Title 22 — Foreign Relations and IntercourseRelease 119-73

§286dd Fund bailouts of banks; rescheduling of debt

Title 22 › Chapter CHAPTER 7— - INTERNATIONAL BUREAUS, CONGRESSES, ETC. › Subchapter SUBCHAPTER XV— - INTERNATIONAL MONETARY FUND AND BANK FOR RECONSTRUCTION AND DEVELOPMENT › § 286dd

Last updated Apr 6, 2026|Official source

Summary

The Treasury Secretary must tell the U.S. Executive Director at the Fund to oppose and vote against any Fund loan or withdrawal when the Secretary believes the money would mainly be used to repay loans that banks made without good judgment. The Secretary must also require the Director to push the Fund to have borrowing countries and banks, when proper, renegotiate or reschedule debt in ways that follow safe banking practices and match the country’s ability to pay.

Full Legal Text

Title 22, §286dd

Foreign Relations and Intercourse — Source: USLM XML via OLRC

The Secretary of the Treasury shall instruct the United States Executive Director of the Fund—

(1)to oppose and vote against any Fund drawing by a member country where, in his judgment, the Fund resources would be drawn principally for the purpose of repaying loans which have been imprudently made by banking institutions to the member country; and

(2)to work to insure that the Fund encourages borrowing countries and banking institutions to negotiate, where appropriate, a rescheduling of debt which is consistent with safe and sound banking practices and the country’s ability to pay.

Reference

Citations & Metadata

Citation

22 U.S.C. § 286dd

Title 22 — Foreign Relations and Intercourse

Last Updated

Apr 6, 2026

Release point: 119-73