludes contributions to the rail industry pension fund and the railroad Social" Security
equivalent benefits fund.
2Includes employee contributions to federal employees retirement and contributions for
non-federal employees.
EWS
TREASURY
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
'J"
-!. I :
. "
;
',f
FOR IMMEDIATE RELEASE
June 27, 1995
STATEMENT OF SECRETARY RUBIN ON CRA AMENDMENT
The Community Reinvestment Act has been instrumental in revitalizing low- and
moderate-income communities. I visited Chicago yesterday and the South Bronx last month
and witnessed firsthand the economic benefits of CRA to families and businesses in those
areas. Today the House Banking Committee adopted an amendment to its regulatory relief
bill -- already overladen with provisions that undermine the safety and soundness of our
nation's banking institutions -- that effectively renders CRA unenforceable. It prohibits CRA
performance from being considered in the bank application process, which is critical to
enforcing CRA. I am strongly opposed to this evisceration of CRA. The banking regulators
recently completed a two-year, comprehensive overhaul of the CRA regulations that relieves
the burden on banks. We need to give the regulations a chance to work.
-30-
RR-399
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
UBLlcsnf'BT NEWS
,
r. E- ?
Department of the Treas'Urv
(I
'~
t-
FOR IMMEDIATE RELEASE
June 28, 1995
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 5-YEAR NOTES
Tenders for $11,505 million of 5-year notes, Series M-2000,
to be issued June 30, 1995 and to mature June 30, 2000
were accepted today (CUSIP: 912827U42).
The interest rate on the notes will be 5 7/8%. All
competitive tenders at yields lower than 5.905% were accepted in
full.
Tenders at 5.905% were allotted 51%. All noncompetitive and
successful competitive bidders were allotted securities at the yield
of 5.905%, with an equivalent price of 99.872. The median yield
was 5.890%; that is, 50% of the amount of accepted competitive bids
were tendered at or below that yield.
The low yield was 5.850%;
that is, 5% of the amount of accepted competitive bids were
tendered at or below that yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$32,545,213
Accepted
$11,504,684
The $11,505 million of accepted tenders includes $242
million of noncompetitive tenders and $11,263 million of
competitive tenders from the public.
In addition, $250 million of tenders was awarded at the
high yield to Federal Reserve Banks as agents for foreign and
international monetary authorities. An additional $700 million
of tenders was also accepted at the high yield from Federal
Reserve Banks for their own account in exchange for maturing
securities.
RR-400
o
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N
N
N
<D
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(l)
tl: l±:
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JUL
j:;)
c';'
,).)
~1 ( )
0 U0 I 7 8
June 29, 1995
FEDERAL FINANCING BANK
Charles D. Haworth, Secretary, Federal Financing Bank (FFB),
announced the following activity for the month of May 1995.
FFB holdings of obligations issued, sold or guaranteed by
other Federal agencies totaled $92.7 billion on May 31, 1995,
posting a decrease of $2,634.8 million from the level on
April 30, 1995. This net change was the result of a decrease in
holdings of agency debt of $1,598.4 million, in holdings of
agency assets of $1,010.0 million, and in holdings of agencyguaranteed loans of $26.4 million. FFB made 18 disbursements
during the month of May, and executed six repricings of RUSguaranteed loans and two refinancings of RUS-guaranteed loans.
FFB also received 197 prepayments in May.
Attached to this release are tables presenting FFB May loan
activity and FFB holdings as of May 31, 1995.
RR-401
Page 2 of 3
FEDERAL FINANCING BANK
MAY 1995 ACTIVITY
BORROWER
DATE
AMOUNT
OF ADVANCE
5/15
5/15
$300,000,000.00
$300,000,000.00
FINAL
MATURITY
INTEREST
RATE
AGENCY DEBT
*U.S. Postal service
*U.S. Postal Service
8/15/95
8/15/95
5.998% S/A
5.998% S/A
12/11/95
6/30/95
6/30/95
1/2/96
9/5/23
4/1/97
1/3/22
6/12/95
12/11/95
12/11/95
6/30/95
6.058%
5.994%
5.984%
6.050%
6.942%
6.118%
6.836%
5.962%
6.011%
6.011%
5.931%
GOVERNMENT - GUARANTEED LOANS
GENERAL SERVICES ADMINISTRATION
Foley Services Contract
HCFA Services
HCFA Headquarters
Memphis IRS Service Cent.
Oakland Office Building
Chamblee Office Building
Miami Law Enforcement
Foley Services Contract
Foley Square Courthouse
Foley Square Office Bldg.
HCFA Headquarters
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
5/9
5/17
5/18
5/18
5/18
5/25
5/25
5/26
5/30
5/30
5/31
$103,889.00
$83,184.00
$2,726,616.00
$3,429,082.60
$472,095.00
$705.58
$705.68
$117,929.00
$1,435,217.00
$1,232,667.00
$694.58
5/16
5/17
5/25
$10,333,835.65
$205,458.00
$328,052.00
11/2/26
11/2/26
11/2/26
7.052% S/A
6.976% S/A
6.870% S/A
5/2
5/5
5/5
5/5
5/12
5/24
5/24
5/24
5/24
5/24
5/24
5/25
$2,409,000.00
$1,000,000.00
$10,315,431.82
$10,831,324.03
$8,793,000.00
$813,746.63
$27,376.52
$906,422.93
$5,691,985.33
$3,995,322.40
$23,430,029.15
$1,640,000.00
12/31/14
1/2/24
10/2/95
10/2/95
6/30/00
1/3/17
1/3/17
1/3/17
1/3/17
1/3/17
1/3/17
12/31/25
7.301%
7.184%
5.884%
5.884%
6.520%
6.833%
6.833%
6.833%
6.833%
6.833%
6.833%
6.797%
GSA/PADC
ICTC Building
ICTC Building
ICTC Building
RURAL UTILITIES SERVICE
Guam Telephone Auth. #371
Pineland Telephone #403
+San Miguel Electric #919
+San Miguel Electric #919
Citizens utilities #387
@Basin Electric #087
@Basin Electric #087
@Basin Electric #087
@Basin Electric #087
@Basin Electric #087
@Basin Electric #137
Adams Electric Coop. #354
S/A is a Semi-annual rate: Qtr. is a Quarterly rate.
@ interest rate buydown
* maturity extension or interest rate reset
+ 306C refinancing
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Page 3 of 3
FEDERAL FINANCING BANK
(in millions)
Program
Agency Debt:
Department of Transportation
Export-Import Bank
Resolution Trust Corporation
Tennessee valley Authority
U.S. Postal Service
sub-total*
Agency Assets:
FmHA-ACIF
FmHA-RDIF
FmHA-RHIF
DHHS-Health Maintenance Org.
DHHS-Medical Facilities
Rural utilities Service-CBO
Small Business Administration
sub-total*
Government-Guaranteed Loans:
DOD-Foreign Military Sales
DHUD-Community Dev. Block Grant
DHUD-Public Housing Notes
General Services Administration +
DOl-Virgin Islands
DON-Ship Lease Financing
Rural utilities Service
SBA-Small Business Investment Cos.
SBA-State/Local Development Cos.
DOT-Section 511
sUb-total*
grand-total*
*figures may not total due to rounding
+does not include capitalized interest
31. 1995
Ma~
$
0.0
3,149.8
16,518.0
3,200.0
7.614.7
30,482.5
AJ:2ril 30. 1995
$
0.0
3,149.8
17,858.0
3,200.0
7.873.1
32,080.9
Net Change
5/1/95-5/31/95
$
0.0
0.0
-1,340.0
0.0
-258.4
-1,598.4
FY '95 Net Change
10/1/94-5/31/95
$
-664.7
-776.6
-10,001.1
-200.0
-1.358.4
-13,000.8
3,453.0
3,675.0
23,631.0
10.5
28.5
4,598.9
0.7
35,397.6
4,463.0
3,675.0
23,631.0
10.5
28.5
4,598.9
0.7
36,407.7
-1,010.0
0.0
0.0
0.0
0.0
0.0
0.0
-1,010.0
-2,610.0
0.0
-760.0
-14.8
-7.2
0.0
-0.3
-3,392.4
3,612.0
95.7
1,688.5
2,220.8
21.2
1,432.1
17,3.13.1
16.8
3,629.1
95.9
1,688.5
2,208.5
21.2
1,432.1
17,299.2
19.1
480.4
11.4
26,885.4
-17.1
-0.2
0.0
12.3
0.0
0.0
-173.4
-14.2
-58.0
191. 3
-0.7
-47.4
-3.6
-39.9
-75.3
-3.6
-224.8
4t.7.7
11.0
26,858.9
=========
=========
$ 92,739.1
$ 95,374.0
13.8
-2.3
-32.7
-0.4
-26.4
========
$-2,634.8
=========
$-16,618.0
Department of the Treasury
Financial Crimes Enforceme, .e, < \~~ 0 :,j 5 310
[MJ,ITlJ
,. '
news.
2070 Chain Bndg~ Road, SUltEb?~~.,oVienoa;i,VA: 'J~~182-2536
1500 Pennsylvania Avenue, NW, Suite 3210, Treasury Annex, Washington DC 20220
FOR IMMEDIATE RELEASE
June 28, 1995
Contact: Carolyn Savage
FinCEN
(703) 905-3770
F1NCEN SETTLES STRUCTURING CASES
AGAINST BORGES & IRMAO, INC., TIENDA CALI, INC.,
AND BOBBY DAVID CONNOR
The Treasury's Financial Crimes Enforcement Network (FinCEN) announced
today the settlement of three civil penalty cases, each for violations of the anti-structuring
and currency transaction reporting provisions of the Bank Secrecy Act (BSA).
Borges & Irmao, Incorporated, a money remitter in Newark, New Jersey, has
paid a civil money penalty of $80,000. Tienda Cali, Inc., a currency exchange/check
cashier in Calexico, California, has paid a $5,000 civil money penalty, and Bobby David
Connor of Hilton Head Island, South Carolina, has paid a $600 civil money penalty.
"Structuring by individuals or fmancial institutions to circumvent the BSA
reporting requirement is illegal," said Stanley E. Morris, Director of FinCEN. "Civil
penalties such as these are the result of the government's increasing efforts to ensure that
non-bank financial institutions, individuals and banks comply with the reporting and antistructuring provisions of the BSA and its regulation."
Borges & Irmao, Inc., structured transactions and failed to file Currency
Transaction Reports (CTRs) from 1988 to 1990. The Internal Revenue Service, Newark
District, identified and reported the violations to FinCEN. FinCEN and Borges &
Irmao agreed on the penalty amount in complete settlement of the corporation's BSA
civil liability for that period.
In 1988, a co-owner of Tienda Cali, Inc. and another employee used currency in
excess of $10,000 to purchase multiple cashier's checks. The cashier's checks were
purchased from different banks, each in amounts less than $10,000. The violations
resulted in a failure to fIle a erR on an otherwise reportable transaction. FinCEN
considered Tienda Cali's cooperation in determining the amount of the penalty.
-moreRR-402
In 1988, Connor, who knew the CfR reponing requirements, attempted to
conduct a currency transaction in excess of $10,000 at a local bank. When the teller
started to complete the required CfR, Connor reduced the amount of his transaction to
less than $10,000. He returned to the bank the next day with the remainder of the
currency to complete the transaction. The bank notified the government of his actions.
The nominal amount of the penalty in Connor's case reflects mitigating factors
considered by FinCEN.
In announcing the penalties, Morris commended the IRS Newark District for its
efforts and cooperation in the Borges & Innao case. He also praised the expeditious and
highly effective manner in which the South Carolina bank reponed the transactions of
Connor and for its complete cooperation with the government during Treasury's
enforcement action. Morris concluded by noting that, "The government continues its
vigilance against individuals and financial institutions that fail to comply with the BSA."
The BSA anti-structuring provision was enacted to prevent persons from evading
the currency tra:lsaction reporting requirement. The provision prescribes penalties for
those who break down currency amounts greater than $10,000 into multiple transactions,
each less than the $10,000 reporting threshold.
The BSA requires banks and other financial institutions to keep certain records, to
file CTRs with Treasury on cash transactions in excess of $10,000 and, under certain
circumstances, to file repons on the international transportation of currency, travelers
checks and other monetary instruments in bearer form. The purpose of these reports and
records is to assist the government in combating money laundering as well as for use in
civil, criminal, tax and regulatory investigations. The Act also now permits Treasury to
require institutions to implement anti-money laundering programs and compliance
procedures and report to the government potentially suspicious transactions. The
authority of the Secretary of the Treasury to administer the BSA is delegated to the
Director of FinCEN.
During the past two years, Treasury has assessed over 30 BSA civil money
penalties against banks, currency exchanges, a credit union, casinos, check cashers, funds
remitters, and individuals, totalling over $5.3 million.
####
NEWS
'IREASUR¥·
OFFICE OF PUBUCAFFAIRS
.11)Qlf~~~~~~~~!~~N,¥E,
N.W.· WASHINGTON, D.C.. 20220. (202) 622·2960
FOR IMMEDIATE RELEASE
June 29, 1995
STATEMENT BY TREASURY DEPUTY SECRETARY FRANK NEWMAN
We take seriously the concerns of any member of Congress and have been responsive
through testimony, correspondence and in making documents available to answer specific
members questions on the Mexican situation. The Mexico program is beginning to work,
the reforms are having their desired effect on Mexico's economy and. as a result, American
interests, American jobs and America s border are being protected.
I
I
As to the charges about the Administration s policy toward Mexico before 1995, each
of these issues was raised and laid to rest not only by the comments of Secretary Rubin and
Under Secretary Summers, but by the Chairman of the Federal Reserve in testimony before
the Senate Banking Committee.
I
Evidence that the program is working is contained ill the reports on Mexico Secretary
Rubin has sent to Congress today.
-30-
RR-403
For press releases, speeches, public schedules and official biographies, call our 24·/zour fax line at (202) 622·2040
NEWS
OFFICE OF PUBUC
N.W.• WASHINGTON, D.C .• 20220 • (202) 622-2960
n' '-'
IJ --- j
r
r_
! . ,. ..
l"• i C'-
-,'
..-- ..
I. d' : ....
iJ r. y
FOR IMMEDIATE RELEASE
June 29, 1995
Contact: Michelle Smith
(202) 622-2960
RUBIN REPORTS SIGNIFICANT MEXICAN ECONOMIC PROGRESS
Treasury Secretary Robert E. Rubin in two reports to Congress on Thursday said
Mexico's rigorous adjustment program is being implemented faithfully and appears to be
working.
.
"Mexico's economic reform efforts have borne fruit," Secretary Rubin said. "Its
budget is in surplus, reserves are up, and the stock of outstanding short-term debt has been
cut by two-thirds since the beginning of the year. Our program to protect America's
interests in jobs, exports and a secure border by helping Mexico address its financial
problems shows signs of working and that is good news on both sides of the U.S.-Mexico
border.
"Mexico continues to meet its commitments under the stabilization program, including
tight monetary and fiscal policies and important regulatory and legislative reforms that will
promote privatization and foreign direct investment," Secretary Rubin said.
The reports note that the Bank of Mexico has increased the amount and frequency of
information it releases to the market. Each week it releases its balance sheet, which includes
information on the stock of international reserves, the money supply and credit to financial
intermediaries. And each day it releases the monetary base as well as its planned operations
to change the monetary base for that day.
"Financial markets are responding positively to Mexico's adjustment program,"
Secretary Rubin said. "Fears of Mexican sovereign default and of the contagion effects on
other developing economies have abated.
"As the liquidity crisis subsides, the Zedillo Administration has begun to focus
attention on long-term strategies to ensure that Mexico can sustain a higher level of economic
growth and that its workforce will be competitive," Secretary Rubin said.
(MORE)
RR-404
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
_'1_
President Clinton, with the support of the bipartisan Congressional leadership,
authorized the use of the Exchange Stabilization Fund in order to prevent a prolonged
financial crisis in Mexico which would have threatened American jobs, exports, security and
our common border.
