II

105TH CONGRESS

2D SESSION S. 1979

To ensure the transparency of International Monetary Fund operations.

IN THE SENATE OF THE UNITED STATES

APRIL 23, 1998

Mr. CAMPBELL (for himself and Mr. FAIRCLOTH) introduced the following bill;

which was read twice and referred to the Committee on Foreign Relations

A BILL

To ensure the transparency of International Monetary Fund

operations.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘IMF Transparency and

5 Efficiency Act of 1998’’.
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1 SEC. 2. DENIAL OF FEDERAL FUNDS TO THE INTER2 NATIONAL MONETARY FUND IF ITS OPER3 ATIONS ARE NOT MADE MORE TRANS4 PARENT.

5 Title XV of the International Financial Institutions

6 Act (22 U.S.C. 262o–262o–1) is amended by adding at

7 the end the following:

8 ‘‘SEC. 1503. DENIAL OF FEDERAL FUNDS TO THE INTER9 NATIONAL MONETARY FUND IF ITS OPER10 ATIONS ARE NOT MADE MORE TRANS11 PARENT.

12 ‘‘(a) IN GENERAL.—An officer, employee, or agent

13 of the United States may not, directly or indirectly, pro14 vide Federal funds to, or for the benefit of the Inter15 national Monetary Fund unless—

16 ‘‘(1) there is in effect a written certification,

17 made by the Secretary of the Treasury to the Com18 mittee on Banking and Financial Services of the

19 House of Representatives and the Committee on

20 Banking, Housing, and Urban Affairs of the Senate,

21 that the International Monetary Fund has met the

22 requirements of subsection (b); and

23 ‘‘(2) the Congress has enacted a joint resolution

24 approving the certification.

25 ‘‘(b) REQUIREMENTS.—The requirements of this sub26 section are the following:
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1 ‘‘(1) Within 3 months after any meeting of the

2 Board of Governors or the Executive Board of the

3 International Monetary Fund, an edited copy of the

4 minutes of the meeting shall be made available for

5 public inspection, with the following information re6 dacted:

7 ‘‘(A) Information which, if released, would

8 adversely affect the national security of a coun9 try, and which is of the type that would be clas10 sified by the United States Government.

11 ‘‘(B) Information which, if released, would

12 disrupt markets.

13 ‘‘(C) Proprietary information.

14 ‘‘(2) Within 3 months after the staff of the

15 International Monetary Fund makes a loan docu16 ment, written review, program document, or assess17 ment of any proposed or ongoing loan program of

18 the International Monetary Fund, a copy of the re19 view, document, or assessment, and all related and

20 supporting materials, shall be made available for

21 public inspection, with the following information re22 dacted:

23 ‘‘(A) Information which, if released, would

24 adversely affect the national security of a coun-
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1 try, and which is of the type that would be clas2 sified by the United States Government.

3 ‘‘(B) Information which, if released, would

4 disrupt markets.

5 ‘‘(C) Proprietary information.

6 ‘‘(3) Not later than 18 months after the date

7 of enactment of this section:

8 ‘‘(A) The International Monetary Fund

9 shall establish an independent advisory board to

10 review the research, operations, and loan pro11 grams of the International Monetary Fund.

12 ‘‘(B) The legislature of each country which

13 is represented on the Executive Board of the

14 International Monetary Fund shall each appoint

15 to the advisory board 1 individual with exper16 tise in private sector finance gained in the pri17 vate sector or in academia.

18 ‘‘(C) The advisory board shall issue annual

19 reports summarizing its activities, which shall

20 be available immediately for public inspection.

21 ‘‘(4) The annual rate at which the International

22 Monetary Fund charges interest on loans made after

23 the date of enactment of this section shall be com24 parable to the average annual rate of interest in fi-
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1 nancial markets for loans of comparable maturity,

2 adjusted for risk.

3 ‘‘(c) EFFECTIVE PERIOD OF CERTIFICATION.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), certification made under this section shall

6 cease to be in effect 1 year after the date the certifi7 cation is made.

8 ‘‘(2) REVOCATION.—

9 ‘‘(A) IN GENERAL.—A certification made

10 under this section shall cease to be in effect if

11 the Secretary of the Treasury revokes the cer12 tification.

13 ‘‘(B) CAUSE FOR REVOCATION.—The Sec14 retary of the Treasury shall revoke a certifi15 cation made under this section if the Secretary

16 of the Treasury is made aware that the Inter17 national Monetary Fund has ceased to meet a

18 requirement of subsection (b).’’.

19 SEC. 3. EFFECTIVE DATE.

20 This Act shall take effect 6 months after the date

21 of enactment of this Act.

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