OPIC

2010

A N N U A L 

REPORT | 1 |

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OPIC

2010

A N N U A L 

REPORT | 2 1 |

US Sponsor

Insured Investor Project Name Project D

AFRICA AND THE MIDDLE EAST

ANGOLA

N/A Banco Regional do Keve S.A. Expansion of SME loan portfolio $9,750,000 Finance

BURUNDI

Chemonics International Chemonics Consulting services $304,838 Insurance

CONGO, DEMOCRATIC REPUBLIC OF

Chemonics International Chemonics Consulting services $208,330 Insurance

DJIBOUTI

Chemonics International Chemonics Consulting services $10,078 Insurance

EGYPT

Chemonics International Chemonics Consulting services $2,027,797 Insurance

GHANA

Broad Cove Housing Investment 

Partners

Ghana Home Loans (Fund 1) Limited Purchase residential mortgages originated 

by GHL

$30,000,000 Finance

IRAQ

International Rescue Committee International Rescue Committee Humanitarian activities and services $212,065 Insurance

ISRAEL

American Friends of Koret Israel 

Economic Development Funds

Koret Israel Economic Development 

Funds

Support SME lending in the Negev and 

Gilboa regions

$10,000,000 Finance

LEBANON

Chemonics International unknown Business consulting services $451,806 Insurance

Citibank, N.A. Bankmed S.A.L. Loans to SME; low/middle income mortgages; 

consumer lending

$34,000,000 Finance

MALAWI

Chemonics International Chemonics Consulting services $127,581 Insurance

NAMIBIA

Microvest I, L.P. Trustco Finance (PTY) Ltd Education services $1,062,500 Insurance

NIGER

Chemonics International Chemonics Business consulting services $28,940 Insurance

NIGERIA

CG Solutions Global Holding Co. ContourGlobal Solutions (Nigeria) Ltd. Electric services $21,195,000 Insurance

CG Solutions Global Holding Co. ContourGlobal Solutions (Nigeria) Ltd. Electric services $8,082,000 Insurance

CG Solutions Global Holding Co. ContourGlobal Solutions (Nigeria) Ltd. Electric services $8,559,000 Insurance

Pacific Tri-Star, Inc. PTSM Holdings Limited/PTS 

Equipment Limited

Heavy equipment sales, leasing and 

maintenance services

$750,000 Finance

RWANDA

Chemonics International Chemonics Consulting services $151,470 Insurance

Tea Importers, Inc Sorwathe S.A.R.L. Expansion of existing tea processing facilities $5,704,306 Insurance

SOMALIA

International Rescue Committee International Rescue Committee Humanitarian activities and services $52,115 Insurance

SOUTH AFRICA

Net 1 UEPS Technologies Finbond Group Limited Support expansion of microfinance lending $9,750,000 Finance

Shared Interest, Inc. Shared Interest, Inc. Guaranties to financial institutions for lowincome loans$3,000,000 Finance

TANZANIA

Wilbur O Colom M/S Nashera Limited Hotel $384,000 Insurance

2010 inv

OPIC

2010

A N N U A L 

REPORT | 2 3 |

US Sponsor

Insured Investor Project Name Project D

AZERBAIJAN

Financial Services Volunteer Corps Rabitabank OJSC Expansion of SME lending activities $4,875,000 Finance

ShoreBank International Ltd. TBC Kredit Non-Banking Credit 

Organizati LLC

Expansion of SME & real estate lending $12,000,000 Finance

GEORGIA

International Rescue Committee International Rescue Committee Humanitarian activities and services $35,000 Insurance

N/A JSC Basisbank Expansion of SME loan portfolio $4,875,000 Finance

Omidyar Tufts Microfinance Fund JSC Procredit Bank Georgia Expand SME loans/augment tier II capital 

(subordinated loan)

$15,000,000 Finance

Omidyar Tufts Microfinance Fund JSC Procredit Bank Georgia Expansion of SME lending portfolio 

(senior loan)

$15,000,000 Finance

Precision Auto Care, Inc. Auto Service Caucasus Ltd Establish automobile care franchise operation $2,000,000 Finance

Steven Johnson Betsy, LLC Expansion of hotel $3,750,000 Finance

HUNGARY

Roland & Diane Fagen Pannonia Ethanol Zrt. Ethanol production facility $60,000,000 Finance

KOSOV

Church Development Fund, Inc. American Schools International, 

Kosova

Loan for expansion of high school $1,372,842 Insurance

Microvest I, L.P. World Relief (known as Beselidjha 

Micro Finance)

Microfinance loan $784,344 Insurance

POLAND

Small Enterprise Assistance Funds SEAF SME Debt Facility LLC (Matras 

SA)

Expansion of book distributor & retailer $3,000,000 Finance

RUSSIA

Boris Nepoe/Boris Kemelman Credit-Moscow Bank Joint Stock 

Company

Expansion of SME lending portfolio $4,875,000 Finance

Financial Services Volunteer Corps Petersburg Social Commercial Bank 

OJSC

Expansion of SME loan portfolio $9,750,000 Finance

N/A NBD Bank Joint Stock Company Expansion of SME loan portfolio $3,900,000 Finance

Russia Partners III Dataspace Partners, LLC Operation of tier III commercial data centers $150,000,000 Finance

The U.S. Russia Investment Fund 

(TUSRIF)

Closed Joint Stock Company 

Deltaleasing

Expansion of equipment lease portfolio to 

SME’s

$90,000,000 Finance

Western Retail Development LLC Real Estate Development Group LLC Restaurant $14,580,000 Insurance

TAJIKISTAN

Chemonics International Chemonics Consulting services $67,500 Insurance

TURKEY

Rahmi Sayder Istanbul Mortgage Finansman A.S. Origination of residential mortgage loans $200,000,000 Finance

EUROPE AND EURASIA REGIONAL

OpenRevolution, LLC Joint Stock Company Open 

Revolution Georgia

Subscriber electronic payment and transfer 

service network

$2,800,000 Finance

LATIN AMERICA AND THE CARIBBEAN

ANTIGUA

Chemonics International Chemonics Consulting services $48,135 Insurance

ARGENTINA

Blue Water Worldwide LLC Plaza Logistica S.R.L. Expansion of warehousing operation $10,000,000 Finance

*

*Information has temporarily been redacted, including to protect the safety of implementing partners.
OPIC

2010

A N N U A L 

REPORT | 2 4 |

US Sponsor

Insured Investor Project Name Project D

BOLIVI

Chemonics International Chemonics Consulting services $603,307 Insurance

BRAZIL

David Lewis Moyer C21 Brasil Desenvolvimento 

Imobilairio Ltda

Expansion of Century 21 real estate brand 

franchise

$3,000,000 Finance

Wachovia Bank National 

Association

Banco Industrial e Commercial S.A. Expansion of SME loan portfolio $15,000,000 Finance

COLOMBIA

Microvest I, L.P. Fundación Mundo Mujer Loan $4,000,000 Insurance

Microvest I, L.P. Fundación Mundo Mujer Loan $600,000 Insurance

COSTA RICA

Carlos J. Rodriquez Living Trust c/o 

RodBlu Investments

Rodblu Partners CRP S.A. Construction of 240 condominium housing 

units

$10,000,000 Finance

HAS Development Corporation Aeris Holding Costa Rica S.A. Modernization & operation of airport $55,000,000 Finance

DOMINICA

Chemonics International Chemonics Business consulting services $18,069 Insurance

ECUADOR

Chemonics International Chemonics Consulting services $61,473 Insurance

GUATEMALA

Microvest I, L.P. Fundacion Para el Desarrollo 

Empresarial y Agricola

Microfinance loan $1,500,000 Insurance

Microvest I, L.P. Fundacion Para el Desarrollo 

Empresarial y Agricola

Microfinance loan $500,000 Insurance

HAITI

Claudio Osorio Innovida Holdings LLC Production of composite structural panels $10,000,000 Finance

HONDURAS

Citibank, N.A. Grupo Jaremar (UFINSA, INDASA, 

OLEPSA)

Diversified crude palm oil production & 

renewable energy co.

