Collapse to view only § 5332. Actions to facilitate creation of Authority
- § 5331. International initiative
- § 5332. Actions to facilitate creation of Authority
- § 5333. IMF-World Bank review
§ 5331. International initiative
(a) Directive
(1) Study
(2) Explanation of determinations
(3) Initiation of discussionsUnless such a determination is made, the Secretary of the Treasury shall initiate discussions with such industrialized and developing countries as the Secretary may determine to be appropriate with the intent to negotiate the establishment of the International Debt Management Authority, which would undertake to—
(A) purchase sovereign debt of less developed countries from private creditors at an appropriate discount;
(B) enter into negotiations with the debtor countries for the purpose of restructuring the debt in order to—
(i) ease the current debt service burden on the debtor countries; and
(ii) provide additional opportunities for economic growth in both debtor and industrialized countries; and
(C) assist the creditor banks in the voluntary disposition of their Third World loan portfolio.
(b) ObjectivesIn any discussions initiated under subsection (a), the Secretary should include the following specific proposals:
(1) That any loan restructuring assistance provided by such an authority to any debtor nation should involve substantial commitments by the debtor to (A) economic policies designed to improve resource utilization and minimize capital flight, and (B) preparation of an economic management plan calculated to provide sustained economic growth and to allow the debtor to meet its restructured debt obligations.
(2) That support for such an authority should come from industrialized countries, and that greater support should be expected from countries with strong current account surpluses.
(3) That such an authority should have a clearly defined close working relationship with the International Monetary Fund and the International Bank for Reconstruction and Development and the various regional development banks.
(4) That such an authority should be designed to operate as a self-supporting entity, requiring no routine appropriation of resources from any member government, and to function subject to the prohibitions contained in the first sentence of section 5332(a) of this title.
(5) That such an authority should have a defined termination date and a clear proposal for the restoration of creditworthiness to debtor countries within this timeframe.
(c) Interim reports
(d) Final report
(Pub. L. 100–418, title III, § 3111, Aug. 23, 1988, 102 Stat. 1376.)
§ 5332. Actions to facilitate creation of Authority
(a) In general
No funds, appropriations, contributions, callable capital, financial guarantee, or any other financial support or obligation or contingent support or obligation on the part of the United States Government may be used for the creation, operation, or support of the International Debt Management Authority specified in section 5331 of this title, without the express approval of the Congress through subsequent law, nor shall any expenses associated with such authority, either directly or indirectly, accrue to any United States person without the consent of such person. Except as restricted in the preceding sentence, the Secretary of the Treasury shall review all potential resources available to the multilateral financial institutions which could be used to support the creation of the International Debt Management Authority. In the course of this review, the Secretary shall direct—
(1) the United States Executive Director of the International Monetary Fund to determine the amount of, and alternative methods by which, gold stock of the Fund which, subject to action by its Board of Governors, could be pledged as collateral to obtain financing for the activities of the authority specified in section 5331 of this title; and
(2) the United States Executive Director to the International Bank for Reconstruction and Development to determine the amount of, and alternative methods by which, liquid assets controlled by such Bank and not currently committed to any loan program which, subject to action by its Board of Governors, could be pledged as collateral for obtaining financing for the activities of the authority specified in section 5331 of this title.
The Secretary of the Treasury shall include a report on the results of the review in the first report submitted under section 5331(c) of this title.
(b) Construction of section
(Pub. L. 100–418, title III, § 3112, Aug. 23, 1988, 102 Stat. 1378.)
§ 5333. IMF-World Bank review
(a) IMF review
(b) World Bank review
(Pub. L. 100–418, title III, § 3113, Aug. 23, 1988, 102 Stat. 1378.)