SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multilateral Debt Relief Act of 
2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) In 1996, the international community created the 
        Heavily Indebted Poor Countries Initiative (the HIPC 
        Initiative) to reduce the debt burden that curtailed spending 
        on economic development and poverty-reducing programs in many 
        impoverished countries.
            (2) Since adoption of the original HIPC Initiative in 1996 
        and the Enhanced HIPC Initiative in 1999, donor countries have 
        committed more than $50,000,000,000 in bilateral and 
        multilateral debt stock cancellation to eligible countries.
            (3) The 27 countries that have received debt relief through 
        the HIPC Initiative are estimated by World Bank and the 
        International Monetary Fund to have increased poverty reduction 
        expenditures by an average of approximately 75 percent between 
        1999 and 2004.
            (4) Congress has demonstrated its support for bilateral and 
        multilateral debt relief through the enactment of comprehensive 
        debt relief initiatives for heavily indebted poor countries by 
        title V of H.R. 3425 of the 106th Congress, as enacted into law 
        by section 1000(a)(5) of the Act entitled ``An Act making 
        consolidated appropriations for the fiscal year ending 
        September 30, 2000, and for other purposes'', approved November 
        29, 1999 (Public Law 106-113; 113 Stat. 1501-311) and the 
        amendments made by such title, title II of H.R. 5526 of the 
        106th Congress, as enacted into law by section 101(a) of the 
        Act entitled ``An Act making appropriations for foreign 
        operations, export financing, and related programs for the 
        fiscal year ending September 30, 2001, and for other 
        purposes'', approved November 6, 2000 (Public Law 106-429; 114 
        Stat. 1900A-5), and title V of the United States Leadership 
        Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003 (Public 
        Law 108-25; 117 Stat. 747) and the amendment made by such 
        title.
            (5) A number of countries, including the United States, 
        have canceled 100 percent of the bilateral loans made by such 
        countries to countries that are eligible for debt relief under 
        the Enhanced HIPC Initiative, and other major donor nations 
        have canceled a large percentage of such loans, however, a 
        number of countries eligible for such debt relief will continue 
        to owe substantial debts to international financial 
        institutions such as the International Monetary Fund, the 
        International Development Association, and the African 
        Development Fund.
            (6) Permanently canceling 100 percent of the debt owed by 
        the countries that are eligible for debt relief under the 
        Enhanced HIPC Initiative to multilateral institutions would 
        allow countries to increase investments in economic and social 
        infrastructure, including improving the quality of and access 
        to health care, education, and poverty reduction programs, and 
        thereby help them to move towards sustainable economic growth 
        and to achieve the Millennium Development Goals set out in 
        United Nations Millennium Declaration, resolution 55/1 adopted 
        by the General Assembly of the United Nations on September 8, 
        2000, for eradicating extreme poverty and hunger and promoting 
        human development.
            (7) On June 11, 2005, finance ministers representing the 
        members of the Group of 8 agreed to make a proposal, prior to 
        September 2005, to the shareholders of the World Bank, the 
        International Monetary Fund, and the African Development Bank, 
        for the immediate cancellation of 100 percent of the debt stock 
        owed to such institutions by 18 eligible countries, and the 
        eventual cancellation of such debt owed by an additional 20 
        countries.
            (8) That proposal would cancel approximately 
        $40,000,000,000 in debt stock owed by 18 countries immediately, 
        and would ultimately result in the cancellation of a total of 
        approximately $56,000,000,000 in debt stock owed by 38 
        countries, saving such countries, on average, $1,500,000,000 
        each year in debt service payments. To offset foregone interest 
        and principal repayments, donors would provide additional 
        resources to the World Bank and African Development Bank for 
        grants and lending to the poorest countries for investments in 
        the health, education, and well-being of the people of such 
        countries.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Eligible country.--The term ``eligible country'' means 
        a country whose government is described in paragraphs (1) 
        through (5) of section 557(c) of H.R. 3422 of the 106th 
        Congress, as enacted into law by section 1000(a)(2) of the Act 
        entitled ``An Act making consolidated appropriations for the 
        fiscal year ending September 30, 2000, and for other 
        purposes'', approved November 29, 1999 (Public Law 106-113; 113 
        Stat. 1501A-101).
            (2) Enhanced hipc initiative.--The term ``Enhanced HIPC 
        Initiative'' has the meaning given that term in section 1625 of 
        the International Financial Institutions Act (22 U.S.C. 262p-
        8).
            (3) HIPC initiative.--The term ``HIPC Initiative'' means 
        the initiative established in 1996 by the World Bank and the 
        International Monetary Fund for the purpose of reducing the 
        debt burdens of the world's poorest countries.
            (4) International financial institution.--The term 
        ``international financial institution'' means the World Bank, 
        the International Monetary Fund, the Inter-American Development 
        Bank, the African Development Bank, and the African Development 
        Fund.
            (5) Members of the group of 8.--The term ``members of the 
        Group of 8'' means Canada, France, Germany, Italy, Japan, 
        Russia, the United Kingdom, and the United States.
            (6) World bank.--The term ``World Bank'' means the 
        International Bank for Reconstruction and Development, the 
        International Development Association, the International 
        Finance Corporation, and the Multilateral Investment Guarantee 
        Agency.

