Page 139 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286gg

§ 286dd. Fund bailouts of banks; rescheduling of

debt

The Secretary of the Treasury shall instruct

the United States Executive Director of the

Fund—

(1) to oppose and vote against any Fund

drawing by a member country where, in his

judgment, the Fund resources would be drawn

principally for the purpose of repaying loans

which have been imprudently made by banking institutions to the member country; and

(2) to work to insure that the Fund encourages borrowing countries and banking institutions to negotiate, where appropriate, a rescheduling of debt which is consistent with

safe and sound banking practices and the

country’s ability to pay.

(July 31, 1945, ch. 339, §46, as added Pub. L.

98–181, title VIII, §807, Nov. 30, 1983, 97 Stat.

1273.)

§ 286ee. International cooperation

The Secretary of the Treasury shall instruct

the United States Executive Director of the

Fund to propose that the Fund adopt the following policies with respect to international lending:

(1) In its consultations with a member government on its economic policies pursuant to

article IV of the Articles of Agreement of the

Fund, the Fund should—

(A) intensify its examination of the trend

and volume of external indebtedness of private and public borrowers in the member

country and comment, as appropriate, in its

report to the Executive Board from the

viewpoint of the contribution of such borrowings to the economic stability of the borrower; and

(B) consider to what extent and in what

form these comments might be made available to the international banking community and the public.

(2) As part of any Fund-approved stabilization program, the Fund should give consideration to placing limits on public sector external short- and long-term borrowing.

(3) As a part of its annual report, and at such

times as it may consider desirable, the Fund

should publish its evaluation of the trend and

volume of international lending as it affects

the economic situation of lenders, borrowers,

and the smooth functioning of the international monetary system.

(July 31, 1945, ch. 339, §47, as added Pub. L.

98–181, title VIII, §809, Nov. 30, 1983, 97 Stat.

1274.)

§ 286ff. Fund interest rates

The Secretary of the Treasury shall instruct

the United States Executive Director of the

Fund to propose and work for the adoption of

Fund policies regarding the rate of remuneration paid on use of member’s quota subscriptions and the rate of charges on Fund drawings

to bring those rates in line with market rates.

(July 31, 1945, ch. 339, §48, as added Pub. L.

98–181, title VIII, §810, Nov. 30, 1983, 97 Stat.

1274.)

§ 286gg. Elimination of trade restrictions

(a) Promotion of fair trade as financial assistance policy

(1) The Secretary of the Treasury shall instruct the United States Executive Director of

each of the multilateral development banks (in

this section referred to as the ‘‘banks’’) and of

the Fund to initiate a wide consultation with

the Managing Director of each of the banks and

of the Fund and the other directors of the banks

and of the Fund with regard to the development

of financial assistance policies which, to the

maximum feasible extent—

(A) reduce obstacles to and restrictions upon

international trade and investment in goods

and services;

(B) eliminate unfair trade and investment

practices; and

(C) promote mutually advantageous economic relations.

(2) The Secretary of the Treasury shall work

closely in this effort with the Trade Policy Committee.

(3) As part of this effort, the Secretary of the

Treasury shall also instruct the United States

Executive Director of each of the banks and of

the Fund to encourage close cooperation between their staff and the GATT Secretariat.

(b) Agreement to eliminate unfair trade practices as condition of financial assistance

(1) The Secretary of the Treasury shall instruct the United States Executive Director of

each of the banks and of the Fund, prior to the

extension to any country of financial assistance

by the banks and by the Fund, to work to have

the banks and the Fund obtain the agreement of

such country to eliminate, in a manner consistent with its balance of payments adjustment

program, unfair trade and investment practices

with respect to goods and services which the

United States Trade Representative, after consultation with the Trade Policy Committee, has

determined to have a significant deleterious effect on the international trading system.

(2) Such practices include—

(A) the provision of predatory export subsidies, employed in connection with the exporting of agricultural commodities and products thereof to foreign countries;

(B) the provision of other export subsidies,

such as government subsidized below-market

interest rate financing for commodities or

manufactured goods;

(C) unreasonable import restrictions;

(D) the imposition of trade-related performance requirements on foreign investment; and

(E) practices which are inconsistent with

international agreements.

(c) United States position on requests for loans

or drawing under bank and Fund programs;

progress made in eliminating unfair trade

practices

(1) In determining the United States position

on requests for loans or periodic drawing under

bank and Fund programs, the Secretary of the

Treasury shall take full account of the progress

countries have made in achieving targets for

eliminating or phasing out the practices referred to in subsection (b) of this section.