Debt Emancipation to Enable Democracies (DEED) Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Debt Emancipation to Enable 
Democracies (DEED) Act of 1999''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The International Bank for Reconstruction and 
        Development and the International Monetary Fund (IMF) have 
        classified 40 countries as heavily indebted poor countries 
        (HIPC).
            (2) According to the Department of the Treasury, as of 
        August 1998, these countries owe the United States a total of 
        $6,752,100,000 in concessional, nonconcessional, and guarantee 
        debt.
            (3) 83 percent of these countries are classified by the 
        United Nations as being in its lowest category of human 
        development based on life expectancy, literacy, and per capita 
        national income.
            (4) Since the early 1980's, these poor countries have had 
        increasing difficulty servicing their debt, resulting in the 
        total amount of money being owed by these countries to external 
        creditors to increasing from an average of $122,000,000,000 for 
        the 1983-1985 period to $221,000,000,000 for the 1993-1995 
        period.
            (5) The debt overhang faced by these countries blocks 
        needed spending for development and discourages productive 
        investment.
            (6) Efforts to promote good governance, accountability, 
        transparency, and active participation of civil society in 
        public decision making and discourage corruption are undermined 
        by diversion of resources to debt service and by the 
        micromanagement of economic policy by external actors which is 
        currently part of debt negotiations.
            (7) The Jubilee 2000 campaign, an international movement in 
        over 40 countries supported by many prominent religious leaders 
        such as Pope John Paul II, is calling for the cancellation of 
        the external debts of the poorest countries.

SEC. 3. ELIGIBLE COUNTRIES.

    In this Act, the term ``eligible country'' means a heavily indebted 
poor country, as determined by the International Bank for 
Reconstruction and Development and the International Monetary Fund for 
purposes of the Heavily Indebted Poor Country (HIPC) Initiative, and 
Haiti.

SEC. 4. CANCELLATION OF BILATERAL DEBT OWED TO THE UNITED STATES 
              GOVERNMENT BY HEAVILY INDEBTED POOR COUNTRIES.

    (a) Cancellation of Debt.--
            (1) In general.--The President shall cancel all amounts 
        owed to the United States (or any agency of the United States) 
        by any eligible country as a result of concessional and 
        nonconcessional loans made, guarantees issued, or credits 
        extended under any provision of law.
            (2) Requirement to promote democracy.--Paragraph (1) shall 
        apply only to a country the government of which--
                    (A) was chosen by and permits free and fair 
                elections;
                    (B) promotes civilian control of the military and 
                security forces and has civilian institutions 
                controlling the policy, operation, and spending of all 
                law enforcement and security institutions, as well as 
                the armed forces;
                    (C) promotes the rule of law, equality before the 
                law, and respect for individual and minority rights, 
                including freedom to speak, publish, associate, and 
                organize; and
                    (D) promotes the strengthening of political, 
                legislative, and civil institutions of democracy, as 
                well as autonomous institutions to monitor the conduct 
                of public officials and to combat corruption.
    (b) Additional Requirements.--
            (1) Cancellation of debt not considered to be assistance.--
        A debt cancellation under this section shall not be considered 
        to be assistance for purposes of any provision of law limiting 
        assistance to a country.
            (2) Inapplicability of certain prohibitions relating to 
        cancellation of debt.--Debt may be cancelled under this 
        section, notwithstanding section 620(r) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2370(r)).

SEC. 5. CONDITIONAL BAN ON PROVIDING APPROPRIATED FUNDS TO THE IMF 
              UNTIL DEBT OWED TO THE IMF BY HEAVILY INDEBTED POOR 
              COUNTRIES HAS BEEN CANCELED.

    None of the funds appropriated in any Act may be obligated or made 
available to the International Monetary Fund until the International 
Monetary Fund--
            (1) has canceled all debts owed to the International 
        Monetary Fund by any eligible country;
            (2) has terminated the Enhanced Structural Adjustment 
        Facility; and
            (3) the Secretary of the Treasury has certified to the 
        Committee on Banking and Financial Services of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate that--
                    (A) the debts referred to in paragraph (1) have 
                been canceled; and
                    (B) the International Monetary Fund has ceased 
                linking loans to any eligible country to the 
                implementation of structural adjustment policies.