$15,000,000 Finance

MEXICO

CSI Latina Financial, Inc. CSI Latina Financial, Inc./CSI Leasing 

Mexic

Expansion of the company’s lease origination 

activities

$10,000,000 Finance

Navistar International Corporation Navistar Financial, S.A.DE 

C.V.SOFOM ENR

Expansion of SME leasing and loan portfolio $9,750,000 Finance

PANAMA

Eligible US Investors La Hipotecaria Panamanian Mortgage 

Trust 10

Securitized pool of low income mortgages $75,000,000 Finance

Wachovia/Wells Fargo Global Bank Corporation Expansion of SME portfolio $20,000,000 Finance

PARAGUAY

Citibank, N.A. Banco Continental S.A.E.C.A. Expansion of SME loan portfolio $30,000,000 Finance

Citibank, N.A. Banco Regional S.A.E.C.A. Expansion of SME portfolio $22,500,000 Finance

Citibank, N.A. Banco Familiar Microfinance institution $4,666,200 Finance

Citibank, N.A. Vision Banco S.A.E.C.A. Microfinance institution $4,666,200 Finance

PERU

LFLP Holdings, LLC Financiera Tfc, S.A. Expand portfolio of SME, micro-credit & 

consumer loans

$10,000,000 Finance

Small Enterprise Assistance Funds SEAF SME Debt Facility LLC 

(Outsourcing Peru)

Provider of logistics support to importers & 

exporters

$3,000,000 Finance

Small Enterprise Assistance Funds SEAF SME Debt Facility LLC 

(Sunshine Export)

Exporter of mangos & tropical fruits $3,000,000 Finance

LATIN AMERICA AND THE CARIBBEAN REGIONAL

Carlos Rodriguez Casanovo Affordable Housing Fund 

I, L.P.

Build affordable housing in Latin America $97,889,400 Finance
OPIC

2010

A N N U A L 

REPORT | 2 5 |

US Sponsor

Insured Investor Project Name Project D

Global Partnerships Global Partnerships Social Inv. Fund 

2010 LLC

Microfinance investment vehicle (senior loan) $1,375,000 Finance

Global Partnerships Global Partnerships Social Inv. Fund 

2010 LLC

Microfinance investment vehicle (subordinated 

loan)

$5,500,000 Finance

Omidyar Tufts Microfinance Fund Microfinance Growth Fund, LLC Loans to MFI’s to increase lending to microentrepreneurs$125,000,000 Finance

ALL OPIC COUNTRIES

ContourGlobal Contourglobal Solutions Holdings 

Limited

Combined heat & power plants with CO2

capturing and purification for beverage 

bottling facilities

$250,000,000 Finance

Cyrano USA LLC Global Microfinance Facility Ltd. Expansion of borrower’s capital for MFI loans 

(senior loan)

$34,000,000 Finance

Cyrano USA LLC Global Microfinance Facility Ltd. Expansion of capital for MFI loans 

(subordinated loan)

$20,000,000 Finance

Deutsche Bank Trust Company 

America

Eye Fund 1, LLC Financing to eye care organizations 

supporting vision care

$5,090,000 Finance

Root Capital Inc. Root Capital Inc. Loans to fairtrade certified coffee cooperatives $10,000,000 Finance

Teachers Insurance and Annuity 

Association of America

Procredit Holding A.G. Subordinated loan to support SME lending by 

subsidiaries

$25,000,000 Finance

USRG Management Company, LLC USRG Emerging Markets Fund, LP Closed-end investment fund $100,000,000 Investment 

Funds

FUN NAME PORTFOL

COU

RE

AIC Caribbean Fund, L.P. Advantage General Insurance Insurance Jamaica

Las Olas–MCC Housing Dominican Republic

Alsis Latin America Fund, L.P. Apoyo Financiero Versatil S.A. de C.V. Financial Services Mexico

BBVA-Bancomer NPL Portfolio II Financial Services Mexico

BBVA-Bancomer NPL Portfolio III Financial Services Mexico

Grupo Alde S.A. de C.V. Housing Mexico

Grupo Alde S.A. de C.V.–Campo Sur Development Housing Mexico

Grupo Alde S.A. de C.V.–Los Juncos Development Housing Mexico

Grupo Inmobiliario Tu Casa, S.A. de C.V. Housing Mexico

Prestaciones Finmart–Crediamigo Financial Services Mexico

Integradora de Apoyo Municipal Financial Services Mexico

Leasing Operations de Mexico, S.A. de C.V. Equipment Leasing Mexico

Darby ProBanco Holdings, L.P. Banco Multiple Leon, S.A. Financial Services Dominican Republic

Unity Group Holdings Corporation Financial Services Latin America Regional

Controladora Vertice S.A. de C.V. Financial Services Mexico

ECP Africa FIII Investments, LLC Financial BC SA Banking Africa Regional

NSIA Participations SA Insurance Côte d’Ivoire

Thunnus Overseas Group Tuna Processing and 

Distribution

Africa Regional

Helios Sub-Saharan Africa Fund I, Ltd. Continental Outdoor Media, Ltd. Media–Outdoor Advertising Pan Africa

Latin Power III, L.P. Impulsora de Proyectos Hidroelectricos, S. de R.L. de 

C.V.–Electricidad de Oriente S. de R.L. de C.V.

Renewable Energy–

Hydroelectric Power

Mexico

Impulsora de Proyectos Hidroelectricos, S. de R.L. de 

C.V.–Electricidad del Golfo S. de R.L. de C.V.

Renewable Energy–

Hydroelectric Power

Mexico

Paladin Realty Latin America Investors II, L.P. GVL Homebuilding Platform Housing Costa Rica

Russia Partners II O Series, L.P. MDM Bank Financial Services Russia

Parallels Holdings, Ltd. IT–Software Development Russia

DataSpace Partners Data & IT Services Russia

2010 investment FUNDS PORTFOLIO 
OPIC

2010

A N N U A L 

REPORT | 2 6 |

OPIC COUNTRIES AND AREAS As of September 30, 2010

OPIC services encourage U.S. private investment in some 150 countries 

and areas around the world, contributing to economic growth at home 

and abroad.

OPIC services are generally available in the countries and areas listed below. 

From time to time, statutory and policy constraints may limit the availability of 

OPIC services in certain countries, or countries where services were 

previously unavailable may become eligible. Investors are urged to contact 

OPIC directly or check the website: www.opic.gov/doing-business/wherewe-work for up-to-date information regarding the availability of OPIC services 

in specific countries, as well as information on the availability of OPIC services 

in countries not listed.

