I 
109TH CONGRESS 
1ST SESSION H. R. 3191
To provide multilateral debt cancellation for Heavily Indebted Poor Countries, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 30, 2005
Mr. SMITH of New Jersey (for himself and Mr. PAYNE) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services, 
and in addition to the Committee on International Relations, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To provide multilateral debt cancellation for Heavily Indebted 
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 ‘‘Multilateral Debt Re-
lief Act of 2005’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings:
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(1) In 1996, the international community cre-
ated the Heavily Indebted Poor Countries Initiative 
(the HIPC Initiative) to reduce the debt burden that 
curtailed spending on economic development and 
poverty-reducing programs in many impoverished 
countries. 
(2) Since adoption of the original HIPC Initia-
tive in 1996 and the Enhanced HIPC Initiative in 
1999, donor countries have committed more than 
$50,000,000,000 in bilateral and multilateral debt 
stock cancellation to eligible countries. 
(3) The 27 countries that have received debt re-
lief through the HIPC Initiative are estimated by 
World Bank and the International Monetary Fund 
to have increased poverty reduction expenditures by 
an average of approximately 75 percent between 
1999 and 2004. 
(4) Congress has demonstrated its support for 
bilateral and multilateral debt relief through the en-
actment of comprehensive debt relief initiatives for 
heavily indebted poor countries by title V of H.R. 
3425 of the 106th Congress, as enacted into law by 
section 1000(a)(5) of the Act entitled ‘‘An Act mak-
ing consolidated appropriations for the fiscal year 
ending September 30, 2000, and for other pur-
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poses’’, approved November 29, 1999 (Public Law 
106–113; 113 Stat. 1501–311) and the amendments 
made by such title, title II of H.R. 5526 of the 
106th Congress, as enacted into law by section 
101(a) of the Act entitled ‘‘An Act making appro-
priations for foreign operations, export financing, 
and related programs for the fiscal year ending Sep-
tember 30, 2001, and for other purposes’’, approved 
November 6, 2000 (Public Law 106–429; 114 Stat. 
1900A–5), and title V of the United States Leader-
ship Against HIV/AIDS, Tuberculosis, and Malaria 
Act of 2003 (Public Law 108–25; 117 Stat. 747) 
and the amendment made by such title. 
(5) A number of countries, including the United 
States, have canceled 100 percent of the bilateral 
loans made by such countries to countries that are 
eligible for debt relief under the Enhanced HIPC 
Initiative, and other major donor nations have can-
celed a large percentage of such loans, however, a 
number of countries eligible for such debt relief will 
continue to owe substantial debts to international fi-
nancial institutions such as the International Mone-
tary Fund, the International Development Associa-
tion, and the African Development Fund.
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(6) Permanently canceling 100 percent of the 
debt owed by the countries that are eligible for debt 
relief under the Enhanced HIPC Initiative to multi-
lateral institutions would allow countries to increase 
investments in economic and social infrastructure, 
including improving the quality of and access to 
health care, education, and poverty reduction pro-
grams, and thereby help them to move towards sus-
tainable economic growth and to achieve the Millen-
nium Development Goals set out in United Nations 
Millennium Declaration, resolution 55/1 adopted by 
the General Assembly of the United Nations on Sep-
tember 8, 2000, for eradicating extreme poverty and 
hunger and promoting human development. 
(7) On June 11, 2005, finance ministers rep-
resenting the members of the Group of 8 agreed to 
make a proposal, prior to September 2005, to the 
shareholders of the World Bank, the International 
Monetary Fund, and the African Development Bank, 
for the immediate cancellation of 100 percent of the 
debt stock owed to such institutions by 18 eligible 
countries, and the eventual cancellation of such debt 
owed by an additional 20 countries. 
(8) That proposal would cancel approximately 
$40,000,000,000 in debt stock owed by 18 countries
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immediately, and would ultimately result in the can-
cellation 
of 
a 
total 
of 
approximately 
$56,000,000,000 in debt stock owed by 38 countries, 
saving such countries, on average, $1,500,000,000 
each year in debt service payments. To offset fore-
gone interest and principal repayments, donors 
would provide additional resources to the World 
Bank and African Development Bank for grants and 
lending to the poorest countries for investments in 
the health, education, and well-being of the people of 
such countries. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ELIGIBLE
COUNTRY.—The term ‘‘eligible 
country’’ means a country whose government is de-
scribed in paragraphs (1) through (5) of section 
557(c) of H.R. 3422 of the 106th Congress, as en-
acted into law by section 1000(a)(2) of the Act enti-
tled ‘‘An Act making consolidated appropriations for 
the fiscal year ending September 30, 2000, and for 
other purposes’’, approved November 29, 1999 
(Public Law 106–113; 113 Stat. 1501A–101). 
(2) ENHANCED
HIPC
INITIATIVE.—The term 
‘‘Enhanced HIPC Initiative’’ has the meaning given
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that term in section 1625 of the International Fi-
nancial Institutions Act (22 U.S.C. 262p–8). 