SEC. 4. AUTHORITY.

    (a) In General.--The Secretary of the Treasury is authorized to 
instruct the Untied States Executive Director of each international 
financial institution to use the voice and vote of the United States to 
reach an agreement among the shareholders of such international 
financial institutions to permanently cancel 100 percent of the debts 
owed to each such institution by an eligible country.
    (b) Relationship to Other Laws.--The authority provided in 
subsection (a) is in addition to any other authority of the Secretary 
of the Treasury to promote debt relief and may not be construed to 
limit any such other authority.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the President such sums as may be necessary for the 
United States contribution to the implementation of the agreement 
referred to in subsection (a), if other members of the international 
financial institutions contribute funds for such purpose.

SEC. 5. SENSE OF CONGRESS ON DEBT RELIEF.

    It is the sense of Congress that the Secretary of the Treasury 
should pursue additional bilateral and multilateral debt relief for 
each country that is eligible for grant assistance from the 
International Development Association.

SEC. 6. CONTRIBUTIONS TO MULTILATERAL DEVELOPMENT BANKS.

    (a) World Bank.--The International Development Association Act (22 
U.S.C. 284 et seq.) is amended by adding at the end the following new 
section:

``SEC. 23. FOURTEENTH REPLENISHMENT.

    ``(a) Contribution Authority.--
            ``(1) In general.--The United States Governor of the 
        Association is authorized to contribute on behalf of the United 
        States such sums as may be necessary to the fourteenth 
        replenishment of the resources of the Association.
            ``(2) Subject to appropriations.--Any commitment to make 
        the contribution authorized by paragraph (1) shall be effective 
        only to such extent or in such amounts as are provided in 
        advance in appropriations Acts.
    ``(b) Authorization of Appropriations.--For the contribution 
authorized by subsection (a), there are authorized to be appropriated 
such sums as may be necessary for payment by the Secretary of the 
Treasury.''.
    (b) African Development Bank Fund.--The African Development Fund 
Act (22 U.S.C. 290g et seq.) is amended by adding at the end the 
following new section:

``SEC. 218. TENTH REPLENISHMENT.

    ``(a) Contribution Authority.--
            ``(1) In general.--The United States Governor of the Fund 
        is authorized to contribute on behalf of the United States such 
        sums as may be necessary to the tenth replenishment of the 
        resources of the Fund.
            ``(2) Subject to appropriations.--Any commitment to make 
        the contribution authorized by paragraph (1) shall be effective 
        only to such extent or in such amounts as are provided in 
        advance in appropriations Acts.
    ``(b) Authorization of Appropriations.--For the contribution 
authorized by subsection (a), there are authorized to be appropriated 
such sums as may be necessary for payment by the Secretary of the 
Treasury.''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS OF THE ENHANCED HIPC 
              INITIATIVE.

    There is authorized to be appropriated to the President such sums 
as may be necessary for the President to contribute on behalf of the 
United States to fulfill the commitments made by the United States 
related to the Enhanced HIPC Initiative.

SEC. 8. REPORTS TO CONGRESS.

    (a) Requirement.--Not later than 180 days after the date of 
enactment of this Act, and annually thereafter, the Secretary of the 
Treasury shall submit to the appropriate congressional committees a 
report on the status of negotiations to achieve bilateral and 
multilateral debt relief for impoverished, highly indebted countries 
that did not benefit from the HIPC Initiative or the Enhanced HIPC 
Initiative.
    (b) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means the Committee 
on Appropriations and the Committee on Foreign Relations of the Senate 
and the Committee on Appropriations and the Committee on International 
Relations of the House of Representatives.
Multilateral Debt Relief Act of 2005 - Authorizes: (1) the Secretary of the Treasury to instruct the U.S. executive director of each international financial institution (the World Bank, the International Monetary Fund, the Inter-American Development Bank, the African Development Bank, and the African Development Fund) to reach an agreement among the shareholders to permanently cancel 100 percent of the debts owed to each such institution by an eligible country (as defined by this Act); and (2) appropriations for the U.S. contribution to such agreement if other members of the international financial institutions contribute funds for such purpose.

Expresses the sense of Congress that the Secretary should pursue additional bilateral and multilateral debt relief for each country eligible for International Development Association grants.

Amends the International Development Association Act to authorize, and authorize appropriations for, the U.S. Governor of the Association to contribute necessary sums to the fourteenth replenishment of the Association.

Amends the African Development Fund Act to authorize, and authorize appropriations for, The U.S. Governor of the Fund to contribute necessary sums to the tenth replenishment of the Fund.

 Authorizes appropriations to fulfill U.S. commitments to the Enhanced HIPC Initiative (as defined by this Act).
To provide multilateral debt cancellation for Heavily Indebted Poor Countries, and for other purposes.