II 

117TH CONGRESS 

1ST SESSION S. 616 

To authorize the tenth general capital increase for the Inter-American Development Bank and to strengthen recovery efforts in Latin America and 

the Caribbean related to the COVID–19 pandemic, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 6 (legislative day, MARCH 5), 2021 

Mr. MENENDEZ (for himself, Mr. RUBIO, Mr. KAINE, Mr. CASSIDY, and Mr. 

CARDIN) introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

A BILL 

To authorize the tenth general capital increase for the InterAmerican Development Bank and to strengthen recovery 

efforts in Latin America and the Caribbean related to 

the COVID–19 pandemic, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Inter-American Devel5 opment Bank General Capital Increase Act of 2021’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 


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1 (1) The region of Latin America and the Carib2 bean has suffered severely from the coronavirus dis3 ease 2019 (commonly referred to as ‘‘COVID–19’’), 

4 with more than 18,000,000 confirmed cases since 

5 February 2020, according to the Inter-American De6 velopment Bank. 

7 (2) In 2020, as a result of COVID–19, gross 

8 domestic product per capita fell 8.5 percent across 

9 Latin America and the Caribbean, entirely reversing 

10 steady advancements in regional gross domestic 

11 product per capita since 2010, according to the Eco12 nomic Commission for Latin America and the Carib13 bean. 

14 (3) Initial assessments by the Economic Com15 mission for Latin America and the Caribbean indi16 cate that, throughout Latin America and the Carib17 bean, the COVID–19 pandemic will have— 

18 (A) pushed an additional 45,500,000 peo19 ple into poverty, increasing the total number of 

20 people living in poverty from 185,500,000 to 

21 230,900,000, or approximately 37.3 percent of 

22 the Latin American and Caribbean population, 

23 in 2020; and 

24 (B) caused the total number of individuals 

25 living in extreme poverty to increase by 


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1 28,500,000 from 67,700,000 to 96,200,000, or 

2 approximately 15.5 percent of the Latin Amer3 ican and Caribbean population, in 2020. 

4 (4) The Inter-American Development Bank es5 timated in May 2020 that 17,000,000 formal jobs 

6 would be lost as a result of the pandemic, increasing 

7 the share of jobs in informal sectors of the region’s 

8 economies to 62 percent. September 2020 findings 

9 from the International Labour Organization noted 

10 that 34,000,000 workers across 9 countries in the 

11 region lost their jobs in the first half of 2020. 

12 (5) The pandemic also has complicated the hu13 manitarian and development challenges countries 

14 across Latin America and the Caribbean face as 

15 hosts to more than 4,300,000 Venezuelan refugees 

16 and migrants, prompting the Inter-American Devel17 opment Bank to launch a migration initiative that 

18 aims to provide $85,000,000 in grants and leverage 

19 investments of $1,100,000,000 in social protection, 

20 health, education, and employment. 

21 (6) The pandemic has severely disrupted edu22 cation systems across Latin America and the Carib23 bean because of a lack of equipment and pedagogical 

24 tools required for effective remote schooling. Accord25 ing to data compiled by the United Nations EduVerDate Sep 11 2014 20:11 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S616.IS S616

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1 cational, Scientific and Cultural Organization and 

2 the Inter-American Development Bank, fewer than 

3 30 percent of low-income families impacted by deci4 sions to halt in-person classes have access to a com5 puter and only around 60 percent of secondary 

6 school teachers have the skills needed for virtual in7 struction. 

8 (7) Countries across Latin America and the 

9 Caribbean continue to face enduring economic chal10 lenges, including persistent inequality, high levels of 

11 tax evasion and avoidance, and elevated debt levels. 

12 (8) The stability, sustainable development, and 

13 inclusive growth of economies in Latin America and 

14 the Caribbean is in the national interest of the 

15 United States, as the region accounts for 21.7 per16 cent of United States trade in goods in 2019, ac17 cording to the Economic Commission for Latin 

18 America and the Caribbean. 

19 (9) The Inter-American Development Bank is 

20 the world’s oldest and largest regional development 

21 bank, and has worked continuously since 1959 to 

22 foster economic, social, and institutional develop23 ment in Latin America and the Caribbean. 

24 (10) The Inter-American Development Bank is 

25 uniquely positioned to advance post-pandemic recovVerDate Sep 11 2014 20:11 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S616.IS S616

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1 ery efforts and to mitigate the social and economic 

2 impacts of the pandemic. As early as March 2020, 

3 the Inter-American Development Bank announced 

4 the allotment of up to $12,000,000,000 toward im5 mediate public health responses, efforts to revitalize 

6 social safety nets for vulnerable populations, and 

7 strategic economic productivity and employment ini8 tiatives. 

9 (11) The 48 borrowing and non-borrowing 

10 member countries of the Inter-American Develop11 ment Bank last agreed to a ninth general capital in12 crease as part of the Bank’s annual meeting on 

13 March 20–22, 2010. 

14 (12) Under the Coronavirus Aid, Relief, and 

15 Economic Security Act (Public Law 116–136; 134 

16 Stat. 281) (commonly referred to as the ‘‘CARES 

17 Act’’), enacted on March 27, 2020, Congress ap18 proved capital stock increases for the International 

19 Finance Corporation and the African Development 

20 Bank to strengthen the ‘‘ability of foreign countries 

21 to prevent, prepare for, and respond to coronavirus 

22 and to the adverse economic impacts of 

23 coronavirus’’. 

