§262p–17 Support for international initiatives to provide debt restructuring or relief to developing countries with unsustainable levels of debt

Summary

The Secretary of the Treasury must, working with the Secretary of State, push international groups (like the G20 and international financial institutions) and both official and private creditors to set up clear and accountable rules for debt relief. These rules must include debt targets to make debts sustainable, fair sharing of losses among all creditors (including China), better debt disclosure and data sharing, opening the process to lower middle‑income countries that meet the rules, faster access to relief for eligible countries, and stronger rules on loans tied to assets or revenue and on collateralized debt. The Secretary must also press for case‑by‑case debt restructuring or relief, including a temporary pause on payments if a debtor asks for it once an IMF staff deal is reached and until creditors sign a memorandum of understanding. The United States’ representatives at the IMF and World Bank must use U.S. voice and vote to support these efforts. Not later than 120 days after December 23, 2022, and every year after that, the Treasury Secretary, with the Secretary of State, must report to four congressional committees about actions taken (including by China and commercial creditors), problems that block timely restructuring (such as refusal to share information or to share burdens), and recommendations to fix those problems.