serving the gains of debt relief for low-income debtor 
countries; 
‘‘(2) provide that the external financing needs of 
low-income countries are met primarily through 
grant financing rather than new lending; 
‘‘(3) seek the international adoption of a binding 
legal framework on new lending that— 
‘‘(A) guarantees that no creditor can take or 
expect to take financial advantage of acquired or 
newly awarded debt relief through the terms and 
rates of such lending to beneficiary countries; 
‘‘(B) is binding on all creditors, whether 
multilateral, bilateral or private; 
‘‘(C) foresees, as a sanction for creditors 
who violate it, an equitable share in the burden 
of the losses from any future debt relief needed by 
the sovereign debtor to whom lending was irre-
sponsibly provided; 
‘‘(D) provides for decisions on irresponsible 
lending to be made by an entity independent 
from the creditors; and 
‘‘(E) enables fair opportunities for the peo-
ple of the affected country to be heard; and 
‘‘(4) support the development of responsible fi-
nancing standards where creditors and aid/loan re-
VerDate Aug 31 2005 
22:00 Apr 10, 2008
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H2634.RH
H2634
pwalker on PROD1PC71 with BILLS
cipients alike adhere to standards to assure trans-
parency and accountability to citizens, human rights, 
and the avoidance of new odious debt, while encour-
aging the development of renewable energy and help-
ing countries to transition away from dependence on 
oil. 
‘‘(d) GAO AUDIT OF DEBT PORTFOLIOS OF COUN-
TRIES WITH QUESTIONABLE LOANS.— 
‘‘(1) IN GENERAL.—The Comptroller General of 
the United States shall undertake an audit of the debt 
portfolios of previous governments in countries such 
as the Democratic Republic of Congo and South Afri-
ca, where there is significant evidence that odious, on-
erous, or illegal loans were made to the government. 
Each such audit shall— 
‘‘(A) consider debt owed to the World Bank, 
the IMF, and the other international financial 
institutions (as so defined), export credit debts 
owed to governments, and debts owed to commer-
cial creditors, and assess whether or not past in-
vestments produced the intended results; 
‘‘(B) investigate the process by which the 
loans were contracted, how the funds were used, 
and determine whether United States or inter-
national laws were violated in the contraction of 
VerDate Aug 31 2005 
22:00 Apr 10, 2008
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H2634.RH
H2634
pwalker on PROD1PC71 with BILLS
these loans, and whether any of the loans were 
odious or onerous; and 
‘‘(C) be planned and executed in a trans-
parent and consultative manner, engaging con-
gressional bodies and civil society groups in the 
countries. 
‘‘(2) REPORT.—Within 2 years after the date of 
the enactment of this section, the Comptroller General 
of the United States shall prepare and submit to the 
Committees on Financial Services and on Foreign Af-
fairs of the House of Representatives and the Commit-
tees on Banking, Housing, and Urban Affairs and on 
Foreign Relations of the Senate a report that contains 
the results of the audits undertaken under paragraph 
(1). 
‘‘(e) AVAILABILITY
ON
TREASURY
DEPARTMENT 
WEBSITE OF REMARKS OF UNITED STATES EXECUTIVE DI-
RECTORS AT MEETINGS OF INTERNATIONAL FINANCIAL IN-
STITUTIONS’ BOARDS OF DIRECTORS.—The Secretary of the 
Treasury shall make available on the website of the Depart-
ment of the Treasury the full record of the remarks of the 
United States Executive Director at meetings of the boards 
of directors of the International Monetary Fund, the World 
Bank, and the other international financial institutions (as 
so defined), about cancellation or reduction of debts owed 
VerDate Aug 31 2005 
22:00 Apr 10, 2008
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H2634.RH
H2634
pwalker on PROD1PC71 with BILLS
to the institution involved, with redaction by the Secretary 
of the Treasury of material deemed too sensitive for public 
distribution, but showing the topic, amount of material re-
dacted, and reason for the redaction. 
‘‘(f) REPORT FROM THE COMPTROLLER GENERAL.— 
Within 1 year after the date of the enactment of this section, 
the Comptroller General of the United States shall prepare 
and submit to the Committees on Financial Services and 
on Foreign Affairs of the House of Representatives and the 
Committees on Banking, Housing, and Urban Affairs and 
on Foreign Relations of the Senate a report on the avail-
ability of the ongoing operations, procedures, and accounts 
of the IMF, the World Bank, and the other international 
financial institutions (as so defined) for canceling the debt 
of eligible low-income countries. 
‘‘(g) ANNUAL REPORTS FROM THE PRESIDENT.—Not 
later than December 31 of each year, the President shall 
submit to the Committees on Financial Services and on 
Foreign Affairs of the House of Representatives and the 
Committees on Foreign Relations and on Banking, Hous-
ing, 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 accom-
plishing the purposes of this section, for the prior fiscal 
year. The report shall include a list of the countries that 
VerDate Aug 31 2005 
22:00 Apr 10, 2008
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H2634.RH
H2634
pwalker on PROD1PC71 with BILLS
have received debt cancellation, a list of the countries whose 
request for debt cancellation has been denied and the reasons 
therefor, and a list of the countries whose requests for debt 
cancellation are under consideration. 
‘‘(h) ELIGIBLE LOW-INCOME COUNTRY DEFINED.—In 
this section, the term ‘eligible low-income country’ means 
a country— 
‘‘(1) that is eligible for financing from the Inter-
national Development Association but not the World 
Bank, and does not qualify for debt relief under the 
Enhanced HIPC Initiative (as defined in section 
1625(e)(3)) and under the Multilateral Debt Relief 
Initiative; 
‘‘(2) that has transparent and effective budget 
execution and public financial management systems 
which ensure that the savings from debt relief are 
spent on reducing poverty; 
‘‘(3) the government of which does not have an 
excessive level of military expenditures; 
‘‘(4) the government of which has not repeatedly 
provided support for acts of international terrorism, 
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)); 
VerDate Aug 31 2005 
22:00 Apr 10, 2008
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H2634.RH
H2634
pwalker on PROD1PC71 with BILLS