MARAD Promises Monitoring and Other Improvements in its Title XI Program

The U.S. Maritime Administration's government guaranteed financing program authorized by Title XI of the Merchant Marine Act of 1936 has a guarantee portfolio of over $2 billion and has the funding to expand that to $4 billion. On December 7, 2010, the Department of Transportation Office of Inspector General issued a report recommending improvements in the way MARAD monitors that portfolio – which MARAD has agreed to implement. What remains to be seen is whether DOT and MARAD can improve the often sclerotic pace of loan guarantee reviews. MARAD has an internal review underway to make recommendations on that front with a report expected in June 2011.