1998 Supplemental Appropriations Act for the International Monetary Fund

That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the International Monetary Fund for the fiscal year 
ending September 30, 1998, and for other purposes, namely:

                    MULTILATERAL ECONOMIC ASSISTANCE

                  funds appropriated to the president

                  loans to international monetary fund

                       new arrangements to borrow

    For loans to the International Monetary Fund (Fund) under the New 
Arrangements to Borrow, the dollar equivalent of 2,462,000,000 Special 
Drawing Rights, to remain available until expended; in addition, up to 
the dollar equivalent of 4,250,000,000 Special Drawing Rights 
previously appropriated by the Act of November 30, 1983 (Public Law 98-
181), and the Act of October 23, 1962 (Public Law 87-872), for the 
General Arrangements to Borrow, may also be used for the New 
Arrangements to Borrow.

                          united states quota

    For an increase in the United States quota in the International 
Monetary Fund, the dollar equivalent of 10,622,500,000 Special Drawing 
Rights, to remain available until expended.

                           GENERAL PROVISIONS

    Section 101. Conditions for the Use of Quota Resources.--(a) None 
of the funds appropriated in this Act under the heading ``United States 
Quota, International Monetary Fund'' may be obligated, transferred or 
made available to the International Monetary Fund until 30 days after 
the Secretary of the Treasury certifies that the Board of Executive 
Directors of the Fund have agreed by resolution that stand-by 
agreements or other arrangements regarding the use of Fund resources 
shall include provisions requiring the borrower--
            (1) to comply with the terms of all international trade 
        obligations and agreements of which the borrower is a 
        signatory;
            (2) to eliminate the practice or policy of government 
        directed lending or provision of subsidies to favored 
        industries, enterprises, parties, or institutions; and
            (3) to guarantee non-discriminatory treatment in debt 
        resolution proceedings between domestic and foreign creditors, 
        and for debtors and other concerned persons.
    (b) Subsequent to the certification provided in subsection (a), in 
conjunction with the annual submission of the President's budget, the 
Secretary of the Treasury shall report to the appropriate committees on 
the implementation and enforcement of the provisions in subsection (a).
    Sec. 102. Transparency and Oversight.--(a) Not later than 30 days 
after enactment of this Act, the Secretary of the Treasury shall 
certify to the appropriate committees that the Board of Executive 
Directors of the International Monetary Fund Board has agreed to 
provide timely access by the Comptroller General to information and 
documents relating to the Fund's operations, program and policy reviews 
and decisions regarding stand-by agreements and other uses of the 
Fund's resources.
    (b) The Secretary of the Treasury shall direct, and the U.S. 
Executive Director to the International Monetary Fund shall agree to--
            (1) provide any documents or information available to the 
        Director that are requested by the Comptroller General;
            (2) request from the Fund any documents or material 
        requested by the Comptroller General; and
            (3) use all necessary means to ensure all possible access 
        by the Comptroller General to the staff and operations of the 
        Fund for the purposes of conducting financial and program 
        audits.
    (c) The Secretary of the Treasury, in consultation with the 
Comptroller General and the U.S. Executive Director of the Fund, shall 
develop and implement a plan to obtain timely public access to 
information and documents relating to the Fund's operations, programs 
and policy reviews and decisions regarding stand-by agreements and 
other uses of the Fund's resources.
    (d) No later than July 1, 1998 and, not later than March 1 of each 
year thereafter, the Secretary of the Treasury shall submit a report to 
the appropriate committees on the status of timely publication of 
Letters of Intent and Article IV consultation documents and the 
availability of information referred to in (c).
    Sec. 103. Advisory Commission.--(a) The President shall establish 
an International Financial Institution Advisory Commission (hereafter 
``Commission'').
    (b) The Commission shall include at least five former United States 
Secretaries of the Treasury.
    (c) Within 180 days, the Commission shall report to the appropriate 
committees on the future role and responsibilities, if any, of the 
International Monetary Fund and the merit, costs and related 
implications of consolidation of the organization, management, and 
activities of the International Monetary Fund, the International Bank 
for Reconstruction and Development and the World Trade Organization.
    Sec. 104. Bretton Woods Conference.--Not later than 180 days after 
the Commission reports to the appropriate committees, the President 
shall call for a conference of representatives of the governments of 
the member countries of the International Monetary Fund, the 
International Bank for Reconstruction and Development and the World 
Trade Organization to consider the structure, management and activities 
of the institutions, their possible merger and their capacity to 
contribute to exchange rate stability and economic growth and to 
respond effectively to financial crises.
    Sec. 105. Reports.--(a) Following the extension of a stand-by 
agreement or other uses of the resources by the International Monetary 
Fund, the Secretary of the Treasury, in consultation with the U.S. 
Executive Director of the Fund, shall submit a report to the 
appropriate committees providing the following information--
            (1) the borrower's rules and regulations dealing with 
        capitalization ratios, reserves, deposit insurance system and 
        initiatives to improve transparency of information on the 
        financial institutions and banks which may benefit from the use 
        of the Fund's resources;
            (2) the burden shared by private sector investors and 
        creditors, including commercial banks in the Group of Seven 
        Nations, in the losses which have prompted the use of the 
        Fund's resources;
            (3) the Fund's strategy, plan and timetable for completing 
        the borrower's pay back of the Fund's resources including a 
        date by which the borrower will be free from all international 
        institutional debt obligation; and
            (4) the status of efforts to upgrade the borrower's 
        national standards to meet the Basle Committee's Core 
        Principles for Effective Banking Supervision.
    (b) Following the extension of a stand-by agreement or other use of 
the Fund's resources, the Secretary of the Treasury shall report to the 
appropriate committees in conjunction with the annual submission of the 
President's budget, an account of the direct and indirect institutional 
recipients of such resources: Provided, That this account shall include 
the institutions or banks indirectly supported by the Fund through 
resources made available by the borrower's Central Bank.
    (c) Not later than 30 days after the enactment of this Act, the 
Secretary shall submit a report to the appropriate committees of 
Congress providing the information requested in paragraphs (a) and (b) 
for the countries of South Korea, Indonesia, Thailand and the 
Philippines.
    Sec. 106. Certifications.--(a) The Secretary of the Treasury shall 
certify to the appropriate committees that the following conditions 
have been met--
            (1) No International Monetary Fund resources have resulted, 
        directly or indirectly, in support of the Korean semiconductor, 
        steel, automobile, or textile and apparel industries in any 
        form;
            (2) Neither the Korean government, nor the Fund has 
        guaranteed or underwritten the private loans of Korean 
        semiconductor, steel, automobile, or textile and apparel 
        manufacturers; and
            (3) Officials from the Fund and the Department of the 
        Treasury have monitored the implementation of the Corporate 
        Governance provisions contained in Republic of Korea's 
        stabilization program of December 4, 1997, and all of the 
        conditions have either been met, or the Korean government has 
        committed itself to fulfill all of these conditions according 
        to an explicit timetable for completion; which timetable has 
        been provided to and approved by the Fund and the Department of 
        the Treasury.
    (b) Such certifications shall be made 14 days prior to the 
disbursement of any Fund resources to the borrower.
    (c) The Secretary of the Treasury shall instruct the United States 
Executive Director of the International Monetary Fund to use the voice 
and vote of the Executive Director to oppose disbursement of further 
funds if such certification is not given.
    (d) Such certifications shall continue to be made on an annual 
basis as long as Fund contributions continue to be outstanding to the 
borrower country.
    Sec. 107. Definitions.--For the purposes of this Act, ``appropriate 
committees'' includes the Appropriations Committee, the Committee on 
Foreign Relations and the Committee on Banking, Housing and Urban 
Affairs of the Senate and the Committee on Appropriations and the 
Committee on Banking and Financial Services in the House of 
Representatives.
    This Act may be cited as the ``1998 Supplemental Appropriations Act 
for the International Monetary Fund''.

