§262k Financial assistance to international financial institutions; considerations and criteria

Summary

The United States must direct its financial help at international banks to support economic and social development, especially in developing countries. That help should back a free, stable world economy and avoid projects that would create extra world supplies, push out private investment, or move countries away from market-based systems. The Treasury Secretary must tell U.S. representatives at those banks to look at how loans and programs affect industries and global commodity markets, to reduce harm, and to avoid government-subsidized production or exports when they would distort markets. When deciding whether to vote against projects that add or expand mining, smelting, refining, or metal fabrication, U.S. Executive Directors should consider these three reasons as a basis for a "no" vote: commercial lenders could reasonably finance the project; the U.S. Bureau of Mines finds surplus capacity would exist for more than half the project’s economic life because of world demand and capacity; or, where the U.S. is a major producer, U.S. imports of the commodity are less than 50 percent of U.S. domestic production. These rules apply to the International Monetary Fund; the International Bank for Reconstruction and Development; the International Development Association; the Inter-American Development Bank; the Asian Development Bank; and the African Development Bank.