I 

109TH CONGRESS 

1ST SESSION H. R. 3191

To provide multilateral debt cancellation for Heavily Indebted Poor Countries, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 30, 2005

Mr. SMITH of New Jersey (for himself and Mr. PAYNE) introduced the following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committee on International Relations, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL

To provide multilateral debt cancellation for Heavily Indebted 

Poor Countries, 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 ‘‘Multilateral Debt Re5 lief Act of 2005’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 
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1 (1) In 1996, the international community cre2 ated the Heavily Indebted Poor Countries Initiative 

3 (the HIPC Initiative) to reduce the debt burden that 

4 curtailed spending on economic development and 

5 poverty-reducing programs in many impoverished 

6 countries. 

7 (2) Since adoption of the original HIPC Initia8 tive in 1996 and the Enhanced HIPC Initiative in 

9 1999, donor countries have committed more than 

10 $50,000,000,000 in bilateral and multilateral debt 

11 stock cancellation to eligible countries. 

12 (3) The 27 countries that have received debt re13 lief through the HIPC Initiative are estimated by 

14 World Bank and the International Monetary Fund 

15 to have increased poverty reduction expenditures by 

16 an average of approximately 75 percent between 

17 1999 and 2004. 

18 (4) Congress has demonstrated its support for 

19 bilateral and multilateral debt relief through the en20 actment of comprehensive debt relief initiatives for 

21 heavily indebted poor countries by title V of H.R. 

22 3425 of the 106th Congress, as enacted into law by 

23 section 1000(a)(5) of the Act entitled ‘‘An Act mak24 ing consolidated appropriations for the fiscal year 

25 ending September 30, 2000, and for other pur-
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1 poses’’, approved November 29, 1999 (Public Law 

2 106–113; 113 Stat. 1501–311) and the amendments 

3 made by such title, title II of H.R. 5526 of the 

4 106th Congress, as enacted into law by section 

5 101(a) of the Act entitled ‘‘An Act making appro6 priations for foreign operations, export financing, 

7 and related programs for the fiscal year ending Sep8 tember 30, 2001, and for other purposes’’, approved 

9 November 6, 2000 (Public Law 106–429; 114 Stat. 

10 1900A–5), and title V of the United States Leader11 ship Against HIV/AIDS, Tuberculosis, and Malaria 

12 Act of 2003 (Public Law 108–25; 117 Stat. 747) 

13 and the amendment made by such title. 

14 (5) A number of countries, including the United 

15 States, have canceled 100 percent of the bilateral 

16 loans made by such countries to countries that are 

17 eligible for debt relief under the Enhanced HIPC 

18 Initiative, and other major donor nations have can19 celed a large percentage of such loans, however, a 

20 number of countries eligible for such debt relief will 

21 continue to owe substantial debts to international fi22 nancial institutions such as the International Mone23 tary Fund, the International Development Associa24 tion, and the African Development Fund. 
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1 (6) Permanently canceling 100 percent of the 

2 debt owed by the countries that are eligible for debt 

3 relief under the Enhanced HIPC Initiative to multi4 lateral institutions would allow countries to increase 

5 investments in economic and social infrastructure, 

6 including improving the quality of and access to 

7 health care, education, and poverty reduction pro8 grams, and thereby help them to move towards sus9 tainable economic growth and to achieve the Millen10 nium Development Goals set out in United Nations 

11 Millennium Declaration, resolution 55/1 adopted by 

12 the General Assembly of the United Nations on Sep13 tember 8, 2000, for eradicating extreme poverty and 

14 hunger and promoting human development. 

15 (7) On June 11, 2005, finance ministers rep16 resenting the members of the Group of 8 agreed to 

17 make a proposal, prior to September 2005, to the 

18 shareholders of the World Bank, the International 

19 Monetary Fund, and the African Development Bank, 

20 for the immediate cancellation of 100 percent of the 

21 debt stock owed to such institutions by 18 eligible 

22 countries, and the eventual cancellation of such debt 

23 owed by an additional 20 countries. 

24 (8) That proposal would cancel approximately 

25 $40,000,000,000 in debt stock owed by 18 countries 
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1 immediately, and would ultimately result in the can2 cellation of a total of approximately 

3 $56,000,000,000 in debt stock owed by 38 countries, 

4 saving such countries, on average, $1,500,000,000 

5 each year in debt service payments. To offset fore6 gone interest and principal repayments, donors 

7 would provide additional resources to the World 

8 Bank and African Development Bank for grants and 

9 lending to the poorest countries for investments in 

10 the health, education, and well-being of the people of 

11 such countries. 

12 SEC. 3. DEFINITIONS. 

13 In this Act: 

14 (1) ELIGIBLE COUNTRY.—The term ‘‘eligible 

15 country’’ means a country whose government is de16 scribed in paragraphs (1) through (5) of section 

17 557(c) of H.R. 3422 of the 106th Congress, as en18 acted into law by section 1000(a)(2) of the Act enti19 tled ‘‘An Act making consolidated appropriations for 

20 the fiscal year ending September 30, 2000, and for 

21 other purposes’’, approved November 29, 1999 

22 (Public Law 106–113; 113 Stat. 1501A–101). 

23 (2) ENHANCED HIPC INITIATIVE.—The term 

24 ‘‘Enhanced HIPC Initiative’’ has the meaning given 
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1 that term in section 1625 of the International Fi2 nancial Institutions Act (22 U.S.C. 262p–8). 

