II

Calendar No. 327

105TH CONGRESS

2D SESSION S. 1769

[Report No. 105–169]

Making supplemental appropriations for the International Monetary Fund

for the fiscal year ending September 30, 1998, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 17, 1998

Mr. STEVENS, from the Committee on Appropriations, reported the following

original bill, which was read twice and placed on the calendar

A BILL

Making supplemental appropriations for the International

Monetary Fund for the fiscal year ending September

30, 1998, 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 That the following sums are appropriated, out of any

4 money in the Treasury not otherwise appropriated, for the

5 International Monetary Fund for the fiscal year ending

6 September 30, 1998, and for other purposes, namely:
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1 MULTILATERAL ECONOMIC ASSISTANCE

2 FUNDS APPROPRIATED TO THE PRESIDENT

3 LOANS TO INTERNATIONAL MONETARY FUND

4 NEW ARRANGEMENTS TO BORROW

5 For loans to the International Monetary Fund

6 (Fund) under the New Arrangements to Borrow, the dol7 lar equivalent of 2,462,000,000 Special Drawing Rights,

8 to remain available until expended; in addition, up to the

9 dollar equivalent of 4,250,000,000 Special Drawing

10 Rights previously appropriated by the Act of November

11 30, 1983 (Public Law 98–181), and the Act of October

12 23, 1962 (Public Law 87–872), for the General Arrange13 ments to Borrow, may also be used for the New Arrange14 ments to Borrow.

15 UNITED STATES QUOTA

16 For an increase in the United States quota in the

17 International Monetary Fund, the dollar equivalent of

18 10,622,500,000 Special Drawing Rights, to remain avail19 able until expended.

20 GENERAL PROVISIONS

21 SECTION 101. CONDITIONS FOR THE USE OF QUOTA

22 RESOURCES.—(a) None of the funds appropriated in this

23 Act under the heading ‘‘United States Quota, Inter24 national Monetary Fund’’ may be obligated, transferred

25 or made available to the International Monetary Fund

26 until 30 days after the Secretary of the Treasury certifies
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1 that the Board of Executive Directors of the Fund have

2 agreed by resolution that stand-by agreements or other ar3 rangements regarding the use of Fund resources shall in4 clude provisions requiring the borrower—

5 (1) to comply with the terms of all international

6 trade obligations and agreements of which the bor7 rower is a signatory;

8 (2) to eliminate the practice or policy of govern9 ment directed lending or provision of subsidies to fa10 vored industries, enterprises, parties, or institutions;

11 and

12 (3) to guarantee non-discriminatory treatment

13 in debt resolution proceedings between domestic and

14 foreign creditors, and for debtors and other con15 cerned persons.

16 (b) Subsequent to the certification provided in sub17 section (a), in conjunction with the annual submission of

18 the President’s budget, the Secretary of the Treasury shall

19 report to the appropriate committees on the implementa20 tion and enforcement of the provisions in subsection (a).

21 SEC. 102. TRANSPARENCY AND OVERSIGHT.—(a)

22 Not later than 30 days after enactment of this Act, the

23 Secretary of the Treasury shall certify to the appropriate

24 committees that the Board of Executive Directors of the

25 International Monetary Fund Board has agreed to provide
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1 timely access by the Comptroller General to information

2 and documents relating to the Fund’s operations, program

3 and policy reviews and decisions regarding stand-by agree4 ments and other uses of the Fund’s resources.

5 (b) The Secretary of the Treasury shall direct, and

6 the U.S. Executive Director to the International Monetary

7 Fund shall agree to—

8 (1) provide any documents or information avail9 able to the Director that are requested by the Comp10 troller General;

11 (2) request from the Fund any documents or

12 material requested by the Comptroller General; and

13 (3) use all necessary means to ensure all pos14 sible access by the Comptroller General to the staff

15 and operations of the Fund for the purposes of con16 ducting financial and program audits.

17 (c) The Secretary of the Treasury, in consultation

18 with the Comptroller General and the U.S. Executive Di19 rector of the Fund, shall develop and implement a plan

20 to obtain timely public access to information and docu21 ments relating to the Fund’s operations, programs and

22 policy reviews and decisions regarding stand-by agree23 ments and other uses of the Fund’s resources.

24 (d) No later than July 1, 1998 and, not later than

25 March 1 of each year thereafter, the Secretary of the
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1 Treasury shall submit a report to the appropriate commit2 tees on the status of timely publication of Letters of Intent

3 and Article IV consultation documents and the availability

4 of information referred to in (c).

