well as improved transparency and supervision;
and
‘‘(E) the opening of domestic capital mar-
kets.
‘‘(3) A description of the degree to which the
countries requiring the financial stabilization pro-
grams have fully implemented reforms required by the
International Monetary Fund that are directed at
corporate governance and corporate structure, includ-
ing—
‘‘(A) making nontransparent conglomerate
practices more transparent through the applica-
tion of internationally accepted accounting prac-
tices, independent external audits, full disclosure,
and provision of consolidated statements; and
‘‘(B) ensuring that no government sub-
sidized support or tax privileges will be provided
to bail out individual corporations, particularly
in the semiconductor, steel, and paper industries.
‘‘(4) A description of the implementation of re-
form measures required by the International Mone-
tary Fund to deregulate and privatize economic activ-
ity by ending domestic monopolies, undertaking trade
liberalization, and opening up restricted areas of the
economy to foreign investment and competition.
‘‘(5) A detailed description of the trade policies
of the countries, including any unfair trade practices
or adverse effects of the trade policies on the United
States.
‘‘(6) A description of the extent to which the fi-
nancial stabilization programs have resulted in ap-
propriate burden-sharing among private sector credi-
tors, including rescheduling of outstanding loans by
lengthening maturities, agreements on debt reduction,
and the extension of new credit.
‘‘(7) A description of the extent to which the eco-
nomic adjustment policies of the International Mone-
tary Fund and the policies of the government of the
country adequately balance the need for financial sta-
bilization, economic growth, environmental protec-
tion, social stability, and equity for all elements of the
society.
‘‘(8) Whether International Monetary Fund in-
volvement in labor market flexibility measures has
had a negative effect on core worker rights, particu-
larly the rights of free association and collective bar-
gaining.
‘‘(9) A description of any pattern of abuses of
core worker rights in recipient countries.
‘‘(10) The amount, rate of interest, and disburse-
ment and repayment schedules of any funds disbursed
from the stabilization fund established under section
5302 of title 31, United States Code, in the form of
loans, credits, guarantees, or swaps, in support of the
financial stabilization programs.
‘‘(11) The amount, rate of interest, and disburse-
ment and repayment schedules of any funds disbursed
by the International Monetary Fund to the countries
in support of the financial stabilization programs.
‘‘(b) TIMING.—Not later than October 1, 1998, and
semiannually thereafter, the Secretary of the Treasury shall
submit to the Committees on Banking and Financial Serv-
ices and International Relations of the House of Represent-
atives and the Committees on Foreign Relations, and Bank-
ing, Housing, and Urban Affairs of the Senate a report on
the matters described in subsection (a).’’.
SEC. 402. REPORTS ON REFORMING THE ARCHITECTURE OF
THE INTERNATIONAL FINANCIAL SYSTEM.
(a) FINDINGS.—The Congress finds that, in order to
ensure that the International Monetary Fund does not be-
come the global lender of last resort to private sector cor-
porations and financial institutions, and in order to help
prevent future threats to the international financial system,
the Secretary of the Treasury and the Chairman of the
Board of Governors of the Federal Reserve System, working
with their counterparts in other countries and with inter-
national organizations as appropriate, should—
(1) seek to establish a broad set of international
transparency principles on accounting and disclosure
policies and practices covering, in particular, private
sector financial organizations;
(2) promote improvements in the provision by
both borrowers and lenders of timely and comprehen-
sive aggregate information on cross-border financial
stocks and flows;
(3) seek an international accord establishing
uniform minimum standards with respect to robust
banking and supervisory systems, which individual
countries should be required to meet as a condition
for the establishment of subsidiaries, branches, or
other offices of banking institutions from their coun-
tries in the jurisdictions of the countries participat-
ing in the accord;
(4) immediately initiate with appropriate rep-
resentatives of the countries that are members of the
International Monetary Fund discussions aimed at
securing national treatment for United States inves-
tors in such countries; and
(5) seek to establish internationally acceptable
bankruptcy standards and should work particularly
to have International Monetary Fund recipient coun-
tries adopt such standards.
(b) REPORTS.—
(1) IN GENERAL.—The Secretary of the Treasury
shall prepare 3 reports on progress made toward
achieving the objectives outlined in subsection (a),
which shall describe the steps taken by the United
States, other members of the world community, and
the international financial institutions to strengthen
safeguards in the global financial system, including
measures to promote more efficient functioning of
global markets, by—
(A) helping to develop effective legal and
regulatory frameworks, including appropriate
bankruptcy and foreclosure mechanisms;
(B) increasing transparency and disclosure
by both the private and public sectors;
(C) strengthening prudential standards,
both globally and in individual economies;
(D) improving domestic policy manage-
ment;
(E) strengthening the role of the inter-
national financial institutions in financial crisis
prevention and management; and
(F) ensuring appropriate burden sharing by
the private sector, particularly commercial banks
and financial institutions, in the resolution of
crises.
