[House Document 111-45]
[From the U.S. Government Publishing Office]




111th Congress, 1st Session - - - - - - - - - - - - - House Document
111-45
 
           A REQUEST FOR FY 2009 SUPPLEMENTAL APPROPRIATIONS

                               __________

                                MESSAGE

                                  from

                     THEPRESIDENTOFTHEUNITEDSTATES

                              transmitting

A REQUEST FOR CHANGES RELATED TO THE INTERNATIONAL MONETARY FUND (IMF), 
INCLUDING AMONG OTHERS, THE U.S. QUOTA SUBSCRIPTION TO THE IMF AND U.S. 
         PARTICIPATION IN THE NEW ARRANGEMENTS TO BORROW (NAB)




    June 8, 2009.--Message and accompanying papers referred to the 
         Committee on Appropriations and ordered to be printed
                                           The White House,
                                          Washington, May 12, 2009.
Hon. Nancy Pelosi, 
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: Last month, I asked the Congress to 
consider changes to the level of borrowing authority for the 
International Monetary Fund (IMF). Today, I formally transmit 
this request in the accompanying supplemental budget request. I 
urge that the Congress expand the resources available to the 
IMF through its New Arrangements to Borrow (NAB) and approve a 
set of other proposals to strengthen the IMF, including an 
increase of about $8 billion in the U.S. quota subscription to 
the IMF.
    The NAB is one mechanism that the IMF utilizes to boost its 
lending ability when its regular resources are at their limit 
in the face of circumstances that threaten the stability of the 
international monetary system. This increase in the NAB by the 
United States and other countries would provide the necessary 
resources for the IMF to address financial dangers in markets 
around the world, especially those in developing countries 
impacted by the global financial crisis.
    To that end, I request that the Congress approve both the 
U.S. expansion of NAB up to $100 billion and the increase in 
the U.S. quota subscription.
    The size of the NAB is currently $50 billion. This change, 
and the U.S. quota increase, should carry a minimal budget 
score as it is equivalent in some respects to credit activity 
with very small risk. The request provides that the costs of 
these proposed NAB and quote increases will be reflected on a 
net present value basis.
    This step is crucial for U.S. economic interests. Many of 
the developing countries that would benefit from the NAB 
expansion are experiencing severe economic decline and a 
massive withdrawal of capital. Should the situation become 
worse, and should the IMF not be in a position to stem the 
crisis, currencies could collapse. The experience with the 
Asian financial crisis shows that such a massive failure would 
be a catalyst for steeper drops in U.S. growth, jobs, and 
exports.
    This proposal, first discussed at the international level 
at the recent G-20 meetings in London, came after broad 
consultation with Congress. The U.S. expansion of $100 billion 
in the NAB would be part of an overall international expansion 
of $500 billion. We committed to this expansion, and other 
countries are looking to the United States to deliver on our 
commitment.
            Sincerely,
                                                      Barack Obama.
    Enclosure.
                [Estimate No. 3, 111th Cong., 1st Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                      Washington, DC, May 12, 2009.
The President,
The White House.
    Submitted for your consideration is a request for changes 
related to the International Monetary Fund (IMF), including 
among others, the U.S. quota subscription to the IMF and U.S. 
participation in the New Arrangements to Borrow (NAB).
    The request for an increase of about $8 billion in the U.S. 
quota is part of a larger effort to reform the Fund's 
governance structure to ensure country voting weights reflect 
the rapid growth and increasing significance of dynamic 
emerging economies. The United States is working within the G-
20 to ensure the IMF has the resources necessary to effectively 
respond to the current financial crisis and, more generally, 
boost global confidence by demonstrating cooperative action.
    This proposal would also provide an increase in NAB, which 
is a mechanism through which the IMF can obtain supplemental 
financial resources for use in its lending operations when 
existing resources are substantially drawn down in the face of 
circumstances that threaten the stability of the international 
monetary system. More specifically, this proposal would 
increase the U.S. participation in NAB by up to $100 billion as 
part of an overall increase of $500 billion.
    The Administration consulted broadly with the Congress on 
the NAB proposal before it was raised internationally at the G-
20 Summit in London in early April and other countries are 
looking to the United States to deliver on the U.S. commitment.

                             RECOMMENDATION

    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I recommend 
that you transmit them to the Congress.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosure.

    
    
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