RHG Ltd, which has been managing a mortgage book in runoff since 2007, yesterday reported a net profit of A$40.7 million for the year to June - down from $74.3 million the previous year. The directors declared a dividend of 10 cents a share. The value of loans held at amortised cost fell from $3.8 billion to $2.8 billion. The company said in a statement that during the year it was able to roll over warehouse facilities with similar financial conditions. It has warehouse facilities worth $1.8 million and RMBS on issue worth $826,000. Treasury has issued a model intergovernmental agreement as a first step in negotiating an agreement with the United States Government over the implementation of the Foreign Account Tax Compliance Act. FATCA is an anti-tax avoidance regime, aimed at stopping tax abuses by US citizens holdings overseas bank and investment accounts. Foreign financial institutions that own US assets or hold US assets for the benefit of others will have to report on the activities of any US clients to the US Internal Revenue Service. The aim of the intergovernmental agreement is to minimise compliance costs for Australian financial institutions. Treasury is calling for submissions on the model agreement.