I 
108TH CONGRESS 
2D SESSION 
H. R. 4511 
To provide for the cancellation of debts owed to the International Monetary 
Fund by poor countries, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 3, 2004 
Ms. WATERS (for herself, Mr. LEACH, Mr. FRANK of Massachusetts, Mr. 
BACHUS, and Ms. LEE) introduced the following bill; which was referred 
to the Committee on Financial Services 
A BILL 
To provide for the cancellation of debts owed to the Inter-
national Monetary Fund by poor countries, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Justice and Under-
standing By IMF Loan Elimination and Equity Act of 
2004’’ or the ‘‘JUBILEE Act of 2004’’. 
SEC. 2. FINDINGS. 
The Congress finds the following:
(1) Many poor countries have been struggling 
under the burden of international debts for many 
years. 
(2) Many poor countries have debts that are 
odious because they were incurred by dictatorships 
that did not use the funds in ways that benefitted 
the population of the country. 
(3) The international Jubilee coalitions have 
been working to raise awareness of the needs of 
these impoverished countries for full debt cancella-
tion. 
(4) The International Monetary Fund (IMF) 
has imposed onerous structural adjustment require-
ments on many poor countries as a condition of past 
loans and of participation in debt relief programs. 
(5) Justice requires that debts owed by these 
countries to the IMF be cancelled. 
SEC. 3. CANCELLATION OF DEBT OWED TO THE IMF BY ELI-
GIBLE POOR COUNTRIES. 
Title XVI of the International Financial Institutions 
Act (22 U.S.C. 262p–262p–8) is amended by adding at 
the end the following: 
‘‘SEC. 1626. CANCELLATION OF DEBT OWED TO THE IMF BY 
ELIGIBLE POOR COUNTRIES. 
‘‘(a) IN GENERAL.—
‘‘(1) CANCELLATION
OF
DEBT.—In order to 
achieve multilateral debt cancellation and promote 
human and economic development and poverty alle-
viation in eligible poor countries, the Secretary of 
the Treasury shall commence immediate efforts, 
within the Paris Club of Official Creditors, the 
International Monetary Fund (IMF), and other ap-
propriate multilateral development institutions, to 
accomplish the following: 
‘‘(A) The IMF shall cancel all debts owed 
to the IMF by eligible poor countries, and fi-
nance the debt cancellation from ongoing oper-
ations, procedures, and accounts of the IMF es-
tablished as of the end of the most recent fiscal 
year, including the Poverty Reduction and 
Growth Facility (formerly known as the ‘En-
hanced Structural Adjustment Facility’ or 
‘ESAF’). 
‘‘(B) Any waiting period before receiving 
debt cancellation shall not exceed 1 month from 
the date of an eligible poor country’s applica-
tion for debt cancellation. 
‘‘(C) The government of each eligible poor 
country shall be encouraged to allocate at least 
20 percent of its national budget, including the
savings from the cancellation of debt owed by 
the country to the IMF, for the provision of 
basic health care services, education services, 
and clean water services to individuals in the 
country. In providing such services, the govern-
ment should seek input from a broad cross-sec-
tion of members of civil society. 
‘‘(2) PROHIBITION
OF
PRIVILEGE
FOR
IMF 
CREDIT.—In order to ensure that the interests of 
the United States are fully protected and that the 
IMF does not have undue influence over the policies 
and finances of poor countries, the Secretary of the 
Treasury shall commence immediate efforts, within 
the Paris Club of Official Creditors, the IMF, and 
other appropriate multilateral development institu-
tions, to ensure that the IMF does not require any 
country receiving new concessional loans to privilege 
the IMF as a creditor over the United States. 