(3) HIPC INITIATIVE.—The term ‘‘HIPC Ini-
tiative’’ means the initiative established in 1996 by 
the World Bank and the International Monetary 
Fund for the purpose of reducing the debt burdens 
of the world’s poorest countries. 
(4) 
INTERNATIONAL
FINANCIAL
INSTITU-
TION.—The term ‘‘international financial institu-
tion’’ means the World Bank, the International 
Monetary Fund, the Inter-American Development 
Bank, the African Development Bank, and the Afri-
can Development Fund. 
(5) MEMBERS OF THE GROUP OF 8.—The term 
‘‘members of the Group of 8’’ means Canada, 
France, Germany, Italy, Japan, Russia, the United 
Kingdom, and the United States. 
(6) WORLD BANK.—The term ‘‘World Bank’’ 
means the International Bank for Reconstruction 
and Development, the International Development 
Association, the International Finance Corporation, 
and the Multilateral Investment Guarantee Agency. 
SEC. 4. AUTHORITY. 
(a) IN GENERAL.—The Secretary of the Treasury is 
authorized to instruct the Untied States Executive Direc-
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tor of each international financial institution to use the 
voice and vote of the United States to reach an agreement 
among the shareholders of such international financial in-
stitutions to permanently cancel 100 percent of the debts 
owed to each such institution by an eligible country. 
(b) RELATIONSHIP TO OTHER LAWS.—The authority 
provided in subsection (a) is in addition to any other au-
thority of the Secretary of the Treasury to promote debt 
relief and may not be construed to limit any such other 
authority. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the President such sums 
as may be necessary for the United States contribution 
to the implementation of the agreement referred to in sub-
section (a), if other members of the international financial 
institutions contribute funds for such purpose. 
SEC. 5. SENSE OF CONGRESS ON DEBT RELIEF. 
It is the sense of Congress that the Secretary of the 
Treasury should pursue additional bilateral and multilat-
eral debt relief for each country that is eligible for grant 
assistance from the International Development Associa-
tion.
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SEC. 6. CONTRIBUTIONS TO MULTILATERAL DEVELOP-
MENT BANKS. 
(a) WORLD BANK.—The International Development 
Association Act (22 U.S.C. 284 et seq.) is amended by 
adding at the end the following new section: 
‘‘SEC. 23. FOURTEENTH REPLENISHMENT. 
‘‘(a) CONTRIBUTION AUTHORITY.— 
‘‘(1) IN
GENERAL.—The United States Gov-
ernor of the Association is authorized to contribute 
on behalf of the United States such sums as may be 
necessary to the fourteenth replenishment of the re-
sources of the Association. 
‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com-
mitment to make the contribution authorized by 
paragraph (1) shall be effective only to such extent 
or in such amounts as are provided in advance in 
appropriations Acts. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 
contribution authorized by subsection (a), there are au-
thorized to be appropriated such sums as may be nec-
essary for payment by the Secretary of the Treasury.’’. 
(b) AFRICAN DEVELOPMENT BANK FUND.—The Af-
rican Development Fund Act (22 U.S.C. 290g et seq.) is 
amended by adding at the end the following new section: 
‘‘SEC. 218. TENTH REPLENISHMENT. 
‘‘(a) CONTRIBUTION AUTHORITY.—
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‘‘(1) IN
GENERAL.—The United States Gov-
ernor of the Fund is authorized to contribute on be-
half of the United States such sums as may be nec-
essary to the tenth replenishment of the resources of 
the Fund. 
‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com-
mitment to make the contribution authorized by 
paragraph (1) shall be effective only to such extent 
or in such amounts as are provided in advance in 
appropriations Acts. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 
contribution authorized by subsection (a), there are au-
thorized to be appropriated such sums as may be nec-
essary for payment by the Secretary of the Treasury.’’. 
SEC. 7. AUTHORIZATION OF APPROPRIATIONS OF THE EN-
HANCED HIPC INITIATIVE. 
There is authorized to be appropriated to the Presi-
dent such sums as may be necessary for the President to 
contribute on behalf of the United States to fulfill the 
commitments made by the United States related to the 
Enhanced HIPC Initiative. 
SEC. 8. REPORTS TO CONGRESS. 
(a) REQUIREMENT.—Not later than 180 days after 
the date of enactment of this Act, and annually thereafter, 
the Secretary of the Treasury shall submit to the appro-
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priate congressional committees a report on the status of 
negotiations to achieve bilateral and multilateral debt re-
lief for impoverished, highly indebted countries that did 
not benefit from the HIPC Initiative or the Enhanced 
HIPC Initiative. 
(b) APPROPRIATE
CONGRESSIONAL
COMMITTEES 
DEFINED.—In this section, the term ‘‘appropriate con-
gressional committees’’ means the Committee on Appro-
priations and the Committee on Foreign Relations of the 
Senate and the Committee on Appropriations and the 
Committee on International Relations of the House of 
Representatives.
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