3 (3) HIPC INITIATIVE.—The term ‘‘HIPC Ini4 tiative’’ means the initiative established in 1996 by 

5 the World Bank and the International Monetary 

6 Fund for the purpose of reducing the debt burdens 

7 of the world’s poorest countries. 

8 (4) INTERNATIONAL FINANCIAL INSTITU9 TION.—The term ‘‘international financial institu10 tion’’ means the World Bank, the International 

11 Monetary Fund, the Inter-American Development 

12 Bank, the African Development Bank, and the Afri13 can Development Fund. 

14 (5) MEMBERS OF THE GROUP OF 8.—The term 

15 ‘‘members of the Group of 8’’ means Canada, 

16 France, Germany, Italy, Japan, Russia, the United 

17 Kingdom, and the United States. 

18 (6) WORLD BANK.—The term ‘‘World Bank’’ 

19 means the International Bank for Reconstruction 

20 and Development, the International Development 

21 Association, the International Finance Corporation, 

22 and the Multilateral Investment Guarantee Agency. 

23 SEC. 4. AUTHORITY. 

24 (a) IN GENERAL.—The Secretary of the Treasury is 

25 authorized to instruct the Untied States Executive Direc-
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1 tor of each international financial institution to use the 

2 voice and vote of the United States to reach an agreement 

3 among the shareholders of such international financial in4 stitutions to permanently cancel 100 percent of the debts 

5 owed to each such institution by an eligible country. 

6 (b) RELATIONSHIP TO OTHER LAWS.—The authority 

7 provided in subsection (a) is in addition to any other au8 thority of the Secretary of the Treasury to promote debt 

9 relief and may not be construed to limit any such other 

10 authority. 

11 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to the President such sums 

13 as may be necessary for the United States contribution 

14 to the implementation of the agreement referred to in sub15 section (a), if other members of the international financial 

16 institutions contribute funds for such purpose. 

17 SEC. 5. SENSE OF CONGRESS ON DEBT RELIEF. 

18 It is the sense of Congress that the Secretary of the 

19 Treasury should pursue additional bilateral and multilat20 eral debt relief for each country that is eligible for grant 

21 assistance from the International Development Associa22 tion. 
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1 SEC. 6. CONTRIBUTIONS TO MULTILATERAL DEVELOP2 MENT BANKS. 

3 (a) WORLD BANK.—The International Development 

4 Association Act (22 U.S.C. 284 et seq.) is amended by 

5 adding at the end the following new section: 

6 ‘‘SEC. 23. FOURTEENTH REPLENISHMENT. 

7 ‘‘(a) CONTRIBUTION AUTHORITY.— 

8 ‘‘(1) IN GENERAL.—The United States Gov9 ernor of the Association is authorized to contribute 

10 on behalf of the United States such sums as may be 

11 necessary to the fourteenth replenishment of the re12 sources of the Association. 

13 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com14 mitment to make the contribution authorized by 

15 paragraph (1) shall be effective only to such extent 

16 or in such amounts as are provided in advance in 

17 appropriations Acts. 

18 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

19 contribution authorized by subsection (a), there are au20 thorized to be appropriated such sums as may be nec21 essary for payment by the Secretary of the Treasury.’’. 

22 (b) AFRICAN DEVELOPMENT BANK FUND.—The Af23 rican Development Fund Act (22 U.S.C. 290g et seq.) is 

24 amended by adding at the end the following new section: 

25 ‘‘SEC. 218. TENTH REPLENISHMENT. 

26 ‘‘(a) CONTRIBUTION AUTHORITY.— 
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1 ‘‘(1) IN GENERAL.—The United States Gov2 ernor of the Fund is authorized to contribute on be3 half of the United States such sums as may be nec4 essary to the tenth replenishment of the resources of 

5 the Fund. 

6 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com7 mitment to make the contribution authorized by 

8 paragraph (1) shall be effective only to such extent 

9 or in such amounts as are provided in advance in 

10 appropriations Acts. 

11 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

12 contribution authorized by subsection (a), there are au13 thorized to be appropriated such sums as may be nec14 essary for payment by the Secretary of the Treasury.’’. 

15 SEC. 7. AUTHORIZATION OF APPROPRIATIONS OF THE EN16 HANCED HIPC INITIATIVE. 

17 There is authorized to be appropriated to the Presi18 dent such sums as may be necessary for the President to 

19 contribute on behalf of the United States to fulfill the 

20 commitments made by the United States related to the 

21 Enhanced HIPC Initiative. 

22 SEC. 8. REPORTS TO CONGRESS. 

23 (a) REQUIREMENT.—Not later than 180 days after 

24 the date of enactment of this Act, and annually thereafter, 

25 the Secretary of the Treasury shall submit to the appro-
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1 priate congressional committees a report on the status of 

2 negotiations to achieve bilateral and multilateral debt re3 lief for impoverished, highly indebted countries that did 

4 not benefit from the HIPC Initiative or the Enhanced 

5 HIPC Initiative. 

6 (b) APPROPRIATE CONGRESSIONAL COMMITTEES

7 DEFINED.—In this section, the term ‘‘appropriate con8 gressional committees’’ means the Committee on Appro9 priations and the Committee on Foreign Relations of the 

10 Senate and the Committee on Appropriations and the 

11 Committee on International Relations of the House of 

12 Representatives.

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