§ 262k. — Financial assistance to international financial institutions; considerations and criteria.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC262k]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 7--INTERNATIONAL BUREAUS, CONGRESSES, ETC.
Sec. 262k. Financial assistance to international financial
institutions; considerations and criteria
(a) Congressional declaration of intent
United States active participation in international financial
institution activity is based on our national objective of furthering
the economic and social development of the nations of the world, in
particular the developing nations. The attainment of this national
objective is most effectively realized through a world economic and
financial system which is both free and stable. Therefore, it is the
intent of the United States Congress that United States financial
assistance to the international financial institutions should be
primarily directed to those projects that would not generate excess
commodity supplies in world markets, displace private investment
initiatives or foster departures from a market-oriented economy.
(b) Effect of country adjustment programs; minimization of projected
adverse impacts; avoidance of government subsidization
The Secretary of the Treasury shall instruct the representatives of
the United States to the international financial institutions described
in subsection (d) of this section to take into account in their review
of loans, credits, or other utilization of the resources of their
respective institutions, the effect that country adjustment programs
would have upon individual industry sectors and international commodity
markets in order to--
(1) minimize any projected adverse impacts on such sector or
markets of making such loans, credits, or utilization of resources;
and
(2) avoid whenever possible government subsidization of
production and exports of international commodities without regard
to economic conditions in the markets for such commodities.
(c) Project proposals relating to mining, smelting, refining, and
fabricating of minerals and metal products
More specifically, the following criteria should be considered as a
basis for a vote by the respective United States Executive Director to
each of the international financial institutions described in subsection
(d) of this section against a project proposal involving the creation of
new capacity or the expansion, improvement, or modification of mining,
smelting, refining, and fabricating of minerals and metal products:
(1) Analysis shows that the risks, returns, and incentives of a
project are such that it could be financed at reasonable terms by
commercial lending services.
(2) Analysis by the United States Bureau of Mines indicates that
surplus capacity in the industry for the primary product of the
defined project would exist over half the period of the economic
life of the project because of projected world demand and capacity
conditions.
(3) United States imports of the commodity constitute less than
50 percent of the domestic production of the primary product in
those cases where the United States is the substantial producer of
such commodities.
(d) International financial institutions
The international financial institutions referred to in subsections
(a) and (b) of this section are the International Monetary Fund, the
International Bank for Reconstruction and Development, the International
Development Association, the Inter-American Development Bank, the Asian
Development Bank, and the African Development Bank.
(Pub. L. 99-88, title I, Sec. 502, Aug. 15, 1985, 99 Stat. 330; Pub. L.
102-285, Sec. 10(b), May 18, 1992, 106 Stat. 172.)
Change of Name
``United States Bureau of Mines'' substituted for ``Bureau of
Mines'' in subsec. (c)(2) pursuant to section 10(b) of Pub. L. 102-285,
set out as a note under section 1 of Title 30, Mineral Lands and Mining.
Copper Mining, Smelting, and Refining
Section 501 of Pub. L. 99-88 provided that: ``The Secretary of the
Treasury shall instruct the United States Executive Directors of the
International Bank for Reconstruction and Development, the International
Development Association, the International Finance Corporation, the
Inter-American Development Bank, the International Monetary Fund, the
Asian Development Bank, the Inter-American Investment Corporation, the
African Development Bank, and the African Development Fund to use the
voice and vote of the United States to oppose any assistance by these
institutions, using funds appropriated or made available pursuant to
this Act or any other Act, for the production of any copper commodity
for export or for the financing of the expansion, improvement, or
modernization of copper mining, smelting, and refining capacity.''
