PRIA, Government Policy, Made Personal

Summary

Allows the Treasury Secretary to lend money to the International Monetary Fund (IMF) for certain IMF funding arrangements. The Secretary may make loans up to the equivalent of 6,712,000,000 Special Drawing Rights (SDR), and may also, for a one-time expansion of the New Arrangements to Borrow (NAB), consent to changes and lend up to the dollar equivalent of 75,000,000,000 SDR, plus an additional one-time amount of 28,202,470,000 SDR. All loans are limited to amounts Congress provides in advance. Before any loan or NAB activation, the Secretary must tell Congress whether extra resources are needed to prevent or cope with a breakdown of the international monetary system and must confirm the IMF has fully looked for other funding. For the NAB expansion, the Secretary must also consult Congress about the proposed changes, who is contributing, the amounts, and steps to keep the U.S. share at or below about 20 percent (as of June 24, 2009). Loans must consider the U.S. balance of payments and reserve position. Appropriations for the SDR amounts remain available until used, and IMF repayments can be reused for new loans unless Congress cancels them. The authority to lend would have ended five years after December 16, 2009 unless the Secretary, at least 60 days before that date or before an NAB renewal, certifies to relevant congressional committees that the NAB amendments will not stop the U.S. from renewing or withdrawing under current rules and that NAB use will be limited to supplementing quota resources to handle an international monetary emergency or that other conditions make it in the U.S. strategic economic interest. The Secretary must consult those committees at least 15 days before giving that certification. The Secretary must also certify that the IMF’s one-year forward commitment capacity (excluding borrowed resources) is expected to fall below 100,000,000,000 SDR during NAB activation and explain why activation is in the U.S. strategic economic interest. Interest and charges on any loan go into the Treasury as miscellaneous receipts. No U.S. official may agree to amendments that would significantly change U.S. participation in the General Arrangements or the NAB unless Congress has authorized it by law. “Appropriate congressional committees” means the Senate Appropriations and Foreign Relations Committees and the House Appropriations and Financial Services Committees. The authority to make loans under this law ends on December 31, 2030.

Title 22, §286e–2

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)(1)In order to carry out the purposes of the decisions of January 5, 1962, February 24, 1983, and January 27, 1997, as amended in accordance with their terms, of the Executive Directors of the International Monetary Fund, the Secretary of the Treasury is authorized to make loans, in an amount not to exceed the equivalent of 6,712,000,000 Special Drawing Rights, limited to such amounts as are provided in advance in appropriations Acts, except that prior to activation, the Secretary of the Treasury shall certify that supplementary resources are needed to forestall or cope with an impairment of the international monetary system and that the Fund has fully explored other means of funding, to the Fund under article VII, section 1(i), of the Articles of Agreement of the Fund. Any loan under the authority granted in this subsection shall be made with due regard to the present and prospective balance of payments and reserve position of the United States.

(2)In order to carry out the purposes of a one-time decision of the Executive Directors of the International Monetary Fund (the Fund) to expand the resources of the New Arrangements to Borrow, established pursuant to the decision of January 27, 1997 referred to in paragraph (1) above, and to make other amendments to the New Arrangements to Borrow to achieve an expanded and more flexible New Arrangements to Borrow as contemplated by paragraph 17 of the G–20 Leaders’ Statement of April 2, 2009 in London, the Secretary of the Treasury is authorized to instruct the United States Executive Director to consent to such amendments notwithstanding subsection (d) of this section, and to make loans, in an amount not to exceed the dollar equivalent of 75,000,000,000 Special Drawing Rights, in addition to any amounts previously authorized under this section and limited to such amounts as are provided in advance in appropriations Acts, except that prior to activation, the Secretary of the Treasury shall report to Congress on whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and whether the Fund has fully explored other means of funding, to the Fund under article VII, section 1(i), of the Articles of Agreement of the Fund: Provided, That prior to instructing the United States Executive Director to provide consent to such amendments, the Secretary of the Treasury shall consult with the appropriate congressional committees on the amendments to be made to the New Arrangements to Borrow, including guidelines and criteria governing the use of its resources; the countries that have made commitments to contribute to the New Arrangements to Borrow and the amount of such commitments; and the steps taken by the United States to expand the number of countries so the United States share of the expanded New Arrangements to Borrow remains not greater than 20 percent, which approximates the United States share as of June 24, 2009: Provided further, That any loan under the authority granted in this subsection shall be made with due regard to the present and prospective balance of payments and reserve position of the United States.

