22 U.S.C. § 286tt: Restrictions on use of…

Summary

The Secretary of the Treasury must tell the U.S. Executive Director at the International Monetary Fund to review any IMF loan plan before the Fund’s Board votes on it when a country’s public debt is larger than its GDP (using the most recent year available) and the country is not eligible for help from the International Development Association. If that review finds the loan probably will not be paid back in full, the Secretary must tell the U.S. Executive Director to oppose the loan with the United States’ voice and vote. Within 30 days after the Fund’s Board approves any such loan, and then every year by June 30 for as long as the approved program continues, the Secretary must send a written report to the House Committee on Financial Services and the Senate Committees on Foreign Relations and on Banking, Housing, and Urban Affairs. The report must assess whether the loans are likely to be repaid in full and include the country’s debt details (maturities, interest types, who holds it), its internal and external weaknesses that could affect repayment, and its debt management plan.

Title 22, §286tt

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)In general

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

(1)to evaluate, prior to consideration by the Board of Executive Directors of the Fund, any proposal submitted to the Board for the Fund to make a loan to a country if—

(A)the amount of the public debt of the country exceeds the gross domestic product of the country as of the most recent year for which such information is available; and

(B)the country is not eligible for assistance from the International Development Association.

(2)Opposition to loans unlikely to be repaid in full.—

If any such evaluation indicates that the proposed loan is not likely to be repaid in full, the Secretary of the Treasury shall instruct the United States Executive Director at the Fund to use the voice and vote of the United States to oppose the proposal.

(b)Reports to Congress

Within 30 days after the Board of Executive Directors of the Fund approves a proposal described in subsection (a), and annually thereafter by June 30, for the duration of any program approved under such proposals, the Secretary of the Treasury shall report in writing to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate assessing the likelihood that loans made pursuant to such proposals will be repaid in full, including—

(1)the borrowing country’s current debt status, including, to the extent possible, its maturity structure, whether it has fixed or floating rates, whether it is indexed, and by whom it is held;

(2)the borrowing country’s external and internal vulnerabilities that could potentially affect its ability to repay; and

(3)the borrowing country’s debt management strategy.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking.

§286tt Restrictions on Use of United States Funds for Foreign Governments; Protection of American Taxpayers

Summary

Title 22, §286tt

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata