Page 1175 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 5331

increase production for export, help to depress

world commodity prices and limit the growth

of export markets for United States industries;

(7) the United States has borne a disproportionate share of the burden of absorbing increased exports from debtor countries, while

other industrialized countries have increased

their imports from developing countries only

slightly;

(8) current approaches to the debt problem

should not rely solely on new lending as a solution to the debt problem, and should focus

on other financing alternatives including a reduction in current debt service obligations;

(9) new international mechanisms to improve the management of the debt problem

and to expand the range of financing options

available to developing countries should be explored; and

(10) industrial countries with strong current

account surpluses have a disproportionate

share of the world’s capital resources, and bear

an additional responsibility for contributing

to a viable long-term solution to the debt

problem.

(Pub. L. 100–418, title III, §3102, Aug. 23, 1988, 102

Stat. 1375.)

§ 5323. Purposes

The purposes of this subchapter are—

(1) to expand the world trading system and

raise the level of exports from the United

States to the developing countries in order to

reduce the United States trade deficit and foster economic expansion and an increase in the

standard of living throughout the world;

(2) to alleviate the current international

debt problem in order to make the debt situation of developing countries more manageable

and permit the resumption of sustained

growth in those countries; and

(3) to increase the stability of the world financial system and ensure the safety and

soundness of United States depository institutions.

(Pub. L. 100–418, title III, §3103, Aug. 23, 1988, 102

Stat. 1376.)

§ 5324. Statement of policy

It is the policy of the United States that—

(1) increasing growth in the developing

world is a major goal of international economic policy;

(2) it is necessary to broaden the range of options in dealing with the debt problem to include improved mechanisms to restructure existing debt;

(3) active consideration of a new multilateral authority to improve the management

of the debt problem and to share the burdens

of adjustment more equitably must be undertaken; and

(4) countries with strong current account

surpluses bear a major responsibility for providing the financial resources needed for

growth in the developing world.

(Pub. L. 100–418, title III, §3104, Aug. 23, 1988, 102

Stat. 1376.)

PART B—INTERNATIONAL DEBT MANAGEMENT

AUTHORITY

§ 5331. International initiative

(a) Directive

(1) Study

The Secretary of the Treasury shall study

the feasibility and advisability of establishing

the International Debt Management Authority described in this section.

(2) Explanation of determinations

If the Secretary of the Treasury determines

that initiation of international discussions

with regard to such authority would (A) result

in material increase in the discount at which

sovereign debt is sold, (B) materially increase

the probability of default on such debt, or (C)

materially enhance the likelihood of debt

service failure or disruption, the Secretary

shall include in his interim reports to the Congress an explanation in detail of the reasons

for such determination.

(3) Initiation of discussions

Unless such a determination is made, the

Secretary of the Treasury shall initiate discussions with such industrialized and developing countries as the Secretary may determine

to be appropriate with the intent to negotiate

the establishment of the International Debt

Management Authority, which would undertake to—

(A) purchase sovereign debt of less developed countries from private creditors at an

appropriate discount;

(B) enter into negotiations with the debtor

countries for the purpose of restructuring

the debt in order to—

(i) ease the current debt service burden

on the debtor countries; and

(ii) provide additional opportunities for

economic growth in both debtor and industrialized countries; and

(C) assist the creditor banks in the voluntary disposition of their Third World loan

portfolio.

(b) Objectives

In any discussions initiated under subsection

(a) of this section, the Secretary should include

the following specific proposals:

(1) That any loan restructuring assistance

provided by such an authority to any debtor

nation should involve substantial commitments by the debtor to (A) economic policies

designed to improve resource utilization and

minimize capital flight, and (B) preparation of

an economic management plan calculated to

provide sustained economic growth and to

allow the debtor to meet its restructured debt

obligations.

(2) That support for such an authority

should come from industrialized countries,

and that greater support should be expected

from countries with strong current account

surpluses.

(3) That such an authority should have a

clearly defined close working relationship

with the International Monetary Fund and the

International Bank for Reconstruction and