Summary: 1998 Supplemental Appropriations Act for the International Monetary Fund - Makes supplemental appropriations to the International Monetary Fund (IMF) for FY 1998 for:  (1) loans to the IMF under the New Arrangements to Borrow (equivalent to a specified amount of Special Drawing Rights); and (2) an increase in the U.S. IMF quota of Special Drawing Rights.  Authorizes the use for the New Arrangements to Borrow of a specified amount of previously appropriated IMF Special Drawing Rights for the General Arrangements to Borrow. 
(Sec. 101) Prohibits funds appropriated for the U.S. IMF quota from being obligated, transferred, or made available to the IMF until 30 days after the Secretary of the Treasury certifies, to the appropriate congressional committees, that the IMF Board of Executive Directors have agreed by resolution that stand-by agreements or other arrangements regarding the use of IMF resources shall include provisions requiring a borrower to:  (1) comply with the terms of all of its international trade obligations and agreements; (2) eliminate the practice of government directed lending or provision of subsidies to favored industries, enterprises, parties, or institutions; and (3) guarantee non-discriminatory treatment in debt resolution proceedings between domestic and foreign creditors, and for debtors and other concerned persons. 
(Sec. 102) Directs the Secretary to certify to the appropriate congressional committees that the IMF Board has agreed to provide timely access (transparency) by the Comptroller General to information and documents relating to IMF operations, program and policy reviews, and decisions regarding stand-by agreements and other uses of its resources. 
Requires the Secretary to direct, and the IMF U.S. Executive Director to agree, to provide access by the Comptroller General to IMF documents, information, and operations. 
(Sec. 103) Directs the President to establish an International Financial Institution Advisory Commission, which shall report to the appropriate congressional committees on the implications of consolidating the activities of the IMF, the International Bank for Reconstruction and Development (World Bank), and the World Trade Organization (WTO). 
(Sec. 104) Directs the President to call for a Bretton Woods Conference of representatives of the governments of the member countries of the IMF, the World Bank, and the WTO to consider the structure and activities of such institutions, their possible merger, and their capacity to contribute to exchange rate stability and economic growth, and to respond effectively to financial crises. 
(Sec. 105) Requires the Secretary of the Treasury, following extension of a stand-by agreement or other uses of resources by the IMF, to report to the appropriate congressional committees specified information about:  (1) borrower's rules and regulations; (2) the burden shared by private sector investors and creditors, including commercial banks in the Group of Seven Nations, in the losses which have prompted the use of IMF resources; (3) IMF strategy, plan and timetable for completing the borrower's pay back of IMF resources; and (4) the status of efforts to upgrade the borrower's national standards to meet the Basle Committee's Core Principles for Effective Banking Supervision. 
(Sec. 106) Directs the Secretary, before the release of IMF funds to a borrower country, to certify to the appropriate congressional committees that certain conditions have been met, including:  (1) no IMF resources have resulted, directly or indirectly, in support of the Korean semiconductor, steel, automobile, or textile and apparel industries; (2) neither the Korean Government nor the IMF has guaranteed or underwritten the private loans of such Korean industries; and (3) IMF and Department of the Treasury officials have monitored the implementation of the Corporate Governance provisions of the Republic of Korea's stabilization program of December 4, 1997, and all of the conditions have either been met, or the Korean Government has committed itself to fulfill these conditions according to an approved timetable for completion.