The cumulative figures presented in the following Tables I and II show the progress that has been made in the REA and RTB telephone programs since their inception.

Includes advances on REA direct and insured loans.

RURAL ELECTRIFICATION ADMINISTRATION

The estimates include appropriation language for this item as follows (new language underscored; deleted matter enclosed in brackets):

Rural Telephone Bank Program Account

1

2

5

The Rural Telephone Bank is hereby authorized to make such expenditures, within
the limits of funds available to such corporation in accord with law, and to
make such contracts and commitments [without regard to fiscal year limitations
as provided by Section 104 of the Government Corporation Control Act, as
amended,] as may be necessary in carrying out its authorized programs for the
current fiscal year. During Fiscal Year [1992] 1993, and within the resources
and authority available, gross obligations for the principal amount of direct
loans shall be [not less than $177,045,000 nor more than $210,540,000]
$475.000.000. Notwithstanding any other provision of law, the Governor of the
Rural Telephone Bank has discretionary authority to make loans at not less than
five percent. in amounts not to exceed $60 million, to borrowers determined to
be financially needy.

[For the cost, as defined in Section 13201, of the Budget Enforcement Act of
1990, including the cost of modifying loans, of direct loans authorized by the
Rural Electrification Act of 1936, as amended (7 U.S.C. 935), $3,629,000].
For the cost of direct loans $10.109.000. as authorized by the Rural
Electrification Act of 1936 as amended: Provided. That such costs, including
the cost of modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974: Provided further. That these funds are
available to subsidize gross obligations for the principal amount of direct
loans not to exceed $475.000.000: Provided. That such sums made available in
1992 and 1993 are to remain available through 2000 for the disbursement of
loans obligated in fiscal years 1992 and 1993.

6 [In addition, administrative expenses necessary to carry out the loan programs, $8,632,000).

The first change deletes the provision that abolishes a fiscal year limitation.
The second change updates the fiscal year designation.

The third change eliminates the range for direct loans.

The fourth change allows the Rural Telephone Bank Governor to make loans at a rate less than the rate determined by the current formula and provides a loan limitation. The fifth change eliminates 1992 language and provides new language appropriating 1993 loan levels and subsidies. Subsidy made available in 1992 and 1993 will remain available through 2000 to cover loans obligated in 1992 and 1993 and disbursed through 2000.

The sixth change eliminates 1992 language. In fiscal year 1993 loan origination fees, deposited directly into the Salaries and Expenses account, will provide funds for administrative expenses.

a/ The loan level supportable by the amount of appropriated loan subsidy is $177,024,000.

SUMMARY OF INCREASES AND DECREASES

(On basis of loans, subsidies and administrative expenses)

(On basis of appropriated loan authorizations, subsidies and administrative

Direct loans..

: Actual

1992 Estimated

:$177,042,600 $177,045,000:+$237,955,000(1): $415,000,000

: 184,730.062 : 189.306.000: +295.803.000

: 485.109.000

:

:

177,045,000 : 177,045,000: +297,955,000
: 3,629,000: + 6,480,000 : 10,109,000
7.685.062 : 8.632.000: + 868,000 : 9.500.000

: 475,000,000

b/ A loan origination fee of 2 percent will be charged and the funds from the fees will be deposited directly into the Salaries and Expenses account for administrative expenses of the Rural Telephone Bank..

c/ Includes $82,412 in obligations paid directly from RIB.