AFRICA AND THE MIDDLE EAST

Algeria

Angola

Bahrain

Benin

Botswana

Burkina Faso

Burundi

Cameroon

Cape Verde

Central African Republic

Chad

Comoros

Congo

Congo, Democratic Republic of

Côte d’Ivoire

Djibouti

Egypt

Equatorial Guinea

Eritrea

Ethiopia

Gabon

Gambia

Ghana

Guinea

Guinea-Bissau

Iraq

Israel

Jordan

Kenya

Kuwait

Lebanon

Lesotho

Liberia

Madagascar

Malawi

Mali

Mauritania

Mauritius

Morocco

Mozambique

Namibia

Niger

Nigeria

Oman

Rwanda

São Tomé and Príncipe

Senegal

Sierra Leone

Somalia

South Africa

Swaziland

Tanzania

Togo

Tunisia

Uganda

West Bank and Gaza

Yemen

Zambia

Zimbabwe

ASIA AND THE PACIFIC

Afghanistan

Bangladesh

Cambodia

Cook Islands

East Timor

Fiji

India

Indonesia

Kiribati

Laos

Malaysia

Maldives

Marshall Islands

Micronesia, Federated States of

Mongolia

Nepal

Pakistan

Palau

Papua New Guinea

Philippines

Samoa

Singapore

South Korea

Sri Lanka

Taiwan

Thailand

Timor-Leste

Tonga

Vietnam

EUROPE AND EURASIA

Albania

Armenia

Azerbaijan

Bosnia and Herzegovina

Bulgaria

Croatia

Cyprus

Czech Republic

Estonia

Georgia

Greece

Hungary

Ireland

Kazakhstan

Kosovo

Kyrgyzstan

Latvia

Lithuania

Macedonia

Malta

Moldova

Montenegro

Northern Ireland

Poland

Portugal

Romania

Russia

Serbia

Slovakia

Slovenia

Tajikistan

Turkey

Turkmenistan

Ukraine

Uzbekistan

LATIN AMERICA AND THE CARIBBEAN

Anguilla

Antigua and Barbuda

Argentina

Aruba

Bahamas

Barbados

Belize

Bolivia

Brazil

Chile

Colombia

Costa Rica

Dominica

Dominican Republic

Ecuador

El Salvador

French Guiana

Grenada

Guatemala

Guyana

Haiti

Honduras

Jamaica

Mexico

Netherlands Antilles

Nicaragua

Panama

Paraguay

Peru

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

Suriname

Trinidad and Tobago

Turks and Caicos

Uruguay
OPIC

2010

A N N U A L 

REPORT | 2 7 |

KPMG LLP

2001 M Street, NW 

Washington, DC 20036-3389 

KPMG LLP is a Delaware limited liability partnership, 

the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.

Independent Auditors’ Report on Financial Statements

To the Board of Directors

Overseas Private Investment Corporation: 

We have audited the accompanying balance sheets of the Overseas Private Investment Corporation (OPIC) 

as of September 30, 2010 and 2009, and the related statements of income, capital and retained earnings, 

and cash flows for the years then ended. These financial statements are the responsibility of OPIC’s 

management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to financial audits contained in Government Auditing Standards, issued 

by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 

No. 07-04, Audit Requirements for Federal Financial Statements, as amended. Those standards and OMB 

Bulletin No. 07-04 require that we plan and perform the audits to obtain reasonable assurance about 

whether the financial statements are free of material misstatement. An audit includes consideration of 

internal control over financial reporting as a basis for designing audit procedures that are appropriate in the 

circumstances, but not for the purpose of expressing an opinion on the effectiveness of OPIC’s internal 

control over financial reporting. Accordingly, we express no such opinion. An audit also includes 

examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 

assessing the accounting principles used and significant estimates made by management, as well as 

evaluating the overall financial statement presentation. We believe that our audits provide a reasonable 

basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of the Overseas Private Investments Corporation as of September 30, 2010 and 2009, and 

the results of operations, and its cash flows for the years then ended in conformity with U.S. generally 

accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our reports dated November 15,

2010, on our consideration of OPIC’s internal control over financial reporting and our tests of its 

compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. 

The purpose of those reports is to describe the scope of our testing of internal control over financial 

reporting and compliance and the results of that testing, and not to provide an opinion on the internal

control over financial reporting or on compliance. Those reports are an integral part of an audit performed 

in accordance with Government Auditing Standards and should be read in conjunction with this report in 

assessing the results of our audits.

November 15, 2010
OPIC

2010

A N N U A L 

REPORT | 2 8 |

Assets 2010 2009

Fund Balance with U.S. Treasury (notes 2 and 4) $ 566,172 $ 549,470

U.S. Treasury securities, at amortized cost plus related receivables (notes 2 and 7) 5,049,091 4,898,512

Direct loans outstanding, net (notes 2 and 10) 1,076,217 808,363

Accounts receivable resulting from investment guaranties, net (notes 2 and 11) 63,231 50,523

Assets acquired in insurance claims settlements, net (notes 2 and 11) 16,782 40,946

Guaranty receivable (notes 2 and 18) 273,686 233,959

Accrued interest and fees and other 26,699 25,496

Furniture, equipment and leasehold improvements at cost less accumulated

 depreciation and amortization of $14,881 in FY2010 and $14,566 in FY2009 (note 2) 6,011 4,069

 Total assets $ 7,077,889 $ 6,611,338

Liabilities, Capital, and Retained Earnings

Liabilities:

 Reserve for political risk insurance (note 9) $ 275,000 $ 300,000

 Reserve for investment guaranties (note 10) 650,229 676,422

 Accounts payable and accrued expenses 7,025 5,986

 Guaranty liability (notes 2 and 18) 273,686 233,959

 Customer deposits and deferred income 45,775 40,517

 Borrowings from U.S. Treasury, and related interest (note 6) 1,402,915 1,006,520

 Unearned premiums 9,662 10,590

 Deferred rent & rent incentives from lessor of $5,416 and $4,975 net of 

 accumulated amortization of $2,065 and $1,709 in FY2010 and FY2009 (note 14) 3,351 3,266

 Total liabilities 2,667,643 2,277,260

Contingent liabilities (notes 2 and 17)

Capital and retained earnings:

 Contributed capital $ 50,000 $ 50,000

 Credit funding (note 5) 106,338 111,056

 Interagency transfers (note 2) 8,902 10,810

 Retained earnings and reserves:

 Insurance (notes 9 and 12) 705,410 839,271

 Guaranty (notes 10 and 12) 3,539,596 3,322,941

4,410,246 4,334,078

 Total liabilities, capital, and retained earnings $ 7,077,889 $ 6,611,338

See accompanying notes to financial statements.

BALANCE SHEETS

Overseas Private Investment Corporation—September 30, 2010 and 2009 ($ in thousands)
OPIC

2010

A N N U A L 

REPORT | 2 9 |

Revenues 2010 2009

Political risk insurance premiums and fees (note 9) $ 15,419 $ 17,415

Investment financing interest and fees 170,151 149,053

Interest on finance program deposits 33,410 20,197

Interest on U.S. Treasury securities 178,516 202,781

 Total revenues 397,496 389,446

Expenses

Provisions for reserves:

 Political risk insurance (notes 2 and 9) $ (26,394) $ (944)

 Investment financing (notes 2, 10 and 11) 35,271 32,683

Salaries and benefits (note 15) 30,574 28,844

Rent, communications and utilities (note 14) 7,581 7,501

Contractual services 14,812 23,401

Travel 3,298 3,051

Interest on borrowings from U.S. Treasury (note 6) 70,343 50,356

Depreciation and amortization (note 2) 315 303

Other general and administrative expenses 1,821 1,698

 Total expenses 137,621 146,893

 Net income $ 259,875 $ 242,553

See accompanying notes to financial statements.

s

Overseas Private Investment Corporation—Years ended September 30, 2010 and 2009 ($ in thousands)
OPIC

2010

A N N U A L 

REPORT | 3 0 |

Equity reserves

Contributed

capital

Credit

funding

Interagency

transfers

Insurance 

(notes 9 & 12)

Guaranty 

(notes 10 & 12)

Retained 

earnings Total

Balance, Sept. 30, 2008 $ 50,000 $ 115,765 $ 19,499 $ 1,049,510 $ 3,006,856 $ — $ 4,241,630

