146
HR 5526 IH
TITLE VIII—INTERNATIONAL DEBT FORGIVE-
NESS AND INTERNATIONAL FINANCIAL INSTI-
TUTIONS REFORM
SEC. 801. DEBT RELIEF UNDER THE HEAVILY INDEBTED
POOR COUNTRIES (HIPC) INITIATIVE.
(a) REPEAL
OF LIMITATION
ON AVAILABILITY
OF
EARNINGS ON PROFITS OF NONPUBLIC GOLD SALES.—
Paragraph (1) of section 62 of the Bretton Woods Agree-
ments Act, as added by section 503(a) of H.R. 3425 of the
106th Congress (as enacted by section 1000(a)(5) of Public
Law 106–113 (113 Stat. 1536)), is amended—
(1) by adding ‘‘and’’ at the end of subparagraph
(B); and
(2) by striking subparagraph (D).
(b) CONTRIBUTIONS TO HIPC TRUST FUND.—
(1) AUTHORIZATION
OF
APPROPRIATIONS
FOR
CONTRIBUTIONS.—There is authorized to be appro-
priated for the period beginning October 1, 2000, and
ending September 30, 2003, $435,000,000 for pur-
poses of United States contributions to the Heavily
Indebted Poor Countries (HIPC) Trust Fund admin-
istered by the Bank.
(2) AVAILABILITY OF AMOUNTS.—Amounts ap-
propriated pursuant to the authorization of appro-
147
HR 5526 IH
priations in paragraph (1) shall remain available
until expended.
(c) CERTIFICATION REQUIRED.—
(1) IN GENERAL.—Except as provided in para-
graph (2), not later than 30 days after the date of en-
actment of this Act, the Secretary shall certify to the
appropriate congressional committees that the fol-
lowing requirements are satisfied:
(A) IMPLEMENTATION
BY
THE
BANK
OF
CERTAIN
POLICIES.—The 
Bank 
is
implementing—
(i) policies providing for the suspen-
sion of a loan if funds are being diverted for
purposes other than the purpose for which
the loan was intended;
(ii) policies seeking to prevent loans
from displacing private sector financing;
(iii) policies requiring that loans other
than project loans must be disbursed—
(I) on the basis of specific prior
reforms; or
(II) incrementally upon imple-
mentation of specific reforms after ini-
tial disbursement;
148
HR 5526 IH
(iv) policies seeking to minimize the
number of projects receiving financing that
would displace a population involuntarily
or be to the detriment of the people or cul-
ture of the area into which the displaced
population is to be moved;
(v) policies vigorously promoting open
markets and liberalization of trade in goods
and services;
(vi) policies providing that financing
by the Bank concentrates chiefly on projects
and programs that promote economic and
social progress rather than short-term li-
quidity financing; and
(vii) policies providing for the estab-
lishment of appropriate qualitative and
quantitative indicators to measure progress
toward graduation from receiving financing
on concessionary terms, including an esti-
mated timetable by which countries may
graduate over the next 15 years.
(B) IMPLEMENTATION
BY
THE
FUND
OF
CERTAIN
POLICIES.—The 
Fund 
is
implementing—
149
HR 5526 IH
(i) policies providing for the suspen-
sion of a financing if funds are being di-
verted for purposes other than the purpose
for which the financing was intended;
(ii) policies seeking to ensure that fi-
nancing by the Fund normally serves as a
catalyst for private sector financing and
does not displace such financing;
(iii) policies requiring that financing
must be disbursed—
(I) on the basis of specific prior
reforms; or
(II) incrementally upon imple-
mentation of specific reforms after ini-
tial disbursement;
(iv) policies vigorously promoting open
markets and liberalization of trade in goods
and services;
(v) policies providing that financing
by the Fund concentrates chiefly on short-
term balance of payments financing; and
(vi) policies providing for the use, in
conjunction with the Bank, of appropriate
qualitative and quantitative indicators to
measure progress toward graduation from
150
HR 5526 IH
receiving financing on concessionary terms,
including an estimated timetable by which
countries may graduate over the next 15
years.
(2) EXCEPTION.—In the event that the Secretary
cannot certify that a policy described in paragraph
(1)(A) or (1)(B) is being implemented, the Secretary
shall, not later than 30 days after the date of enact-
ment of this Act, submit a report to the appropriate
congressional committees on the progress, if any,
made by the Bank or the Fund in adopting and im-
plementing such policy, as the case may be.
SEC. 
802. 
STRENGTHENING 
PROCEDURES 
FOR 
MONI-
TORING USE OF FUNDS BY MULTILATERAL
DEVELOPMENT BANKS.
(a) IN GENERAL.—The Secretary shall instruct the
United States Executive Director of each multilateral devel-
opment bank to exert the influence of the United States to
strengthen the bank’s procedures and management controls
intended to ensure that funds disbursed by the bank to bor-
rowing countries are used as intended and in a manner
that complies with the conditions of the bank’s loan to that
country.
(b) PROGRESS EVALUATION.—Not later than 180 days
after the date of enactment of this Act, the Secretary shall
151
HR 5526 IH
submit to the appropriate congressional committees a report
evaluating the progress made toward achieving the objec-
tives of subsection (a), including a description of—
(1) any progress made in improving the super-
vision, monitoring, and auditing of programs and
projects supported by each multilateral development
bank, in order to identify and reduce bribery and cor-
ruption;
(2) any progress made in developing each multi-
lateral development bank’s priorities for allocating
anticorruption assistance;
(3) country-specific anticorruption programs
supported by each multilateral development bank;
(4) actions taken to identify and discipline mul-
tilateral development bank employees suspected of
knowingly being involved in corrupt activities; and
(5) the outcome of efforts to harmonize procure-
ment practices across all multilateral development
banks.
SEC. 803. REPORTS ON POLICIES, OPERATIONS, AND MAN-
AGEMENT OF INTERNATIONAL FINANCIAL IN-
STITUTIONS.
(a) ANNUAL REPORT ON FINANCIAL OPERATIONS.—
Beginning 180 days after the date of enactment of this Act,
or October 31, 2000, whichever is later, and on October 31