24 SEC. 3. SENSE OF CONGRESS. 

25 It is the sense of Congress that— 


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1 (1) the spread of SARS–CoV–2, the virus that 

2 causes COVID–19, has had a significant impact on 

3 economic, social, and humanitarian conditions 

4 throughout Latin America and the Caribbean; 

5 (2) the Inter-American Development Bank is 

6 the preeminent multilateral development bank dedi7 cated to regional economic and social development 

8 and the betterment of lives across Latin America 

9 and the Caribbean; 

10 (3) the Bank has played an integral role in sup11 porting member countries with the coordination and 

12 implementation of policies to mitigate the effects of 

13 the COVID–19 pandemic, the Venezuelan refugee 

14 and migration crisis, and other crises in the Western 

15 Hemisphere; 

16 (4) a capital increase for the Bank would great17 ly increase its capacity to provide financing, institu18 tional knowledge, and technical support to foster re19 covery and inclusion initiatives between regional gov20 ernments, private sector entities, and international 

21 organizations; and 

22 (5) the United States, as a founding member of 

23 the Bank, should support a capital stock increase to 

24 ensure the Bank is prepared to offer additional supVerDate Sep 11 2014 20:11 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S616.IS S616

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1 port to member countries severely impacted by the 

2 COVID–19 pandemic and other crises. 

3 SEC. 4. TENTH GENERAL CAPITAL INCREASE. 

4 (a) SUPPORT FOR A GENERAL CAPITAL INCREASE.— 

5 The President shall take steps to support a tenth general 

6 capital increase for the Inter-American Development 

7 Bank. 

8 (b) DIPLOMATIC ENGAGEMENT.—The President 

9 shall advance diplomatic engagement to build support 

10 among member countries of the Bank for a tenth general 

11 capital increase for the Bank in order to strengthen the 

12 capacity of the Bank— 

13 (1) to support Latin American and Caribbean 

14 countries in their efforts to address the COVID–19 

15 pandemic and the related economic impact; and 

16 (2) to advance inclusive economic and social de17 velopment in the Americas. 

18 (c) PROGRESS REPORT.—Not later than 45 days 

19 after the date of the enactment of this Act, the President 

20 shall submit to the Committee on Foreign Relations of the 

21 Senate and the Committee on Financial Services of the 

22 House of Representatives a report detailing efforts to 

23 carry out subsections (a) and (b). 


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1 (d) TENTH CAPITAL INCREASE.—The Inter-Amer2 ican Development Bank Act (22 U.S.C. 283 et seq.) is 

3 amended by adding at the end the following: 

4 ‘‘SEC. 42. TENTH CAPITAL INCREASE. 

5 ‘‘(a) VOTE AUTHORIZED.—The United States Gov6 ernor of the Bank is authorized to vote in favor of a reso7 lution to increase the capital stock of the Bank by 

8 $80,000,000,000 over a period not to exceed 5 years. 

9 ‘‘(b) SUBSCRIPTION AUTHORIZED.— 

10 ‘‘(1) IN GENERAL.—The United States Gov11 ernor of the Bank may subscribe on behalf of the 

12 United States to 1,990,714 additional shares of the 

13 capital stock of the Bank. 

14 ‘‘(2) LIMITATION.—Any subscription by the 

15 United States to the capital stock of the Bank shall 

16 be effective only to such extent and in such amounts 

17 as are provided in advance in appropriations Acts. 

18 ‘‘(c) LIMITATIONS ON AUTHORIZATION OF APPRO19 PRIATIONS.— 

20 ‘‘(1) IN GENERAL.—In order to pay for the in21 crease in the United States subscription to the Bank 

22 under subsection (b), there is authorized to be ap23 propriated $24,014,857,191 for payment by the Sec24 retary of the Treasury. 


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1 ‘‘(2) ALLOCATION OF FUNDS.—Of the amount 

2 authorized to be appropriated under paragraph 

3 (1)— 

4 ‘‘(A) $600,371,430 shall be for paid in 

5 shares of the Bank; and 

6 ‘‘(B) $23,414,485,761 shall be for callable 

7 shares of the Bank.’’. 

8 SEC. 5. SUPPORT FOR ENVIRONMENTAL SUSTAINABILITY 

9 INITIATIVES OF INTER-AMERICAN DEVELOP10 MENT BANK. 

11 (a) FINDINGS.—Congress makes the following find12 ings: 

13 (1) The Inter-American Development Bank has 

14 served as an executing agency for the Global Envi15 ronment Facility, a grant-making and financing fa16 cility supported by 182 countries to address global 

17 environmental issues and sustainable development. 

18 (2) The Bank has never had its own environ19 mental grant-making and financing facility despite 

20 the fact that the Americas are home to the world’s 

21 largest tropical rain forest and include countries sig22 nificantly affected by natural disasters annually. 

23 (b) SENSE OF CONGRESS.—It is the sense of Con24 gress that the Bank should— 


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1 (1) establish its own environmental grant-mak2 ing and financing facility in order to implement and 

3 expand environmental policies, metrics, and stand4 ards, to strengthen resilience and disaster prepared5 ness, and to improve sustainability and conservation; 

6 and 

7 (2) continue to strengthen environmental safe8 guards as an element of economic development in 

9 the Western Hemisphere. 

10 (c) DIPLOMATIC ENGAGEMENT.—The President shall 

11 advance diplomatic engagement to build support among 

12 member countries of the Bank for the creation of an envi13 ronmental fund and financing facility as part of the tenth 

14 general capital increase for the Bank. 

Æ 


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