(2) TIMING.—The Secretary of the Treasury
shall submit to the Committees on Banking and Fi-
nancial Services and International Relations of the
House of Representatives and the Committees on For-
eign Relations and Banking, Housing, and Urban Af-
fairs of the Senate 2 interim reports on the matters
described in paragraph (1), the first of which is due
by October 1, 1998, and the second of which is due
on April 1, 1999, and a final report on such matters,
which is due on October 1, 1999.
SEC. 403. ANNUAL REPORT AND TESTIMONY ON THE STATE
OF THE INTERNATIONAL FINANCIAL SYSTEM,
IMF REFORM, AND COMPLIANCE WITH IMF
AGREEMENTS.
Title XVII of the International Financial Institutions
Act (22 U.S.C. 262r–262r–2) is further amended by adding
at the end the following:
‘‘SEC. 1705. ANNUAL REPORT AND TESTIMONY ON THE
STATE OF THE INTERNATIONAL FINANCIAL
SYSTEM, IMF REFORM, AND COMPLIANCE
WITH IMF AGREEMENTS.
‘‘(a) REPORTS.—Not later than October 1 of each year,
the Secretary of the Treasury shall submit to the Committee
on Banking and Financial Services of the House of Rep-
resentatives and the Committee on Foreign Relations of the
Senate a written report on the progress (if any) made by
the United States Executive Director at the International
Monetary Fund in influencing the International Monetary
Fund to adopt the policies and reform its internal proce-
dures in the manner described in section 1503.
‘‘(b) TESTIMONY.—After submitting the report re-
quired by subsection (a) but not later than October 31 of
each year, the Secretary of the Treasury shall appear before
the Committee on Banking and Financial Services of the
House of Representatives and the Committee on Foreign Re-
lations of the Senate and present testimony on—
‘‘(1) any progress made in reforming the Inter-
national Monetary Fund;
‘‘(2) the status of efforts to reform the inter-
national financial system; and
‘‘(3) the compliance of countries which have re-
ceived assistance from the International Monetary
Fund with agreements made as a condition of receiv-
ing the assistance.’’.
SEC. 404. AUDITS OF THE INTERNATIONAL MONETARY
FUND.
Title XVII of the International Financial Institutions
Act (22 U.S.C. 262r–262r–2) is further amended by adding
at the end the following:
‘‘SEC. 1706. AUDITS OF THE INTERNATIONAL MONETARY
FUND.
‘‘(a) ACCESS TO MATERIALS.—Not later than 30 days
after the date of the enactment of this section, the Secretary
of the Treasury shall certify to the Committee on Banking
and Financial Services of the House of Representatives and
the Committee on Foreign Relations of the Senate that the
Secretary has instructed the United States Executive Direc-
tor at the International Monetary Fund to facilitate timely
access by the General Accounting Office to information and
documents of the International Monetary Fund needed by
the Office to perform financial reviews of the International
Monetary Fund that will facilitate the conduct of United
States policy with respect to the Fund.
‘‘(b) REPORTS.—Not later than June 30, 1999, and
annually thereafter, the Comptroller General of the United
States shall prepare and submit to the committees specified
in subsection (a) a report on the financial operations of
the Fund during the preceding year, which shall include—
‘‘(1) the current financial condition of the Inter-
national Monetary Fund;
‘‘(2) the amount, rate of interest, disbursement
schedule, and repayment schedule for any loans that
were initiated or outstanding during the preceding
calendar year, and with respect to disbursement
schedules, the report shall identify and discuss in de-
tail any conditions required to be fulfilled by a bor-
rower country before a disbursement is made;
‘‘(3) a detailed description of whether the trade
policies of borrower countries permit free and open
trade by the United States and other foreign countries
in the borrower countries;
‘‘(4) a detailed description of the export policies
of borrower countries and whether the policies may
result in increased export of their products, goods, or
services to the United States which may have signifi-
cant adverse effects on, or result in unfair trade prac-
tices against or affecting United States companies,
farmers, or communities;
‘‘(5) a detailed description of any conditions of
International Monetary Fund loans which have not
been met by borrower countries, including a discus-
sion of the reasons why such conditions were not met,
and the actions taken by the International Monetary
Fund due to the borrower country’s noncompliance;
‘‘(6) an identification of any borrower country
and loan on which any loan terms or conditions were
renegotiated in the preceding calendar year, including
a discussion of the reasons for the renegotiation and
any new loan terms and conditions; and
‘‘(7) a specification of the total number of loans
made by the International Monetary Fund from its
inception through the end of the period covered by the
report, the number and percentage (by number) of
such loans that are in default or arrears, and the
identity of the countries in default or arrears, and the
number of such loans that are outstanding as of the
end of period covered by the report and the aggregate
amount of the outstanding loans and the average
yield (weighted by loan principal) of the historical
and outstanding loan portfolios of the International
Monetary Fund.’’.