(3)In order to carry out the purposes of a one-time decision of the Executive Directors of the International Monetary Fund (the Fund) to expand the resources of the New Arrangements to Borrow, established pursuant to the decision of January 27, 1997, referred to in paragraph (1), the Secretary of the Treasury is authorized to make loans, in an amount not to exceed the dollar equivalent of 28,202,470,000 of Special Drawing Rights, in addition to any amounts previously authorized under this section, except that prior to activation of the New Arrangements to Borrow, the Secretary of the Treasury shall report to Congress whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and whether the Fund has fully explored other means of funding to the Fund.

(4)The authority to make loans under this section shall expire on the date that is 5 years after December 16, 2009, unless the Secretary of the Treasury, not later than 60 days before such expiration date or 60 days prior to the renewal of the decision governing the New Arrangements to Borrow (NAB), whichever occurs first, certifies to the appropriate congressional committees, that—

(A)no amendments made, or anticipated to be made, to the NAB to achieve an expanded and more flexible NAB, as described in paragraph 17 of the G20 Leaders’ Statement at the 2009 London Summit, will impair the ability of the Secretary of the Treasury to consider a renewal of the NAB decision at intervals no greater than 5 years and to withdraw the adherence of the United States to the NAB decision as is currently provided under paragraph 19 of the New Arrangement to Borrow, adopted by the Executive Board of the International Monetary Fund (IMF) on January 27, 1997; and

(B)(i)the IMF will borrow resources from members under the NAB only when quota resources need to be supplemented in order to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system;

(ii)the IMF has, prior to any activation of the NAB, fully explored other means of funding to supplement any potential shortfall in quota resources necessary to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system; or

(iii)it is in the United States’ strategic economic interest to maintain the relative size or lower of the United States contribution to the NAB as in effect on the date of the certification.

(5)Not later than 15 days before submitting the certification under paragraph (4), the Secretary of the Treasury shall consult with the appropriate congressional committees regarding such certification.

(6)The authority to make loans under this section shall expire on December 31, 2030.

(b)(1)For the purpose of making loans to the International Monetary Fund pursuant to subsection (a)(1) of this section, there is authorized to be appropriated 6,712,000,000 Special Drawing Rights, except that prior to activation, the Secretary of the Treasury shall certify whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and that the Fund has fully explored other means of funding, to remain available until expended to meet calls by the International Monetary Fund. Any payments made to the United States by the International Monetary Fund as a repayment on account of the principal of a loan made under this section shall continue to be available for loans to the International Monetary Fund, only to the extent that amounts available for such loans are not rescinded by an Act of Congress.

(2)For the purpose of making loans to the International Monetary Fund pursuant to subsection (a)(2) of this section, there is hereby authorized to be appropriated not to exceed the dollar equivalent of 75,000,000,000 Special Drawing Rights, in addition to any amounts previously authorized under this section, except that prior to activation, the Secretary of the Treasury shall report to Congress on whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and whether the Fund has fully explored other means of funding, to remain available until expended to meet calls by the Fund. Any payments made to the United States by the Fund as a repayment on account of the principal of a loan made under this section shall continue to be available for loans to the Fund, only to the extent that amounts available for such loans are not rescinded by an Act of Congress.

(c)Payments of interest and charges to the United States on account of any loan to the International Monetary Fund shall be covered into the Treasury as miscellaneous receipts. In addition to the amount authorized in subsection (b), there is authorized to be appropriated such amounts as may be necessary for the payment of charges in connection with any purchases of currencies or gold by the United States from the International Monetary Fund.

(d)Unless the Congress by law so authorizes, neither the President, the Secretary of the Treasury, nor any other person acting on behalf of the United States, may instruct the United States Executive Director to the Fund to consent to any amendment to the Decision of February 24, 1983, or the Decision of January 27, 1997, of the Executive Directors of the Fund, if the adoption of such amendment would significantly alter the amount, terms, or conditions of participation by the United States in the General Arrangements to Borrow or the New Arrangements to Borrow, as applicable.

(e)(1)The Secretary of the Treasury shall include in the certification and report required by paragraphs (a)(1), (a)(2), (a)(3), (b)(1), and (b)(2) of this section prior to activation an additional certification and report that—

(A)the one-year forward commitment capacity of the IMF (excluding borrowed resources) is expected to fall below 100,000,000,000 Special Drawing Rights during the period of the NAB activation; and

(B)activation of the NAB is in the United States strategic economic interest with the reasons and analysis for that determination.

(2)Prior to submitting any certification and report required by paragraphs (a)(1), (a)(2), (b)(1), and (b)(2) of this section, the Secretary of the Treasury shall consult with the appropriate congressional committees.

