Inter-American Development Bank General Capital Increase Act of 2022
Bill: H.R.7726 | Sponsor: Del. Plaskett, Stacey E. (D-VI)
Policy area: International Affairs

Summary:
Inter-American Development Bank General Capital Increase Act of 2022
This bill directs the President to take actions to support a capital increase for the Inter-American Development Bank and authorizes the U.S. governor of the bank to vote in favor of increasing the bank's capital stock.
The bill also requires the Department of the Treasury and U.S. representatives to the bank to support efforts to help countries restructure debts resulting from loans by China's government.

To authorize the tenth general capital increase for the Inter-American 
               Development Bank, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Inter-American Development Bank 
General Capital Increase Act of 2022''.

SEC. 2. ADDRESSING CHINA'S SOVEREIGN LENDING PRACTICES IN LATIN AMERICA 
              AND THE CARIBBEAN.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) since 2005, the Government of the People's Republic of 
        China has expanded sovereign lending to governments in Latin 
        America and the Caribbean with loans that are repaid or 
        collateralized with natural resources or commodities;
            (2) several countries in Latin American and the Caribbean 
        that have received a significant amount of sovereign lending 
        from the Government of the People's Republic of China face 
        challenges in repaying such loans;
            (3) the Government of the People's Republic of China's 
        predatory economic practices and sovereign lending practices in 
        Latin America and the Caribbean negatively influence United 
        States national interests in the Western Hemisphere;
            (4) the Inter-American Development Bank, the premier 
        multilateral development bank dedicated to the Western 
        Hemisphere, should play a significant role supporting the 
        countries of Latin America and the Caribbean in achieving 
        sustainable and serviceable debt structures; and
            (5) a tenth general capital increase for the Inter-American 
        Development Bank would strengthen the Bank's ability to help 
        the countries of Latin America and the Caribbean achieve 
        sustainable and serviceable debt structures.
    (b) Support for a General Capital Increase.--The President shall 
take steps to support a tenth general capital increase for the Inter-
American Development Bank, including advancing diplomatic engagement to 
build support among member countries of the Bank for a tenth general 
capital increase for the Bank.
    (c) Tenth Capital Increase.--The Inter-American Development Bank 
Act (22 U.S.C. 283 et seq.) is amended by adding at the end the 
following:

``SEC. 42. TENTH CAPITAL INCREASE.

    ``(a) Vote Authorized.--The United States Governor of the Bank is 
authorized to vote in favor of a resolution to increase the capital 
stock of the Bank by $80,000,000,000 over a period not to exceed 5 
years.
    ``(b) Subscription Authorized.--
            ``(1) In general.--The United States Governor of the Bank 
        may subscribe on behalf of the United States to 1,990,714 
        additional shares of the capital stock of the Bank.
            ``(2) Limitation.--Any subscription by the United States to 
        the capital stock of the Bank shall be effective only to such 
        extent and in such amounts as are provided in advance in 
        appropriations Acts.
    ``(c) Limitations on Authorization of Appropriations.--
            ``(1) In general.--In order to pay for the increase in the 
        United States subscription to the Bank under subsection (b), 
        there is authorized to be appropriated $24,014,857,191 for 
        payment by the Secretary of the Treasury.
            ``(2) Allocation of funds.--Of the amount authorized to be 
        appropriated under paragraph (1)--
                    ``(A) $600,371,430 shall be for paid in shares of 
                the Bank; and
                    ``(B) $23,414,485,761 shall be for callable shares 
                of the Bank.''.
    (d) Addressing China's Sovereign Lending in the Americas.--The 
Secretary of the Treasury and the United States Executive Director to 
the Inter-American Development Bank shall use the voice, vote, and 
influence of the United States--
            (1) to advance efforts by the Bank to help countries 
        restructure debt resulting from sovereign lending by the 
        Government of the People's Republic of China in order to 
        achieve sustainable and serviceable debt structures; and
            (2) to establish appropriate safeguards and transparency 
        and conditionality measures to protect debt-vulnerable member 
        countries of the Inter-American Development Bank that borrow 
        from the Bank for the purposes of restructuring Chinese 
        bilateral debt held by such countries and preventing such 
        countries from incurring subsequent Chinese bilateral debt.
    (e) Briefings.--
            (1) Implementation.--Not later than 90 days after the date 
        of the enactment of this Act, and every 90 days thereafter for 
        6 years, the President shall provide to the Committee on 
        Foreign Relations of the Senate, the Committee on Finance of 
        the Senate, the Committee on Foreign Affairs of the House of 
        Representatives, and the Committee on Financial Services of the 
        House of Representatives a briefing detailing efforts to carry 
        out subsections (b) and (d) and the amendment made by 
        subsection (c).
            (2) Progress in achieving sustainable and serviceable debt 
        structures.--Not later than 180 days after the successful 
        completion of a tenth general capital increase for the Inter-
        American Development Bank, and every 180 days thereafter for a 
        period of 3 years, the President shall provide to the Committee 
        on Foreign Relations of the Senate, the Committee on Finance of 
        the Senate, the Committee on Foreign Affairs of the House of 
        Representatives, and the Committee on Financial Services of the 
        House of Representatives a briefing on efforts by the Bank to 
        support countries in Latin American and the Caribbean in their 
        efforts to achieve sustainable and serviceable debt structures.
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