[Congressional Record Volume 144, Number 30 (Wednesday, March 18, 1998)]
[Senate]
[Pages S2216-S2217]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HAGEL (for himself, Mr. Grams, Mr. Roberts and Mr. Chafee, 
        and Mr. Domenici):
  S. 1795. A bill to reform the International Monetary Fund and to 
authorize United States participation in a quota increase and the New 
Arrangements to Borrow of the International Monetary Fund, and for 
other purposes; to the Committee on Foreign Relations.


               THE INTERNATIONAL MONETARY FUND REFORM ACT

  Mr. HAGEL. Mr. President, today I am joining with Senators Grams, 
Roberts, Chafee, and Domenici in introducing the International Monetary 
Fund Reform Act. This legislation is the product of weeks of work and 
negotiation we have undertaken to develop

[[Page S2217]]

a package of very tough--but achievable--reforms for the IMF. We all 
agree that there must be IMF reform. But relevant, workable, and 
achievable reforms are what we must put in place.
  It's in America's national interest for Congress to move swiftly to 
support the full $18 billion request for the IMF. Our actions--or 
inactions--will have real short-term and long-term economic 
consequences for America's interests in Asia and around the world. This 
morning, I chaired a hearing in the Foreign Relations Committee that 
showed how important the IMF is to American agriculture and our ability 
to build and keep markets overseas. We cannot discount the importance 
of the message our actions or inactions here will send. A stable Asian 
marketplace is in America's interest.
  We are introducing this legislation today so that all our colleagues 
can review the compromise language we have put together. As the debate 
on this issue unfolds, we intend to remain actively involved.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1795

       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 ``International Monetary Fund 
     Reform Act of 1998''.

     SEC. 2. DEFINITION.

       For purposes of this Act, the term ``appropriate 
     congressional committees'' means the Committee on Foreign 
     Relations and the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, and the Committee on International 
     Relations and the Committee on Banking and Financial Service 
     of the House of Representatives.

                  TITLE I--INTERNATIONAL MONETARY FUND

     SEC. 101. PARTICIPATION IN QUOTA INCREASE.

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

     ``SEC. 61. QUOTA INCREASE.

       ``(a) In General.--The United States Governor of the Fund 
     may consent to an increase in the quota of the United States 
     in the Fund equivalent to 10,622,500,000 Special Drawing 
     Rights.
       ``(b) Subject to Appropriations.--The authority provided by 
     subsection (a) shall be effective only to such extent or in 
     such amounts as are provided in advance in appropriations 
     Acts.''.

     SEC. 102. CONDITIONS FOR RELEASE OF FUNDS.

       (a) Limitations on Funding.--Notwithstanding any other 
     provision of law, any funds appropriated or otherwise made 
     available for an increase in the quota of the United States 
     in the International Monetary Fund pursuant to this title 
     shall not be available for such increase until the Secretary 
     of the Treasury makes the certifications described in 
     subsection (b) and (c) to the appropriate congressional 
     committees.
       (b) Certification Regarding Transparency.--The 
     certification described in this subsection means a 
     certification by the Secretary of the Treasury to the 
     appropriate congressional committees that the United States 
     is taking all necessary and appropriate steps to--
       (1) ensure that the internal processes of the IMF becomes 
     open and transparent;
       (2) strengthen the ability of all countries, Congress, and 
     the public to obtain timely and accurate information about 
     the decision making process and other internal processes of 
     the IMF;
       (3) obtain routine release to the public of IMF documents, 
     including official working papers, past evaluations, all 
     Letters of Intent, and Policy Framework Papers.
       (4) provide for greater accessibility, for both 
     policymakers and members of the public, of the IMF and its 
     staff; and
       (5) obtain timely and complete publication of the Article 
     IV consultations conducted by the IMF for each member 
     country.
       (c) Certification Regarding Future Lending Standards.--The 
     certification described in this subsection means a 
     certification by the Secretary of the Treasury of the 
     appropriate congressional committees that the International 
     Monetary Fund routinely seeks, as a standard condition for 
     lending and other uses of the Fund's resources, that borrower 
     countries be required to--
       (1) comply with the borrower country's international 
     trading obligations including, if applicable, with the 
     standards of the World Trade Organization;
       (2) comply with appropriate international banking and 
     financial standards and not engage in the pattern or practice 
     of improper government-directed lending to favored 
     industries, enterprises, parties, or institutions; and
       (3) have or be developing bankruptcy laws and procedures to 
     provide for liquidation and restructuring of businesses, and 
     make progress toward assuring nondiscriminatory treatment of 
     domestic and foreign creditors, debtors, and other concerned 
     persons.
       (d) Report.--Not later than October 1, 1998, and not later 
     than March 1 of each year thereafter, the Secretary of the 
     Treasury shall submit to the appropriate congressional 
     committees a report describing the steps taken by the United 
     States to achieve the objectives set forth in subsection (b) 
     and progress made toward achieving such objectives.

                  TITLE II--NEW ARRANGEMENTS TO BORROW

     SEC. 201. NEW ARRANGEMENTS TO BORROW.

       Section 17 of the Bretton Woods Agreements Act (22 U.S.C. 
     286e-2 et seq.) is amended--
       (1) in subsection (a)--
       (A) by striking ``and February 24, 1983'' and inserting 
     ``February 24, 1983, and January 27, 1997''; and
       (B) by striking ``4,250,000,000'' and inserting 
     ``6,712,000,000'';
       (2) in subsection (b), by striking ``4,250,000,000'' and 
     inserting ``6,712,000,000''; and
       (3) in subsection (d)--
       (A) by inserting ``or the Decision of January 27, 1997,'' 
     after ``February 24, 1983,''; and
       (B) by inserting ``or the New Arrangements to Borrow, as 
     applicable'' before the period at the end.
                                 ______