Outstanding U.S. support for Mexico is $10 billion. Treasury reaffirmed that an
additional $10 billion remains available to Mexico after July 1, if needed, and in stages based
on Mexico's continued compliance with the February 21 framework agreements.
Treasury submitted its second monthly report along with the first semi-annual report
on behalf of the President to Congress regarding the U.S. Government's financial assistance
program as required by Sections 40J and 404 of the Mexican Debt Disclosure Act of 1995.
The two Treasury reports provide an account of the current condition of the Mexican
economy, all outstanding disbursements of U. S. funds to Mexico, financial transactions
involving funds from the ESF and from the Federal Reserve System. the status of the oil
facility and compensation for credit risk to the U.S. Government.
-30-
Month'lyReport
by the ~; ~J
Secretary of the Treasury
Pursuant to the
Mexican Debt Disclosure Act
of 1995
•
June 30, 1995
Treasury S'ecreltJlY 's .Hol/thly Report to ('o/lgress
June 1995
Contents
I.
Summary
II.
Current Condition of the Mexican Economy
a.
b.
c.
d.
e.
f.
g.
III.
page
1
3
Fiscal Policy
Monetary Policy
Mexico's Reserve Position
Economic Adjustment: Mexico's Real Economy
Financial Market Trends
Developments in the Banking Sector
Mexico's Social Safety Net and Long-term Development Strategies
Disbursements, Swaps, Guarantees
and Compensation to the U.S. Treasury
25
IV.
Mexico's Financial Transactions
28
V.
Status of the Oil Facility
28
Appendix
Tab:
Graphs of Key Trends in Mexico's Economy and in Financial Markets
a.
b.
c,
d.
e.
f.
g.
h.
I.
J.
k.
I.
Mexico's Real Monetary Base and International Reserves
Mexico's Trade Balance
Economic Output (GDP)
Consumer Prices and Retail Sales
Outstanding Tesobono Balance and Weekly Amortizations
Peso and Dollar Redemptions ofTesobonos
Peso-Dollar Spot Exchange Rate (nominal)
Peso Volatility
Mexico's Stock Market: Peso and Dollar Indices
Interest Rates: Benchmark Cetes and Bank Paper
Mexican Par Brady Bonds, Stripped Yields and Spreads
Latin American Brady Bond Market
Treasury Secretary's ,Homilly Report to Congress
June 1995
I. Summary
Mexico ~ontinues t~ ~eet its commitments under the financial agreements signed by U.S.
a.nd MeXlca~ authontles on February 21, 1995. The Mexican Government has adopted a
ngorous adjustment program to put its economy back on the path to sustained economic
growth. There are already signs that the program is working.
Mexico's. stabilization program includes strict control over money and credit, tightened
fiscal polIcy, and the reconfiguration of its debt portfolio, to move from short-term to
longer-term maturities. Moreover, the Mexican Government is moving forward with key
regulatory and legislative reforms that will promote privatization of and foreign direct
investment in Mexico's infrastructure,
The crisis that emerged at the end of 1994 meant that, even with the strong adjustment
package and u.s. and llv1F liquidity support to help manage the large amount of short-term
debt coming due, Mexico was faced with a dramatic reduction in the supply of foreign
capital. Inevitably, then, Mexico had to reduce its need for foreign capital inflows, as
measured by the current account deficit, which shrank from $6.7 billion in the first quarter
of 1994 to $l.2 billion in the first quarter of 1995. Both real depreciation of the peso and
contraction of domestic demand were factors behind this adjustment.
Mexico's economic policy package was designed to allow this inevitably difficult
adjustment to take place as efficiently as possible. Tight fiscal policy has reduced domestic
demand. Mexico's budget surplus for the first quarter of 1995 was substantially higher than
its first quarter 1994 level, and larger than the authorities had expected. The fiscal surplus
also reduced the pressure that the restrictive monetary policy places on the private sector:
by freeing up resources for private investment, it permits a more rapid increase in exports
and a faster return to growth.
The Mexican Government's strict monetary policy has been designed to stabilize the peso
and to contain inflation. Inflation seems to have moderated since April, and interest rates
have declined, as investor fears about inflation have calmed. The peso has stabilized and
appreciated in both real and nominal terms. FinaJly, privatization and structural reforms are
designed to improve productivity and to attract foreign investment. This will speed
Mexico's return to economic growth and elevate Mexico's sustainable path once growth
has resumed.
Mexico has accumulated external reserves while amortizing or extending the maturity of
substantial amounts of short-term foreign debt. U.S. and other international financial
support has allowed Mexico to cut its stock of outstanding sh?rt-term, dollar-indexed de?t
(Tesobonos) by $19 billion since the beginning of 1995, reducmg the amount of outstandmg
Tesobonos to roughly $10 billion from $29.2 billion. Importantly, n~t repayme~ts by t~e
banking system to the bank insurance fund, FOBAPROA, as weJl as reInvestment In MeXlco
by Tesobono holders have also contributed to this outcome.
J
Treasury Secrc«]ry 's ,\iulI(hly Rcpur//u CUligress
June 1995
Although it is too early to make definitive judgements, recent indicators suggest that financial
markets are responding positively to Mexico's adjustment program, and that confidence in
Mexico's economic outlook is returning. Activity in wider Latin American Brady bond
markets suggests that fears of both Mexican sovereign default and the contagion effects on
other developing economies have abated.
While these signs of stabilization give cause for cautious optimism, Mexico's economy
remains severely strained. For example, Mexico's banking sector, weak going into the crisis,
continues to be adversely affected by current economic conditions, as loan portfolios have
worsened and dollar liquidity has been squeezed. Many Mexican banks' dollar liabilities are
not being renewed, while their dollar borrowers are themselves hard-pressed to meet their
loan obligations.
The Mexican authorities have responded with a number of initiatives to: (I) mitigate the
immediate impact of the peso crisis on the banking system; (2) restructure the legal,
regulatory and supervisory environment; and (3) encourage an inflow of new capital into the
banking system, particularly from foreign investors.
Financial sector loans from the World Bank and the Inter-American Development Bank (IDB)
will support the Mexican Government's efforts. Specifically, the loans will help: (i) restore
solvency and soundness to Mexico's banking system; (ii) reform accounting standards and
prudential regulations for the banks; (iii) improve the efficiency of the Bank of Mexico's
operations; and (iv) reform development bank lending.
Mindful of the devastating impact that the recession will have on Mexico's poorest citizens,
the Mexican Government has taken steps to secure a social safety net. One billion dollars in
social sector loans from the World Bank and the IDB will complement financial assistance
from the U. S. and the IMF and help protect essential social services from future budget cuts
under Mexico's austerity program.
The Zedillo Administration has begun to focus attention on long-term strategies to ensure
that Mexico can sustain a higher level of economic growth and that its workforce will be
competitive in the twenty-first century. The Zedillo Administration's National Development
Plan charts the course for both increased domestic savings and political reform in the longrun.
Mexico's obligations under the February 21 agreements are backed by the full faith and credit
of the Mexican Government. Interest rates on currency swaps are sufficient to cover the
risks that the United States is likely to bear. In the unlikely event that Mexico fails to meet its
obligations, the U. S. Government has the right to set off Mexico's obligati~ns against the
proceeds from its crude oil, petrochemical and refined product exports, which flow through a
special account at the Federal Reserve Bank of New York. T.he oil proceed,S ~echanism
continues to function smoothly, As ofJune 23, 1995, approximately $2.5 billIon has flowed
through the special account since March 8, 1995.
2
Treasury Secretary's Afonthly Report /0 Congress
June 1995
II. Current Condition of the Mexican Economy
a. Fiscal Policy
Mexico's budget surplus is higher titan last year, due to increased oil prices and
spending cuts
The Mexican non-financial public sector budget, which the IMF and private sector analysts
track, reflects three components: (1) the Federal Government, (2) state-owned enterprises
controlled by the Federal Government, such as Petroleos Mexicanos (PEtvfEX) and
Commisi6n Federal de Electricidad (CFE), and (3) state-owned enterprises under indirect
control of the Federal Government, including Federal universities and hospitals. State and
local government finances are not included. Total public sector revenues increased in real
terms during the first quarter of 1995 compared to the first quarter of 1994, primarily
because PEIv1EX revenues, and Federal taxes paid by PEMEX, increased significantly.
•
While non-oil revenues declined by 8.5% in real terms during this period, PEMEX
revenues and Federal taxes, which account for 34% of public sector revenues,
increased by 35% in real terms (see Table 1).1
•
This real increase in oil revenues can be attributed to the 42% increase in the dollar
price of oil between the first quarters of 1994 and 1995, and the peso's depreciation
from NP 3 .16/uSD to NP 5.97/USD over the same period, which further increased the
peso price of oil.
Most other sources of revenue declined in real terms between 12% to 29% compared to
the previous year due to the weak economy and the devaluation of the peso (see Table 2).
•
For example, corporate taxes fell, as the higher peso cost of servicing dollardenominated debt reduced corporate profits.
•
VAT and tariff revenues also fell as both consumption and imports declined.
Unless noted, comparisons between Q1 1994 and Q1 1995 are deflated by the 15% increase in consumer
pnces.
3
Treasury Secretary's Monthly Report 10 Congress
June 1995
TABLE
1: Public Sector Revenues
NP millions
Ql
199~
Ql 1995
Real Change (I)
PEMEX revenues & Federal taxes paid
19506
30227
34.7%
Non-petrolewn revenues
55823
58759
-8.5%
(1) Detlated for the 15% increases in conswner prices between the first quarters of 1994 and 1995.
Real public sector spending, excluding interest payments, fell by 12% compared to the
previous year. This expenditure reduction permitted total real public sector spending to
decline by 5%, despite a 44% increase in real interest expenses. Owing to both the
increase in interest rates and the depreciation of the peso, real interest payments by the
Federal Government on external debt increased 78% compared to a year earlier (see Table
2). The Government of Mexico's primary strategy to limit spending has focused on two
areas:
•
Limit salaries and benefits by imposing a hiringjreeze and delaying wage increases:
Scheduled first quarter wage increases for public sector employees were postponed
until April, but then were paid retroactively. As a result, public sector spending on
salaries and benefits was 5% below 1994 levels in real terms. (Here, comparisons
between 1994 and 1995 do not include spending by enterprises under indirect control,
because the Mexico City budget was included in this category in 1994 but not in
1995. )
The real public sector wage bill will likely drop further, as wage increases negotiated
to date have been less than expected inflation. Most noteworthy is the agreement
reached with teachers and other government employees in May to increase wages by
12% and benefits by 8%, effective in June. These terms will allow the Mexican
Government to keep budgetary cost increases well below the projected 42% cpr hike
between December 1994 and December 1995.
•
Cut investment 5pending by postponing new projects and slowing outlays jor projects
already underway: While the Government of Mexico increased investment in those
state enterprises that generate revenue and earn foreign exchange (for example,
PEMEX), other public works projects have been slashed. Spending on investment
funded by the Federal Government fell 72% from 1994 levels.
4
Treasury Secretary's Afollthly Report to C ollgress
June 1995
TABLE 2: Mexico's Federal Government Budget
Ql (NP millions)
1994
1995
Real Change(l)
52895
55714
-8.4%
Income tax
18251
18581
-11.5%
Value added tax
10055
9955
-13.9%
Excise taxes
6703
6208
-19.5%
Import duties
2819
2742
-15.4%
Other
2722
2999
-4.2%
Oil
6513
10403
38.9%
Other
1449
1222
-26.7%
Other (e.g., privatization)
4383
3604
-28.5%
50794
52177
-10.7%
28522
27066
-17.5%
Operating Expenditures
8883
9041
-11.5%
Salaries
6508
6891
-7.9%
Other
2375
2150
-21.3%
Public Investment
2523
813
-72.0%
Transfers
17116
17212
-12.6%
Education
6742
7491
-3.4%
Other
10374
9721
-185%
22272
25111
-2.0%
3963
2602
-42.9%
Revenue Sharing
9918
11137
-2.4%
Interest Payments
8391
11372
17.8%
Internal
4528
3448
-33.8%
External
3863
7924
78.4%
3017
852
-75.4%
Revenues
Taxes
Non-Tax Income
Fees
Expenditures
Discretionary
Non-Discretionary
Outlays from past years'
obligations
Errors and Omissions
5
Treasury SecretQlY's Monthly Report to Congress
June 1995
TABLE 3:
State-Owned Enterprises
First Quarter (NP Millions)
199-1
1995
811
6195
-285
2947
Revenues
5857
12676
88.2%
Expenditures
6142
9729
37.7%
Interest
935
3599
234.7%
5207
6130
2.4%
-357
1271
Revenues
4127
5862
23.5%
Expenditures
4484
4591
-11.0%
Interest
207
823
245.7%
4277
3768
-23.4%
-1975
-720
11440
15639
1.2%
15
76
340.6%
15400
16283
-8.1%
Subsidies from the Federal Government
3428
2697
-31.6%
Under Indirect Control ofOOM, Balance (2)
4450
109
Under Direct Control of the GOM. Balance
PE~X,
Balance
Non-interest
CFE, Balance
Non-interest
Other Enterprises, Balance
Revenues
Real Change (1)
Expenditures
Interest
Non-interest
(\) Deflated for the 15% increases in consumer prices between the first quarters of 1994 and 1995.
(2) Mexico City budget included in 1994 but excluded in 1995.
6
Treasury Secretwy 's Afonthly Report tu Cungress
June 1995
As a result, Me.xico's budget surplus increased compared to its 1994 level
Due to the boost from oil revenues and the cut in non-interest spending, the overall
non-financial public sector surplus was NP 9.0 billion for the first quarter (roughly 2.7% of
GOP) compared to last year's surplus ofNP4.3 billion (1.5% of GOP).
•
In the first quarter of 1995, Mexico ran a primary surplus (the surplus net of interest
payments) ofNP 25.7 billion or roughly 7.6% of GOP, significantly larger than last
year's surplus ofNP 11.4 billion or 3.8% of GOP (see Table 4).
TABLE
4: Public Sector Balances
NP millions
QI 1994
QI 1995
Federal Budget Balance
-916
2685
% of GOP (I)
-0.3%
0.8%
7475
14057
2.5%
4.2%
4345
8989
1.5%
2.7%
11371
25692
3.8%
7.6%
Primary Balance
% of GOP
Public Sector Non-financial Balance
% of GOP
Public Sector Primary Balance
% of GOP
(1) 1995 nominal GOP was estimated by adjusting the reported 0.6% decline in real GOP between the flrst
quarters of 1994 and 1995 by the 15% increase in consumer prices during this period. This is likely to differ
from estimates of nominal
GDP
using the
GDP
deflator. which has not yet been reported.
7
rreasUfY SecretGlY's Jfollthly Report to ('ollgress
June 1995
However, surpluses may fall in the remaining lJuarters of 1995
Mexico's budget surplus may fall in future quarters compared to the first quarter of 1995
and the increase in the surplus compared to last year may be less dramatic, for several '
reasons:
• The recession is likely to worsen after the first quarter. This will tend to decrease
revenues and may cause increases in some social expenditures.
• As noted, the public sector wage bill was held down because the scheduled pay
increase for public sector employees was postponed until April and then paid
retroactively. This will boost second quarter spending. Moreover, public sector
employees receive large Christmas bonuses.
• The fiscal boost from higher peso oil revenues is likely to decline in subsequent
quarters. World oil prices increased during much of 1994 and the first half of 1995.
Most analysts expect, however, that they will remain steady during the rest of this
year. Thus, while the increase in oil prices between the first quarters of 1994 and 1995
was 42%, the increase between the second quarters of 1994 and 1995 is likely to be
only 20 to 25%.
•
Similarly, while the peso weakened against the dollar by 47% (from NP 3.16/uso to NP
5.97/uso) between the first quarters of 1994 and 1995, the decline is likely to be
closer to 45% for the second quarters, based on average depreciation in April-May
and early June, 1995 (from NP 3 .3/uso to about NP 6.0/uso), compared to the same
period in 1994. Thus, on a year-over-year basis, PENiEX revenues are likely to yield
less of a fiscal impact after the first quarter.
