§283z–7 Limitations on Policy Based Lending

Summary

The Treasury Secretary must push the Bank to limit its policy-based loans over the four years starting January 1, 1990. Policy-based loans must be no more than 25% of all the Bank’s loans in that four-year period, except when the Bank decides a country is economically less developed or has a limited market economy and the loans are used to buy that country’s sovereign debt or reduce its debt burden. The Secretary must also push the Bank to keep policy loans to any one government to no more than 50% of what the Bank lends that government in the same four-year period. The Secretary must have the U.S. Executive Director at the Bank talk with the other directors about using some of the money from the subscription and contribution in section 283z–5(a)(2) for debt reduction for those countries, and must report to Congress on that work before the end of the 12-month period starting December 19, 1989.