22 U.S.C. § 286cc — Sustaining economic growth

Page 191 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286cc Should the Secretary not meet a request to ap- pear before the aforementioned committees at least twenty-one days in advance of any vote on any facility involving use of Fund credit by any communist dictatorship and certify and docu- ment in writing that these three conditions have been met, the United States Executive Director shall vote against such program. (July 31, 1945, ch. 339, § 43, as added Pub. L. 98–181, title I [title VIII, § 804], Nov. 30, 1983, 97 Stat. 1270; amended Pub. L. 103–149, § 4(b)(6), Nov. 23, 1993, 107 Stat. 1505.) Editorial Notes AMENDMENTS 1993—Pub. L. 103–149 struck out ‘‘(a)’’ before ‘‘The Congress’’ and struck out subsec. (b) which related to use of International Monetary Fund credit by any country which practices apartheid. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee 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 Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. § 286bb. Elimination of predatory agricultural ex- port subsidies The Secretary of the Treasury shall instruct the United States Executive Director of the Fund to propose and work for the adoption of a policy encouraging Fund members to eliminate all predatory agricultural export subsidies which might result in the reduction of other member countries’ exports. (July 31, 1945, ch. 339, § 44, as added Pub. L. 98–181, title I [title VIII, § 805], Nov. 30, 1983, 97 Stat. 1271.) § 286cc. Sustaining economic growth (a) Economic adjustment programs (1) The President shall instruct the Secretary of the Treasury, the Secretary of State, and other appropriate Federal officials, and shall re- quest the Chairman of the Board of Governors of the Federal Reserve System, to use all appro- priate means to encourage countries to formu- late economic adjustment programs to deal with their balance of payment difficulties and exter- nal debt owed to private banks. (2) Such economic adjustment programs should be designed to safeguard, to the max- imum extent feasible, international economic growth, world trade, employment, and the long- term solvency of banks, and to minimize the likelihood of civil disturbances in countries needing economic adjustment programs. (b) Changes in Fund guidelines; limitations on debt service exceptions To ensure the effectiveness of economic ad- justment programs supported by Fund re- sources— (1) the United States Executive Director of the Fund shall recommend and shall work for changes in Fund guidelines, policies, and deci- sions which would— (A) convert short-term bank debt which was made at high interest rates into long- term debt at lower rates of interest; (B) assure that the annual external debt service, which shall include principal, inter- est, points, fees, and other charges required of the country involved, is a manageable and prudent percentage of the projected annual export earnings of such country; and (C) provide that in approving any eco- nomic adjustment program the Fund shall take into account the number of countries applying to the Fund for economic adjust- ment programs and the aggregate effects that such programs will have on inter- national economic growth, world trade, ex- ports and employment of other member countries, and the long-term solvency of banks; and (2) except as provided in subsection (c) of this section, the United States Executive Di- rector of the Fund shall oppose and vote against providing assistance from the Fund for any economic adjustment program for a coun- try in which the annual external debt service exceeds 85 per centum of the annual export earnings of such country, unless the Secretary of the Treasury first determines and provides written documentation to the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives that— (A) the economic adjustment program con- verts high interest rate, short-term bank debt into long-term debt at significantly narrower interest rate spreads than the av- erage interest rate spreads prevailing on bank debt reschedulings negotiated between August 1982 and August 1983 for countries re- ceiving assistance from the Fund for eco- nomic adjustment programs in order to min- imize the burdens of adjustment on the debt- or nation, provided that such interest rate spreads are consistent with that nation’s need to obtain adequate external private fi- nancing; (B) the annual external debt service re- quired of the country involved is a manage- able and prudent percentage of the projected annual export earnings of such country; and (C) the economic adjustment program will not have an adverse impact on international economic growth, world trade, exports, and employment of other member countries, and the long-term solvency of banks. (c) Emergencies and extraordinary cir- cumstances The provisions of subsection (b)(2) shall not apply in any case in which