Mexico took measures in March and April to strengthen its fiscal position
As it became clear in March that the economic forecast for 1995 on which the budget had
been based was too optimistic, the Mexican Government took decisive measures to
strengthen Mexico's fiscal position.
• The government increased the VAT rate from 10% to 15%, effective April 1.
8
TreasUlY Secretmy 's .\Jonth~v }<,i!port to COlIgri!SS
June 1995
•
Planned 10% annual increases in public sector prices of oil and electricity were revised
upward to 49% and 32%, respectively.
• Real discretionary public sector spending already budgeted to fall by 4% was cut by an
additional 2%.
If necessary, Mexico can tighten fiscal policy further
The Mexican Government has several tools at its disposal to further tighten fiscal policy, if
necessary.
• The Mexican Government believes that, if necessary, it could quickly raise revenues by
increasing the price of publicly provided goods and services, particularly gasoline and
electricity. As noted above, PENfEX revenues and tax payments account for 34%, and
CFE revenues represent 7%, of total public sector revenues.
• Mexican budget officials have considerable authority to reduce spending. While the
budget law passed by the Mexican Congress sets annual ceilings for budget authority,
Finance Ministry officials may require that agencies spend less than their annual
authorized level.
• However, the Mexican Government's power to rescind capital expenditures is
constrained as the year progresses by the cost of cancelling contracts that have been
signed. Ministries can, nonetheless, delay investment spending even after it is
contracted, since outlays for obligations made in one year may occur as late as six
months into the next.
•
Similarly, because the Mexican Government is required to make severance payments,
laying-off public sector employees offers little room to reduce expenditures in the
short term.
9
Treasury SecrelGlY 's Afonlh~v Reporllo Congress
June 1995
Prospects for attaining annual fiscal surplus targets are favorable
In March, Mexico established targets of an overall annual budget surplus of O. 5% of GDP
and a primary surplus of 4.4% of GDP. Uncertainties remain regarding the state of fiscal
policy. The depth of the reces~on, and hence future revenues, are difficult to predict.
The economic downturn will test the ability of the Mexican Government to continue with
severe compression of expenditures. Nonetheless, given continued strong policy
perfonnance, Mexico is on track to attain its fiscal goals for the year.
•
Mexican authorities anticipate that the measures taken in March to increase revenues
and further decrease expenditures, combined with the favorable public sector wage
settlements obtained in April, will counteract the effect of the steeper-than-expected
recession and allow attainment of the target for the primary surplus. Most of the
above-mentioned factors that will tend to reduce the annual fiscal surplus compared to
the first quarter were taken into account in the formulation of the budget plan. Finally,
officials stand ready to implement new fiscal measures as necessary to attain the
planned surplus.
II. h. Monetary Policy
Mexico has made substantial progress in solidifYing the independence of the Bank of
Mexico, strengthening the peso, and conducting a tight monetary policy. Since the
beginning of 1995, the Bank of Mexico has conducted a monetary policy designed to:
(1) stabilize the value of the peso; (2) halt capital outflows and eventually restore inflows;
and (3) reduce inflation, eventually to single digit rates.
The path has not been easy, but Mexico has made substantial progress in its execution of
this strategy. Monetary policy has been tight, and, in combination with other Mexican
economic policy measures and the external support package, this has resulted in a
strengthened and stabilized peso, a sharp decline in inflation, and an accumulation of
reserves.
The growth of net domestic credit has been strictly limited. The Bank of Mexico
announced a limit of net domestic credit growth (defined as the money base less
international reserves) ofNP 10 billion for the entire year. In fact, net domestic credit has
fallen by NP 42 billion since the beginning of the year.
10
TreasU/y Secretmy's MOllthly Report to C ollgress
JUlie 1995
• While many factors influence net domestic credit, it is important to emphasize that
there has be~n no increase in peso credit to financial intermediaries, including lending
to commercial banks, development banks, and the trust fund (FOBAPROA) charged with
insuring banking system liabilities.
• Thus, despite inflation of 29% in the first five months of the year, total peso credit to
financial intermediaries fell slightly over the same period, for a real decline of 22%.
• The contraction of real credit has combined with high interest rates, the fall in output,
and pre-existing structural weaknesses to place great strains on the banking system.
Still, the above data show that measures taken to date to extend credit to the banking
system, including banks that have been intervened by the regulatory authorities, have
not caused an increase in total credit to the banking system.
• The Bank of Mexico has made plain that it will continue to ensure that any measures
taken to address banking problems do not weaken its monetary policy stance.
Partly as a result of this tight credit policy, the money supply has been strictly controlled.
•
The money supply (monetary base) fell by 17% between December 31, 1994 and
June 16, 1995. The real money supply fell by 34% between December 31, 1994 and
May 31, 1995. While part of this decline is due to seasonal factors, the real money
supply at the end of May was 23% lower than at the end of May 1994.
Interest rates have been allowed to increase as high as necessary to complement this tight
control over credit and the money supply.
•
During early March, when confidence was at a low point, inflation expectations were
high and capital outflow was strong. Effective annual interest rates on government
securities were allowed to increase as high as 82%.
• With some return of confidence, inflation has subsided and nominal interest rates have
declined, with the rate in recent auctions of government securities down to below
50%. Real rates (nominal interest rates adjusted for the rate of inflation) have
remained high or even increased. The real interest rate in May, defined as the yield on
one-month government securities after adjusting for actual inflation in May, was 20%
on an annualized basis.
11
Treasury Secretmy 's Monthly Report to Congress
June 1995
Institutional reforms willlrelp ensure tlte independence and efficiency of monetary
policy
The Bank of Mexico has made a number of institutional changes to enhance its
independence, improve its control over monetary policy, and strengthen its monetary
policy stance.
• It has established zero monthly average reserve requirements on commercial banks.
Through this mechanism, the Bank of Mexico can immediately tighten monetary
conditions, as necessary. This mechanism induces market-determined interest rate
hikes, rather than requiring the Bank of Mexico to force up interest rates directly, as
before.
• The Bank of Mexico is limiting the growth of the money supply to rates consistent
with its annual inflation target of 42%. If demand for bills and coins (the monetary
base) grows faster, the Bank contracts liquidity rather than satisfYing extra demand.
• The procedure by which the Bank of Mexico intervenes in the money market to
control the money supply has been made more market-oriented. Previously, the Bank
announced a rate prior to each auction. Now, the interest rate is freely determined in
the secondary market.
• The payments system has been reformed to increase the efficiency of monetary policy
and lessen the risks that the Bank of Mexico has to bear in its role of overseeing the
interbank payments mechanism.
• Perhaps most important, the Bank of Mexico has increased the amount and frequency
of information it releases to the market. For example, it releases its balance sheet
weekly. This includes information on the stock of international reserves, the money
supply, and credit to financial intermediaries. Each day it releases information about
the monetary base as well as its planned operations for that day to change the
monetary base.
12
Treasury Secrelmy 's ,\folllh~v R<!porllO Congress
June 1995
II. c. Reserve Position
Of cour~e, monetary policy has been only one component of the stabilization program that
was designed to restore confidence. But in combination with a tight fiscal policy,
struc~ural reforms, a~d the international assistance package, the tight monetary policy has
contnbuted to a partial reversal of capital outflows and a buildup of international reserves.
~eserv~s have ri,sen $4.2 billion this year, to $10.3 billion on June 16, including
mternatlOnal assistance and notwithstanding heavy amortizations of foreign debt during
this period.
TABLE
01194
02194
03/94
04/94
05/94
06/94
07/94
08/94
09/94
26.8
29.6
26.1
17.9
17.7
16.7
17.0
17.3
16.6
10/94
18.0
I
5: Mexico's International Reserves ($US billions)l
11/94
12/94
01/95
02/95
03/95
04/95
\3.1
6.1
35
90
6.9
87
05/95
lOA
06/95
10.3
All data are as of the last day of the month, except for 6/95, which refers to June 16.
II. d. Economic Adjustment
Mexico is enduring a year of difficult economic adjustment. Nonetheless, the economy is
already exhibiting signs that the program is working. The crisis that emerged at the end of
1994 meant that, even with the strong adjustment package and U.S. and Hv1F liquidity
support to help manage the large amount of short-term debt coming due, Mexico was
faced with a dramatic reduction in the supply of foreign capital. Inevitably, then, Mexico
had to reduce its need for foreign capital inflows, as measured by the current account
deficit, which shrank from $6.7 billion in the first quarter of 1994 to $1.2 billion in the first
quarter of 1995. This was a sharp improvement from late 1994. Both the real
depreciation ofthe peso and the contraction of domestic demand were factors behind this
adjustment.
The near elimination of the current account deficit has been largely due to a strong
reversal in the trade balance from deficit to surplus. Thus, while the overall economy is in
sharp recession, the traded goods sectors, primarily manufacturing, have performed
relatively well. Sectors that depend on domestic demand alone, such as construction, have
fared much more poorly. With the successful implementation of strict financial policies,
there are indications that inflation is receding.
13
Treasury S'ecrl!ll1lY 's ,\!al/llily Rl!por'
June 1995
'0 COl/grl!ss
Q1 1995 results confirm Me.xico's progress on the current account balance
The economy's external position has improved substantially, due to strong export
performance and restrained imports.
• Mexico achieved a trade surplus of $1. 9 billion in the first five months of 1995 (based
on preliminary figures for May) compared to a deficit of$7.2 billion during the same
period in 1994. Mexico ran a $588 million trade surplus in May, its fourth consecutive
monthly surplus of the year.
•
As a consequence of the recession and the sharp drop in the value of the peso from
last year's levels, Mexico's imports have declined in 1995. Imports fell 18% in April
and 8% in May compared to the same period of the previous year.
•
Most dramatically, the fall in consumption in Mexico and the increase in the peso cost
of imports have led to a 33% fall in imports of consumer and capital goods in the first
four months of the year compared to the same period in 1994. By contrast, imports of
intermediate goods have increased by 7% because of strong demand by the booming
export sector.
•
At the same time, Mexico's export growth has been remarkably strong. Exports in the
first quarter were 26% above their levels in the same period of the previous year, while
in May they were 30% higher. Exports rose 13% in May compared to April but have
been relatively steady on a seasonally adjusted basis.
• Export growth has been driven by extraction industries (including oil) and by
manufacturing (including the maquiladora sector, which imports components and
assembles products for export). Producers have in many cases quickly shifted
production to export markets in the face of attractive peso prices and weak domestic
demand.
• Mexico ran a current account deficit of $1.2 billion during the first quarter, compared
to deficits of $6.7 billion and $7.3 billion for the first and fourth quarters of 1994 (see
Table 6). A large turnaround in merchandise trade and a more modest reversal in nonfactor services trade more than offset a larger deficit in factor payments, due to higher
interest payments.
14
Treaswy Secrelwy 's ,\fa II tidy Report to
June 1995
TABLE
('ullgress
6: Mexico's Current Account
($ Millions)
QI 199'"
Q'" 199'"
Q 1 1995
Merchandise Trade
Exports
13776
16974
18731
Imports
18073
21796
18191
Balance
-4297
-4822
540
Factor Services, Balance
-30 IS
-2737
-3052
-246
-660
421
866
902
882
-7317
-1209
Non-Factor Services, Balance
Transfers, Balance
CWTent Account Balance
-6695
CWTent Account Balance, as %GDP
-7.3%
-7.7%
-2.1%
Mexico's economy is in recession as the adjustment takes hold
The rapid response of the tradeable goods sector allowed for first quarter declines in GDP
and industrial production that were lower than expected, given the need to turn around the
trade balance.
•
Real GDP fell 0.6% in the first quarter of 1995 compared to the same period in 1994.
While this represents a sharp decline from a growth rate of 3 .5% in 1994, this drop
was more modest than the government projected, reflecting buoyant export
performance partially offsetting weaker domestic demand. However, economic
activity is clearly down. First quarter GDP growth in 1995 probably understates the
trend because GDP growth during the first quarter of 1994 was also weak.
•
Industrial production, which includes manufacturing and construction, feB by 0.7% in
the first quarter of 1995 compared to the same period in 1994. After adjustment for
seasonal factors, month-over-month industrial activity fell markedly in February and
March, resulting in a 3.1 % decline for the quarter as a whole compared to the fourth
quarter of 1994.
15
Treasury Secrel'lIY 's Afonthly Reporl 10
('ullgress
June 1995
•
The pattern of the economy's reaction reflects the rapid external adjustment that has
taken place. The strong export response corresponds to a shift in resources from the
non-tradeable goods sector. Thus, it is not surprising that areas sensitive to export
demand performed relatively well. Agriculture and manufacturing, for example,
actually grew respectively in the first quarter by 2% and 4% compared to the Q 1 1994.
Output rose in utilities, paper products, chemical, oil, and basic metals on strong
export demand.
• In contrast, sectors particularly sensitive to domestic demand, such as retailing and
construction, have contracted. Construction activity fell by 7.3% in the Q1 from the
previous year. Domestic sales of automobiles plunged 68% in the first five months of
1995 compared to same period in the previous year. Overall retail sales dropped 20%
on a year-over-year basis in March and 23% in February, following a decline of only
3% in January.
• GDP is likely to fall further this year, before economic growth resumes. Analysts
estimate GDPcould decline by between 1.5% and 4.8% in 1995 (with the private sector
consensus being around 3.3%), before economic growth resumes late in 1995 or early
in 1996.
The process of economic adjustment has weakened labor markets.
•
The official unemployment rate, which only covers urban workers in the formal sector,
rose to 6.3% in April compared to 3.2% at the end of 1994. Although this rate
understates unemployment compared to U.S. measurement, it closely tracks economic
activity. The rapid rise of unemployment indicates the slowing of the economy.
Employment in the manufacturing sector was also much lower than in the same period
of the previous year, falling by 6.1 % from March 1994 to March 1995 after declining
by 4.7% and 3.2% during the 12-month periods ending in January and February 1995.
•
Real wages in the manufacturing sector, among the strongest in the economy, were
lower than they had been a year earlier, registering a sharp decline of7.7% in March
after edging up 0.2% on a year-over-year basis in February.
•
Following a burst in the first four months of the year, inflation seems to be moderating.
The peso's depreciation in December and the first three months of the year suddenly
raised the price of imported goods. Increases in public sector prices and the valueadded tax rate in March and April further boosted inflation.
16
Treasury Secretary's Monthly Report to Congress
June 1995
• Inflationary pressure appears to be moderating as consumer prices in May rose only
about half of the 8% rate reported in April, and by 1. 65% for the first two weeks of
June. It appears to be heading down toward about a 2% average monthly rate for the
rest of the year.
•
The effects of the devaluation and public price and tax increases seem to have largely
passed through the economy, while tight monetary policy and the fiscal surplus are
limiting domestic demand and thus pressure on non-tradeable goods prices. There
appears to be little prospect of wage-led inflation, as wage behavior has so far
remained remarkably restrained, with recent wage settlements entailing increases far
below inflation.
n.
e. Financial Market Trends
Although it is still too early to make definitive judgments, recent indicators suggest that
financial markets are responding positively to the adjustment program and that confidence
in Mexico's outlook is returning.
•
For example, as of June 22, the peso has appreciated more than 21 % since its
low on March 9, 1995, and has traded within a range ofNP 6.0 to 6.3 over the
past few weeks. In addition, the volatility of the peso has decreased
dramatically, indicating less uncertainty in the market.
•
As of June 22, Mexico's stock market had risen 41 % in peso terms, and 36% in
dollar terms, since its low on February 27, 1995.
Interest rates have steadily declined in recent weeks as investor expectations about
inflation and the risk of government default have eased.
•
Mexico's benchmark 28-day Treasury bill (CETES) rate has decreased from a high
of 83% in late March to 44.25% in the June 20 auction.
•
Improvements in the assessment of Mexican risk are also evident in t~e market
for Mexico's dollar-indexed Treasury bills (Tesobonos). Tesobono YIelds have
dipped to I I % after reaching highs above 30%. Moreover, man~ investors are
redeeming their Tesobonos for pesos rather than dollars, suggestIng that they
feel more confident holding peso-denominated assets.
