I
107TH CONGRESS
2D SESSION
H. R. 4524
To ensure that the Enhanced Highly Indebted Poor Countries Initiative
achieves the objective of substantially increasing resources available for
human development and poverty reduction in heavily indebted poor coun-
tries, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 18, 2002
Mr. SMITH of New Jersey (for himself, Mr. LAFALCE, Mr. BACHUS, Mr.
FRANK, Mr. LEACH, Ms. WATERS, and Mr. KUCINICH) introduced the
following bill; which was referred to the Committee on International Rela-
tions, and in addition to the Committee on Financial Services, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To ensure that the Enhanced Highly Indebted Poor Coun-
tries Initiative achieves the objective of substantially in-
creasing resources available for human development and
poverty reduction in 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 ‘‘Debt Relief Enhance-
ment Act of 2002’’.
SEC. 2. MODIFICATION OF ENHANCED HIPC INITIATIVE.
(a) IN GENERAL.—The Secretary of the Treasury
shall immediately commence efforts within the Paris Club
of Official Creditors, the International Bank for Recon-
struction and Development, the International Monetary
Fund, and other appropriate multilateral development in-
stitutions to modify the Enhanced HIPC Initiative so that
the amount of debt stock reduction approved for a country
eligible for debt relief under the Enhanced HIPC Initiative
shall be sufficient to reduce, for at least each year through
2005, or each of the first 3 years after the Decision
Point—
(1) the net present value of the outstanding
public and publicly guaranteed debt of the country
to not more than 150 percent of the annual value
of exports of the country for the year preceding the
Decision Point; and
(2) the annual payments due on such public
and publicly guaranteed debt—
(A) to not more than 10 percent of the
amount of the annual current revenues received
by the country from internal sources; or
(B) in the case of a country suffering a se-
vere public health crisis, to not more than 5
percent of the amount of the annual current
revenues received by the country from internal
sources.
(b) DEFINITIONS.—In this section:
(1) ENHANCED
HIPC
INITIATIVE.—The term
‘‘Enhanced HIPC Initiative’’ means the multilateral
debt initiative for heavily indebted poor countries
presented in the Report of G–7 Finance Ministers
on the Cologne Debt Initiative to the Cologne Eco-
nomic Summit, Cologne, 18–20 June, 1999.
(2) DECISION
POINT.—The term ‘‘Decision
Point’’ means, with respect to a country, the point
in time at which the Executive Boards of the Inter-
national Bank for Reconstruction and Development
and the International Monetary Fund review the
debt sustainability analysis for the country and de-
cide that the country is eligible for debt relief under
the Enhanced HIPC Initiative.
(3) PUBLIC
HEALTH
CRISIS.—A country is
deemed to be suffering a ‘‘public health crisis’’ if—
(A) the nationwide HIV/AIDS infection
rate for the country, as reported in the most re-
cent epidemiological data as compiled by the
Joint United Nations Program on HIV/AIDS,
is at least 5 percent among women attending
prenatal clinics, or 20 percent or more among
individuals in groups with high-risk behavior; or
(B) the country is suffering a health crisis
or epidemic, as defined by the World Health
Organization.
SEC. 3. REPORT ON EXPANSION OF DEBT RELIEF TO NON-
HIPC COUNTRIES.
(a) IN GENERAL.—Within 90 days after the date of
the enactment of this Act, the Secretary of the Treasury
shall submit to the Congress a report on—
(1) the options and costs associated with ex-
panding debt relief to include poor countries who
were not eligible for inclusion in the Enhanced
HIPC Initiative (as defined in section 2(b)(1));
(2) options for burden-sharing among donor
countries and multilateral institutions of costs asso-
ciated with expanding debt relief; and
(3) options, in addition to the Enhanced HIPC
Initiative (as so defined), to ensure debt sustain-
ability in poor countries, particularly in cases when
the poor country has suffered an external economic
shock or a natural disaster.
(b) SPECIFIC
OPTIONS
TO
BE
CONSIDERED.—
Among the options for expansion of debt relief, consider-
ation should be given to making eligible for the relief poor
countries for which outstanding public and publicly guar-
anteed debt requires annual payments in excess of 10 per-
cent of the amount of the annual current revenues received
by the countries from internal sources.
SEC. 4. DEBT RELIEF FOR THE POOREST COUNTRIES.
(a) AUTHORITY TO REDUCE DEBT.—The President
may reduce amounts owed to the United States (or any
agency of the United States) by an eligible country as a
result of—
(1) guarantees issued under sections 221 and
222 of the Foreign Assistance Act of 1961;
(2) credits extended or guarantees issued under
the Arms Export Control Act; or
(3) any obligation or portion of such obligation,
to pay for purchases of United States agricultural
commodities guaranteed by the Commodity Credit
Corporation under export credit guarantee programs
authorized pursuant to section 5(f) of the Com-
modity Credit Corporation Charter Act of June 29,
1948, section 4(b) of the Food for Peace Act of
1966, or section 202 of the Agricultural Trade Act
of 1978.
(b) LIMITATIONS.—(1) The authority provided by
subsection (a) may be exercised only to implement multi-
lateral official debt relief and referendum agreements,
commonly referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a) may be
exercised only in such amounts or to such extent as is pro-
vided in advance by appropriations Acts.
(3) The authority provided by subsection (a) may be
exercised only with respect to countries with heavy debt
burdens that are eligible to borrow from the International
Development Association, but not from the International
Bank for Reconstruction and Development, commonly re-
ferred to as ‘‘IDA-only’’ countries.
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country
whose government—
(1) does not have an excessive level of military
expenditures;
(2) has not repeatedly provided support for acts
of international terrorism and is not failing to co-
operate with the United States on efforts to combat
international terrorism;
(3) is not failing to cooperate on international
narcotics control matters;
(4) (including its military or other security
forces) does not engage in a consistent pattern of