§ 286hh. Policy based lending for debt reduction

Statutory text

Criteria

The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to initiate discussions with other directors of such bank and to advocate and support the facilitation of voluntary market-based programs for the reduction of sovereign debt and the promotion of sustainable economic development, which, if implemented, would—

not require any organization or government to participate in such a program;

result in debt reduction for each participating country tailored to the particular situation of each country;

provide assistance to participating countries conditioned on the implementation of economic reforms, and the preservation of economic reforms previously implemented, by the country that are consistent with the principles of sustainable development;

encourage participating countries to make economic adjustments steadily and over a period of time in order to achieve policy reform;

use debt reduction techniques that would not compensate commercial banks for the reduction in the value of such debt, but would serve as a catalyst for new lending;

involve such bank in lending for purposes of debt reduction and conversion only where such involvement would not lower the credit-worthiness of such bank;

not require public sector funding beyond that provided through any capital increase for such bank, and any replenishment for the International Development Association, which is agreed to by the member countries of such institutions; and

accomplish debt reduction, not as an end, but as a means to greater growth and investment in, and the restoration of voluntary private lending to, participating countries for environmentally and economically sustainable development.

Policy based lending for debt reduction and sustainable growth

The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to initiate discussions with other directors of such bank and to propose that policy based loans be made by such bank for, among other reasons, facilitating a reduction in the debt service burden of any country which is participating in a voluntary market-based program for debt reduction described in subsection (c).

Voluntary market-based program for debt reduction and sustainable growth

In connection with the discussions initiated pursuant to subsection (b), the Secretary shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to propose that a country be considered to be participating in a voluntary market-based program of debt reduction for purposes of subsection (b) if the creditors of such country agree to significantly reduce the debt service of such country through forgiveness of a percentage of the interest owed by such country on any sovereign debt or through any other means.

Reports

Not later than March 1, 1989, March 1, 1991, and March 1, 1993, respectively, the Secretary of the Treasury shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate 3 reports each of which—

describes the long term strategy and lending programs of the International Bank for Reconstruction and Development for reducing and managing the debt burden of the countries designated as “Highly Indebted Countries” in the 1987–1988 World Debt Tables published by such bank, and summarize the long term strategy and lending programs of such bank for other seriously indebted countries;

contains an explanation of the measures taken by such bank to facilitate the reduction of the debt burden of the countries designated as “Highly Indebted Countries” in the 1987–1988 World Debt tables 1 published by such bank;

describes the extent (if any) to which such bank has implemented the measures described in subsections (b) and (c); and

describes the success each of such countries has had in managing and reducing their debt burdens and achieving sustainable and equitable economic growth as measured by criteria including the ratio of debt service to exports, the ratio of debt to gross national product, net resource flows, and per capita income.

Review by House Banking Committee

On receipt of each report required to be submitted pursuant to subsection (d), and after consultation with the Secretary of the Treasury, the Committee on Banking, Finance and Urban Affairs of the House of Representatives shall forward such report to the Committee on Appropriations of the House of Representatives with an assessment by the Committee on Banking, Finance and Urban Affairs describing the effect on the international debt situation of funding the subscription of the United States to the shares of capital stock of the International Bank for Reconstruction and Development due for payment by the United States in the then next fiscal year.