17
Treasury Secretary's Monthly Report to Congress
June 1995
The market for U.S.-backed Brady bonds also reflects a return of confidence in Mexico as
well as other emerging markets.
'
•
The price of the benchmark Mexican Par Brady bond has staged a sustained
recovery, rebounding to within 8% of its pre-devaluation level as of June 22.
With the U.S. backing stripped out to better gauge Mexican sovereign risk, the
Par has rallied nearly 60% since its low on March 16, 1995.
•
The wider Latin American Brady bond market has reacted favorably to
developments in Mexico. The spreads over U.S. Treasuries on the stripped
portion of Brady bonds in Argentina and Brazil fell along with that of the
Mexican Par, suggesting that the crisis of confidence which Mexico's situation
created in other emerging markets has subsided.
ll. f. Developments in the Banking Sector
Mexico's banking system remains severely strained
The financial condition of the Mexican banking system has deteriorated significantly, as
many borrowers are unable to repay their loans due to current economic conditions and
high interest rates.
•
Non-performing loans increased from 7.4% of total loans at the end of December
1994, to 9.6% on March 31, 1995, and 10.1 % on May 3 I.
•
The capital-asset ratio also continued to decline, to 5.1% on March 31, 1995,
compared to 5.3% as of year-end 1994, though the March level improved to 5.8% if
subordinated debt issued as part of the government's temporary capitalization program
(PROCAPTE) is included.
18
Treasury Secretmy 's Afolllhly Report [0 Congress
June 1995
National Banking and Securities Commission has improved banking supervision
The N~tional Banking and Securities Commission (NBSC), the banking system's
super:l.s?ry body, has taken a number of significant steps to improve its supervisory
capabilities.
•
In April, 1994, the NBSC underwent reorganization and initiated an institutional
development plan. In addition, the hiring focus for supervisory staff shifted from
accountants to a diversified base of college graduates.
• The focus of its approach has changed to emphasize risk management, internal
controls, disclosure and consolidated supervision. Also, with World Bank assistance,
the NBSC is upgrading its capabilities in licensing, regulatory and supervisory policy
development, on-site supervision, off-site analysis, regulatory reporting and
accounting principles, and internal budgeting and information systems.
• Mexico's current crisis has stretched the NBSC's capacity. The World Bank and
numerous private sources, including U.S. commercial banks, have provided the NBSC
with foreign technical assistance in the area of on-site examinations to evaluate the
quality of the banks' loan portfolios and to determine adequate reserve levels. Bank
examiners from the FDIC, the Office of the Comptroller of the Currency, and the U.S.
Federal Reserve are also providing training to Mexican bank examiners.
The Mexican Government has responded with important initiatives
The primary effects of the crisis on the banking system have been a deteriorating loan
portfolio and a dollar liquidity squeeze, because many of the banks' dollar liabilities are
not being renewed. The Mexican authorities have responded with a number of initiatives
to (1) mitigate the impact of the peso crisis on the banking system (FOBAPROA lending,
PROCAPTE, UDI program); (2) restructure the legal, regulatory and supervisory
environment to lead the system toward health over the medium term; and (3) encourage an
inflow of new capital into the banking system, particularly from foreign investors.
• FOBAPROA, the bank guarantee fund, has been providing dollar liquidity to the system,
though banks have significantly reduced their FOBAPROA borrowing since April. .
FOBAPROA has also assumed management responsibility for three banks, Banco Vruon,
Banca Cremi and Banpais, which were intervened because of poor management
practices and misleading reporting to the NBSC .
19
rreasulY Secl'<!{wy 's .\folllh(v R<!port 10 COligr<!ss
June 1995
•
is a temporary capital assistance program (administered by FOBAPROA) to
provide relief to banks unable to meet the minimum regulatory standards. Banks in the
program must meet a 9% minimum capital standard and sell mandatory convertible
subordinated debt to FOBAPROA, with a five-year maturity. At maturity, if the bank
has been unable to restore its capital base, the debt will automatically convert to
equity, thus diluting or eliminating the current shareholders' ownership. The debt can
also be converted at any time during the five years if the bank's capital falls below 2%.
The funds received from the sale of the subordinated debt must be deposited at the
Bank of Mexico. Currently six banks have joined PROCAPTE and have issued
approximately $1 billion in subordinated debt.
PROCAPTE
• The Investment Unit Program (UD!) was created to help banks restructure portions of
their loan portfolios. Banks will be able to segregate a portion of their loan portfolios
and convert the loan values into lIDls. The value of an lID! will equal the value of the
loan at the initial conversion. UDI values will be adjusted monthly to reflect changes in
the consumer price index. Because the lID! is indexed, the interest rate paid by the
borrower will be a real rate, enabling borrowers to resume payment of interest and
amortize the principal over an extended maturity (6 to 12 years).
• Mexico's banking law has been amended to facilitate foreign investment. Prior to the
amendments, a foreign bank had to control 99% of a bank's shares to operate it as a
subsidiary Now only a 51 % majority is required. In addition, the aggregate marketshare limitation on foreign institutions' ownership of the Mexican banking system was
increased to 25%. Previously, the aggregate market share limit had been 8%,
increasing to 15% by January 1, 1999. Under the amended law, the market share limit
will be phased out by the year 2000.
• The NBSC recently announced an agreement reached by Banco Bilbao-Vizcaya (BBV)
and Multibanco Mercantil Probursa (Probursa). Under the agreement, BBV will
increase its ownership share in Probursa from 20% to 70% and inject $350 million in
capital into the holding company. As part of the agreement, FOBAPROA will purchase
approximately $700 million in loans from Probursa and issue the bank a ten-year
Government of Mexico bond in exchange.
20
TreasU/y S.:crl'[ory 's .\fol/["~v Rl'por[ [0 COllgrl'SS
June 1995
• The week of June 12, Banca Serfin announced that it had reached agreement with the
Government of Mexico and its investor group on a restructuring plan. The plan was
patterned after the previously announced Probursa deal. The Serfin shareholders will
abso~~ all costs in fully provisioning the loan portfolio. After the portfolio has been
pr.ovlsIOne?, the shareholders will inject approximately $350 million in capital. Serfin
will repay Its PROCAPTE debentures. The Government of Mexico will purchase from
Serfin approximately $700 million in loans.
•
The NBSC has stepped up supervisory reforms to improve the skills of the NBSC staff
accounting and disclosure reforms, technical assistance to conduct on-site inspectio~s,
loan classification and provisioning standards, and bank regulatory reports. These
reforms are supported by World Bank loans.
Financial sector loans help the government mitigate effects of the peso crisis
In June, 1995, the World Bank and the Inter-American Development Bank
of Directors approved five loans for Mexico totaling $2.8 billion.
(IDB)
Boards
•
On June 21, the
•
On June 22, the World Bank Board approved a one billion dollar loan for the Financial
Sector Restructuring Program, and a $13.8 million financial sector technical assistance
loan.
IDB
Board approved a $750 million loan for the financial sector.
Funds provided by the two multilateral development banks will be used to provide foreign
exchange quickly (both have mechanisms so that substantial funds can be provided in
July), and to help restructure the banking system.
The financial sector loans will support many of the initiatives the Mexican Government has
taken to mitigate the impact of the peso crisis on the banking system, while allowing the
Mexican Government to broaden, deepen and institutionalize reforms. Specifically, the
funds will help: (i) restore solvency and soundness to Mexico's banking system; (ii) reform
accounting standards and prudential regulations for the banks; (iii) improve the Bank of
Mexico's system of providing liquidity; and (iv) reform development bank lending. They
will help the government to:
•
Develop guidelines and procedures to reinforce discipline in the provision ofliquidity
from the Bank of Mexico and the development banks to the banking system;
21
TreaSU1Y SeCn.'t£1ry 's .\fulltlily
JUlIl'
Rc:purt Iu lUlIgrc:ss
1995
• Conduct diag.nostic studies wit.h the. assistance of an independent auditor and using
U.S. accounting and loan classification standards, to determine the financial condition
of intervened banks and banks receiving assistance under the PROCAPTE program;
• Develop and implement bank restructuring plans in a transparent manner and in
accordance with market mechanisms;
• Formulate accounting standards consistent with U.S.
GAAP, strengthen disclosure
requirements, enforce audit guidelines and improve real estate appraisal standards;
•
Reform and update prudential regulations, including loan classification and
provisioning standards;
• Develop guidelines for securitizing assets; and
•
Evaluate the impact of establishing risk-based eligibility criteria for development bank
exposure to commercial banks.
n.
g. Mexico's Social Safety Net and Long-Term Development Strategies
Mexico's Government has implemented measures to protect the poor
To limit the adverse effects of its austerity program on lower income households, the
Mexican Government has implemented several measures in 1995.
•
The government increased the minimum wage by 7% in January and by an additional
12% in April.
•
Real spending on social services, such as education, health and potable water projects,
has been cut much less than other discretionary programs. As a result, a greater share
of public sector discretionary spending went to social services during the first quarter
of 1995 (59%) than during the first quarter of 1994 (55%).
• The Mexican Government's March program includes a 3% earned income tax credit
for those earning up to 4 times the minimum wage. In January, the government had
provided a 3% tax credit for workers earning up to twice the minimum wage.
22
TreasUlY Secre/,lIY 's ,\fomll'y Repor/
June 1995
/0 (
'ullgress
• The March program also increased, for 1995, the period during which unemployed
workers would be covered by public health insurance from two to six months.
• The government also announced in March that it would fund a short-term rural
employment program, costing NP 1.7 billion, to create approximately 550,000 jobs in
public works in regions of high poverty and unemployment.
• In June, the government announced it will initiate a NP 300 million road conservation
program which will generate another 120,000 jobs during the next six months.
• The government also increased producers' subsidies for bread, tortillas, and milk by NP
3.5 billion to protect the poor from rapid increases in the prices of these basic foods.
• Finally, the government increased funding for the PROBECAT program, which provides
short-term job training.
Multilateral bank loans will help buffer the short-term impact of adjustment on
Mexico's poorest citizens
The $2.8 billion in loans approved by the Boards of Directors of the IDB and the World
Bank in June included $1 billion for social services:
•
On June 21, the IDB Board approved a $500 million loan for the essential social
services.
• On June 22, the World Bank approved a $500 million social services loan. This loan
will provide the Mexican Government with excess reserves, since 78% of the
program's costs are in pesos.
• The social sector loans from the IDB and the World Bank are designed to ensure that
certain essential services are protected from budget cuts due to the austerity program
and will help cushion the blow of the economic crisis to the poor by funding job
retraining and short-term rural employment programs.
23
TreasUlY S<!cretmy's MomMy R<!port to Collgr<!ss
JUrl<! 1995
In addition, the loans will support: (I) basic education by, inter alia, providing
textbooks, and supporting a program which sends teachers to primary schools in isolated
rural areas; (2) basic health services by, inter alia, supporting the acquisition, storage, and
distribution of vaccines, pharmaceuticals, and medical supplies; (3) nutrition by funding
nutrition programs for vulnerable groups in the poorest areas; and (4) programs to
monitor and evaluate project expenditures.
Zedillo Administration presents long-term development blueprint
Mexico's National Development Plan for 1995-2000, which President Zedillo announced
on May 28, represents a broad statement of the Administration's priorities for the next six
years.
•
The Plan focuses on Mexico's foreign policy, the rule of law, political reform, and
social development and emphasizes the Zedillo Administration's commitment to stay
the course with its efforts to stabilize the economy.
•
The Plan also underscores the importance of raising the level of domestic saving to
promote Mexico's long-term economic growth. The plan sets a goal of increasing the
ratio of domestic savings to GDP from 16% in 1994 to 22% by the year 2000. To
achieve this the Mexican Government plans to:
(1)
reform its tax system, relying more heavily on consumption taxes, and less
heavily on income taxes.
(2)
adjust corporate income taxes in such a way as to promote the reinvestment of
profits,
(3)
promote, through reform of bank regulation, a wider range of financial
instruments and services.
• Finally, the Plan pays particular attention to the need to invest ,in the :vrexican people,
to ensure that Mexico's return to prosperity improves the qualIty ofhfe for all
Mexicans.
24
Treasury Secretmy 's Monthly Report to Congress
June /995
ID. Disbursements, Swaps, Guarantees and Compensation to the U.S. Treasury
As of June 23, 1995, $11 billion in U.S. funds have been disbursed to Mexico under the
support program, of which a total of $1 0 billion remains outstanding -- $2 billion in shorttenn swaps, and $8 billion in medium-term swaps. To date, the United States has not
extended any guarantees to Mexico under the support program approved by the President
on January 31, 1995.
•
Under the swap agreements, Mexico purchases dollars and credits a corresponding
amount of pesos to the U. S. account at the Bank of Mexico. On the maturity date,
Mexico repurchases the pesos and pays back the dollars. Both the short-term and
medium-term swap facilities require Mexico to maintain the dollar value of peso
credits to the United States, adjusting the amount of pesos on a quarterly basis, in
accordance with changes in the dollar-peso exchange rate.
•
As provided for in the agreements, the Government of Mexico must pay the Treasury
interest on the swap balances outstanding. The interest charges applied to short-tenn
swaps are designed to cover the cost of funds to the Treasury, and thus are set at the
inception of each transaction at the current Treasury Bill rate.
• Interest charges applied to the medium-term swaps are designed to cover the cost of
funds to the Treasury plus a premium for the credit risk associated with the extension
of such funds, as assessed at the time of each disbursement. Paragraph 6(d) of the
Medium-Term Exchange Stabilization Agreement (the Medium-Term Agreement)
provides that interest rates on swaps with Mexico are "intended to be at least sufficient
to cover the current U.S. Government credit risk cost for Mexico."
• For each disbursement under the Medium-Term Agreement, the premium is the
greater of(1) a rate determined by the U.S. Government's inter-agency country risk
assessment system OeRAs) as adequate compensation for sovereign risk of countries
such as Mexico, or (2) a rate based on the amount of U.S. funds outstanding to
Mexico from short-term swaps, medium-term swaps, and loan guarantees at the time
of disbursement.
•
Mexico has not missed any interest payments or principal repayments under any of the
swaps.
25
Treaswy S'ecretiJ/Y 's MOllthly Report to C'ollgress
June 1995
As ofJune 23, 1995, $9.5 billion has been disbursed through the ESF, of which $9 billion
remains outstanding.
The schedule of swaps outstanding under both ESF and Federal Reserve swap lines is as
follows:
Short-term swaps
Medium-term swaps
•
On January 11 and January 13, 1995, Mexico made two
drawings of $250 million each under short-term swaps
through the ESF. Mexico repaid these drawings on
March 14, 1995.
•
On February 2, 1995, the U.S. disbursed $1 billion
under a short-term swap through the ESF; Mexico
renewed this swap for an additional 90-day period on
May 3, 1995. The current quarterly interest rate is
5.75%.
•
Mexico drew $3 billion under a medium-term swap on
March 14, 1995. The current quarterly interest rate is
8.1%.
Repayment is to be made in seven installments as
follows: six equal installments of $3 75 million each,
payable on June 30, 1998 and each successive calendar
quarter date to and including September 30, 1999; and
one installment of $750 million, payable on December
31, 1999.
•
On April 19, 1995, Mexico made a second $3 billion
drawing through a medium-term swap. The current
quarterly interest rate is 10.16%.
Repayment is to be made in twelve installments as
follows: eleven equal installments of $245 million each,
payable on June 30, 1997 and on the last day of each
successive calendar quarter, to and including December
31 , 1999', and one installment of $305 million, payable
on March 31, 2000.
26
Treasury SecretQlY 's Afol1th~v Report to CUI1:.;ress
June 1995
Most recently, on May 19, 1995, Mexico drew $2
billion under a medium-term swap. The current
quarterly interest rate is 10.16%.
Repayment is to be made in twelve installments as
follows: eleven equal installments of $170 million each,
payable on June 30, 1997 and on the last day of each
successive calendar quarter, to and including December
31, 1999; and one installment of $130 million, payable
on March 31, 2000.