5 SEC. 103. ADVISORY COMMISSION.—(a) The Presi6 dent shall establish an International Financial Institution

7 Advisory Commission (hereafter ‘‘Commission’’).

8 (b) The Commission shall include at least five former

9 United States Secretaries of the Treasury.

10 (c) Within 180 days, the Commission shall report to

11 the appropriate committees on the future role and respon12 sibilities, if any, of the International Monetary Fund and

13 the merit, costs and related implications of consolidation

14 of the organization, management, and activities of the

15 International Monetary Fund, the International Bank for

16 Reconstruction and Development and the World Trade

17 Organization.

18 SEC. 104. BRETTON WOODS CONFERENCE.—Not

19 later than 180 days after the Commission reports to the

20 appropriate committees, the President shall call for a con21 ference of representatives of the governments of the mem22 ber countries of the International Monetary Fund, the

23 International Bank for Reconstruction and Development

24 and the World Trade Organization to consider the struc25 ture, management and activities of the institutions, their
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1 possible merger and their capacity to contribute to ex2 change rate stability and economic growth and to respond

3 effectively to financial crises.

4 SEC. 105. REPORTS.—(a) Following the extension of

5 a stand-by agreement or other uses of the resources by

6 the International Monetary Fund, the Secretary of the

7 Treasury, in consultation with the U.S. Executive Director

8 of the Fund, shall submit a report to the appropriate com9 mittees providing the following information—

10 (1) the borrower’s rules and regulations dealing

11 with capitalization ratios, reserves, deposit insurance

12 system and initiatives to improve transparency of in13 formation on the financial institutions and banks

14 which may benefit from the use of the Fund’s re15 sources;

16 (2) the burden shared by private sector inves17 tors and creditors, including commercial banks in

18 the Group of Seven Nations, in the losses which

19 have prompted the use of the Fund’s resources;

20 (3) the Fund’s strategy, plan and timetable for

21 completing the borrower’s pay back of the Fund’s

22 resources including a date by which the borrower

23 will be free from all international institutional debt

24 obligation; and
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1 (4) the status of efforts to upgrade the borrow2 er’s national standards to meet the Basle Commit3 tee’s Core Principles for Effective Banking Super4 vision.

5 (b) Following the extension of a stand-by agreement

6 or other use of the Fund’s resources, the Secretary of the

7 Treasury shall report to the appropriate committees in

8 conjunction with the annual submission of the President’s

9 budget, an account of the direct and indirect institutional

10 recipients of such resources: Provided, That this account

11 shall include the institutions or banks indirectly supported

12 by the Fund through resources made available by the bor13 rower’s Central Bank.

14 (c) Not later than 30 days after the enactment of

15 this Act, the Secretary shall submit a report to the appro16 priate committees of Congress providing the information

17 requested in paragraphs (a) and (b) for the countries of

18 South Korea, Indonesia, Thailand and the Philippines.

19 SEC. 106. CERTIFICATIONS.—(a) The Secretary of

20 the Treasury shall certify to the appropriate committees

21 that the following conditions have been met—

22 (1) No International Monetary Fund resources

23 have resulted, directly or indirectly, in support of the

24 Korean semiconductor, steel, automobile, or textile

25 and apparel industries in any form;
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1 (2) Neither the Korean government, nor the

2 Fund has guaranteed or underwritten the private

3 loans of Korean semiconductor, steel, automobile, or

4 textile and apparel manufacturers; and

5 (3) Officials from the Fund and the Depart6 ment of the Treasury have monitored the implemen7 tation of the Corporate Governance provisions con8 tained in Republic of Korea’s stabilization program

9 of December 4, 1997, and all of the conditions have

10 either been met, or the Korean government has com11 mitted itself to fulfill all of these conditions accord12 ing to an explicit timetable for completion; which

13 timetable has been provided to and approved by the

14 Fund and the Department of the Treasury.

15 (b) Such certifications shall be made 14 days prior

16 to the disbursement of any Fund resources to the bor17 rower.

18 (c) The Secretary of the Treasury shall instruct the

19 United States Executive Director of the International

20 Monetary Fund to use the voice and vote of the Executive

21 Director to oppose disbursement of further funds if such

22 certification is not given.

23 (d) Such certifications shall continue to be made on

24 an annual basis as long as Fund contributions continue

25 to be outstanding to the borrower country.
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1 SEC. 107. DEFINITIONS.—For the purposes of this

2 Act, ‘‘appropriate committees’’ includes the Appropria3 tions Committee, the Committee on Foreign Relations and

4 the Committee on Banking, Housing and Urban Affairs

5 of the Senate and the Committee on Appropriations and

6 the Committee on Banking and Financial Services in the

7 House of Representatives.

8 This Act may be cited as the ‘‘1998 Supplemental

9 Appropriations Act for the International Monetary Fund’’.
Calendar No. 327

105TH CONGRESS

2D SESSION S. 1769

[Report No. 105–169]

A BILL

Making supplemental appropriations for the Intering September 30, 1998, and for other purposes. national Monetary Fund for the fiscal year endMARCH 17, 1998

Read twice and placed on the calendar