Footnotes

1 So in original. Probably should be capitalized.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1988
Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989
Pub. L. 100–461 title V § 555 · 102 Stat. 2268
Enacted · 22 U.S.C. § 286hh
Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36
Source evidence
Code source credit
Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36
Enacted provision · exact public law section
Sec. 555. authorization requirement Funds appropriated by this Act may be obligated and expended notwithstanding section 10 of Public Law 91–672 and section 15 of the State Department Basic Authorities Act of 1956: 22 USC 2321h. Provided, That section 514 of the Foreign Assistance Act of 1961 is amended by amending subsection (b)(2) to read as follows: “(2) The value of such additions to stockpiles in foreign countries shall not 22 USC 262p–4a—262p–4f, 262p–5, 286e–1k, 286hh–286jj, 290–14. 22 USC 2151 note, 2191, 2194, 2194b, 2195, 2197, 2199, 2200a. Securities. 22 USC 2194 note. 22 USC 2151 note, 2191, 2194, 2194b, 2195, 2197, 2199, 2200a. Securities. 22 USC 2194 note. exceed $77,000,000 for fiscal year 1989.”: Provided further, That the amendment in the nature of a substitute to the text of H.R. 4645, as ordered reported from the Committee on Banking, Finance and Urban Affairs on September 22, 1988, is hereby enacted into law: Provided further, That title I of H.R. 5263 as passed by the House of Representatives on September 20, 1988, is hereby enacted into law: Provided further, That purchases, investments or other acquisitions of equity by the fund created by section 104 of H.R. 5263 as hereby enacted are limited to such amounts as may be provided in advance in appropriations Acts: Provided further, 1 1Copy read “that”.That notwithstanding any other provision of this Act, titles 22Copy read “I,”. I and III of S. 2757 as reported by the Senate Committee on Foreign Relations on September 7, 1988, are hereby enacted into law: Provided further, That purchases, investments or other acquisitions of equity by the fund created by section 104 of S. 2757 as hereby enacted are limited to such amounts as may be provided in advance in appropriations 33Copy read “Acts”. Acts: Provided further, That section 901(a) of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (8 U.S.C. 1182 note) is amended to read as follows: 44Copy read “(a) IN GENERAL.—”“(a) General.— Notwithstanding any other provision of law, no nonimmigrant alien may be denied a visa or excluded from admission into the United States, or subject to deportation because of any past, current or expected beliefs, statements or associations which, if engaged in by a United States citizen in the United States, would be protected under the Constitution of the United 55Copy read “States:”. States.”: Provided further, That subsection 66Copy read “((b)”. (b) of section 901 of such Act is amended— (1) by inserting “to deny adjustment of status of,” after “deny issuance of a visa to,”; (2) by inserting in paragraph (1) before the semicolon, “, unless such alien is seeking issuance of a visa, adjustment of status, or admission to the United States as an 77Copy read “immigrant.” ”. immigrant.”: Provided further, That subsection (d) of section 901 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (8 U.S.C. 1182 note) is amended to read as follows: 88Copy read “ “(d) Effective Period.—”.“(d) Effective Period.— Subsection (a) shall only apply to— “(1) applications for 99Copy read “non-immigrant”. nonimmigrant visas submitted before January 1, 1991; “(2) admissions sought before March 1, 1991; “(3) deportations based on activities occurring before January 1, 1991, or for which deportation proceedings (including judicial review with respect to such a proceeding) are pending at any time between December 31, 1987 and January 1, 1991.”: Provided further, That the amendment made in the 1010Copy read “proceeding”. preceding sentence 8 USC 1182 note. shall not require the deportation of aliens admitted for permanent resident status under section 901 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989, as in effect before the date of enactment of this Act: Provided further, That title III of S. 2757 shall be in effect for fiscal years 1989 and 1990: Provided further, Reports. That the Comptroller General of the United States shall examine the use of nonimmigrant visas under section 101(a)(15)(J) of the Immigration and Nationality Act for current programs of educational and cultural exchange and shall, not later than 30 days before the end of fiscal year 1989, submit to the Committees on the Judiciary of the Senate and House of Representatives, a report on whether the participants in programs of cultural exchange receiving visas under that section are performing activities consistent with the congressional intent for the implementation of that section: Provided further, That notwithstanding section 208 of the United States Information Agency Authorization Act, Fiscal Years 1986 and 1987 and the second sentence of section 501 of the United States Information and Educational Exchange Act of 1948 (22 U.S.C. 1461)— (1) the Director of the United 1111Copy read “Sates”. States Information Agency Historic preservation. shall make available to the Archivist of the United States a master copy of the film entitled “Land of Enchantment”; and (2) upon evidence that necessary United States rights and Public information. licenses have been secured and paid for by the person seeking domestic release of the film, the Archivist shall reimburse the Director for any expenses of the Agency in making that master copy available, shall deposit that film in the National Archives of the United States, and shall make copies of that film available for purchase and public viewing within the United States. Any reimbursement to the Director pursuant to this section shall be credited to the applicable appropriation of the United States Information 1212Copy read “Agency”. Agency.
2010
Investor Protection and Securities Reform Act of 2010
Pub. L. 111–203 title IX § 939(f) · 124 Stat. 1376
Substituted · 22 U.S.C. § 286hh(a)(6)
Pub. L. 111–203 substituted “credit-worthiness” for “credit rating”
Source evidence
Code amendment note
Subsec. (a)(6). Pub. L. 111–203 substituted “credit-worthiness” for “credit rating”.
Enacted provision · exact public law section
(f) World Bank Discussions.— Section 3(a)(6) of the amendment in the nature of a substitute to the text of H.R. 4645, as ordered reported from the Committee on Banking, Finance and Urban Affairs on September 22, 1988, as enacted into law by section 555 of Public Law 100–461, (22 U.S.C. 286hh(a)(6)), is amended by striking “credit rating” and inserting “credit-worthiness”.
Effective date note
Amendment by Pub. L. 111–203 effective 2 years after July 21, 2010, see section 939(g) of Pub. L. 111–203, set out as a note under section 24a of Title 12, Banks and Banking.

2 of 2 references resolved to an enrolled provision

Editorial Notes

Codification

Section is based on section 3 of H.R. 4645, One Hundredth Congress, as reported Sept. 28, 1988, and enacted into law by Pub. L. 100–461.

Section was not enacted as part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agreements Act, which comprises this subchapter.

Amendments

2010—Subsec. (a)(6). Pub. L. 111–203 substituted “credit-worthiness” for “credit rating”.

Statutory Notes and Related Subsidiaries

Change of Name

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 2 years after July 21, 2010, see section 939(g) of Pub. L. 111–203, set out as a note under section 24a of Title 12, Banks and Banking.

Credits

1988–2010 · 2 acts

1988Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36
2010Pub. L. 111–203, title IX, § 939(f), July 21, 2010, 124 Stat. 1886.

Show as published

(Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36; Pub. L. 111–203, title IX, § 939(f), July 21, 2010, 124 Stat. 1886.)