Federal Reserve swaps
Disbursements to Mexico through the Federal Reserve System total $1.5 billion, with $1
billion outstanding. All Federal Reserve disbursements are in the form of short-term
swaps.
•
On January 11 and January 13,1995, Mexico made two drawings of$250 million each
under short-term swaps. Mexico repaid these drawings on March 14, 1995.
•
A short-term swap of$1 billion was extended on February 2,1995; Mexico renewed
the swap for an additional 90-day period on May 3, 1995.
27
Treasury Secretary's Afolllh(v Report
June 1995
10
COligress
IV. Mexico's Financial Transactions
Effective upon the signing of the agreements on February 21, 1995, and prior to each
disbursement, Mexico must provide Treasury wi th information on the intended use of U. S.
funds, and Treasury must verify that such uses are consistent with Mexico's Financial Plan.
•
To date, Mexico has requested and Treasury has authorized the use offunds to
redeem Tesobonos and other short-term, dollar-linked debt of the Mexican
Government and its agencies. As of June 14, 1995, Mexico has used $7.2 billion in
U.S. funds to redeem Tesobonos and $2.8 billion to accumulate reserves for future
redemptions ofTesobonos and other short-term obligations.
With U.S. and other international support, Mexico has reduced the amount of outstanding
Tesobonos, or short-term, dollar-linked government debt, by roughly $19 billion since the
beginning of 1995.
•
Since the beginning of 1995, the amount ofTesobonos outstanding in public hands has
declined from $29.2 billion to roughly $10.2 billion at the end of June.
V. Status of the Oil Facility
Payments through the Federal Reserve Bank of New York account
The payment mechanism, established under the Oil Proceeds Facility Agreement,
continues to function smoothly.
As of June 23, 1995, almost $2.5 billion has flowed through Mexico's special funds
account at the Federal Reserve Bank of New York since the agreement went into effect in
early March. Approximately $25 to 30 million flows through the account each day. To
date, there have been no set-offs against the proceeds from Mexico's crude oil,
petrochemical, and refined product exports.
28
Graph a
Mexico's real monetary base continues to
shrink ...
Percent Change in Real Money
15%
10%
5%
0%
-5%
-10%
-15%
-
-
Change from a year earlier Change from a month earlier
-20%
-25%
12194
01195
02195
03/95
04/95
05/95
... as international reserves rise further
over January lows.
US$ Billions
35.---------------------------------------------------------~
30
25
20
15
10
5
o
Jan 94 Feb 94 Mar 94 Apr 94 May 94 Jun 94 Jul94 Aug 94 Sep 94 Oct 94 Nov 94 Dec 94 Jan 95 Feb 95 . Mar 95 Apr 95 iMay
95
I
International Reserves. 26.842 29.550 26.135 17909 '17.668 16.732 16.952 17.301 16.583 17.990 13.130 6.148
3.483
8.97716.850
Graph b
Imports continue to fall
while exports remain strong ...
Exports and Imports
Change from a year earlier
Percent
50%r-----------------------------------------------------~
40%
30%
20%
_................_
10%
.,.-.-,,,
O%r---------------------------------------------~------~
-10%
Imports Exports
... -
-20%
-30%
L...l.-_ _--"--_ _...i.-_ _I..-....----I._ _- - i -_ _--.l.-_ __ l . __ _...l.----'_ _~_ ___l.__
1 f94
2194
,,
_ l . __ _...l.___l_~
3/94 4/94 5/94 6/94 7/94 8/94 9/94 10/94 11/94 12/94 1195 2/95 3/95 4/95
... producing a trade surplus
for four consecutive months
Trade Balance
US$ Millions
1,000 . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,
500
o
(500)
(1,000)
(1,500)
(2,000) L-1/..L94--2.....i./9-4-3-/L94-4J..J....94--5--L/9-4-6......J/9l-4-7/.L94--8....L/9-4-9--.i/9-4-1-0/L-94-1-1..J..../9-4-12-L/9-4-1--l/9-5-2-/9L5--3/..L95--4-L/9-S-5--l/9-5--l
Graph c
First quarter GOP contracts after a strong
increase in 1994
Percent
6%
~--------------------------------------------------~
50/0
4%
30/0
2%
10/ 0
0%
-1 %
-20/0
L-~--~~--~--~~---r--~~---r--~~--~------~~--
'\ ~
n~
~
'\
n~
~
&
'\ ~
n~
~
a,~
n~
~
&
a,
n~
~
a,~
Oj~
~
a,~
0j0j
~
n':>
~~J
~
~ n':>
Oj~J
~
& & n':>~
~
~Oj
~
~~J
~
t><
nC?)
~
[11% Change from a year earlier
~
t><
n~
~
& &
t><
n~
~
t><
n~
~
~
b
nq)
~
~
Graph d
Inflation has moderated ...
Consumer Price Index
Change from the previous month
Percent
10r--------------------------------------------------------------,
8
6
4
VAT increased April 1
2
°
t
12194
3/95
2195
1/95
4/95
5/95
... as retail sales plunge.
Retail Sales
Change in volume from a year earlier
Percent
20%
10%
0%
-10%
-20%
-30%
40%
1/94
3/94
5/94
7/94
9/94
11/94
1195
3/95
Graph e
Mexico has reduced its stock of short-term,
dollar-linked debt by over $19 billion.
US$ Billions
US$ Millions
30 ~I- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - , 1,500
25
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Weekly Amortizations Outstanding Balance
US$ Millions
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1/5/95
0
Graph f
Investors are redeeming fewer tesobonos into dollars,
reflecting increased confidence in Mexico.
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5/4
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Graph 9
The peso has appreciated ...
Trading Since December 1, 1994
NP/US$
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8
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---
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,
I
Semi-Annuttl Report to
,CQJ1gr~s,s by the
Secretary ofihe Treasury
on behalf of the President
Pursuant to the
Mexican Debt Disclosure Act
0/1995
June 30, 1995
Semi-Annual Report
June 1995
Contents
L
Summary
ll.
Changes in wages, prices, and credit controls
in tbe Mexican economy
3
m.
Changes in tax policy
4
IV.
Privatization and regulatory reform
5
v.
Consultations between the U.S. Treasury
and the Government of Mexico
13
VL
Outstanding loans, credits, and guarantees
16
vn.
Conduct of monetary policy
19
vm.
Reserve position
22
page
Appendix
Tab 1:
Tab 2:
Tab 3:
Tab 4:
Outstanding U.S. Funds to the Government of Mexico
Text of the Treasury Secretary's Monthly Report for May
Text of the Treasury Secretary's Monthly Report for June
Graphs
a.
h.
c.
d. e.
f.
g.
h.
I.
J.
k.
1.
Mexico's Real Monetary Base and International Reserves
Mexico's Trade Balance
Economic Output (GDP)
Consumer Prices and Retail Sales
Outstanding Tesobono Balance and Weekly Amortizations
Peso and Dollar Redemptions of Tesobonos
Peso-Dollar Spot Exchange Rate (nominal)
Peso Volatility
Mexico's Stock Market: Peso and Dollar Indices
Interest Rates: Benchmark Cetes and Bank Paper
Mexican Par Brady Bonds, Stripped Yields and Spreads
Latin American Brady Bond Market
1
Semi-Annual Report
June 1995
I. Summary
Mexico continues to meet its commitments under the financial agreements signed by
U.S. and Mexican authorities on February 21, 1995. The Mexican Government has
adopted a rigorous adjustment program to put its economy back on the path to
sustained economic growth. This program, supported by the international
community, appears to be working.
Since the dissolution of the PACTO (the economic agreement between government,
business and labor, which previously established guidelines for wage and price
increases each year) in March, 1995, private sector wages have been marketdetennined. The Mexican Government maintains no formal controls on wages, with
the exception of the minimum wage, which was increased by 7% in January and by
an additional 12% in April. The real public sector wage bill is likely to drop in the
next quarter, as wage increases negotiated to date have been less than expected
annual inflation. Private sector negotiations have concluded along similar lines.
To tighten fiscal policy, the Mexican Government has increased prices of publicly
provided goods (for example, electricity and gasoline) and services, including rates
for railway, airport, and public toll roads. The government also increased producers'
subsidies for bread, tortillas, and milk by NP 3.5 billion to protect the poor from rapid
increases in the prices of these basic foods.
The Mexican Government has not implemented any new changes in tax policy over
this reporting period. However, a number of measures taken previously continue to
affect the economy. For example, in April, the government increased the valueadded tax (VAT) from 10% to 15%. To help ease the effects of Mexico's economic
adjustment on low income households, the Mexican Government's March program
expanded the eligibility requirements for an existing 3% earned income tax credit to
those earning up to four times the minimum wage.
The Mexican Government has been working on a broad array of measures to open
certain sectors to private and foreign investment, as well as preparing state-owned
enterprises for privatization. Privatization and structural reforms are designed to
improve productivity and to attract foreign investment, speeding the return to growth
and elevating Mexico's sustainable path once growth has resumed. As a result of
these efforts, it appears possible that the Mexican Government can raise $12 to $14
billion in privatization revenues between 1995 and 1997, as stated in the Economic
Policy Memorandum of the U.S.-Mexico agreements.
1
Semi-Annual Report
June 1995
As of June 23, 1995, $11 billion in U.S. funds have been disbursed to Mexico under
the support program, of which a total of $10 billion remains outstanding -- $2 billion
under short-tenn swaps and $8 billion under medium-term swaps. To date, the
United States has not extended any guarantees to Mexico under the support program
approved by the President on January 31, 1995. Mexico has not missed an interest
payment or repayment date under either the short-term or medium-term swaps.
As of June 15, outstanding loans, credits, and guarantees provided to the Government
of Mexico by other U.S. agencies include: (1) approximately $2.7 billion outstanding
in total exposure (including loans, guarantees, insurance, rescheduled loans, and
claims and recoveries) to the Government of Mexico and its parastatals by the
Export-Import Bank; (2) just over $2.5 billion in guarantees and loans outstanding,
including $2.4 billion in the fonn of contingent liabilities, and $118 million in
rescheduled loans, through the Department of Agriculture's Commodity Credit
Corporation~ and (3) some $13.8 million in loans outstanding to the Government of
Mexico from the U.S. Agency for International Development.
The U.S. Department of the Treasury has been closely monitoring Mexico's
compliance with the February 21 agreements and the Mexican Government's
implementation of its stabilization program. Formal consultations at the policy level,
as well as staff-level discussions on the performance of the Mexican economy, have
underscored the position that Mexico should conduct its macroeconomic policies in
such a way as to: (1) stabilize the peso; (2) limit inflation; and (3) promote the
accumulation of international reserves.
Mexico has made substantial progress in solidifying the independence of the Bank of
Mexico, strengthening the peso, and conducting strict monetary policy. Mexico's
constitution provides that the Bank of Mexico, "shall be autonomous in the exercise
of its function and administration," and that "[i]ts primary objective shall be to ensure
the stability of the purchasing power of the national currency." As an independent
central bank, the Bank of Mexico has clearly stated its monetary policy goals and has
enacted a series of policy and institutional changes designed to achieve them.
Since the beginning of 1995, the Bank of Mexico has conducted a monetary policy
designed to: (1) stabilize the value of the peso; (2) halt capital outflows and
eventually restore inflows; and (3) reduce inflation, eventually to single digit rates.
The path has not been easy, but Mexico has made substantial progress in its execution
of this strategy. Monetary policy has been tight, and, in combination with other
Mexican economic policy measures and the external support package, this has
resulted in a strengthened and stabilized peso, a sharp decline in inflation, and an
accumulation of reserves.
2
Semi-Annual Report
June /995
IT. Cbanges in Wage, Price, and Credit Controls
Effective upon the dissolution of Mexico's last economic agreement, or PAC TO, the
only fonnal wage control in Mexico is the minimum wage, which was increased by
7% in January and by an additional 12% in April.
As noted in the fiscal policy section of the U.S. Treasury's June monthly report
(attached), the real public sector wage bill is likely to drop in the next quarter, as
wage increases negotiated to date have been less than expected inflation.
•
Most noteworthy are agreements, reached with teachers and other government
employees in May, to increase wages by 12% and benefits by 8%, effective in
June. These tenns will allow the Mexican Government to keep compensation
increases well below the projected 42% rise in the CPI between December 1994
and December, 1995.
•
Most private sector negotiations have concluded along similar lines. For now, it
seems that most Mexican workers are more concerned about keeping their jobs
than maintaining real wages.
The Mexican Government has increased prices of publicly provided goods and
servIces.
•
Gasoline prices were increased by 35% in March and are currently set to increase
48.5% for the year.
•
Electricity prices were raised by 20010 in April, and are currently set to increase by
about 33% for the year.
•
Rates for railway, airport, and public toll roads are being raised by 2.5% per
month, and are set to increase by about 30% for the year.
•
The Mexican Government also increased producers' subsidies for bread, tortillas,
and milk by NP 3.5 billion to protect the poor from rapid increases in the prices of
these basic foods.
3
Semi-Annual Report
June 1995
m.
Cbanges in Tax Policy
Measures taken early in 1995 remain important
While the Government of Mexico has not implemented any new changes in tax
policy over this reporting period, a number of measures taken just prior to this
reporting period continue to affect the economy, and therefore deserve mention.
•
In April the government increased the value-added tax (v AT) from 10% to 15%.1
•
In January, to help ease the effects of Mexico's economic adjustment on low-
income households, the government instituted a 3% tax credit for workers earning
up to twice the minimum wage.
•
To supplement the income of low-income households, the Mexican Government's
March program expanded eligibility requirements for the 3% earned income tax
credit to include those earning two to four times the minimum wage.
•
On March 31, the Mexican Government published interim guidelines on how
maquiladoras should calculate transfer prices. Under the new rules, each
maquiladora plant must either: (1) get approval from the Mexican Government
on its transfer pricing policies; (2) report a profit of 5% of its assets, which would
then be subject to the 34% corporate income tax; or (3) pay a tax of 2% on its
assets (which would cost roughly the same as option 2).
•
To boost private investment, the government increased depreciation rates for
certain types of equipment.
•
Finally, to help companies restructure, the Mexican Government has issued
regulations to exempt companies from paying income taxes on profits when they
sell shares of an affiliated company.
The VAT does not apply to food and pharmaceuticals.
4
Semi-Annual Report
June 1995
IV. Privatization and Regulatory Reforms
Mexico is moving forward with important structural reforms
The Mexican Government has been working on a broad array of measures to open
certain sectors to private and foreign investment, as well as preparing state-owned
enterprises for privatization (see Table 1: "Mexican Structural Refonns").
•
In April, the Mexican Congress approved a telecommunications law that will
open both local and long-distance telecommunications services to private and
foreign investment.
•
Also in April, the Mexican Congress approved a law to allow private finns to
build and operate natural gas pipelines. The new law will be important because it
means that future investors in Mexico's petrochemical and electricity plants will
no longer be dependent on PEMEX pipelines for natural gas, a key source of
energy for both sectors. Mexican Government officials expect these refonns to
bring in several billion dollars in foreign direct investment during the next few
years:
•
The Mexican Government is also considering proposals to allow private
companies to distribute electricity locally so that buyers will be less dependent on
CFE, currently the country's sole producer and distributor of electricity.
•
The Mexican Government has already begun to sell concessions to operate port
facilities and plans to auction several bands of its radio spectrum, as well as
several petrochemical plants, later this year or early next year.
•
Mexican Government officials are currently preparing regulations to privatize
railroads, airports, satellites, toll roads, and electric power plants in 1996.
As a result of these efforts, it appears possible that the Mexican Government can raise
$12 to $14 bitlion in privatization revenues between 1995 and 1997, as stated in the
Economic Policy Memorandum of the U. S. -Mexico agreements.
Regulatory reform will take priority over raising revenue
The primary factor now affecting the timing of the privatization process .is ~e need to
prepare comprehensive regulatory regimes for sectors prone to monopolizatIOn.
5
Semi-Annual Report
June 1995
• The Mexican Government has already sold off most of the companies it owned in
unregulated competitive sectors, with the exception of PEMEX and a few other
firms.