‘‘(3) ESTABLISHMENT
OF
FRAMEWORK
FOR 
CREDITOR TRANSPARENCY.—In order to ensure that 
creditor activity is known and assessed by all stake-
holders, the Secretary of the Treasury shall com-
mence immediate efforts, within the Paris Club of 
Official Creditors, the International Monetary Fund 
(IMF), and other appropriate multilateral develop-
ment institutions, to ensure that each international 
financial 
institution 
(as 
defined 
in 
section 
1701(c)(2))— 
‘‘(A) continues to make efforts to promote 
greater transparency regarding the activities of 
the institution, including project design, project 
monitoring and evaluation, project implementa-
tion, resource allocation, and decisionmaking; 
and 
‘‘(B) supports continued efforts to allow 
informed participation and input by affected 
communities, including translation of informa-
tion on proposed projects, provision of informa-
tion through information technology applica-
tion, oral briefings, and outreach to and dia-
logue with community organizations and insti-
tutions in affected areas. 
‘‘(4) AVAILABILITY ON TREASURY DEPARTMENT 
WEBSITE OF REMARKS OF UNITED STATES EXECU-
TIVE DIRECTORS AT MEETINGS OF INTERNATIONAL 
FINANCIAL INSTITUTIONS BOARDS OF DIRECTORS.— 
The Secretary of the Treasury shall make available 
on the website of the Department of the Treasury 
the full record of the remarks of the United States 
Executive Director at meetings of the Board of Di-
rectors of each international financial institution and 
the International Monetary Fund, about cancellation 
or reduction of debts owed to the institution in-
volved, with redaction by the Secretary of the Treas-
ury of material deemed too sensitive for public dis-
tribution, but showing the topic, amount of material 
redacted, and reason for the redaction. 
‘‘(5) REPORT FROM THE COMPTROLLER GEN-
ERAL.—Within 90 days after the date of the enact-
ment of this section, the Comptroller General of the 
United States shall prepare and submit to the Com-
mittee on Banking and Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
a report on the availability of the ongoing oper-
ations, procedures, and accounts of the IMF for can-
celing the debt of eligible poor countries. 
‘‘(6) ANNUAL
REPORTS
FROM
THE
PRESI-
DENT.—Not later than December 31 of each year, 
the President shall submit to the Committees on 
Banking and Financial Services, and on Inter-
national Relations of the House of Representatives 
and the Committees on Foreign Relations and on 
Banking, Housing, and Urban Affairs of the Senate 
a report, which shall be made available to the public,
on the activities undertaken under this section, and 
other progress made in accomplishing the purposes 
of this section, for the prior fiscal year. The report 
shall include a list of the countries that have re-
ceived debt cancellation, a list of the countries whose 
request for such debt cancellation has been denied 
and the reasons therefor, and a list of the countries 
whose requests for such debt cancellation are under 
consideration. 
‘‘(b) PROMOTION
OF EQUITABLE BURDEN SHAR-
ING.—In order to promote equitable burden sharing by bi-
lateral, multilateral, and private creditors, the Secretary 
of the Treasury shall commence immediate efforts to en-
sure that such creditors draw upon their own resources 
to finance debt reduction to the extent possible without 
diverting funds from other high-priority poverty alleviation 
programs. 
‘‘(c) ELIGIBLE POOR COUNTRY DEFINED.—In this 
section, the term ‘eligible poor country’ means Angola, 
Bangladesh, Benin, Bolivia, Botswana, Burkina Faso, Bu-
rundi, Cambodia, Cameroon, Central African Republic, 
Chad, Cote d’Ivoire, Democratic Republic of Congo, Ethi-
opia, Gambia, Ghana, Guinea, Guinea-Bissau, Guyana, 
Haiti, Honduras, Jamaica, Kenya, Lao PDR, Liberia, 
Madagascar, Malawi, Mali, Mauritania, Morocco, Mozam-
bique, Namibia, Nepal, Nicaragua, Niger, Nigeria, Peru, 
Philippines, Republic of Congo, Rwanda, Sao Tome and 
Principe, Senegal, Sierra Leone, South Africa, Tanzania, 
Togo, Uganda, Vietnam, Yemen, and Zambia, but not if— 
‘‘(1) the government of the country has an ex-
cessive level of military expenditures; 
‘‘(2) the government of the country has repeat-
edly provided support for acts of international ter-
rorism, as determined by the Secretary of State 
under section 6(j)(1) of the Export Administration 
Act of 1979 (50 U.S.C. App. 2405(j)(1)), or section 
620A(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2371(a)); 
‘‘(3) the government of the country is failing to 
cooperate on international narcotics control matters; 
‘‘(4) the government of the country (including 
its military or other security forces) engages in a 
consistent pattern of gross violations of internation-
ally recognized human rights; or 
‘‘(5) in the case of Haiti, the government of the 
country has not been elected through free and fair 
elections.’’.
