§ 286bb TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 138

mittee on Banking and Financial Services of House of

Representatives by section 1(a) of Pub. L. 104–14, set

out as a note preceding section 21 of Title 2, The Congress.

§ 286bb. Elimination of predatory agricultural export subsidies

The Secretary of the Treasury shall instruct

the United States Executive Director of the

Fund to propose and work for the adoption of a

policy encouraging Fund members to eliminate

all predatory agricultural export subsidies

which might result in the reduction of other

member countries’ exports.

(July 31, 1945, ch. 339, §44, as added Pub. L.

98–181, title VIII, §805, Nov. 30, 1983, 97 Stat.

1271.)

§ 286cc. Sustaining economic growth

(a) Economic adjustment programs

(1) The President shall instruct the Secretary

of the Treasury, the Secretary of State, and

other appropriate Federal officials, and shall request the Chairman of the Board of Governors of

the Federal Reserve System, to use all appropriate means to encourage countries to formulate economic adjustment programs to deal with

their balance of payment difficulties and external debt owed to private banks.

(2) Such economic adjustment programs

should be designed to safeguard, to the maximum extent feasible, international economic

growth, world trade, employment, and the longterm solvency of banks, and to minimize the

likelihood of civil disturbances in countries

needing economic adjustment programs.

(b) Changes in Fund guidelines; limitations on

debt service exceptions

To ensure the effectiveness of economic adjustment programs supported by Fund resources—

(1) the United States Executive Director of

the Fund shall recommend and shall work for

changes in Fund guidelines, policies, and decisions which would—

(A) convert short-term bank debt which

was made at high interest rates into longterm debt at lower rates of interest;

(B) assure that the annual external debt

service, which shall include principal, interest, points, fees, and other charges required

of the country involved, is a manageable and

prudent percentage of the projected annual

export earnings of such country; and

(C) provide that in approving any economic adjustment program the Fund shall

take into account the number of countries

applying to the Fund for economic adjustment programs and the aggregate effects

that such programs will have on international economic growth, world trade, exports and employment of other member

countries, and the long-term solvency of

banks; and

(2) except as provided in subsection (c) of

this section, the United States Executive Director of the Fund shall oppose and vote

against providing assistance from the Fund for

any economic adjustment program for a country in which the annual external debt service

exceeds 85 per centum of the annual export

earnings of such country, unless the Secretary

of the Treasury first determines and provides

written documentation to the Committee on

Banking, Housing, and Urban Affairs and the

Committee on Foreign Relations of the Senate

and the Committee on Banking, Finance and

Urban Affairs of the House of Representatives

that—

(A) the economic adjustment program converts high interest rate, short-term bank

debt into long-term debt at significantly

narrower interest rate spreads than the average interest rate spreads prevailing on

bank debt reschedulings negotiated between

August 1982 and August 1983 for countries receiving assistance from the Fund for economic adjustment programs in order to minimize the burdens of adjustment on the debtor nation, provided that such interest rate

spreads are consistent with that nation’s

need to obtain adequate external private financing;

(B) the annual external debt service required of the country involved is a manageable and prudent percentage of the projected

annual export earnings of such country; and

(C) the economic adjustment program will

not have an adverse impact on international

economic growth, world trade, exports, and

employment of other member countries, and

the long-term solvency of banks.

(c) Emergencies and extraordinary circumstances

The provisions of subsection (b)(2) of this section shall not apply in any case in which the

Secretary of the Treasury first determines and

provides written documentation to the Committee on Banking, Housing, and Urban Affairs and

the Committee on Foreign Relations of the Senate and the Committee on Banking, Finance and

Urban Affairs of the House of Representatives

that—

(1) an emergency exists in a nation that has

applied to the Fund for assistance that requires an immediate short-term loan to avoid

disrupting orderly financial markets;

(2) a sudden decrease in export earnings in

the country applying to the Fund for assistance has increased the ratio of annual external debt service to annual export earnings, to

greater than 85 per centum for a period projected to be no more than one year; or

(3) other extraordinary circumstances exist

which warrant waiving the provisions of subsection (b)(2) of this section.

(July 31, 1945, ch. 339, §45, as added Pub. L.

98–181, title VIII, §806, Nov. 30, 1983, 97 Stat.

1272.)

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of

House of Representatives treated as referring to Committee on Banking and Financial Services of House of

Representatives by section 1(a) of Pub. L. 104–14, set

out as a note preceding section 21 of Title 2, The Congress.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 262r of this title.