the Secretary of the Page 192 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286dd Treasury first determines and provides written documentation to the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate and the Committee on Banking, Finance and Urban Af- fairs of the House of Representatives that— (1) an emergency exists in a nation that has applied to the Fund for assistance that re- quires an immediate short-term loan to avoid disrupting orderly financial markets; (2) a sudden decrease in export earnings in the country applying to the Fund for assist- ance has increased the ratio of annual exter- nal debt service to annual export earnings, to greater than 85 per centum for a period pro- jected to be no more than one year; or (3) other extraordinary circumstances exist which warrant waiving the provisions of sub- section (b)(2). (July 31, 1945, ch. 339, § 45, as added Pub. L. 98–181, title I [title VIII, § 806], Nov. 30, 1983, 97 Stat. 1272.) Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee 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 Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. § 286dd. Fund bailouts of banks; rescheduling of debt The Secretary of the Treasury shall instruct the United States Executive Director of the Fund— (1) to oppose and vote against any Fund drawing by a member country where, in his judgment, the Fund resources would be drawn principally for the purpose of repaying loans which have been imprudently made by bank- ing institutions to the member country; and (2) to work to insure that the Fund encour- ages borrowing countries and banking institu- tions to negotiate, where appropriate, a re- scheduling of debt which is consistent with safe and sound banking practices and the country’s ability to pay. (July 31, 1945, ch. 339, § 46, as added Pub. L. 98–181, title I [title VIII, § 807], Nov. 30, 1983, 97 Stat. 1273.) § 286ee. International cooperation The Secretary of the Treasury shall instruct the United States Executive Director of the Fund to propose that the Fund adopt the fol- lowing policies with respect to international lending: (1) In its consultations with a member gov- ernment on its economic policies pursuant to article IV of the Articles of Agreement of the Fund, the Fund should— (A) intensify its examination of the trend and volume of external indebtedness of pri- vate and public borrowers in the member country and comment, as appropriate, in its report to the Executive Board from the viewpoint of the contribution of such bor- rowings to the economic stability of the bor- rower; and (B) consider to what extent and in what form these comments might be made avail- able to the international banking commu- nity and the public. (2) As part of any Fund-approved stabiliza- tion program, the Fund should give consider- ation to placing limits on public sector exter- nal short- and long-term borrowing. (3) As a part of its annual report, and at such times as it may consider desirable, the Fund should publish its evaluation of the trend and volume of international lending as it affects the economic situation of lenders, borrowers, and the smooth functioning of the inter- national monetary system. (July 31, 1945, ch. 339, § 47, as added Pub. L. 98–181, title I [title VIII, § 809], Nov. 30, 1983, 97 Stat. 1274.) § 286ff. Fund interest rates The Secretary of the Treasury shall instruct the United States Executive Director of the Fund to propose and work for the adoption of Fund policies regarding the rate of remunera- tion paid on use of member’s quota subscrip- tions and the rate of charges on Fund drawings to bring those rates in line with market rates. (July 31, 1945, ch. 339, § 48, as added Pub. L. 98–181, title I [title VIII, § 810], Nov. 30, 1983, 97 Stat. 1274.) § 286gg. Elimination of trade restrictions (a) Promotion of fair trade as financial assist- ance policy (1) The Secretary of the Treasury shall in- struct the United States Executive Director of each of the multilateral development banks (in this section referred to as the ‘‘banks’’) and of the Fund to initiate a wide consultation with the Managing Director of each of the banks and of the Fund and the other directors of the banks and of the Fund with regard to the development of financial assistance policies which, to the maximum feasible extent— (A) reduce obstacles to and restrictions upon international trade and investment in goods and services; (B) eliminate unfair trade and investment practices; and (C) promote mutually advantageous eco- nomic relations. (2) The Secretary of the Treasury shall work closely in this effort with the Trade Policy Com- mittee. (3) As part of this effort, the Secretary of the Treasury shall also instruct the United States Executive Director of each of the banks and of the Fund to encourage close cooperation be- tween their staff and the Secretariat of the World Trade Organization (as the term ‘‘World