I
106TH CONGRESS
2D SESSION
H. R. 3750
To reform the International Monetary Fund.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 29, 2000
Mr. SAXTON introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To reform the International Monetary Fund.
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 ‘‘IMF Reform Act of
2000’’.
SEC. 2. REFORMS OF THE INTERNATIONAL MONETARY
FUND.
(a) IN GENERAL.—The Bretton Woods Agreements
Act (22 U.S.C. 286–286nn) is amended by adding at the
end the following:
‘‘(b) REQUIREMENTS.—The requirements of this sub-
section are the following:
‘‘(1) MARKET INTEREST RATES.—The Fund is
prohibited from charging, and does not charge, in-
terest on any loan unless the interest rate is—
‘‘(A) except as provided in subparagraph
(B), comparable to the rates of interest in the
financial markets, adjusted for risk; and
‘‘(B) is not less than 400 basis points
greater than the London InterBank Offered
Rate.
‘‘(2) 1-YEAR LOAN MATURITY.—The Fund is
prohibited from making, and has not made, a loan
with a maturity of more than 1 year after the date
on which made.
‘‘(3) LOANS ONLY TO ADDRESS CURRENCY CRI-
SES.—The Fund is prohibited from making, and
does not make, a loan except for the purpose of ad-
dressing a currency crisis.
‘‘(4) TERMINATION OF ESAF.—The Fund has
abolished the Enhanced Structural Adjustment Fa-
cility of the Fund.
‘‘(5) RELEASE AND REORGANIZATION OF OPER-
ATIONAL BUDGETS.—The Fund is required to, and
does, publish each operational budget of the Fund,
with any information that could disrupt financial
markets or affect adversely the national security of
any country redacted, and is required to, and does,
reorganize and restate the publicly available finan-
cial statements of the Fund in a manner consistent
with the Fund’s code of good practices, and with the
principles of transparency and accountability.
‘‘(6) NO LOANS FOR COUNTRIES FALSIFYING
LOAN DOCUMENTS.—The Fund is prohibited from
making, and has not made, a loan to or for the ben-
efit of the government of any country which the Sec-
retary of the Treasury or the Fund has found dur-
ing the preceding 5 years to have falsified any item
of information on any loan documentation submitted
to the Fund. In addition, the Fund is required to in-
stitute, and has implemented, accounting controls
and safeguards to curb potential misuse of loans by
borrowers, and in any case in which the controls and
safeguards are considered insufficient to prevent
such a misuse, the Fund is prohibited from making,
and has not made, a loan.
‘‘(7) EXHAUSTION OF OPPORTUNITIES FOR PRI-
VATE BORROWING BEFORE INSTITUTING QUOTA IN-
CREASE.—The Fund is required to exhaust, and has
exhausted, all feasible opportunities to borrow from
the private sector before instituting a quota increase
for the member countries of the Fund.
‘‘(c) WITHDRAWAL OF AUTHORITY TO MAKE LOANS
TO THE FUND; REDUCTION OF RESERVE TRANCHE POSI-
TION OF THE UNITED STATES.—If this subsection applies
for a fiscal year—
‘‘(1) the Secretary of the Treasury may not
make a loan under section 17 during the fiscal year;
and
‘‘(2) the Secretary of the Treasury shall cause
the reserve tranche position of the United States at
the Fund to be maintained at a level that is not
more than $5,000,000,000 less than the lesser of—
‘‘(A) in the case of the first fiscal year for
which this subsection applies, the level of the
reserve tranche position immediately before this
subsection applies; or
‘‘(B) in the case of any other fiscal year,
the level at which this subsection required the
reserve tranche position to be maintained dur-
ing the most recent prior fiscal year for which
this subsection applied.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect 3 years after the date of the
enactment of this section.
SEC. 3. END OF UNITED STATES PARTICIPATION IN AND
SUPPORT FOR THE ENHANCED STRUCTURAL
ADJUSTMENT 
FACILITY 
OF 
THE 
INTER-
NATIONAL MONETARY FUND.
(a) PROHIBITION ON FUTURE FUNDING.—No offi-
cer, employee, or agent of the United States may, directly
or indirectly, provide any thing of value to the Inter-
national Monetary Fund for the purpose of providing re-
sources to, or supporting the activities of the Enhanced
Structural Adjustment Facility or other concessional lend-
ing facility of the International Monetary Fund.
(b) VETO OF USE OF AVAILABLE FUNDS.—Section
5 of the Bretton Woods Agreements Act (22 U.S.C. 286c)
is further amended by adding at the end the following:
‘‘The director appointed to represent the United States
at the Fund shall use every effort to terminate the En-
hanced Structural Adjustment Facility of the Fund within
one year after the date of the enactment of this sentence.
No director appointed to represent the United States at
the Fund shall vote for any proposal to use resources of
the Enhanced Structural Adjustment Facility of the Fund
for any purpose, except for a proposal to abolish the Facil-
ity and return any remaining resources to the member
countries of the Fund in proportion to the quotas of such
countries during calendar year 1975, or to General Re-
sources of the Fund.’’.
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