[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3750 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3750

               To reform the International Monetary Fund.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 29, 2000

  Mr. Saxton introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
               To reform the International Monetary Fund.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``IMF Reform Act of 2000''.

SEC. 2. REFORMS OF THE INTERNATIONAL MONETARY FUND.

    (a) In General.--The Bretton Woods Agreements Act (22 U.S.C. 286-
286nn) is amended by adding at the end the following:

``SEC. 63. REFORMS OF THE INTERNATIONAL MONETARY FUND.

    ``(a) Annual Reports.--
            ``(1) Contents.--The Secretary of the Treasury shall submit 
        annually to the Committee on Banking and Financial Services of 
        the House of Representatives and the Committee on Foreign 
        Relations of the Senate a written report on whether the Fund 
        has complied with the requirements of subsection (b) throughout 
        the 12-month period covered by the report. If, during such 
        period, the Fund has instituted a quota increase, the report 
        shall document the reasons why it is not feasible for the Fund 
        to obtain sufficient funds from the private sector.
            ``(2) Effects of failure to submit report or failure to 
        certify imf compliance with requirements.--If the Secretary of 
        the Treasury fails to submit the report for a 12-month period 
        before the beginning of the first fiscal year that begins after 
        the end of the 12-month period, or if the report submitted 
        pursuant to this section fails to comply with the preceding 
        sentence or fails to certify that the Fund has complied with 
        each requirement of subsection (b) throughout the 12-month 
        period, then subsection (c) shall apply for such fiscal year.
    ``(b) Requirements.--The requirements of this subsection are the 
following:
            ``(1) Market interest rates.--The Fund is prohibited from 
        charging, and does not charge, interest on any loan unless the 
        interest rate is--
                    ``(A) except as provided in subparagraph (B), 
                comparable to the rates of interest in the financial 
                markets, adjusted for risk; and
                    ``(B) is not less than 400 basis points greater 
                than the London InterBank Offered Rate.
            ``(2) 1-year loan maturity.--The Fund is prohibited from 
        making, and has not made, a loan with a maturity of more than 1 
        year after the date on which made.
            ``(3) Loans only to address currency crises.--The Fund is 
        prohibited from making, and does not make, a loan except for 
        the purpose of addressing a currency crisis.
            ``(4) Termination of esaf.--The Fund has abolished the 
        Enhanced Structural Adjustment Facility of the Fund.
            ``(5) Release and reorganization of operational budgets.--
        The Fund is required to, and does, publish each operational 
        budget of the Fund, with any information that could disrupt 
        financial markets or affect adversely the national security of 
        any country redacted, and is required to, and does, reorganize 
        and restate the publicly available financial statements of the 
        Fund in a manner consistent with the Fund's code of good 
        practices, and with the principles of transparency and 
        accountability.
            ``(6) No loans for countries falsifying loan documents.--
        The Fund is prohibited from making, and has not made, a loan to 
        or for the benefit of the government of any country which the 
        Secretary of the Treasury or the Fund has found during the 
        preceding 5 years to have falsified any item of information on 
        any loan documentation submitted to the Fund. In addition, the 
        Fund is required to institute, and has implemented, accounting 
        controls and safeguards to curb potential misuse of loans by 
        borrowers, and in any case in which the controls and safeguards 
        are considered insufficient to prevent such a misuse, the Fund 
is prohibited from making, and has not made, a loan.
            ``(7) Exhaustion of opportunities for private borrowing 
        before instituting quota increase.--The Fund is required to 
        exhaust, and has exhausted, all feasible opportunities to 
        borrow from the private sector before instituting a quota 
        increase for the member countries of the Fund.
    ``(c) Withdrawal of Authority To Make Loans to the Fund; Reduction 
of Reserve Tranche Position of the United States.--If this subsection 
applies for a fiscal year--
            ``(1) the Secretary of the Treasury may not make a loan 
        under section 17 during the fiscal year; and
            ``(2) the Secretary of the Treasury shall cause the reserve 
        tranche position of the United States at the Fund to be 
        maintained at a level that is not more than $5,000,000,000 less 
        than the lesser of--
                    ``(A) in the case of the first fiscal year for 
                which this subsection applies, the level of the reserve 
                tranche position immediately before this subsection 
                applies; or
                    ``(B) in the case of any other fiscal year, the 
                level at which this subsection required the reserve 
                tranche position to be maintained during the most 
                recent prior fiscal year for which this subsection 
                applied.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect 3 years after the date of the enactment of this section.

SEC. 3. END OF UNITED STATES PARTICIPATION IN AND SUPPORT FOR THE 
              ENHANCED STRUCTURAL ADJUSTMENT FACILITY OF THE 
              INTERNATIONAL MONETARY FUND.

    (a) Prohibition on Future Funding.--No officer, employee, or agent 
of the United States may, directly or indirectly, provide any thing of 
value to the International Monetary Fund for the purpose of providing 
resources to, or supporting the activities of the Enhanced Structural 
Adjustment Facility or other concessional lending facility of the 
International Monetary Fund.
    (b) Veto of Use of Available Funds.--Section 5 of the Bretton Woods 
Agreements Act (22 U.S.C. 286c) is further amended by adding at the end 
the following: ``The director appointed to represent the United States 
at the Fund shall use every effort to terminate the Enhanced Structural 
Adjustment Facility of the Fund within one year after the date of the 
enactment of this sentence. No director appointed to represent the 
United States at the Fund shall vote for any proposal to use resources 
of the Enhanced Structural Adjustment Facility of the Fund for any 
purpose, except for a proposal to abolish the Facility and return any 
remaining resources to the member countries of the Fund in proportion 
to the quotas of such countries during calendar year 1975, or to 
General Resources of the Fund.''.
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