§6034 United States Opposition to Cuban Membership in International Financial Institutions

Summary

The Secretary of the Treasury must tell U.S. directors at each international financial institution to vote against letting Cuba join until the President sends a determination under section 6063(c)(3) that Cuba has a democratically elected government. If the President instead sends a determination under section 6063(c)(1) that a transition government is in power, the President is encouraged to help process Cuba’s membership application (but actual membership must wait until a democratically elected government is in place). The Treasury may also tell U.S. directors to back loans to Cuba only if those loans help build a stable base for a democratic government. If an institution approves aid to Cuba over U.S. opposition, the Treasury must withhold from payments to that institution an amount equal to the loan or aid. The withheld money may come from either the paid-in portion or the callable portion of the institution’s increase in capital stock. “International financial institution” means: the International Monetary Fund (global monetary cooperation), the International Bank for Reconstruction and Development (World Bank lending), the International Development Association (World Bank fund for the poorest countries), the International Finance Corporation (World Bank’s private sector arm), the Multilateral Investment Guaranty Agency (political risk insurance), and the Inter-American Development Bank (regional lender for Latin America and the Caribbean).