§ 286hh. — Policy based lending for debt reduction.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC286hh]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 7--INTERNATIONAL BUREAUS, CONGRESSES, ETC.
SUBCHAPTER XV--INTERNATIONAL MONETARY FUND AND BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Sec. 286hh. Policy based lending for debt reduction
(a) Criteria
The Secretary of the Treasury shall instruct the United States
Executive Director of the International Bank for Reconstruction and
Development to initiate discussions with other directors of such bank
and to advocate and support the facilitation of voluntary market-based
programs for the reduction of sovereign debt and the promotion of
sustainable economic development, which, if implemented, would--
(1) not require any organization or government to participate in
such a program;
(2) result in debt reduction for each participating country
tailored to the particular situation of each country;
(3) provide assistance to participating countries conditioned on
the implementation of economic reforms, and the preservation of
economic reforms previously implemented, by the country that are
consistent with the principles of sustainable development;
(4) encourage participating countries to make economic
adjustments steadily and over a period of time in order to achieve
policy reform;
(5) use debt reduction techniques that would not compensate
commercial banks for the reduction in the value of such debt, but
would serve as a catalyst for new lending;
(6) involve such bank in lending for purposes of debt reduction
and conversion only where such involvement would not lower the
credit rating of such bank;
(7) not require public sector funding beyond that provided
through any capital increase for such bank, and any replenishment
for the International Development Association, which is agreed to by
the member countries of such institutions; and
(8) accomplish debt reduction, not as an end, but as a means to
greater growth and investment in, and the restoration of voluntary
private lending to, participating countries for environmentally and
economically sustainable development.
(b) Policy based lending for debt reduction and sustainable growth
The Secretary of the Treasury shall instruct the United States
Executive Director of the International Bank for Reconstruction and
Development to initiate discussions with other directors of such bank
and to propose that policy based loans be made by such bank for, among
other reasons, facilitating a reduction in the debt service burden of
any country which is participating in a voluntary market-based program
for debt reduction described in subsection (c) of this section.
(c) Voluntary market-based program for debt reduction and sustainable
growth
In connection with the discussions initiated pursuant to subsection
(b) of this section, the Secretary shall instruct the United States
Executive Director of the International Bank for Reconstruction and
Development to propose that a country be considered to be participating
in a voluntary market-based program of debt reduction for purposes of
subsection (b) of this section if the creditors of such country agree to
significantly reduce the debt service of such country through
forgiveness of a percentage of the interest owed by such country on any
sovereign debt or through any other means.
(d) Reports
Not later than March 1, 1989, March 1, 1991, and March 1, 1993,
respectively, the Secretary of the Treasury shall submit to the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives and the Committee on Foreign Relations of the Senate 3
reports each of which--
(1) describes the long term strategy and lending programs of the
International Bank for Reconstruction and Development for reducing
and managing the debt burden of the countries designated as ``Highly
Indebted Countries'' in the 1987-1988 World Debt Tables published by
such bank, and summarize the long term strategy and lending programs
of such bank for other seriously indebted countries;
(2) contains an explanation of the measures taken by such bank
to facilitate the reduction of the debt burden of the countries
designated as ``Highly Indebted Countries'' in the 1987-1988 World
Debt tables \1\ published by such bank;
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\1\ So in original. Probably should be capitalized.
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(3) describes the extent (if any) to which such bank has
implemented the measures described in subsections (b) and (c) of
this section; and
(4) describes the success each of such countries has had in
managing and reducing their debt burdens and achieving sustainable
and equitable economic growth as measured by criteria including the
ratio of debt service to exports, the ratio of debt to gross
national product, net resource flows, and per capita income.
(e) Review by House Banking Committee
On receipt of each report required to be submitted pursuant to
subsection (d) of this section, and after consultation with the
Secretary of the Treasury, the Committee on Banking, Finance and Urban
Affairs of the House of Representatives shall forward such report to the
Committee on Appropriations of the House of Representatives with an
assessment by the Committee on Banking, Finance and Urban Affairs
describing the effect on the international debt situation of funding the
subscription of the United States to the shares of capital stock of the
International Bank for Reconstruction and Development due for payment by
the United States in the then next fiscal year.
(Pub. L. 100-461, title V, Sec. 555, Oct. 1, 1988, 102 Stat. 2268-36.)
Codification
Section is based on section 3 of H.R. 4645, One Hundredth Congress,
as reported Sept. 28, 1988, and enacted into law by Pub. L. 100-461.
Section was not enacted as part of act July 31, 1945, ch. 339, 59
Stat. 512, known as the Bretton Woods Agreements Act, which comprises
this subchapter.
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Section Referred to in Other Sections
This section is referred to in section 286ii of this title.