•
Most firms now for sale are in industries such as telecommunications, electricity
and transportation, which traditionally have been regulated in other countries.
While the Mexican 90vemment currently regulates these firms' activities through
its ownership, it must develop regulatory regimes that promote competition and
efficiency to ensure that state-owned, but regulated, monopolies are not simply
transformed into privately-owned, unregulated monopolies.
•
Mexican Government officials have made it clear that before selling these firms
their highest priority is to develop proper regulations which promote competition
and efficiency and protect consumers, with raising revenues and closing deals
quickly as secondary concerns.
•
Mexican Government officials have pointed out that in several sectors Mexico not
only must develop regulations from scratch, but also needs to establish
independent regulatory authorities.
Reforms attract investors with technical and management experience
•
Mexican Government officials also want to bring in buyers with technical and
managerial expertise, even if this means slowing the privatization process or
raising less revenue.
•
For example, in the recent auction for ports, buyers submitted two types of bids:
one stated their technical qualifications while the other offered their price. Only
after eliminating those firms which do not meet minimum technical qualifications
have Mexican Government officials considered pricing.
•
Further, the bidding rules allow Mexican Government officials to pick investors
whose bid may be up to 2% less than the highest bid, if the officials believe the
investors have superior technical qualifications.
6
Semi-Annual Report
June 1995
Developments in Key Sectors
Ports
• The necessary laws allowing private investment in port facilities
were passed during the Salinas Administration.
•
In May, the Mexican Government received bids on 20 to 50.year
concessions for several port terminals from 60 firms, primarily
joint ventures between Mexican and foreign companies. 2
•
In June, the Mexican Government selected 21 firms as having the
necessary technical qualifications, and expects to select winning
bids by September.
• The Mexican Government has also established independent port
authorities, which it plans to eventually privatize.
• Mexican Government officials are also working on privatizing an
Atlantic Ocean port and a Pacific Ocean port and a connecting
railway to establish a competitor to the Panama Canal.
TelecoltUlUlnications
•
In May 1995, the Mexican Senate approved a law to open the
telecommunications market to private and foreign investors. The
law opens both local and long·distance services to private
investors.
2
•
To enhance competition, the Mexican Government decided not to
charge a licensing fee to new entrants, except for cellular phone
and other specialized services, when the monopoly of Telefonos de
Mexico (TELMEX) ends on January 1, 1997.
•
While foregoing privatization revenues, Mexican Government
officials expect foreign firms to invest several billion dollars in the
telecommunications sector during the next few years.
The Mexican Government will privatize just the terminals, not the land, which will remain the property of the
port authorities.
7
Semi-Annual Report
June 1995
•
Some key decisions, such as the rates and conditions TELMEX may
impose for local phone line connections, have yet to be taken but
are expected in the next few months.
•
As in other sectors, the Mexican Government is working to set up
an independent regulatory authority, similar to the Federal
Communications Commission in the United States.
• The Mexican Government plans to auction part of its radio
spectrum for specialized telecommunications services. Officials
are working out how to divide Mexico's spectrum geographically.
The government also plans to auction rights to provide cellular,
paging and personal communication services during the next 12
months.
• Most large U.S. communications companies planning to enter the
market expect to do so through joint ventures with Mexican finns.
• Foreign ownership of companies offering telecommunications will
be limited to 4~1o of the companies' shares, except for cellular
service, in which foreign investors may own a higher percentage
with approval from the Mexican Government.
Natural Gas •
•
The Mexican Congress has approved a law allowing private
companies to obtain concessions to build and operate natural gas
pipelines. The Mexican Government is currently drafting
regulations to implement the law.
PEMEX will
remain the sole producer of natural gas in Mexico, but
private firms will now be able to supply imported natural gas.
• The law is important because it means that future investors in
Mexico's petrochemical and electricity plants need no longer be
dependent on PEMEX pipelines for natural gas, a key input for both
sectors, which should boost demand for the facilities when they are
sold.
8
Semi-Annual Repon
June /995
•
In addition to increasing the value of the petrochemical and
electricity privatizations, Mexican Government officials expect
foreign direct investment in gas pipelines to increase by several
hundred million dollars during the next few years,
Petrochemical Plants
• Plans to privatize secondary petrochemical plants were postponed
several times during the Salinas administration due to the decline
in the price of petrochemicals.
•
With the recent rise in the price of petrochemicals, Mexican
Government officials are now working with financial advisors to
determine the market value of various plants,
•
The necessary laws and regulations have already been prepared.
•
While the Mexican Government has eliminated PEMEXs monopoly
on supplying natural gas, Mexican Government officials have not
yet issued regulations regarding the sale of oil to the plants, over
which PEMEX will retain a monopoly.
•
Purchasers are likely to require some long-term guarantee from
PEMEX on access and pricing of oil.
Railroads
•
Mexican Government officials are also working to resolve such
issues as environmental liabilities, severance pay, and title to land.
•
The Mexican Government plans to auction at least one plant and
sell off the remaining plants by the end of 1996.
•
Analysts expect most of the bidders to be joint ventures of foreign
and Mexican firms. Foreign investment in secondary
petrochemical plants will be limited to 40%.
•
The Mexican Government plans to offer concessions to operate on
existing railroad tracks for up to 70 years. The Mexican Congress
approved the necessary constitutional amendments in January, and
approved a more detailed law governing the sales in April.
9
Semi-Annual Report
June 1995
• To maximize competition, the Mexican Government will break up
the rail system into several lines, each having access to Mexico
City and a port on each ocean.
• However, as a result of this decision, the system will take longer to
privatize and raise less revenue than if the Mexican Government
had sold the entire system to one buyer. Even breaking up the
current monopoly into geographically-based subsidiaries will take
several months.
• Mexican Government officials are currently debating several
regulatory issues, such as what common carrier obligations the
new owners will have, and to what extent rates will be regulated.
• Work to be done includes valuing the railroad's extensive
inventory, resolving environmental liabilities, negotiating
severance pay with workers, determining the legal title to an
extensive real estate portfolio, deciding how to handle squatters
occupying railroad-owned land, and determining whether the
government should assume pension liabilities incurred in the past.
• Mexican Government officials are also considering establishing an
independent regulatory authority.
• As with ports, the Mexican Government plans to evaluate bidders'
technical qualifications before considering the price of bids.
Airports
•
Auctions are likely to occur either late in 1995 or during the first
half of 1996.
•
The law passed in April limits foreign investment to 4']010 of the
companies' shares unless larger holdings are approved by the
foreign investment commission.
•
Officials are drafting a law to govern the sale of airport
concessions, which they plan to submit to the Mexican Congress
by October 1995. They expect to open the bidding in 1996.
10
Semi-Annual Report
June 1995
Satellites
• The Mexican Government plans to sell the right to transmit from
existing satellites in geostationary orbits above Mexico, as well as
the right to launch new satellites. The Mexican Congress has
already passed the necessary constitutional changes, as well as a
law governing the sales.
Toll Roads
•
Mexican Government officials are now working on proposals to
regulate transmission, which would affect privatization revenues.
Mexican Government officials currently expect the auctions to
take place in 1996.
•
The Mexican Government is planning to sell the right to operate
certain additional toll roads.
•
One factor slowing the sale is that Mexican Government officials
are concerned that investors' demand for concessions will be weak
because car traffic has fallen significantly due to the recession.
Electricity Generation
•
In perhaps the most complicated, but potentially most valuable,
privatization, the Mexican Government is preparing regulations
both for the sale of electricity generation plants and the right to
build new plants.
•
In April, Mexico's Energy Minister announced that the Mexican
Government is preparing a bill to allow private companies to
distribute electricity locally so that buyers will be less dependent
on CFE, currently the sole producer and distributor of electricity .
•
However, the Mexican Government has not yet determined the
conditions under which CFE will distribute electricity on long
distance lines.
• Mexican Government officials are working on enhancing the
independence of their Energy Regulatory Committee (counterpart
to the U.S. Federal Energy Regulatory Commission) so that
investors will be assured that rates between electricity plants and
PEMEX and CFE are governed by an independent regulatory
authority.
11
Semi-Annual Report
June 1995
TABLEt
Sector
Mexican Structural Reforms
Taken
Planned
LIBERALIZATION
Natural
Gas
-- passed law allowing foreign &.
privatll distribution, transmission,
storage (4(95)
Telecom
- law passed opening local &. longdistance services to competition
(5/95)
-- foreign &. private firms begin setting up operations
to provide services (8/96)
- private firms offer services to public (1197)
PRIVA TlZA TlON
Ports
-- published Federal Register notice
(2195)
- received technical bids (5/95)
- choslI qualified bidders (6/95)
-- develop model contract (6(95)
-- receive financiel bids (7/95)
-- select winning bids, sign contracts (9/95)
Radio
Spectrum
-- law passed (5(95)
-- auction part of radio spectrum, cellular, paging
services (lata 1995)
-- additional auction of radio spectrum, personal
communications services (first half 1996)
Petrochemicals
- laws and regulations passed
(1992)
- invite bids on 1-2 plants (second half 1995)
-- resolve such issues as environmental liabilities,
severance pay, and title to land (second half 1995)
-- invite bids on remaining plants (second half 1995)
- selact winning bids, sign contracts (first half 1996)
Railroads
- amended constitution to allow
foreign &. private ownership (1/95)
-. passed law (4/95)
- selected financial advisors (5/95)
---••
--
•• submit law to Congress (first half 1996)
- receive bids (first half 1996)
•• select winning bids, sign contracts (2nd half 1996)
Airports
Satellites
Toll Roads
Electricity
select environmental advisors (second half 1995)
value inventory (second half 1995)
preparll prospectus (second half 1995)
develop labor strategy (second half 1995)
complete regulations (second half 1995)
publish Federal Register notice (first half 1996)
receive bids (first half 1996)
select winning bids. sign contracts (2nd helf 1996)
- .nand constitution to allow
foreign &. private ownership (1/95)
- pess law (4195)
- receive bids (first half 1996)
_ select winning bids, sign contracts (second half
1996)
_ sell securitized bonds (late 1996)
__ prepare long-term strategy paper (late 1995)
_ send law to Congress allowing local distribution of
electricity Ilate 1995)
._ sell several generation plants (late 1996)
Other
Sectors
._ sell paper mill. warehouse company. seafood
exporter. and a salt plant (1996)
12
Semi-Annual Report
June 1995
Other Sectors
•
By the end of 1996, Mexican Government officials also plan to
sell several enterprises that were slated to be privatized under the
Salinas Administration. These include a paper mill, a warehouse
company, a seafood exporter, and a salt plant.
•
The Mexican Government also maintains a minority share in the
Bancomer bank (25%), and Mexicana Airlines (34%). Due to
weakened prospects of both companies, neither is likely to be
privatized soon.
v.
IMF Reviews
Consultations with the Government of Mexico
of the Mexican Economy
The lMF has not conducted a Board review during this reporting period~ in May, an
lMF mission visited Mexico to review developments and hold discussions with
Mexican officials. The lMF Board will meet to review Mexico's compliance with the
lMF standby arrangement in late June or early July, 1995. The next monthly report by
the Secretary of the Treasury, due to the appropriate congressional committees on
July 31, 1995, will address that review.
u.s.
Treasury Policy COlISultatiollS
U.S. Department of the Treasury representatives have been closely monitoring
Mexico's compliance with the February 21 agreements and the Mexican
Government's implementation of its stabilization program.
Formal consultations at the policy level, as well as staff-level discussions on the
performance of the Mexican economy, have underscored the position that Mexico
should conduct its macroeconomic policies in such a way as to: (1) stabilize the
peso; (2) limit inflation; and (3) promote the accumulation of international reserves.
In addition, it has been the position of the U.S. Treasury Department to encourage the
Mexican Government to remain in compliance with its lMF standby arrangement.
13
Semi-Annual Report
June 1995
Formal Consultations
Treasury Secretary Robert E. Rubin and Under Secretary Lawrence H. Summers
have participated in the following consultations with Mexican officials since April
10, 1995:
(1)
Secretary Rubin and Under Secretary Summers met with Mexico's Finance
Minister Guillermo Ortiz in Washington, on May 16, 1995.
(2)
Under Secretary Summers visited Mexico on May 22-24, 1995, to meet with
the following Mexican authorities: President Ernesto Zedillo, Finance
Minister Guillermo Ortiz, PEMEX General Director Adrian Lajous, National
Banking Commission President Eduardo Fernandez, and Bank of Mexico
Governor Miguel Mancera, as well as with senior staff of each official.
(3)
Under Secretary Summers met with President Zedillo' s Chief of Staff Luis
Tellez in Washington on June 8, 1995.
(4)
On June 8 and 9, 1995, Under Secretary Summers met with top officials of
the National Banking Commission including President Eduardo Fernandez,
Vice President Patricia Annendariz, and Vice President Javier Gavito, at the
U.S. Treasury Department.
(5)
On June 28, 1995, Bank of Mexico officials visited Washington to discuss the
provision of information with Treasury Department staff.
Treasury's Due Diligence Program
In addition to discussions at the policy level, U.S. Department of the Treasury staff
have been closely tracking the implementation of the U.S. support package and the
Government of Mexico's stabilization program.
In February, jlte Mexico Task Force (Task Force) was established within the Office
of the Assistant Secretary for International Affairs to implement the February 21
agreements, including monitoring Mexico's compliance and ensuring the timely
provision of information by the Mexican authorities, as called for under those
agreements. Task Force members include international economists, attorneys, and
financial analysts from within Treasury as well as from other U.S. Government
agencies, with areas of expertise ranging from monetary policy to banking regulation
to emerging financial markets.
14
Semi-Annual Report
June 1995
Members of the Task Force consult regularly with their staff-level counterparts in
Mexico. Daily communication includes phone calls and facsimile transmissions for
the purposes of updating economic and financial data, monitoring financial markets,
monitoring relevant transactions undertaken by the Mexican financial authorities, and
following policy discussions and legislative developments within Mexico that affect
both macroeconomic and structural policies. Moreover, Treasury staff have met with
their contacts in Mexico on a number of occasions during the reporting period:
(1)
On April 18-21, members of the Task Force visited PE.MEX headquarters and
held a series of meetings with representatives from PEMEX and its exporting
subsidiaries. Topics included an overview of PE.MEX, including discussions on
PEMEX's corporate structure, trends in production and exports, financial
statements, and plans to privatize the petrochemical industry.
(2)
On May 7-12, 1995, members of the Task Force conducted a compliance
mission in Mexico on bank supervision, monetary policy, and Mexico's
Financial Plan.
(3)
During the week of May 1S, 1995, the Mexico Task Force hosted staff-level
meetings with representatives of the Government of Mexico on compliance
issues in Washington.
(4)
From May 21-28, members of the Task Force conducted a compliance
mission in Mexico on monetary policy, fiscal policy, privatization, and other
structural reforms.
(5)
From May 22-25, a Task Force member met with PEMEX officials in Mexico
to discuss the oil facility agreement.
(6)
During the week of June 8, top officials of Mexico's National Banking
Commission visited Washington, to meet with Under Secretary Summers as
well as members of the Task Force.
(7)
On June 19, members of the Task Force visited Mexico to meet with the
relevant Mexican financial authorities regarding the bank restructuring
program and bank supervision issues.
15
Semi-A.nnual Report
June 1995
VL Disbursements, Swaps, Guarantees and Compensation to the U.S. Treasury
As of June 23, 1995, $11 billion in U.S. funds have been disbursed to Mexico under
the support program, of which a total of $10 billion remains outstanding under shortand medium-term swaps. To date, the United States has not extended any guarantees
to Mexico under the support program approved by the President on January 3 1, 1995.
•
Under the swap agreements, Mexico purchases dollars and credits a
corresponding amount of pesos to the U.S. account at the Bank of Mexico. On
the maturity date, Mexico repurchases the pesos and pays back the dollars.
•
Both the short-term (up to 1 year) and medium-term (3 to 5 years) swap facilities
require Mexico to maintain the dollar value of peso credits to the United States,
adjusting the amount of pesos on a quarterly basis, in accordance with changes in
the dollar-peso exchange rate.
