§5411 Multilateral Support for Structural Adjustment in Poland and Hungary

Summary

The United States will lead efforts to get international lenders like the IMF and the World Bank to give timely money to Poland and Hungary as they move toward democracy and carry out big economic reforms. The Secretary of the Treasury must tell the U.S. Executive Director at the World Bank to push for a structural adjustment loan for Poland fast enough to help reforms planned for early 1990, including ending energy, export, and farm subsidies and stopping wage indexation. If Poland keeps moving toward pluralism and democracy and keeps doing broad economic reforms, the U.S. will work with OECD members and institutions like the IMF to back Poland’s plan to fight hyperinflation, fix structural and social problems, and meet urgent balance-of-payments needs. The U.S. may use the Exchange Stabilization Fund (section 5302 of title 31) and the authority in section 5412(c). The U.S. will urge the Paris Club and other creditors to offer early, generous debt rescheduling and speed talks with private creditors consistent with the Treasury’s March 10, 1989 policy, and will provide agricultural aid under section 5413.