Net income — — — (161,928) 404,481 — 242,553

Return credit funding

 to U.S. Treasury — (18,370) — — (223,122) — (241,492)

Intra-agency transfers — — — (30,000) 30,000 — —

Credit funding received from:

 Accumulated earnings — 59,360 — (29,000) — (30,360) —

 Credit appropriations — 89,387 — — — — 89,387

Credit funding used — (135,086) — — 104,726 30,360 —

Interagency transfers — — (8,689) 10,689 — — 2,000

Balance, Sept. 30, 2009 $ 50,000 $ 111,056 $ 10,810 $ 839,271 $ 3,322,941 $ — $ 4,334,078

Net income — — — (121,793) 381,668 — 259,875

Return credit funding

 to U.S. Treasury — — — — (199,594) — (199,594)

Credit funding (net) 

received from:

 Accumulated earnings — 45,361 — (13,975) — (31,386) —

 Credit appropriations — 15,888 — — — — 15,888

Credit funding used — (65,967) — — 34,581 31,386 —

Interagency transfers — — (1,908) 1,907 — — (1)

Balance, Sept. 30, 2010 $ 50,000 $ 106,338 $ 8,902 $ 705,410 $ 3,539,596 $ — $ 4,410,246

See accompanying notes to financial statements.

s

Overseas Private Investment Corporation—Years ended September 30, 2010 and 2009 ($ in thousands)
OPIC

2010

A N N U A L 

REPORT | 3 1 |

2010 2009

Cash flows from operating activities:

 Net income $ 259,875 $ 242,553

 Adjustments to reconcile net income to net cash provided by operating activities:

 Provisions for:

 Political risk insurance (26,395) (944)

 Investment financing 35,271 32,683

 Amortization of premiums on U.S. securities 15,029 13,268

 Accretion of discounts on U.S. securities (6,359) (11,733)

 Amortization of deferred rent and rental incentives 85 169

 Increase in rent incentives — 5

 Depreciation and amortization 315 303

 (Increase) decrease in operating assets:

 Accrued interest and fees and other 1,744 4,742

 Guaranty receivable (39,727) (81,474)

 Assets acquired in insurance claims settlements — (206)

 Recoveries on assets acquired in insurance claims settlements 25,559 25,559

 Assets acquired in finance claims settlements (69,800) (11,654)

 Recoveries on assets acquired in finance claims settlements 14,094 11,895

 Increase (decrease) in operating liabilities:

 Accounts payable and accrued expenses 1,039 414

 Customer deposits and deferred income 5,258 3,372

 Guaranty liability 39,727 81,474

 Unearned premiums (928) (2,010)

 Cash provided by operating activities 254,787 308,416

Cash flows from investing activities:

 Sale and maturity of U.S. Treasury securities 1,289,188 1,231,877

 Purchase of U.S. Treasury securities (1,451,385) (1,372,260)

 Repayment of direct loans 167,844 104,603

 Disbursement of direct loans (454,163) (271,139)

 Acquisition of furniture and equipment (2,257) (1,973)

 Cash used in investing activities (450,773) (308,892)

Cash flows from financing activities:

 Return credit funding to U.S. Treasury (199,594) (241,493)

 Interagency transfers (1) 2,000

 Credit appropriations 15,888 89,387

 Credit reform borrowings from U.S. Treasury 396,395 145,234

 Cash provided by (used in) financing activities 212,688 (4,872)

Net increase (decrease) in cash 16,702 (5,348)

Fund Balance with U.S. Treasury at beginning of year 549,470 554,818

Fund Balance with U.S. Treasury at end of year $ 566,172 $ 549,470

See accompanying notes to financial statements.

Sttem

Overseas Private Investment Corporation—Years ended September 30, 2010 and 2009 ($ in thousands)
OPIC

2010

A N N U A L 

REPORT | 3 2 |

(1) Sttem

The Overseas Private Investment Corporation (OPIC) is a selfsustaining U.S. Government corporation created under the Foreign Assistance Act of 1961 (FAA), as amended. OPIC facilitates 

U.S. private investment in developing countries and emerging 

market economies, primarily by offering political risk insurance, investment guaranties, and direct loans. As a government 

corporation, OPIC is not subject to income tax.

(2) Suma

Acc

Basis of Presentation: These financial statements have been 

prepared to report the financial position, results of operations, 

and cash flows of OPIC. OPIC’s accounting policies conform to 

accounting principles generally accepted in the United States 

of America. OPIC’s financial statements are presented on the 

accrual basis of accounting. Under the accrual basis, revenues 

are recognized when earned, and expenses are recognized when a 

liability is incurred, without regard to receipt or payment of cash. 

Fund Balance with U.S. Treasury: Substantially all of OPIC’s 

receipts and disbursements are processed by the U.S. Treasury 

which, in effect, maintains OPIC’s bank accounts. For purposes of 

the Statement of Cash Flows, Fund Balance with U.S. Treasury is 

considered cash. 

Investment in U.S. Treasury Securities: By statute, OPIC is 

authorized to invest funds derived from fees and other revenues 

related to its insurance and preinvestment programs in U.S. 

Treasury securities. Investments are carried at face value, net of 

unamortized discount or premium, and are held to maturity. OPIC 

has the ability and intent to hold its investments until maturity or 

until the carrying cost can be otherwise recovered. 

Assets Acquired in Investment Guaranty and Insurance 

Claims Settlements: Assets acquired in claims settlements are 

valued at the lower of management’s estimate of the net realizable value of recovery or the cost of acquisition. 

OPIC acquires foreign currency in settlement of inconvertibility 

claims when an insured foreign enterprise is unable to convert 

foreign currency into U.S. dollars, as well as in some direct loan 

and investment guaranty collection efforts. The initial U.S. dollar 

equivalent is recorded and revalued annually until the foreign 

currency is utilized by OPIC or other agencies of the United States 

Government, or until it is exchanged for U.S. dollars by the foreign 

government. 

Allowances: The allowances are based on management’s periodic 

evaluations of the underlying assets. In its evaluation, management considers numerous factors, including, but not limited to, 

general economic conditions, asset composition, prior loss experience, the estimated fair value of any collateral, and the present 

value of expected future cash flows. 

Depreciation and Amortization: OPIC capitalizes property and 

equipment at historical cost for acquisitions exceeding $5,000. 

Depreciation and amortization of fixed assets, leasehold improvements, and lease incentives are computed using the straight-line 

method over the estimated useful life of the asset or lease term, 

whichever is shorter, with periods ranging from 5 to 15 years. 

Reserves for Political Risk Insurance and Investment Guaranties: The reserves for political risk insurance and investment 

guaranties provide for losses inherent in those operations using 

the straight-line method. These reserves are general reserves, 

available to absorb losses related to the total insurance and guaranties outstanding, which are off-balance-sheet commitments. 

The reserves are increased by provisions charged to expense and 

decreased for claims settlements. The provisions for political risk 

insurance and investment guaranties are based on management’s 

evaluation of the adequacy of the related reserves. This evaluation encompasses consideration of past loss experience, changes 

in the composition and volume of the insurance and guaranties 

outstanding, worldwide economic and political conditions, and 

project-specific risk factors. Also, in the political risk insurance 

reserve evaluation, OPIC takes into consideration losses incurred 

but not yet reported. 

FASB Accounting Standards Codification Topic 460 for the 

Guarantee Topic (FASB ASC 460): FASB ASC 460 requires that 

upon issuance of a guaranty, the guarantor must disclose and 

recognize a liability for the fair value of the obligation it assumes 

under that guaranty. The initial recognition and measurement 

requirement of FASB ASC 460 applies only to guaranties issued or 

modified after December 31, 2002. OPIC’s initial guarantee obligation reported, represents the fair value of the investment guaranties. This obligation is reduced over the term of the investment 

guarantee agreements, as OPIC is released from its obligation. 

