PRIA, Government Policy, Made Personal

Summary

If an IMF review shows Poland will probably face a balance-of-payments shortfall in the fourth quarter of 1989, the United States must work with the European Community and other international lenders to figure out urgent help. The U.S. should consider a short-term bridge loan from the Exchange Stabilization Fund. The President, with the European Community, should seek an immediate multilateral effort by industrialized democracies to meet Poland’s request for $1,000,000,000 for its stabilization plan. The President may provide aid to help stabilize Poland’s economy now and support longer-term growth as it moves toward free-market policies. That aid can fund balance-of-payments needs (including programs to import goods), help private business development, or other steps to build a market economy. Up to $200,000,000 is authorized for fiscal year 1990 for the Economic Support Fund under the Foreign Assistance Act, in addition to other available funds.

Title 22, §5412

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Immediate emergency assistance

To the extent that the ongoing International Monetary Fund review of the Polish economy projects a probable balance of payments shortage for the fourth quarter of 1989, the United States Government, in carrying out paragraph (1) of section 5411(b) of this title—

(1)should work closely with the European Community and international financial institutions to determine the extent of emergency assistance required by Poland for the fourth quarter of 1989, and

(2)should consider extending a bridge loan to relieve immediate and urgent balance of payments requirements using the Exchange Stabilization Fund in accordance with paragraph (1)(A) of section 5411(b) of this title.

(b)Immediate, multilateral response to Poland’s economic stabilization needs

In furtherance of section 5411(b)(1) of this title, the President, acting in coordination with the European Community, should seek to ensure that the industrialized democracies undertake an immediate, multilateral effort to respond to Poland’s request for $1,000,000,000 to support its economic stabilization program.

(c)Additional authority to provide stabilization assistance

(1)Authority

In order to carry out paragraph (1) of section 5411(b) of this title, the President is authorized to furnish assistance for Poland, notwithstanding any other provision of law, to assist in the urgent stabilization of the Polish economy and ultimately to promote longer-term economic growth and stability, based on movement toward free market principles. Such assistance may be provided for balance of payments support (including commodity import programs), support for private sector development, or for other activities to further efforts to develop a free market-oriented economy in Poland.

(2)Authorization of appropriations

For purposes of providing the assistance authorized by this subsection, there are authorized to be appropriated $200,000,000 for fiscal year 1990 to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 and following; relating to the economic support fund), in addition to amounts otherwise available for such purposes.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Foreign Assistance Act of 1961, referred to in subsec. (c)(2), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424. Chapter 4 of part II of the Foreign Assistance Act of 1961 is classified to part IV (§ 2346 et seq.) of subchapter II of chapter 32 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 2151 of this title and Tables.

§5412 Stabilization Assistance for Poland