SEC. 4. PROHIBITION OF STRUCTURAL ADJUSTMENT PRO-
GRAMS. 
Title XVI of the International Financial Institutions 
Act (22 U.S.C. 262p–262p–8) is further amended by add-
ing at the end the following: 
‘‘SEC. 1627. PROHIBITION OF STRUCTURAL ADJUSTMENT 
PROGRAMS. 
‘‘(a) PROHIBITION
OF STRUCTURAL ADJUSTMENT 
CONDITIONS.—In order to promote human and economic 
development and poverty alleviation in eligible poor coun-
tries (as defined in section 1626(c)), the Secretary of the 
Treasury shall commence immediate efforts within the 
Paris Club of Official Creditors, as well as the Inter-
national Bank for Reconstruction and Development 
(World Bank), the International Monetary Fund (IMF), 
and other appropriate multilateral development institu-
tions, to ensure that the provision of debt cancellation to 
the countries is not conditioned on any agreement by such 
a country to implement or comply with policies that deep-
en poverty or degrade the environment, including any pol-
icy that—
‘‘(1) implements or extends user fees on pri-
mary education or primary health care, including 
prevention and treatment efforts for HIV/AIDS, tu-
berculosis, malaria, and infant, child, and maternal 
well-being;
‘‘(2) provides for increased cost recovery from 
poor people to finance basic public services such as 
education, health care, or sanitation; 
‘‘(3) would have the effect of increasing the cost 
to consumers with incomes of less than $2 per day 
for access to clean drinking water through— 
‘‘(A) decreased public subsidy for water 
supply, treatment, disposal, distribution, or 
management; 
‘‘(B) reduced intrasectoral or intersectoral 
subsidization of residential water consumers 
with incomes of less than $2 per day; 
‘‘(C) reduced government ability to regu-
late; or 
‘‘(D) mandated privatization of water; or 
‘‘(4) undermines workers’ ability to exercise ef-
fectively their internationally recognized worker 
rights, as defined under section 526(e) of the For-
eign Operations, Export Financing and Related Pro-
grams Appropriations Act, 1995 (22 U.S.C. 262p– 
4p). 
‘‘(b) ANNUAL REPORTS TO THE CONGRESS.—Not 
later than December 31 of each year, the President shall 
submit to the Committees on Banking and Financial Serv-
ices and on International Relations of the House of Rep-
resentatives and the Committees on Foreign Relations and 
on Banking, Housing, and Urban Affairs of the Senate 
a report, which shall be made available to the public, on 
the activities undertaken under this section, and other 
progress made in accomplishing the purposes of this sec-
tion, for the prior fiscal year.’’. 
SEC. 5. CONDITIONAL BAN ON PROVIDING FUNDS TO THE 
IMF. 
(a) IN GENERAL.—None of the funds appropriated 
in any Act may be obligated or made available to the 
International Monetary Fund (IMF) unless— 
(1) the IMF has cancelled all debts owed to it 
by eligible poor countries as described in section 
1626(a)(1) of the International Financial Institu-
tions Act; 
(2) the IMF has terminated its involvement in 
the Poverty Reduction and Growth Facility and any 
other program to condition debt relief on implemen-
tation of structural adjustment; and 
(3) the Secretary of the Treasury has certified 
to the Congress that the conditions referred to in 
paragraphs (1) and (2) of this subsection have been 
met.
(b) LIMITATION.—Subsection (a) shall not apply to 
any funds appropriated to provide debt relief to poor coun-
tries. 
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