Revenue Recognition: Facility fees are received in advance and 

recognized as deferred income, then amortized over the applicable 

loan period using the straight-line method. Interest on loans and 

guaranty fees on investment guaranties are accrued based on the 

principal amount outstanding. Revenue from both loan interest 

payments and guaranty fees that is more than 90 days past due 

is recognized only when cash is received. Revenue from political 

risk insurance premiums is recognized over the contract coverage 

period. Accretion of premium and discount on investment securities is amortized into income under a method approximating the 

effective yield method. 

NOTES TO FINANCIAL STATEMENTS September 30, 2010 and 2009
OPIC

2010

A N N U A L 

REPORT | 3 3 |

Interagency transfers: OPIC periodically receives funding from 

other U.S. Government agencies to be used to support various 

programs and initiatives. 

Use of Estimates: The preparation of financial statements 

requires management to make estimates and assumptions 

that affect the reported amounts of assets and liabilities, the 

disclosure of contingent assets and liabilities at the date of the 

financial statements, and the reported amounts of revenue and 

expenses during the reporting period. Actual results could differ 

from these estimates. 

Commitments and Contingencies: Liabilities from loss contingencies, other than those related to political risk insurance 

and investment guaranties, arising from claims, assessments, 

litigation, fines and penalties, and other sources, are recorded 

when it is probable that a liability has been incurred and the 

amount of the assessment and/or remediation can be reasonably 

estimated. Loss contingencies that do not meet these criteria, but 

are reasonably possible and estimable are not accrued, but are 

disclosed in Note 17.

(3) Intr

Ac

OPIC, as a U.S. Government corporation, is subject to financial 

decisions and management controls of the Office of Management and Budget. As a result of this relationship, OPIC’s operations may not be conducted, nor its financial position reported, 

as they would be if OPIC were not a government corporation. Furthermore, in accordance with international agreements relating 

to its programs, foreign currency acquired by OPIC can be used 

for U.S. Government expenses. This constitutes an additional 

means, which would otherwise be unavailable, by which OPIC 

can recover U.S. dollars with respect to its insurance and investment financing programs. 

(4) FundBalanc

OPIC is restricted in its uses of certain cash balances, as 

described below. The fund balance with U.S. Treasury as of 

September 30, 2010 and 2009 consists of the following (dollars 

in thousands): 

2010 2009

Restricted:

Pre-Credit reform $ 10 1,537

Credit reform 557,751 541,965

Interagency fund transfers — 1

Unrestricted 8,411 5,967

Total $ 566,172 549,470

The Federal Credit Reform Act of 1990 established separate 

accounts for cash flows associated with investment financing 

activity approved prior to implementation of the Act and investment financing activity subject to the Act. With the advent of 

Credit Reform, OPIC is not permitted to invest its pre-Credit 

Reform cash balances. These balances grow over time, and when 

they are determined to be no longer needed for the liquidation 

of the remaining pre-Credit Reform direct loans and investment 

guaranties, they are transferred to OPIC’s unrestricted noncredit 

insurance account. OPIC made transfers totaling $1,556,369 to 

the noncredit insurance account in 2010; no transfers were made 

in 2009. Credit Reform balances are also maintained in the form 

of uninvested funds. The U.S. Treasury pays OPIC interest on those 

cash balances except for undisbursed credit funding. 

(5) Cre

OPIC’s finance activities are subject to the Federal Credit Reform 

Act of 1990, which was implemented as of October 1, 1991. 

Credit Reform requires agencies to estimate the long-term cost 

to the government of each fiscal year’s new credit transactions and to obtain funding through the appropriations process 

equal to the net present value of such costs at the beginning 

of the year. OPIC’s credit funding is available for three years. In 

addition, the Act requires the administrative costs related to its 

credit program to be displayed. 

In fiscal year 2010, OPIC’s appropriations legislation authorized 

the corporation to use $29 million of its accumulated earnings 

to cover the future costs of credit transactions committed in 

fiscal years 2010 through 2012. In fiscal year 2009, OPIC was 

authorized to use $29 million to cover commitments in fiscal 

years 2009 through 2011. In addition to the credit funding 

allocated directly to OPIC through the appropriations process, 

OPIC received a total of $67 million in net transfers from other 

agencies to be used exclusively to finance projects in the New 

Independent States (NIS). 

The following table shows the status of funding for credit activities (dollars in thousands):

2010 2009

Balance carried forward $ 111,056 115,765

Upward reestimates 15,888 89,387

Transferred from earnings 

 (net of returns) 45,361 59,360

Expired credit funding — (18,370)

Credit funding used (65,967) (135,086)

Credit funding remaining $ 106,338 111,056

Changes in financial and economic factors over time can affect 

the subsidy estimates made at the time of loan and guaranty 

commitments. Therefore, in accordance with OMB guidelines, 

OPIC reestimates subsidy costs for each group of loans and 
OPIC

2010

A N N U A L 

REPORT | 3 4 |

guaranties obligated in a given fiscal year to account for those 

changing factors. Reestimates that result in increases to subsidy 

costs are funded with additional appropriated funds that are 

made automatically available, while decreases to subsidy costs 

result in excess funds that are transferred to the U.S. Treasury. 

OPIC incurred increased subsidy costs of $15.9 million and $89.4 

million and decreases in subsidy costs of $123.4 million and 

$175.7 million in fiscal years 2010 and 2009, respectively. During 

fiscal year 2010, OPIC received permission from OMB to return 

expired credit funding to the source of the original funds, OPIC’s 

unrestricted noncredit insurance account, rather than to the U.S. 

Treasury. Expired credit funding of $15 million was therefore 

transferred back to the noncredit account earnings during fiscal 

year 2010. 

(6) Borr

U.S. T

In accordance with the Federal Credit Reform Act of 1990, the 

portion of investment financing activities not funded through the 

appropriations process must be funded by borrowings from the 

U.S. Treasury. Borrowings for Credit Reform financings totaled 

$593.5 million in 2010 and $335.4 million in 2009, all of which 

have been disbursed. OPIC paid a total of $70.3 million and 

$50.4 million in interest to the U.S. Treasury during fiscal years 

2010 and 2009, respectively. Repayments of borrowings from 

the U.S. Treasury totaled $197.1 million in 2010 and $190.2 

million in 2009. Future payments for borrowing outstanding at 

September 30, 2010 are as follows (dollars in thousands):

Payment due in: Principal amount due

Fiscal Year 2011 $ 16,378

Fiscal Year 2012 39,806

Fiscal Year 2013 50,616

Fiscal Year 2014 68,653

Fiscal Year 2015 370,690

Thereafter 856,772

Total $ 1,402,915

(7) Invstment

S

The composition of investments and related receivables at September 30, 2010 and 2009 is as follows (dollars in thousands): 

2010 2009

Investments, amortized cost $ 5,011,361 4,857,835

Interest receivable 37,730 40,677

Total $ 5,049,091 4,898,512

The amortized cost and estimated fair value of investments in 

U.S. Treasury securities are as follows (dollars in thousands): 

Sept. 30, 2010 Sept. 30, 2009

Amortized cost $ 5,011,361 4,857,835

Unrealized gains 474,943 342,457

Unrealized losses — (651)

Estimated fair value $ 5,486,304 5,199,641

At September 30, 2010, the securities held had an interest range 

of .875% to 10.625% and a maturity period from two weeks to 

almost 18 years. 

