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104TH CONGRESS

1ST SESSION S. 384

To require a report on United States support for Mexico during its debt

crisis, and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 10 (legislative day, JANUARY 30), 1995

Mr. BROWN (for himself and Mr. HELMS) introduced the following bill; which

was read twice and referred to the Committee on Foreign Relations

A BILL

To require a report on United States support for Mexico

during its debt crisis, 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. REPORT REQUIRED.

4 (a) REPORT.—Not later than March 1, 1995, and

5 every six months thereafter, the President shall transmit

6 a report to the appropriate congressional committees con7 cerning all United States Government loans, credits, guar8 antees, and short-term and long-term currency swaps with

9 Mexico.
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•S 384 IS1S

1 (b) CONTENTS OF REPORT.—The report described in

2 subsection (a) shall include the following:

3 (1) A breakdown of all outstanding United

4 States Government loans, credits, and guarantees

5 provided to the Government of Mexico.

6 (2) A detailed list of all Federal Reserve cur7 rency swaps designed to support indebtedness of the

8 Government of Mexico, and the cost or benefit to the

9 United States Treasury from each such transaction.

10 (3) A description of any payments by creditors

11 of Mexican petroleum companies into the petroleum

12 finance facility established to ensure repayment of

13 United States loans or guarantees.

14 (4) A description of any disbursement by the

15 United States Government from the petroleum fi16 nance facility.

17 (5) Once payments have been diverted from

18 PEMEX to the United States Treasury through the

19 petroleum finance facility, a description of the status

20 of petroleum deliveries to those customers whose

21 payments were diverted.

22 (6) A description of the risk factors used in cal23 culations concerning Mexican repayment of indebted24 ness.
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•S 384 IS1S

1 (7) A statement of the progress the Govern2 ment of Mexico has made in reforming its currency

3 and establishing an independent central bank or cur4 rency board.

5 (8) A description of specific actions taken by

6 the Government of Mexico to further privatize the

7 economy of Mexico.

8 SEC. 2. PRESIDENTIAL CERTIFICATION.

9 Notwithstanding any other provision of law, before

10 extending any loan, credit, guarantee, or arrangement for

11 a swap of currencies to Mexico through any United States

12 Government monetary facility, the President shall certify

13 to the appropriate congressional committees that—

14 (1) there is no projected cost to the United

15 States from the proposed loan, credit, guarantee, or

16 currency swap;

17 (2) all loans, credits, guarantees, and currency

18 swaps are adequately collateralized to ensure that

19 United States funds will be repaid;

20 (3) the Government of Mexico has undertaken

21 effective efforts to establish an independent central

22 bank or an independent currency control mechanism;

23 and

24 (4) Mexico has in effect a significant economic

25 reform effort.
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•S 384 IS1S

1 SEC. 3. DEFINITION.

2 As used in this Act, the term ‘‘appropriate congres3 sional committees’’ means the Committees on Appropria4 tions, Ways and Means, and International Relations of the

5 House of Representatives and the Committees on Appro6 priations, Finance, and Foreign Relations of the Senate.

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