(f)In this section, the term “appropriate congressional committees” means the Committees on Appropriations and Foreign Relations of the Senate and the Committees on Appropriations and Financial Services of the House of Representatives.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2024—Subsec. (a)(6). Pub. L. 118–47 substituted “

December 31, 2030” for “

December 31, 2025”. 2020—Subsec. (a)(3), (4). Pub. L. 116–136, § 21012(b)(5)(A)(i)(I), (II), added par. (3) and redesignated former par. (3) as (4). Former par. (4) redesignated (5). Subsec. (a)(5). Pub. L. 116–136, § 21012(b)(5)(A)(i)(I), (III), redesignated par. (4) as (5) and substituted “paragraph (4)” for “paragraph (3)”. Former par. (5) redesignated (6). Subsec. (a)(6). Pub. L. 116–136, § 21012(b)(5)(A)(i)(I), (IV), redesignated par. (5) as (6) and substituted “

December 31, 2025” for “

December 16, 2022”. Subsec. (e)(1). Pub. L. 116–136, § 21012(b)(5)(A)(ii), which directed amendment of subsec. (e)(1) by substituting “(a)(2), (a)(3),” for “(a)(2),” “each place such term appears”, was executed as directed to the one place it appeared in subsec. (e)(1), even though “(a)(2),” also appears in subsec. (e)(2). 2015—Subsec. (a)(5). Pub. L. 114–113, § 9001(1), added par. (5). Subsec. (b). Pub. L. 114–113, § 9001(2), inserted before period at end of pars. (1) and (2) “, only to the extent that amounts available for such loans are not rescinded by an Act of Congress”. Subsec. (e). Pub. L. 114–113, § 9001(3), added subsec. (e). Subsec. (f). Pub. L. 114–113, § 9001(4), added subsec. (f). 2009—Subsec. (a). Pub. L. 111–32, § 1401(1), designated existing provisions as par. (1) and added par. (2). Subsec. (a)(2). Pub. L. 111–117, § 7090(c), substituted “remains not greater than 20 percent, which approximates the United States share as of

June 24, 2009” for “is representative of its share as of the date of the enactment of this Act”. Subsec. (a)(3), (4). Pub. L. 111–117, § 7090(b), added pars. (3) and (4). Subsec. (b). Pub. L. 111–32, § 1401(2), designated existing provisions as par. (1), inserted “subsection (a)(1) of” after “pursuant to”, and added par. (2). 1998—Subsec. (a). Pub. L. 105–277, § 101(d) [title VI, § 609(1)], substituted “

February 24, 1983, and

January 27, 1997” for “and

February 24, 1983” and “6,712,000,000” for “4,250,000,000”. Subsec. (b). Pub. L. 105–277, § 101(d) [title VI, § 609(2)], substituted “6,712,000,000” for “4,250,000,000”. Subsec. (d). Pub. L. 105–277, § 101(d) [title VI, § 609(3)], inserted “or the Decision of

January 27, 1997,” after “

February 24, 1983,” and “or the New Arrangements to Borrow, as applicable” before period at end. 1983—Subsec. (a). Pub. L. 98–181, § 802(a)(1), substituted “decisions of

January 5, 1962, and

February 24, 1983, as amended in accordance with their terms” for “decision of

January 5, 1962”, and “in an amount not to exceed the equivalent of 4,250,000,000 Special Drawing Rights, limited to such amounts as are provided in advance in appropriations Acts, except that prior to activation, the Secretary of the Treasury shall certify that supplementary resources are needed to forestall or cope with an impairment of the international monetary system and that the fund has fully explored other means of funding” for “not to exceed $2,000,000,000 outstanding at any one time”. Subsec. (b). Pub. L. 98–181, § 802(a)(2), substituted “4,250,000,000 Special Drawing Rights, except that prior to activation, the Secretary of the Treasury shall certify whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and that the Fund has fully explored other means of funding” for “$2,000,000,000”. Subsec. (d). Pub. L. 98–181, § 802(a)(3), added subsec. (d). 1976—Subsec. (a). Pub. L. 94–564 substituted “section 1(i)” for “section 2(i)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2015 Amendment Pub. L. 114–113, div. K, title IX, § 9001(3), Dec. 18, 2015, 129 Stat. 2829, provided in part that subsection (e) of this section is “effective from the first day of the next period of renewal of the NAB [New Arrangements to Borrow] decision after enactment of this Act [Dec. 18, 2015]”.

Effective Date

of 1976 AmendmentAmendment effective Apr. 1, 1978, see section 9 of Pub. L. 94–564, set out as a note under section 286a of this title.

§286e–2 Loans to Fund

Summary

Title 22, §286e–2

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata