I 
108TH CONGRESS 
1ST SESSION H. R. 1376
To improve the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 20, 2003
Mr. SMITH of New Jersey (for himself, Mr. FRANK of Massachusetts, Mr. 
LEACH, Mr. LANTOS, Mr. SHAYS, Mr. BACHUS, and Mrs. MALONEY) in-
troduced the following bill; which was referred to the Committee on Fi-
nancial Services, and in addition to the Committee on International Rela-
tions, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To improve the Enhanced Heavily Indebted Poor Countries 
(HIPC) Initiative.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. AUTHORIZATIONS OF APPROPRIATIONS FOR 
THE HIPC TRUST FUND. 
(a) AUTHORIZATION TO MEET FINANCING GAP IN 
THE ENHANCED HIPC INITIATIVE.—In order to meet the 
President’s commitment to fund the United States share 
of the additional financing needs of the current HIPC pro-
gram, there are authorized to be appropriated to the 
President $75,000,000 for fiscal year 2004, for payment 
to the Heavily Indebted Poor Countries Trust Fund ad-
ministered by the International Bank for Reconstruction 
and Development. 
(b) ADDITIONAL AUTHORIZATION
FOR FUNDING 
CONDITIONED UPON IMPROVEMENT OF THE ENHANCED 
HIPC INITIATIVE.—In addition to the amounts author-
ized to be appropriated under subsection (a), on a deter-
mination by the Secretary of the Treasury that the agree-
ment described in section 1625 of the International Finan-
cial Institutions Act has been reached, there are author-
ized to be appropriated to the President such sums as may 
be necessary for payment to the Heavily Indebted Poor 
Countries Trust Fund administered by the International 
Bank for Reconstruction and Development to meet the ad-
ditional financing needs of the Enhanced HIPC Initiative 
that result from the implementation of the agreement. 
SEC. 2. IMPROVEMENT OF THE ENHANCED HIPC INITIA-
TIVE. 
Title XVI of the International Financial Institutions 
Act (22 U.S.C. 262p–262p–5) is amended by adding at 
the end the following new section:
‘‘SEC. 1625. IMPROVEMENT OF THE ENHANCED HIPC INI-
TIATIVE. 
‘‘(a) IN GENERAL.—In order to ensure that the En-
hanced HIPC Initiative achieves the objective of substan-
tially increasing resources available for human develop-
ment and poverty reduction in heavily indebted poor coun-
tries, the Secretary of the Treasury shall immediately 
commence efforts within the Paris Club of Official Credi-
tors, as well as the International Bank for Reconstruction 
and Development (World Bank), the International Mone-
tary Fund, and other appropriate multilateral develop-
ment institutions, to reach an agreement to modify the 
Enhanced HIPC Initiative so that the Initiative is carried 
out in accordance with the provisions set forth in sub-
section (b). 
‘‘(b) MODIFICATIONS.—The provisions set forth in 
this subsection are the following: 
‘‘(1) LEVEL OF EXPORTS AND REVENUES.—
‘‘(A) IN GENERAL.—The amount of debt 
stock reduction approved for a country eligible 
for debt relief under the Enhanced HIPC Ini-
tiative shall be sufficient to reduce, for at least 
each year through 2006, or each of the first 3 
years after the Decision Point, whichever is 
later—
‘‘(i) the net present value of the out-
standing 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 De-
cision Point; and 
‘‘(ii) the annual payments due on such 
public and publicly guaranteed debt to not 
more than—
‘‘(I) 10 percent or, in the case of 
a country suffering a public health 
crisis, not more than 5 percent, of the 
amount of the annual current reve-
nues received by the country from in-
ternal sources; or 
‘‘(II) a percentage of gross na-
tional product or other benchmark 
which will yield a result substantially 
equivalent to that which would be 
achieved through application of sub-
clause (I). 
‘‘(B) LIMITATION.—In financing the objec-
tives of the Enhanced HIPC Initiative, an 
international financial institution shall give pri-
ority to using its own resources.
‘‘(2) RELATION TO POVERTY AND THE ENVI-
RONMENT.—The debt cancellation under the En-
hanced HIPC Initiative shall not be conditioned on 
any agreement by an impoverished country to imple-
ment or comply with policies that deepen poverty or 
degrade the environment, including any policy 
that—
‘‘(A) implements or extends user fees on 
primary education or primary health care, in-
cluding prevention and treatment efforts for 
HIV/AIDS, tuberculosis, malaria, and infant, 
child, and maternal well-being; 
‘‘(B) provides for increased cost recovery 
from poor people to finance basic public services 
such as education, health care, or sanitation; 
‘‘(C) would have the effect of increasing 
the cost to consumers with incomes of less than 
$2.00 per day for access to clean drinking 
water through—
‘‘(i) decreased public subsidy for 
water supply, treatment, disposal, distribu-
tion, or management; or 
‘‘(ii) reduced intrasectoral or intersec-
toral subsidization of residential water con-
sumers with incomes of less than $2.00 per 
day; or 
‘‘(D) undermines workers’ ability to exer-
cise effectively their internationally recognized 
worker rights, as defined under section 526(e) 
of the Foreign Operations, Export Financing 
and Related Programs Appropriations Act, 
1995 (22 U.S.C. 262p–4p). 
‘‘(3) FOREIGN
GOVERNMENT
POLICIES.—A 
country shall not be eligible for cancellation of debt 
under the Enhanced HIPC Initiative if the govern-
ment of the country—
‘‘(A) supports acts of international ter-
rorism, as determined by the Secretary of State 
under section 6(j)(1) of the Export Administra-
tion 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)); 
‘‘(B) engages in gross violations of inter-
nationally recognized human rights, such as 
torture (as defined in section 2340 of title 18, 
United States Code) or violations of the Con-
vention Against Torture and Other Cruel, Inhu-
mane, or Degrading Treatment or Punishment; 
or