OPIC holds its securities to maturity. The amortized cost and 

estimated fair value of U.S. Treasury securities at September 

30, 2010, by contractual maturity, are shown below (dollars in 

thousands):

Amortized Estimated 

cost fair value

Due in one year or less $ 475,229 484,596

Due after one year through five years 3,140,459 3,323,159

Due after five years through 10 years 1,142,594 1,324,835

Due after 10 years 253,079 353,714

Total $ 5,011,361 5,486,304

(8) Stat

Isuac

OPIC issues insurance and financing under a single limit for 

both programs, currently $29 billion, fixed by statute in the FAA. 

At September 30, 2010, OPIC’s insurance and finance programs 

have collectively utilized $14 billion.

(9) Polit

Insurance revenues include the following components for the 

years ended September 30 (dollars in thousands):

2010 2009

Political risk insurance premiums $ 15,419 17,411

Miscellaneous insurance income — 4

Total insurance revenue $ 15,419 17,415

OPIC’s capital, allowance, retained earnings, and reserves available for insurance at September 30, 2010 and 2009 totaled $1 

billion and $1.2 billion, respectively. Charges against retained 

earnings could arise from (A) outstanding political risk insurance 

contracts, (B) pending claims under insurance contracts, and 

guaranties issued in settlement of claims arising under insurance contracts.

(a) Political Risk Insurance 

OPIC insures investments for up to 20 years against three 

different risks: inconvertibility of currency, expropriation, 

and political violence. Insurance coverage against inconvertibility protects the investor from increased restrictions 

on the investor’s ability to convert local currency into U.S. 

dollars. Inconvertibility insurance does not protect against 

devaluation of a country’s currency. 
OPIC

2010

A N N U A L 

REPORT | 3 5 |

Expropriation coverage provides compensation for losses 

due to confiscation, nationalization, or other governmental 

actions that deprive investors of their fundamental rights in 

the investment. 

Insurance against political violence insures investors against 

losses caused by politically motivated acts of violence (war, 

revolution, insurrection, or civil strife, including terrorism 

and sabotage). 

Under most OPIC insurance contracts, investors may obtain 

all three coverages, but claim payments may not exceed the 

single highest coverage amount. Claim payments are limited 

by the value of the investment and the amount of current 

coverage in force at the time of the loss and may be reduced 

by the insured’s recoveries from other sources. In addition, in 

certain contracts, OPIC’s requirement to pay up to the single 

highest coverage amount is further reduced by stop-loss and 

risk-sharing agreements. Finally, losses on insurance claims 

may be reduced by recoveries by OPIC as subrogee of the insured’s claim against the host government. Payments made 

under insurance contracts that result in recoverable assets 

are reported as assets acquired in insurance settlements. 

OPIC’s Maximum Contingent Liability at September 30, 2010 

and 2009 was $2.3 billion and $2.7 billion, respectively. 

This amount is OPIC’s estimate of maximum exposure to 

insurance claims, which includes standby coverage for which 

OPIC is committed but not currently at risk. A more realistic 

measure of OPIC’s actual exposure to insurance claims is the 

sum of each single highest “current” coverage for all contracts in force, or Current Exposure to Claims (CEC). OPIC’s 

CEC at September 30, 2010 and 2009 was $1.6 billion and 

$1.9 billion, respectively.

(b) Pending Claims 

At both September 30, 2010 and 2009 OPIC had no material 

pending insurance claims. In addition to requiring formal 

applications for claimed compensation, OPIC’s contracts 

generally require investors to notify OPIC promptly of host 

government action that the investor has reason to believe is 

or may become a claim. Compliance with this notice provision sometimes results in the filing of notices of events that 

do not mature into claims. 

OPIC does not record a specific liability related to such 

notices in its financial statements, due to the highly 

speculative nature of such notices, both as to the likelihood 

that the events referred to will ripen into any claims, and the 

amounts of compensation, if any, that may become due. Any 

claims that might arise from these situations are factored 

into the reserves for political risk insurance. 

Changes in the reserve for political risk insurance during fiscal years 2010 and 2009 were as follows (dollars in 

thousands): 

2010 2009

Beginning balance $ 300,000 300,000

Amounts charged off — (206)

Decrease in provisions (26,394) (944)

Transfers from other reserves 1,394 1,150

Ending balance $ 275,000 300,000

(10) Inve

OPIC is authorized to provide investment financing to projects 

through direct loans and investment guaranties. Project 

financing provides medium- to long-term funding through 

direct loans and investment guaranties to ventures involving 

significant equity and/or management participation by U.S. 

businesses. Project financing looks for repayment from the 

cash flows generated by projects, and as such, sponsors need 

not pledge their own general credit beyond the required project 

completion period. 

Investment funds use direct loans and investment guaranties 

to support the creation and capitalization of investment funds 

that make direct equity and equity-related investments in new, 

expanding, or privatizing companies in emerging market economies. The fund managers, selected by OPIC, are experienced, 

private investment professionals. OPIC’s participation in a fund 

takes the form of long-term, secured loans and loan guaranties that supplement the fund’s privately raised equity. OPIC’s 

guaranty may be applied only to the debt portion of the fund’s 

capital and, for certain funds, to accrued interest on that debt. 

OPIC does not guaranty any of the fund’s equity, and all equity 

investments in OPIC-backed funds are fully at risk. 

OPIC’s authorization to make direct loans and investment 

guaranties can be found in sections 234(c) and 234(b) of the 

FAA, respectively. Direct loans and investment guaranties are 

committed in accordance with the Federal Credit Reform Act 

of 1990, pursuant to which loan disbursements and any claim 

payments for these commitments have been funded through 

appropriations actions, borrowings from the U.S. Treasury, 

and the accumulation of earnings or collection of fees. In both 

fiscal years 2010 and 2009, $29 million was made available 

for credit funding costs. OPIC is in compliance with all relevant 

limitations and credit funding appropriations guidance. OPIC’s 

capital, allowances, retained earnings, and reserves available 

for claims on its investment financing at September 30, 2010 

and 2009 totaled $4.3 billion and $4.1 billion, respectively. 
OPIC

2010

A N N U A L 

REPORT | 3 6 |

Direct Loans: Direct loans are made for projects in developing and other eligible countries involving U.S. small business 

or cooperatives, on terms and conditions established by OPIC. 

Direct loan exposure at September 30, 2010 totaled $3.2 billion, 

of which approximately $1.2 billion was outstanding. Direct loan 

exposure at September 30, 2009 totaled $2.4 billion, of which 

approximately $929 million was outstanding. Interest income is 

not accrued on direct loans that have payments that are more 

than 90 days past due. Loans with payments more than 90 

days past due totaled $127 million at September 30, 2010 and 

$115.2 million at September 30, 2009. If interest income had 

been accrued on those loans, it would have approximated $6.5 

million during fiscal year 2010 and $4.6 million during fiscal 

year 2009. Interest collected on delinquent loans and recorded 

as income when received amounted to $18.1 million and $17.7 

million for fiscal years 2010 and 2009, respectively. 

