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of each year thereafter, the Comptroller General of the
United States shall submit to the appropriate congressional
committees a report on the sufficiency of audits of the finan-
cial operations of each multilateral development bank con-
ducted by persons or entities outside such bank.
(b) ANNUAL REPORT ON UNITED STATES SUPPORTED
POLICIES.—Beginning 180 days after the date of enactment
of this Act, or October 31, 2000, whichever is later, and
on October 31 of each year thereafter, the Secretary shall
submit a report to the appropriate congressional committees
on—
(1) the actions taken by recipient countries, as a
result of the assistance allocated to them by the multi-
lateral development banks under programs referred to
in section 802(b), to strengthen governance and reduce
the opportunity for bribery and corruption; and
(2) how International Development Association-
financed projects contribute to the eventual gradua-
tion of a representative sample of countries from reli-
ance on financing on concessionary terms and inter-
national development assistance.
(c) AMENDMENT
OF REPORT
ON FUND.—Section
1705(a) of the International Financial Institutions Act (22
U.S.C. 262r–4(a)) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘the progress’’; and
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(2) by inserting before the period at the end the
following: ‘‘, and (2) the progress made by the Inter-
national Monetary Fund in adopting and imple-
menting the policies described in section 801(c)(1)(B)
of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 2001’’.
(d) REPORT ON DEBT RELIEF.—Not later than 90
days after the date of enactment of this Act, the Secretary
shall submit a report to the appropriate congressional com-
mittees on the history of debt relief programs led by, or co-
ordinated with, international financial institutions, includ-
ing but not limited to—
(1) the extent to which poor countries and the
poorest-of-the-poor benefit from debt relief, including
measurable evidence of any such benefits; and
(2) the extent to which debt relief contributes to
the graduation of a country from reliance on financ-
ing on concessionary terms and international develop-
ment assistance.
SEC. 804. REPEAL OF BILATERAL FUNDING FOR INTER-
NATIONAL FINANCIAL INSTITUTIONS.
Section 209(d) of the Foreign Assistance Act of 1961
(22 U.S.C. 2169(d); relating to bilateral funding for inter-
national financial institutions) is repealed.
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SEC. 805. REFOCUSED ACTIVITIES OF THE IMF. The
Bretton Woods Agreement Act is amended by adding the
following new section—
‘‘SEC. 63. PRINCIPLES FOR INTERNATIONAL MONETARY
FUND LENDING.
‘‘It is the policy of the United States to work to imple-
ment reforms in the International Monetary Fund (IMF)
to achieve the following goals:
‘‘(a) SHORT-TERM BALANCE OF PAYMENTS FINANC-
ING.—Lending from the general resources of the Fund
should concentrate chiefly on short-term balance of pay-
ments financing.
‘‘(b) LIMITATIONS ON MEDIUM-TERM FINANCING.—
Use of medium-term lending from the general resources of
the Fund should be limited to a set of well-defined cir-
cumstances, such as—
‘‘(1) when a member’s balance of payments prob-
lems will be protracted,
‘‘(2) such member has a strong structural reform
program in place, and
‘‘(3) the member has little or no access to private
sources of capital.
‘‘(c) PREMIUM PRICING.—Premium pricing should be
introduced for lending from the general resources of the
Fund, for greater than 200 per centum of a member’s quota
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in the Fund, to discourage excessive use of Fund lending
and to encourage members to rely on private financing to
the maximum extent possible.
‘‘(d) REDRESSING MISREPORTING OF INFORMATION.—
The Fund should have in place and apply systematically
a strong framework of safeguards and measures to respond
to, correct, and discourage cases of misreporting of informa-
tion in the context of a Fund program, including—
‘‘(1) Suspending Fund disbursements and ensur-
ing that Fund lending is not resumed to members
that engage in serious misreporting of material infor-
mation until such time as remedial actions and sanc-
tions, as appropriate, have been applied;
‘‘(2) Ensuring that members make early repay-
ments, where appropriate, of Fund resources dis-
bursed on the basis of misreported information;
‘‘(3) Making public cases of serious misreporting
of material information;
‘‘(4) Requiring all members receiving new dis-
bursements from the Fund to undertake annually
independent audits of central bank financial state-
ments and publish the resulting audits; and
‘‘(5) Requiring all members seeking new loans
from the Fund to provide to the Fund detailed infor-
mation regarding their internal control procedures,
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financial reporting and audit mechanisms and, in
cases where there are questions about the adequacy of
these systems, undertaking an on-site review and
identifying needed remedies.’’.
SEC. 806. DEFINITIONS.
In this title:
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means the Committee on Foreign Relations and
the Committee on Appropriations of the Senate, and
the Committee on Banking and Financial Services
and the Committee on Appropriations of the House of
Representatives.
(2) BANK.—The term ‘‘Bank’’ means the Inter-
national Bank for Reconstruction and Development.
(3) FUND.—The term ‘‘Fund’’ means the Inter-
national Monetary Fund.
(4) INTERNATIONAL FINANCIAL INSTITUTIONS.—
The term ‘‘international financial institutions’’
means the multilateral development banks and the
International Monetary Fund.
(5) MULTILATERAL DEVELOPMENT BANKS.—The
term ‘‘multilateral development banks’’ means the
International Bank for Reconstruction and Develop-
ment, the International Development Association, the