I 

108TH CONGRESS 

1ST SESSION H. R. 3533

To amend the Federal Credit Reform Act of 1990 to require appropriations 

to cover the estimated subsidy costs of monetary resources provided 

by the United States Government to the International Monetary Fund, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2003

Mr. SAXTON introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committee on Financial 

Services, 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 amend the Federal Credit Reform Act of 1990 to require 

appropriations to cover the estimated subsidy costs of 

monetary resources provided by the United States Government to the International Monetary Fund, 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. FINDINGS AND PURPOSE. 

4 (a) FINDINGS.—With regard to the treatment of ex5 penses incurred by the United States through its partici-
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1 pation in the International Monetary Fund, the Congress 

2 finds that—

3 (1) the Government provides monetary re4 sources to the International Monetary Fund directly, 

5 and also to its member nations through the SDR 

6 Department of the International Monetary Fund; 

7 (2) these resources, along with those provided 

8 by other donor countries, are used by the Inter9 national Monetary Fund to provide credit to bor10 rowing nations at interest rates below the cost to the 

11 Government after appropriate adjustments for matu12 rity and credit risk; and 

13 (3) the International Monetary Fund’s lending 

14 at interest rates below the cost to the Government 

15 constitutes a provision of loan subsidies by the 

16 United States to the International Monetary Fund 

17 and its borrowing nations. 

18 (b) PURPOSE.—It is the purpose of this Act to re19 quire that the cost of providing these loan subsidies should 

20 be included as an expenditure in the budget of the United 

21 States and be subject to annual appropriation. 
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1 SEC. 2. APPROPRIATIONS REQUIRED FOR U.S. SHARE OF 

2 IMF SUBSIDY COSTS. 

3 Section 504 of the Federal Credit Reform Act of 

4 1990 is amended by adding at the end the following new 

5 subsection: 

6 ‘‘(h) APPROPRIATIONS REQUIRED FOR IMF SUBSIDY

7 COSTS.—Beginning with fiscal year 2005, no appropria8 tion may be made for an increase in the quota of the 

9 United States in the International Monetary Fund unless 

10 that appropriation includes new budget authority suffi11 cient to cover the estimated costs to the United States 

12 of providing credit to International Monetary Fund bor13 rowing nations at interest rates below the cost to the Gov14 ernment after appropriate adjustments for maturity and 

15 credit risk.’’. 

16 SEC. 3. TREATMENT IN PRESIDENT’S BUDGET. 

17 Section 504 of the Federal Credit Reform Act of 

18 1990 is further amended by adding at the end the fol19 lowing new subsection: 

20 ‘‘(i) TREATMENT OF IMF SUBSIDY COSTS IN PRESI21 DENT’S BUDGET.—Beginning with fiscal year 2005, the 

22 expenditures in the President’s budget shall reflect the 

23 costs to the Government of providing credit to Inter24 national Monetary Fund borrowing nations at interest 

25 rates below the cost to the Government after appropriate 

26 adjustments for maturity and credit risk.’’. 
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1 SEC. 4. DEFINITION. 

2 Paragraph (5) of section 502 of the Federal Credit 

3 Reform Act of 1990 is amended by adding at the end the 

4 following new subparagraph: 

5 ‘‘(G) The term ‘cost’ when applied to sub6 sections (h) and (i) of section 504 means the esti7 mated cost to the Government of providing funds of 

8 the same maturity and adjusted for credit risk for 

9 its share of direct loans, loan guarantees, other fi10 nancing mechanisms, and modifications thereof 

11 made by or through the International Monetary 

12 Fund.’’.

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