Direct loans outstanding were as follows (dollars in thousands): 

2010 2009

Direct loans outstanding $ 1,215,903 928,589

Allowance for uncollectible loans (139,686) (120,226)

Direct loans outstanding, net $ 1,076,217 808,363

Changes in the allowance for uncollectible loans during fiscal 

years 2010 and 2009 were as follows (dollars in thousands):

2010 2009

Beginning balance $ 120,226 148,392

Amounts charged off (903) (5,065)

Recoveries 15 1,513

Increase(decrease) in provisions 18,559 (24,470)

Provision for capitalized interest 1,789 (144)

Ending balance $ 139,686 120,226

Investment Guaranties: OPIC’s investment guaranty covers the 

risk of default for any reason. In the event of a claim on OPIC’s 

guaranty, OPIC makes payments of principal and interest to the 

lender. These payments are recorded as accounts receivable 

resulting from investment guaranties. The loans that are guaranteed can bear either fixed or floating rates of interest and are 

payable in U.S. dollars. OPIC’s losses on payment of a guaranty 

are reduced by the amount of any recovery from the borrower, the 

host government, or through disposition of assets acquired upon 

payment of a claim. Guaranties extend from 5 to 21 years for 

project finance and from 10 to 18 years for investment funds. 

Credit risk represents the maximum potential loss due to possible nonperformance by borrowers under terms of the contracts. 

OPIC’s exposure to credit risk under investment guaranties, 

including claim-related assets, was $8.5 billion at September 

30, 2010, of which $5.1 billion was outstanding. Of the $8.5 billion of exposure, $6.1 billion was related to project finance and 

$2.4 billion was related to investment fund guarantees. Of the 

$5.1 billion outstanding, $4.2 billion related to project finance 

and $.9 billion related to investment fund guaranties. Included 

in the $2.4 billion of investment fund exposure is $309 million 

of estimated interest that could accrue to the guaranty lender. 

This interest generally accrues over a 10-year period, payable 

upon maturity. Upon complete nonperformance by the borrower, 

OPIC would be liable for principal outstanding and interest 

accrued on disbursed investment funds. At September 30, 2010, 

$91 million of the $309 million had actually accrued to the 

guaranteed lender on disbursed investment funds; the remainder represents an estimate of interest that could accrue to the 

guaranteed lender over the remaining investment fund term. 

At September 30, 2009, OPIC’s exposure to credit risk under 

investment guaranties, including claim-related assets, was $8.2 

billion, of which $5 billion was outstanding. Of the $8.2 billion 

of exposure, $6 billion was related to project finance and $2.2 

billion was related to investment fund guarantees. Of the $5 

billion outstanding, $4.3 billion related to project finance and 

$700 million related to investment fund guaranties. Included 

in the $2.2 billion of investment fund exposure is $328 million 

of estimated interest that could accrue to the guaranty lender. 

This interest generally accrues over a 10-year period, payable 

upon maturity. Upon complete nonperformance by the borrower, 

OPIC would be liable for principal outstanding and interest 

accrued on disbursed investment funds. At September 30, 2009, 

$76 million of the $328 million had actually accrued to the 

guaranteed lender on disbursed investment funds; the remainder represents an estimate of interest that could accrue to the 

guaranteed lender over the remaining investment fund term. 

Changes in the reserve for investment guaranties during fiscal 

years 2010 and 2009 were as follows (dollars in thousands):

2010 2009

Beginning balance $ 676,422 625,291

Amounts charged off (16) —

Recoveries — 1,098

(Decrease) increase in provisions (26,177) 50,033

Ending balance $650,229 676,422

Mindful that uncertainty in the global economy and volatility 

in world financial markets can affect loan repayments, it is 

OPIC policy to regularly review reserve adequacy. Accordingly, to 

provide for potential future impact to the portfolio OPIC set aside 

an additional prudential reserve in fiscal year 2009. This reserve 

is reflected in the above $50 million “Increase in provisions.”
OPIC

2010

A N N U A L 

REPORT | 3 7 |

(11) Accou

Invesm

Acuire

Settlemen

Claim-related assets may result from payments on claims 

under either the investment financing program or the insurance 

program. Under the investment financing program, when OPIC 

pays a guaranteed party, a receivable is created. Under the insurance program, similar receivables reflect the value of assets, 

generally shares of stock, local currency, or host country notes, 

that may be acquired as a result of a claim settlement. These 

receivables are generally collected over a period of 1 to 15 years. 

Accounts receivable resulting from investment guaranties were 

as follows (dollars in thousands):

2010 2009

Accounts receivable resulting from

investment guaranties $ 127,495 71,806

Allowance for doubtful recoveries (64,264) (21,283)

Accounts receivable, net $ 63,231 50,523

Changes in the allowance for doubtful recoveries for assets 

resulting from investment guaranties during fiscal years 2010 

and 2009 were as follows (dollars in thousands): 

2010 2009

Beginning balance $ 21,283 14,163

Increase in provisions 42,981 7,120

Recoveries — —

Ending balance $ 64,264 21,283

Assets acquired in insurance claims settlements were as follows 

(dollars in thousands): 

2010 2009

Assets acquired in insurance

claims settlements $ 18,260 43,819

Allowance for doubtful recoveries (1,478) (2,873)

Accounts receivable, net $ 16,782 40,946

Changes in the allowance for doubtful recoveries for assets acquired in insurance claims settlements during fiscal years 2010 

and 2009 were as follows (dollars in thousands): 

2010 2009

Beginning balance $ 2,873 4,023

Amounts charged off — —

Transfers to other reserves (1,395) (1,150)

Ending balance $ 1,478 2,873

(12) Resrves

C

Section 235(c) of the FAA established a fund which shall be 

available for discharge of liabilities under insurance or reinsurance or under similar predecessor guaranty authority. This fund 

consists of the Insurance Reserve and the Guaranty Reserve for 

the respective discharge of potential future liabilities arising 

from insurance or from guaranties issued under Section 234(b) 

of the FAA. These amounts may be increased by transfers from 

retained earnings or by appropriations. In fiscal years 2010 and 

2009, OPIC’s retained earnings were allocated to these reserves 

on the basis of maximum exposure outstanding for insurance 

and guaranties respectively, thereby reflecting OPIC’s increased 

ability to absorb potential losses without having to seek appropriated funds. 

All valid claims arising from insurance and guaranties issued 

by OPIC constitute obligations on which the full faith and credit 

of the United States of America is pledged for full payment. At 

September 30, 2010 and 2009, the Insurance Reserve totaled 

$705 million and $839 million, and the Guaranty Reserve totaled 

$3.5 billion and $3.3 billion, respectively. Should funds in 

OPIC’s reserves not be sufficient to discharge obligations arising 

under insurance, and if OPIC exceeds its $100 million borrowing authority authorized by statute for its insurance program, 

funds would have to be appropriated to fulfill the pledge of full 

faith and credit to which such obligations are entitled. Standing 

authority for such appropriations is contained in Section 235(f) 

of the FAA. The Federal Credit Reform Act of 1990 authorizes 

permanent, indefinite appropriations and borrowings from the 

U.S. Treasury, as appropriate, to carry out all obligations resulting from the investment financing program. 

(13) Disclo

Fin

The estimated values of each class of financial instrument for 

which it is practicable to estimate a fair value at September 30, 

2010 are as follows (dollars in thousands): 

Carrying amount Fair value

Financial assets:

Cash $ 566,172 566,172

U.S. Treasury securities 5,011,361 5,486,304

Interest receivable on securities 37,730 37,730

Direct loans 1,076,217 1,076,217

Accounts receivable 

 from investment guaranties 63,231 63,231

Assets acquired in insurance

 claims settlements 16,782 16,782

Financial liabilities: 

Borrowings from the U.S. Treasury $ 1,402,915 1,777,967
OPIC

2010

A N N U A L 

REPORT | 3 8 |

The methods and assumptions used to estimate the fair value of 

each class of financial instrument are described below: 

Cash: The carrying amount approximates fair value because of 

the liquid nature of the cash, including restricted cash. 

U.S. Treasury Securities: The fair values of the U.S. Treasury 

securities are estimated based on quoted prices for Treasury 

securities of the same maturity available to the public. OPIC is 

not authorized, however, to sell its securities to the public, but is 

instead restricted to direct transactions with the U.S. Treasury. 

