Review of Rural Telephone Bank's 1989 Loan Interest Rate Calculation
Gao ID: AFMD-90-39 November 14, 1989Pursuant to a legislative requirement, GAO reviewed the accuracy of the Rural Telephone Bank's (RTB) interest rate determinations, focusing on the interest rate: (1) charged to borrowers during fiscal year (FY) 1989; and (2) for advances from the liquidating and financing accounts.
GAO found that the RTB interest rate determination, which established the fiscal year 1989 cost-of-money rate at 5.00 percent, the minimum allowable rate, was in accordance with the requirements under applicable laws.