SEC. 6. ACTIVITIES OF OVERSEAS PRIVATE INVESTMENT CORPORATION IN 
              HEAVILY INDEBTED POOR COUNTRIES CONTINGENT ON USE OF DEBT 
              RELIEF FOR POVERTY REDUCTION.

    (a) In General.--Title IV of chapter 2 of part I of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2191 et seq.) is amended by inserting 
after section 234A the following:

``SEC. 234B. ACTIVITIES OF CORPORATION IN CERTAIN HEAVILY INDEBTED POOR 
              COUNTRIES CONTINGENT ON USE OF DEBT RELIEF FOR POVERTY 
              REDUCTION.

    ``The Corporation may issue insurance, guaranties, or reinsurance, 
make loans, acquire any securities, or carry out any other activity 
under section 234, or enter into risk sharing arrangements authorized 
by section 234A, for a heavily indebted poor country with respect to 
which the United States has provided debt cancellation under section 4 
of the Debt Emancipation for Emerging Democracies (DEED) Act of 1999, 
or the International Monetary Fund has provided debt cancellation in 
accordance with section 5 of such Act, only if the President certifies 
to the Congress that the government of such country is using funds 
available to the government because of such debt cancellation for 
poverty reduction in the country.''.
    (b) Effective Date.--Section 234B of the Foreign Assistance Act of 
1961, as added by subsection (a), applies with respect to a contract or 
other agreement for insurance, guaranties, or reinsurance, loans, the 
acquisition of securities, or any other activity authorized under 
section 234 of that Act, or for risk sharing arrangements authorized by 
section 234A of that Act, entered into on or after the date of the 
enactment of this Act.

SEC. 7. NOTIFICATION.

    Not less than 30 days after the date of the enactment of this Act, 
the Secretary of the Treasury shall provide written notice to each 
eligible country that it is the policy of the United States--
            (1) to cancel debts owed by the country to the United 
        States;
            (2) to advocate at the International Monetary Fund for the 
        cancellation of the country's debts;
            (3) that the proceeds of such debt cancellation should be 
        used for poverty reduction; and
            (4) to deny funding to such country from the Overseas 
        Private Investment Corporation if the country does not use the 
        proceeds of such debt cancellation for poverty reduction.

SEC. 8. ENFORCEMENT.

    (a) Private Enforcement.--A citizen of the United States may bring 
an action in any United States district court seeking compliance by the 
United States, or any department, agency, or officer of the United 
States, with any provision of this Act.
    (b) Appropriations Limitation.--None of the funds appropriated in 
any Act may be obligated or made available to the International 
Monetary Fund while any action brought under subsection (a) is pending.
    (c) Effects of Finding of Arbitrary Certification by the Secretary 
of the Treasury.--If, in an action brought under subsection (a), the 
court finally finds that the Secretary of the Treasury acted 
arbitrarily in making a certification required by this Act--
            (1) the court shall award the plaintiff $100, plus 
        reasonable attorneys' fees and court costs; and
            (2) no funds appropriated in any Act may be obligated or 
        made available to the International Monetary Fund until the 
        court subsequently finds that the Secretary has replaced the 
        arbitrarily made certification with a certification that is not 
        made arbitrarily.

Summary: Provides that cancellation of debt shall not be considered assistance for purposes of any law limiting assistance to a country. Prohibits funds appropriated in this Act from being made available to the International Monetary Fund (IMF) until it: (1) has canceled all debts owed to the IMF by an eligible HIPC and Haiti, (2) has terminated the Enhanced Structural Adjustment Facility. And (3) the Secretary of the Treasury has certified to specified congressional committees that such debts have been canceled, and the IMF has ceased linking loans to an eligible HIPC and Haiti to implementation of structural adjustment policies. Amends the Foreign Assistance Act of 1961 to authorize the Overseas Private Investment Corporation (OPIC) to issue insurance, guaranties, or reinsurance, make loans, acquire securities, or enter into risk sharing arrangements for an eligible HIPC and Haiti with respect to which the United States and the IMF have provided debt cancellation under this Act, only if the President certifies to Congress that the government of such country is using funds available because of such debt cancellation for poverty reduction in the country. Sets forth certain notification requirements with respect to each eligible HIPC and Haiti. Authorizes a US citizen to bring an action in any US district court seeking compliance by the United States with the requirements of this Act.