§5411 Multilateral Support for Structural Adjustment in Poland and Hungary

Summary

The United States must lead international financial groups to give timely help to Poland and Hungary if they keep moving toward democracy and carry out wide economic reforms. The Treasury Secretary must ask the U.S. representative at the World Bank to push for fast approval and payment of a World Bank loan for Poland so it can carry out big reforms planned for early 1990, such as ending energy, export, and farm subsidies and wage indexation. For Poland, the U.S. must work with the OECD, the IMF, and other lenders to support a plan to stop hyperinflation, solve urgent social problems, and meet balance-of-payments needs. The U.S. may use the Exchange Stabilization Fund under section 5302 of title 31 and the authority in section 5412(c). The U.S. must urge the Paris Club and other creditors to provide generous, early debt rescheduling and speed talks with private creditors to reduce payments consistent with the international debt policy announced by the Secretary of the Treasury on March 10, 1989. The U.S. must also provide agricultural assistance under section 5413.