Interest receivable on the securities is due within 6 months and 

is considered to be stated at its fair value. 

Direct Loans, Accounts Receivable Resulting from Investment 

Guaranties, and Assets Acquired in Insurance Claims Settlements: These assets are stated on the balance sheet at the 

present value of the amount expected to be realized. This value 

is based on management’s quarterly review of the portfolio and 

considers specific factors related to each individual receivable 

and its collateral. The stated value on the balance sheet is also 

management’s best estimate of fair value for these instruments. 

Borrowings from the U.S. Treasury: The fair value of borrowings 

from the U.S. Treasury is estimated based on the face value of 

borrowings discounted over their term at year-end rates. These 

borrowings were required by the Federal Credit Reform Act, and 

repayment terms are fixed by the U.S. Treasury in accordance with 

that Act. 

Investment Guaranties Committed and Outstanding: OPIC’s 

investment guaranties are intended to provide a means of 

mobilizing private capital in markets where private lenders would 

be unwilling to lend without the full faith and credit of the U.S. 

Government. Given the absence of a market for comparable 

instruments, OPIC determined that the fair value is the present 

value of future fees expected to be collected. 

(14) Ope

OPIC negotiated a new building lease during fiscal year 2004. 

Under the lease terms, OPIC received interest-bearing tenant improvement allowances for space refurbishment. Total incentives 

offered by the lessor to cover these costs were $3.4 million. The 

value of these incentives is deferred in the balance sheet and is 

amortized to reduce rent expense on a straight-line basis over the 

15-year life of the lease. 

Rental expense for fiscal years 2010 and 2009 was approximately 

$4.1 million and $4 million, respectively. Minimum future rental 

payments under the 15-year lease at 1100 New York Avenue, N.W. 

are approximately $4.6 million annually, with additional adjustments tied to the consumer price index. 

(15) P

OPIC’s permanent employees are covered by the Civil Service 

Retirement System (CSRS) or the Federal Employee Retirement 

System (FERS). For CSRS, OPIC withheld 7.0% of employees’ 

gross 2010 earnings and contributed 7.0% of employees’ 2010 

gross earnings. The sums were transferred to the Civil Service 

Retirement Fund from which this employee group will receive 

retirement benefits. 

For FERS, OPIC withheld 0.80% of employees’ gross earnings. 

OPIC transferred this sum to the FERS fund from which the employee group will receive retirement benefits. An additional 6.2% 

of the FERS employees’ gross earnings is withheld, and that, plus 

matching contributions by OPIC, are sent to the Social Security 

System from which the FERS employee group will receive social 

security benefits. OPIC occasionally hires employees on temporary 

appointments, and those employees are covered by the social 

security system under which 6.2% of earnings is withheld and 

matched by OPIC. 

FERS and CSRS employees may elect to participate in the Thrift 

Savings Plan (TSP). In January 2006 the TSP contributions limits 

were eliminated. In 2010 both CSRS and FERS employees could 

elect to contribute up to $16,500, the IRS elective deferral limit 

for the tax year. FERS employees receive an automatic 1% contribution from OPIC. Amounts withheld for FERS employees are 

matched by OPIC, up to an additional 4%, for a total of 5%. 

Although OPIC funds a portion of employee pension benefits 

under the CSRS, the FERS, and the TSP, and makes necessary 

payroll withholdings, it has no liability for future payments to 

employees under these programs. Furthermore, separate information related to OPIC’s participation in these plans is not available 

for disclosure in the financial statements. Paying retirement 

benefits and reporting plan assets and actuarial information is 

the responsibility of the U.S. Office of Personnel Management and 

the Federal Retirement Thrift Investment Board, which administer 

these plans. Data regarding the CSRS and FERS actuarial present value of accumulated benefits, assets available for benefits, 

and unfunded pension liability are not allocated to individual 

departments and agencies. 
OPIC

2010

A N N U A L 

REPORT | 3 9 |

(16) Coc

OPIC is subject to certain risks associated with financial instruments not reflected in its balance sheet. These financial instruments 

include political risk insurance, loan guaranties, and committed-but-undisbursed direct loans. 

With respect to political risk insurance, OPIC insures against currency inconvertibility, expropriation of assets, and political violence. 

Additionally, OPIC provides investment financing through direct loans and investment guaranties. 

OPIC’s credit policy is to take a senior security position in the assets of the projects or transactions it guaranties. The nature and 

recoverable value of the collateral pledged to OPIC varies from transaction to transaction and may include tangible assets, cash 

collateral or equivalents, and/or a pledge of shares in the project company as well as personal and corporate guaranties. OPIC takes 

all necessary steps to protect its position in such collateral and retains the ability to enforce its rights as a secured lender if such 

action becomes necessary. 

The following is a summary of OPIC’s off-balance-sheet risk at September 30, 2010 and 2009 (dollars in thousands): 

2010 Total Outstanding Unused commitments

Guaranties $ 8,372,377 4,968,684 3,403,693

Undisbursed direct loans 1,976,376 — 1,976,376

Insurance 2,330,144 1,649,619 680,525

2009

Guaranties $ 8,162,644 4,919,118 3,243,526

Undisbursed direct loans 1,483,239 — 1,483,239

Insurance 2,688,916 1,945,076 743,840

Loan guaranties

Undisbursed portion 

of direct loans Insurance

Africa $1,374,440 265,886 555,845

Asia 439,497 157,542 449,861

Europe 948,709 70,261 50,146

Latin America 3,055,886 340,633 383,200

Middle East 1,279,445 588,154 585,976

NIS (New Independent States) 910,445 241,250 336,331

Worldwide 363,955 312,650 —

Insurance stop-loss adjustment — — (31,215)

$8,372,377 1,976,376 2,330,144

Country Sector

Mexico $1,009,808 Financial services $7,485,956

Russia 857,381 Energy–Power 1,989,063

Turkey 683,544 Services 998,746

Jordan 673,890 Energy–Oil and Gas 816,681

Nigeria 509,130 Transportation 720,858

OPIC’s off-balance-sheet finance and insurance exposure involves coverage outside of the United States. The following is a breakdown of such total commitments at September 30, 2010 by major geographical area (dollars in thousands):

OPIC has several client-specific contracts with stop-loss limits that are less than the aggregate coverage amounts. The insurance stop-loss 

adjustment represents the difference between the aggregate coverage amount and OPIC’s actual exposure under these contracts. 

At September 30, 2010, OPIC’s largest finance and insurance exposure was in the following countries and sectors (dollars in thousands):
OPIC

2010

A N N U A L 

REPORT | 4 0 |

(17) Oth

OPIC is currently involved in certain legal claims and has received 

notifications of potential claims in the normal course of business. 

There are substantial factual and legal issues that might bar any 

recovery in these matters. It is not possible to evaluate the likelihood of any unfavorable outcome, nor is it possible to estimate 

the amount of compensation, if any, that may be determined to be 

owed in the context of a settlement. Management believes that the 

resolution of these claims will not have a material adverse impact 

on OPIC. 

(18) Acou

Reu

In FY 2010 and FY 2009 pursuant to the requirement of FASB 

ASC 460, OPIC recognized a guaranty liability and a guaranty fee 

receivable of $273.7 million and $234 million, respectively. OPIC 

collected $73.4 million and $63.9 million of guaranty fees in FY 

2010 and FY 2009, respectively, on the investment guaranties 

issued since December 31, 2002. 

(19) Stat

OPIC’s enabling statute stipulates both operating and financial 

requirements with which OPIC must comply. In management’s 

opinion, OPIC is in compliance with all such requirements.