•
As provided for in the agreements, the Government of Mexico must pay the
Treasury interest on the swap balances outstanding. The interest charges applied
to short term swaps are designed to cover the cost of funds to the Treasury, and
thus are set at the inception of each transaction at the current Treasury Bill rate.
•
Interest charges applied to the medium-term swaps are designed to cover the cost
of funds to the Treasury plus a premium for the credit risk associated with the
extension of such funds, as assessed at the time of each disbursement. Paragraph
6( d) of the Medium-Term Exchange Stabilization Agreement (the Medium-Term
Agreement) provides that interest rates on swaps with Mexico are "intended to be
at least sufficient to cover the current U.S. Government credit risk cost for
Mexico."
•
For each disbursement under the Medium-Term agreement, the premium is the
greater of (1) a rate determined by the U.S. Government's inter-agency country
risk assessment system (ICRAS) as adequate compensation for sovereign risk of
countri~such as Mexico, or (2) a rate based on the amount of U.S. funds
outstanding to Mexico from short-term swaps, medium-term swaps, and loan
guarantees at the time of disbursement.
•
Mexico has not missed any interest payments or principal repayments under any
of the swaps.
16
Semi-Annual Report
June 1995
As of June 23, 1995, $9.5 billion has been disbursed from the ESF , of which $9
billion remains outstanding. The schedule of swaps outstanding under both ESF and
Federal Reserve swap lines is as follows:
Short-term swaps
Medium-term swaps
•
On January 11 and January 13, 1995, Mexico made
two drawings of $250 million each under short-term
swaps. Mexico repaid these drawings on March 14,
1995.
•
On February 2, 1995, the U.S. disbursed $1 billion
under a short-term swap through the ESF~ Mexico
renewed this swap for an additional 90-day period on
May 3, 1995. The current quarterly interest rate is
5.75%.
•
Mexico drew $3 billion under a medium-term swap on
March 14, 1995. The current quarterly interest rate is
8.1%.
Repayment is to be made in seven installments as
follows: six equal installments of $375 million each,
payable on June 30, 1998, and on the last day of each
successive calendar quarter, to and including
September 30, 1999~ and one installment of $750
million, payable on December 31, 1999.
•
On April 19, 1995, Mexico made a second $3 billion
drawing through a medium-term swap. The current
quarterly interest rate is 10.16%.
Repayment is to be made in twelve installments as
follows: eleven equal installments of $245 million
each, payable on June 30, 1997 and on the last day of
each successive calendar quarter, to and including
December 31, 1999~ and one installment of $305
million, payable on March 31,2000.
17
Semi-Annual Report
June 1995
•
Most recently, on May 19, 1995, Mexico drew $2
billion under a medium-term swap. The current
quarterly interest rate is 10.16%.
Repayment is to be made in twelve installments as
follows: eleven equal installments of $170 million
each, payable on June 30, 1997 and on the last day of
each successive calendar quarter, to and including
December 31, 1999; and one installment of $130
million, payable on March 31,2000.
Federal Reserve Swaps
Disbursements to Mexico through the Federal Reserve System total $1.5 billion, with
$1 billion outstanding. All Federal Reserve disbursements are in the form of shortterm swaps.
•
On January 11 and January 13,1995, Mexico made two drawings of $250 million
each under short-term swaps. Mexico repaid these drawings on March 14, 1995.
•
A short-term swap of $1 billion was extended on February 2, 1995; Mexico
renewed the swap for an additional 90-day period on May 3, 1995.
Outstanding loans, credits, and guarantees provided to Mexico by other U.S.
agencies
•
As of June 15, 1995, the Export-Import Bank of the United States recorded
approximately $2.7 billion outstanding in total exposure (including loans,
guarantees, insurance, rescheduled loans, and claims and recoveries) to the
Government of Mexico and its parastatals.
•
As of June 15, 1995, the Department of Agriculture, through its Commodity
Credit Corporation, had just over $2.5 billion in guarantees and loans outstanding,
including -$2.4 billion in the form of contingent liabilities, and $118 million in
rescheduled loans to the Government of Mexico.
•
As of June 15, 1995, the U.S. Agency for International Development had some
$13.8 million in loans outstanding to the Government of Mexico.
18
Semi-Annual Report
June 1995
vn.
Conduct of Monetary Policy
Mexico has made progress in reinforcing the independence of the Bank of Mexico,
strengthening the peso, and conducting strict monetary policy
The Bank of Mexico is legally independent. Mexico's constitution provides that the
Bank, "shall be autonomous in the exercise of its function and administration"
, and
that "[ilts primary objective shall be to ensure the stability of the purchasing power of
the national currency."
As an independent central bank, the Bank of Mexico has clearly stated its monetary
policy goals and has enacted a series of policy and institutional changes designed to
achieve them. Since the beginning of 1995, the Bank of Mexico has conducted a
monetary policy designed to: (1) stabilize the value of the peso; (2) halt capital
outflows and eventually restore inflows; and (3) reduce inflation, eventually to single
digit rates.
The path has not been easy, but Mexico has made substantial progress in execution of
this strategy. Monetary policy has been tight, and, in combination with other
Mexican economic policy measures and the external support package, has
strengthened and stabilized the peso, caused a sharp decline in inflation, and helped
produce an accumulation of reserves.
The growth of net domestic credit has been strictly limited. The Bank of Mexico
announced a limit of net domestic credit growth (defined as the monetary base less
international reserves) of NP 10 billion for the entire year. In fact, net domestic credit
has/allen by NP42 billion since the beginning of the year.
•
While many factors influence net domestic credit, it is important to emphasize
that peso credit to financial intermediaries (including lending to commercial
banks, development banks, and FOBAPROA) has been flat.
•
Thus, despite inflation of 29'110 in the first five months of the year, total peso
credit to financial intermediaries fell slightly over the same period, for a real
decline of 22%.
19
Semi-Annual Report
June 1995
•
The contraction of real credit has combined with high interest rates, the fall in
output, and pre-existing structural weaknesses to place great strains on the
banking system. Even so, the above data show that, to date, measures taken to
extend credit to the banking system, including banks that have been intervened by
the regulatory authorities, have not caused an increase in total credit to the
banking system.
•
The Bank of Mexico has made plain that it will continue to ensure that any
measures taken to address banking problems do not weaken its monetary policy.
Partly as a result of this tight credit policy, the money supply has been strictly
controlled.
•
The money supply (monetary base) fell by 17% between December 31, 1994 and
June 16, 1995. The real money supply fell by 34% between December 31, 1994
and May 31, 1995. While part of this decline is due to seasonal factors, the real
money supply at the end of May was 23 percent lower than at the end of May
1994.
Interest rates have been allowed to increase as high as necessary to complement tight
control over credit and the money supply.
•
During early March, when confidence was at a low point, inflation expectations
were high, and capital outflow was strong, interest rates on government securities
were allowed to increase as high as 82% (on an annual basis). ,
•
As confidence has begun to retum, inflation has subsided, nominal interest rates
have declined and the rate in recent auctions of government securities has fallen
to below 50 percent. Real rates (the nominal interest rates adjusted for the rate of
inflation) have remained high or even increased. The real interest rate in May
(defmed as the yield on one-month government securities after adjusting for
actual inflation in May) was 20010 at an annual rate.
Institutional reforms will help ensure the independence and efficiency of monetary
policy
The Bank of Mexico has made a number of institutional changes to enhance its
independence, to improve its control over monetary policy, and to strengthen its
monetary policy stance.
20
Semi-Annual Repon
June 1995
•
It has instituted zero monthly average reserve requirements on commercial banks.
Through this mechanism, the Bank of Mexico can tighten monetary conditions
immediately as necessary. This mechanism induces market-determined interest
rate hikes, rather than requiring the Bank of Mexico to force up interest rates
directly, as before.
•
The Bank of Mexico is keeping the growth of the money supply at rates
consistent with its annual inflation target of 42%. If demand for bills and coins
(the monetary base) grows faster, the Bank contracts liquidity rather than
passively satisfying the extra demand.
•
The procedure by which the Bank of Mexico intervenes in the money market to
control the money supply has been made more market-oriented. Previously, the
Bank announced a rate prior to each auction. Now, the interest rate is freely
determined in the secondary market.
•
The payments system has been reformed to increase the efficiency of monetary
policy and lessen the risks that the Bank of Mexico has to bear in its role as
overseer of interbank payments mechanism.
•
Perhaps most important, the Bank of Mexico has increased the amount and
frequency of information it releases to the market. For example, the Bank
releases its balance sheet weekly. This includes information on the stock of
international reserves, the money supply, and credit to financial intermediaries.
Each day the Bank releases the monetary base as well as its planned operations to
change the monetary base for that day.
21
Semi-Annual Report
June 1995
[
vm.
Reserve Position
Monetary policy has been only one component of the stabilization program that was
designed to restore confidence. But in combination with a tight fiscal policy,
structural reforms, and the international assistance package, tight monetary policy has
contributed to a partial reversal of capital outflows and a buildup of international
reserves. Reserves have risen $4.2 billion over the year, to $10.3 billion on June 16,
including international assistance and notwithstanding heavy amortizations of foreign
debt during this period.
TABLE 2: Mexico's International Reserves (SUS billions)
02194
03194
04194
05194
06194
07194
08194
09/94
26.8
29.6
26.1
17.9
17.7
16.7
17.0
17.3
16.6
10194
11194
12194
01/95
02195
03195
04/95
05195
06/95
18.0
13.1
6.1
3.5
9.0
6.9
8.7
10.4
10.3
01194
22
Tab: Outstanding loans, credits, and guarantees provided to Mexico by ollter U.S. agencies.
Attached are (1) Exim-Bank's Country Exposure Summary and (2) U.S. AID's loan balances
with the Government of Mexico.
•
As of June 15, 1995, the Export-Import Bank of the United States recorded
approximately $2.7 billion outstanding in total exposure (including loans, guarantees,
insurance, rescheduled loans, and claims and recoveries) to the Government of Mexico
and its parastatals.
•
As of June 15, 1995, the Department of Agriculture, through its Commodity Credit
Corporation, had just over $2.5 billion in guarantees and loans outstanding, including
$2.4 billion in the fonn of contingent liabilities, and $118 million in rescheduled loans to
the Government of Mexico.
•
As of June 15, 1995, the U.S. Agency for International Development had some $13.8
million in loans outstanding to the Government of Mexico.
Country Exposure Summary
Cum", Nor: 06I02J95
Pttl'lted On: 08107195 32-4p
MEXICO (547'
PRIVATE
PUBlfC
'ov.'.f~nt1t
Non-8ove"'an
Fin .ndllutlon
Non~nlnclll(21
Amounl
Amoun'
Amount
Institution Amount
$1.SS7.1t2,181
$88,858,&40
1728,019,197
$1158,148,87 4
"2 ••a1,IOC
PJ,-
129,503,550
M48,009,878
$'51,130,283
13.1"••',311
.1••11.200....
1111.110.311
11.111.021,412
"1'.17C,U'
".111,1"
SO
so
$0
$4,525,873
Singlebuyer MT Policy
'722.1.0.140
10
SO
SO
$122,940,' .co
Singlebuyer ST Policy
...." ••121
SO
$0
186.878,525
10
SO
11,438,000,197
h1,1I0."7
so
so
so
10
so
SSf ,850,787
11.334.111.122
$0
Id
IV
'i,l.w. iii,611
..4..,......
UT.en.12'
"OI.IDI
10
Ue,"O,I21
,eU,20•• 8••
.113,20.....
to
'0
$0
•••• 23,04 ••11.
12.107....,241
"11.110.100
".171.0U,4U
13,'20,113.101
Tota'
Amount
Actual Exposure
Loan. and Guarante••
Operative Final Commitments
13.111 ......"
Cancened Operative Final Commitments WlBalance
~
~
~
1
i
~
Tolal Loans and GUlrante••
Insurance
IS
J
I
1
-i
-:
'I
leas. Policy
Single buyer STMT Policy
'1,431.000.111
Multibuyer Policy
Total Insurance
Claims & Recoverle.
Total Clalml & Rlcoverlel
Rescheduled Loans
Tolli Rescheduled loan.
Total Actual Exposure
IABIOlA, lAeIl'Q ,IUlSOOI" _IA£50IC12
IbIIp4I:WIII'IIO" - IAElIOlaJ, lAEIIOI04
v.mo,QIS, ",aolP ,1AE5OOS
(1" ............,,·
C2J"""" NIIII ...'nlnd.....cluI" ftn _ _ _ ~'dt",",1d "1111.
RlI~
•• JIII"~III
p. I'IGtbII ~tr
H- JIII""'NIft~1I
F· ~MnfIII"'1II!ItII.n
" . ~o"'Rn.1ICUI
P.I
Country Exposure Summary
Cumnt Aa 01: 06I02J95
Pllnted On: oeJ0783
MEXICO (547'
3:2Sp
PRIVATE
PUBLIC
TCIt.'
IoVl,..llnl11
Non-lov.r.lgn
FIn Indltullon
Hon-Flnlncl.I(2)
Amount
Amounl
Amount
Amount
Inrtltutlon Amount
h1.,011 .....
$15._.022
130,418.315
.n,950.483
m.98e,fIO.4
".,114,311
10
$0
$21.492,983
'29.831,383
sm,oll,4l0
$81.2.....813
180.2.....584
815,893,043
$434,105.970
SO
so
$0
$0
so
'''IA10.1ts
",758,_
so
t331.228.703
$88.422,160
'0
to
SO
so
$0
Potential Exposure
Loans and Guarante••
Authorized (Not Operative) Flnll Commitments
Authorized (Pre-Subsldy) Final Commllmentl
c..,
a>
~
Pending Final Commnments
~
-i
Outstanding Preliminary Commitments
~
Outstanding Lettem of Interest
u
I
~
-i
Pending Preliminary Commitments
-<
~
Pending Lettem of Interest
.,O,IIZ,'"
830.892.310
$0
$0
so
Total Loan. and Guarant•••
• 1,"1.J2','U
'13',3",101
"'0,"3.13'
'441.11',212
""',7'".317
$0
~
J9
~
10
Singlebuyer MT Policy
tzs1,oll,oaO
SO
$0
$0
$nf .055.000
Singlebuyer ST Policy
"1',110.141
$0
$0
SO
1118.510,5<41
Singtabuyer STMT Policy
"",001.000
SO
SO
$1M,OOO,000
"t.OII.GOO
",200,000
so
so
so
so
so
so
so
$6,200,000
"31,,13,141
to
'0
to
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Insurance
Lease porlCY
Muillbuyer Aggregated Credit Limits
Multibuyer Consignment LImit
Total Insurance
"!!01"
,lAmHO .IUL5Ca' -IAEIOICU
DlRpIDd""," - "00103 .1AHIn04
IA£«II oe , IAEJOIP • IABItJO.!
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(2) ....... Honf'llllllClllllldlll'" .......CIIIIn • .....,. w........ .-.
$91,088,000
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~ .....1IImI 0111,
N.PIN~~n
F • ~ndtl"lftIIiDfI
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".
Palle2
country Exposure Summary
CUll." A. or: 06I02J95
MEXICO (547)
Prtnted On: oeI07J95
PRIVATE
PUBLIC
TotIl
Total Potential Exposure
Total Exposure
325p
Noft.&oV.'.'gn
fin In .. nutlon
Non.flnanclal(2t
Amount
Sew"'gn(1,
Amounl
Amount
Amount
InlfltulJon Amount
U.a70.1 .... tt
t231,3".10'
tUO•• A,.,.
S441..... 111
'U7l,Sn,l1l
.....'.11 ...21
'2,444,237,748
1228,8304,239
., ,812.594.1585
14,598,782,959
.
u
~
.
:I
.J
3
I
.
<
1
cl
IAESO'IA , IAE501Q. allSOOP -IAeOIQI
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el, I,.,.... PdIIIc4II entr.
e!)"""'" N~III".' ".,ud-..... MC1Ioft...... olllld...... Al.1L
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A • P......NDnFI•• nd ..
Pag. J
LOANS WITH
THE GOVERNMENT OF MEXICO
BALANCES AS OF MARCH 31,1985: OF APRIL 30,1995 OF MAY 31,1885:
LOAN NO.
AMOUNT
AMOUNT
AMOUNT
DIFFERENCE
5,573,770.50
5,573,770.50
5,573,nO.50
0.00
523-L-025R
880,928.05
860,928.05
860,928.05
0.00
523-L-026R
2,331,209.40
2,331,209.40
2,331,209.40
0.00
523-L-027R
2,821,124.38
2,821,124.38
2,821,124.38
0.00
523-L-028R
2,228,448.13
2.228,448.13
2,228,448.13
0.00
13.815,478.48
13.815,478.48
13.815,478.48
0.00
523-L-020
TOTAL
Monthly Report
by the
Secretary of the Treasury
Pursuant to the
Mexican Debt Disclosure Act of 1995
May 31,1995
Table of Contents
Page
I.
Overview
II.
Current Condition of the Mexican Economy
2
III.
Reserve Position of the Bank of Mexico
5
IV.
Disbursements/Outstanding Guarantees and Swaps
and Compensation to the US Treasury
6
V.
Mexico's Financial Transactions
8
VI.
Status of the Oil Facility
8
Appendix
Tab A: Key Trends in Mexico's Economy
a.
b.
c.
d.
e.
Mexico's Trade Balance
Consumer Prices and Retail Sales
Unemployment and Industrial Production
Economic Output (GOP)
Mexico's Real Monetary Base and International Reserves
Tab B: Key Trends in Financial Markets
a.
b.
c.
d.
e.
Peso-Dollar Spot Exchange Rate
Mexico's Stock Market: Peso and Dollar Indices
Rates for Benchmark Cetes
Mexican Par Brady Bonds, Stripped Yields and Spreads
Outstanding Tesobono Balance and Weekly Amortizations
I.
Overview
On January 31, 1995, after consulting with both congressional leadership and the Federal
Reserve Board, President Clinton announced that the United States would provide an
emergency support package to Mexico through the Exchange Stabilization Fund (ESF).
This decision was made to prevent the liquidity crisis facing Mexico from escalating into a
prolonged and severe economic downturn, which would put at risk important U. S. interests __
some 700,000 export-related jobs and a secure U.S.-Mexico border -- and jeopardize the
position of other emerging markets.
At the President's instructions, the Secretary of the Treasury entered into four agreements with
Mexican authorities on February 21, 1995 ("the Agreements")' which provide for up to $20
billion conditioned on strict economic, financial, and reporting requirements. To date, the
U.S. has disbursed $11 billion to Mexico, with a total of $10 billion outstanding under shortterm and medium-term swap agreements.
Mexico is currently meeting its commitments under the Agreements. Mexico has undertaken
broad-based reforms to set its economy back on course, including strict control over money
and credit, reduced government spending, and reduction in its short-term, dollar-indexed debt.
The economy's external position has improved substantially, due to strong export performance
and res trained imports. Moreover, prospects for further privatization and private investment
in Mexico's infrastructure have improved, as the Government of Mexico has advanced the
necessary regulatory and legislative reforms. Although it is still too early to make definitive
judgements, recent indicators suggest that financial markets are beginning to respond with
more confidence in Mexico's economic outlook.
While these positive developments confirm that progress has been made, the corner has yet to
be turned in some important respects. For example, the condition of Mexico's banking sector,
weak going into the crisis, continues to deteriorate, as exhibited by the increasing proportion
of overdue loans in the banking system. Moreover, unemployment continues to rise, while
high inflation is eroding real incomes. Thus, significant challenges remain. We continue to
work closely with the Mexican authorities to monitor Mexico's performance and compliance
with U.S.-Mexico Framework Agreements.
U. S. and IMF financial support has allowed Mexico to cut drastically its short-term,
dollar-indexed tesobonos to $11.5 billion, down from $29.2 billion at the beginning of this
year. As a consequence, the risk of a sovereign default, with its devastating. i~pact on the
Mexican economy, seems to have abated in the eyes of financial market partlclpants.
Mexico's obligations under the four agreements are backed by the full faith and credit of the
Mexican Government, and the interest rates on swaps are sufficient to cover the risks that the
United States is likely to bear. In the unlikely event that Mexico fail~ to meet its obligations..
the U.S. Government has the right to set off Mexico's obligations agalllst the proceeds from Its
crude oil, petrochemical and refined product exports, which flow t?rough a special a~co~nt at
the Federal Reserve Bank of New York. The oil proceeds mechamsm has been functlomng
II.
Current Condition of the Mexican Economy
Monetar.' and Fiscal Policv
The success of the Government of Mexico's economic adjustment program relies on its
adherence to disciplined monetary and fiscal policies. The Bank of Mexico is holding to its
commitment to maintain tight monetary policy, with the monetary base decreasing
substantially by several measures.
•
Between December 31, 1994 and May 9, 1995, the nominal monetary base
dropped 16 percent, declining by nearly 32 percent in real terms through
April 28.
•
Some of this decline is seasonal but, comparing the year-over-year change to
eliminate these effects, restraint on money growth is still evident.
•
The nominal monetary base increased 13 percent between April 1994 and April
1995, a 17 percent real decline; this contrasts with a nominal increase of 21
percent between December 1993 and December 1994, a 13 percent real
mcrease.
The Government of Mexico has adopted a number of measures to tighten fiscal policy.
Budgetary results for the first quarter exceeded the government's targets and reflect an
improvement in the fiscal position despite the weakening economy and a higher interest
burden on the public sector debt.
•
The primary balance (which excludes interest payments) carried a surplus of
NP25.8 billion compared to NPII.4 billion in the same period a year ago.
Despite substantially higher interest payments, the overall economic balance
was also in surplus by NP9.0 billion, compared to NP4.3 billion in the same
period last year.
•
The government increased the VAT from 10 percent to 15 percent on April 1,
boosted gasoline and diesel fuel prices 35 percent, and raised electricity rates
20 percent after March 9, 1995.
•
In the first quarter, non-interest expenditures dropped 12.3 percent in real
terms, while revenues increased 2.7 percent in real terms.
Economic Adjustment
Mexico faces a difficult year of adjustment, but the economy is already exhibiting signs that
the program is working. The economy's external position has improved substantially, due to
strong export performance and restrained imports.
2
•
Mexico ran a trade swplus of S 165 million in the first quarter of 1995,
compar~d. to a deficit of $4.3 billion during the same period a year ago. The
$460 mllhon trade surplus in March was Mexico's second consecutive monthly
surplus.
-
•
As a cons.equence of this year's sharp policy adjustments, Mexico's imports
have declmed. The rate of decline has tapered recently, however, with a
year-over-year decline of 2 percent in March compared to 7 percent in
February and increases of 12.2 percent in January and 18 percent in December.
•
At the same time, Mexico's exports are growing strongly, increasing 32 percent
in March from a year earlier, compared to year-over-year increases of 29
percent in February, 39.3 percent in January, and 13 percent in December.
Mexico's strong export perfonnance allowed for first quarter declines in GDP and industrial
production that were lower than expected.
•
Real GDP fell 0.6 percent in the first quarter of 1995 compared to the same
period a year ago. While this represents a sharp decline from a growth rate of
3.5 percent in 1994, this decline was more modest than officially projected,
reflecting buoyant export performance partially offsetting weaker domestic
demand.
•
Still, GDP is expected to decline further this year, before economic growth
resumes.
•
Also due to this strong export growth, the decline in industrial production has
been modest with a 1.1 % decline in February from a year earlier compared to
year-over-year increases of 3.8% in January and 0.1% in December.
The adjustment has triggered a decline in domestic demand and weakened labor markets.
•
Retail sales dropped 20 percent on a year-over-year basis in March
and 23 percent in February, following a decline of only 3 percent
in January.
•
The official unemployment rate, which covers only urban workers in the fonnal
sector, rose to 5.7 percent in March compared to 3.2 percent at the end of
1994.
•
Real wages in the manufacturing sector, among the strongest in the economy,
declined in February by 0.2 percent from a year ago after increases near 5.5
percent in both January and December over a year earlier.
3
InflatIon, which is expected to decline in coming months, has risen in the flrst four months of
this year, as the lagged effect of the peso's devaluation, the increase in public sector prices,
and the value added tax (VAT) take hold.
•
The 8-percent increase in consumer prices in April was largely fueled by the
50-percent increase in the VAT on April 1; it was the largest monthly increase
of the year.
•
However, most analysts expect inflation to drop sharply in the next several
months as the effects of the peso depreciation and the VAT increase work
through the economy and market demand for goods, services and labor remains
weak.
During late April, Mexico took several steps to meet its commitment to accelerate structural
reforms.
•
The Government of Mexico (GOM) submitted, and the Senate passed, a bill to
open long- distance telecommunications services to private and foreign firms.
To maximize competition and to improve Mexico's telecommunications
infrastructure, the GOM decided not to charge private firms a fee to enter the
market.
•
The GOM also submitted a bill, which the Chamber of Deputies passed, to
amend its Constitution to allow private companies to build and operate natural
gas pipelines and distribution networks. This will help facilitate the
privatization of electricity and petrochemical plants, which use natural gas.
•
In addition, the Mexican Congress passed constitutional changes allowing
private and foreign investment in railroads and satellite transmissions.
Financial Market Trends
Although it is still too early to make definitive judgements, recent indicators suggest that
financial markets are responding with more confidence in the adjustment program and in
Mexico's economic outlook.
•
For example, the peso has stabilized, trading near NP6.0 per U.S. dollar in
recent weeks, following a steady appreciation from its low of NP7.55 per U.S.
dollar in March.
•
As of May 22, Mexico's stock market was up 44.45 percent in peso terms, and
45 percent in dollar terms, since its low on February 27, 1995.
4
•
Mexico's benchmark 28-day Treasury bill (cete) rate dipped from 82.65 percent
at the end of March to 76.50 percent in the last weekly auction in April. It fell
further to 48 percent at the end of May.
•
Reduced fear of default on sovereign debt has been an important factor in this
turnaround, as indicated by the decline in interest rates on dollar-linked
tesobonos, which have dipped to about 13-14 percent from highs above 30
percent.
•
In addition, as of May 22, the market price of Brady bonds, with the U.S.
backing stripped out, has risen by roughly 62.48 percent since mid-March.
Banking Sector
The condition of Mexico's banking sector remains weak. As one indication, the percentage of
overdue loans throughout the system increased from 7.4 percent in December, 1994, to 13.5
percent as of March 31, 1995.
The Mexican government has undertaken a number of initiatives to support the banking
sector, including:
•
Creating a program that allows banks to restructure approximately 25 percent
of loans outstanding in the banking system through inflation-indexed
instruments (UDls), a measure that will ease liquidity pressures on banks'
credit-worthy customers.
•
Establishing the Temporary Capitalization Program (PROCAPTE), which
enables banks to meet regulatory capital requirements through the issuance of
convertible debentures to the deposit protection fund (FOBAPROA); and
•
Working to secure World Bank: and Inter-American Development Bank: loans
totalling $2.25 billion to help finance the restructuring of troubled banks and to
strengthen bank supervision.
This month, however, banks have reduced their reliance on dollar liquidity loans from
FOBAPROA and have reduced their outstanding balances by 30 percent since the first week
of April.
III.
Reserve Position of the Bank of Mexico
As of May 12, 1995, Mexico's international reserves tota~le.d $8:3 billion, as defmed in the
Law of the Bank of Mexico. Reserves have risen $2.2 bIllIon smce the end of 1994.
5
IV.
Disbursements and Outstanding Swaps and Guarantees
and Compensation to the U.S. Treasury
As of May 23, 1995, $11 billion in U.S. funds have been disbursed to Mexico under the
support program, of which a total of $10 billion remains outstanding under swaps. To date,
the enited States has not extended any guarantees to Mexico under this program.
Under the swap agreements, Mexico purchases dollars and credits a corresponding amount of
pesos to the U. S. account at the Bank of Mexico. On the maturity date, Mexico repurchases
the pesos and pays back the dollars, Both the short-term and medium-term swap facilities
require Mexico to maintain the dollar value of peso credits to the United States, adjusting the
amount of pesos on a quarterly basis, in accordance with changes in the dollar-peso exchange
rate.
As provided for in the agreements, the Government of Mexico must pay the Treasury interest
on the swap balances outstanding. The interest charges applied to short term swaps are
designed to cover the cost of funds to the Treasury, and thus are set at the inception of each
transaction at the current Treasury Bill rate.
The interest charges applied to the medium-term swaps are designed to cover the cost of
funds to the Treasury plus a premium for the credit risk associated with the extension of such
funds, as assessed at the time of each disbursement. Paragraph 6(d) of the Medium-Term
Exchange Stabilization Agreement provides that interest rates on swaps with Mexico are
"intended to be at least sufficient to cover the current U,S. Government credit risk cost for
Mexico." For each disbursement, the premium is the greater of 1) a rate determined by the
U.S. Government's inter-agency country risk assessment system (IeRAS) as adequate
compensation for sovereign risk of countries such as Mexico, or 2) a rate based on the
amount of U.S. funds outstanding to Mexico from short-term swaps, medium-term swaps, and
loan guarantees at the time of disbursement.
Mexico has not missed an interest or repayment date under either the short-term or mediumterm swaps, The schedule of swaps outstanding under both ESF and Federal Reserve swap
lines is as follows:
As of May 23, 1995, $9.5 billion has been disbursed through the ESF, of which $9 billion
remains outstanding.
Short-term swaps:
•
On January 11 and January 13, 1995, Mexico made two
drawings of $250 million each under short-term swaps
through the ESF. Mexico repaid these drawings on
March 14, 1995.
•
On February 2, 1995, the U.S. disbursed $1 billion under
a short-term swap through the ESF; Mexico renewed this
6
swap for an additional 90-day period on May 3, 1995.
The current interest rate is 5.75%
~ledium-term
swaps:
•
Mexico drew $3 billion under a medium-term swap on
March 14, 1995, $1 billion of which was used to pay
back an existing short-term swap. The current interest
rate is 8.1 %. Repayment to be made in seven
installments as follows: six equal installments of $375
million each, payable on June 30, 1998 and each
successive calendar quarter date to and including
September 30, 1999; and one installment of $750
million, payable on December 31, 1999.
•
On April 19, 1995, Mexico made a second $3 billion
drawing through a medium-term swap. The current
interest rate is 10.34%. Repayment to be made in twelve
installments as follows: eleven equal installments of 5245
million each, payable on June 30, 1997 and each
successive calendar quarter date to and including
December 31, 1999; and one installment of $305 million,
payable on March 31, 2000.
•
Most recently, Mexico drew $2 billion under a mediumterm swap on May 19, 1995. The current interest rate is
10.34%. Repayment to be made in twelve installments as
follows: eleven equal installments of $170 million each,
payable on June 30, 1997 and each successive calendar
quarter date to and including December 31, 1999; and
one installment of $130 million, payable on March 31,
2000.
Federal Reserve
Disbursements to Mexico through the Federal Reserve System total $1.5 billion as of
May 23, 1995, with $1 billion outstanding. All Federal Reserve disbursements are in the
fonn of short-term swaps.
Short-term swaps:
•
On January 11 and January 13, 1995, Mexico made two
short-term swap drawings of $250 million each through
the Federal Reserve. Mexico repaid these drawings on
March 14, 1995.
7
A short-term swap of $1 billion was extended on
February 2, 1995; Mexico renewed the swap for an
additional 90-day period on May 3, 1995.
v.
Mexico's Financial Transactions
'With U.S. and IMF financial support, Mexico has dramatically reduced the amount of
outstanding tesobonos, or short-term, dollar-linked government debt, since the onset of its
liquidity crisis in December. Since the beginning of the year, the amount of tesobonos
outstanding in public hands has declined from $29.2 billion to $11.5 billion at the end of
May, 1995.
Effective upon the signing of the agreements on February 21, 1995, prior to each
disbursement, Mexico must provide Treasury with information on the
@FedFRASER