International Financial Institutions Mobilization Act of 2022
Bill: S.4617 | Sponsor: Sen. Menendez, Robert (D-NJ)
Policy area: International Affairs

Summary:
International Financial Institutions Mobilization Act of 2022
This bill authorizes support for international financial institutions, including by authorizing contributions and loans to the Poverty Reduction and Growth Trust or the Resilience and Sustainability Trust of the International Monetary Fund.

To authorize contributions to international financial institutions to 
 help build the resilience of member countries, 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 ``International Financial Institutions 
Mobilization Act of 2022''.

SEC. 2. STATEMENT OF POLICY ON UNITED STATES LEADERSHIP AT 
              INTERNATIONAL FINANCIAL INSTITUTIONS.

    It is the policy of the United States--
            (1) to recognize rising debt stock in emerging market and 
        developing countries as a national security and economic 
        security threat and raise its importance in multilateral fora;
            (2) to leverage the voice and vote of the United States at 
        international financial institutions to prevent future 
        unsustainable debt stocks in emerging market and developing 
        countries;
            (3) to promote rule-writing standards for transparency and 
        disclosure that hold both debtors and creditors accountable, 
        allow accurate debt sustainability assessments, and promote 
        better debt management;
            (4) to lead the international community in translating the 
        G20 Common Framework for Debt Treatments beyond the Debt 
        Service Suspension Initiative (commonly known as the ``Common 
        Framework'') into tangible action, including effective 
        standstill for debt payments and credit revisions for 
        petitioner countries and finalizing the debt treatment for the 
        petitioner countries, beginning with Chad, Ethiopia, and 
        Zambia;
            (5) to reduce timelines and increase confidence in outcomes 
        for the Common Framework so that private creditors continue to 
        provide sufficient finances to petitioner countries and other 
        countries witness the benefits of petitioning;
            (6) to expand the Common Framework and offer its financial 
        assistance to other heavily indebted lower-middle-income 
        countries, beyond those currently covered;
            (7) to cooperate with counterparts in the Group of Twenty 
        (G20), international financial institutions, private credit 
        rating agencies, and regulators to explore and develop new bond 
        and loan contract issuance standards that authorize temporary 
        suspensions of debt services to both private and public 
        creditors without triggering a default in crisis situations;
            (8) to engage with petitioner countries, before those 
        countries exhaust their reserves, to strategize their ascension 
        into the Common Framework and prevent further economic costs;
            (9) to leverage the voice and vote of the United States in 
        the International Monetary Fund and the World Bank so that the 
        Fund and the Bank complete preliminary assessments of the debt 
        relief needed by each country eligible for Common Framework 
        treatment before such countries petition for debt relief;
            (10) that assessments described in paragraph (9) should--
                    (A) include realistic growth and fiscal 
                projections;
                    (B) include implications of Common Framework debt 
                relief; and
                    (C) be based on accurate and comprehensive debt 
                data;
            (11) to support international financial institutions 
        lending into arrears for the Common Framework in the case that 
        private lenders fail to uphold their initial commitments;
            (12) to leverage the voice and vote of the United States at 
        international financial institutions to promote and finance 
        international initiatives to procure and deploy more affordable 
        and accessible COVID-19 vaccinations and treatments for 
        emerging market and developing countries; and
            (13) to address the near-term problems associated with the 
        pandemic-induced global recession and longer term problems of 
        unsustainable credit lending and borrowing that victimize 
        emerging market and developing countries.

SEC. 3. LOANS TO INTERNATIONAL MONETARY FUND FACILITIES AND TRUST 
              FUNDS.

    (a) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary of the Treasury for fiscal year 2023, 
        $20,000,000, for contribution to the Poverty Reduction and 
        Growth Trust or the Resilience and Sustainability Trust of the 
        International Monetary Fund.
            (2) Availability of amounts.--Amounts appropriated pursuant 
        to the authorization of appropriations under paragraph (1) 
        shall remain available until December 31, 2031.
    (b) Loans Authorized.--
            (1) In general.--The Secretary of the Treasury may make 
        loans to the Poverty Reduction and Growth Trust or the 
        Resilience and Sustainability Trust of the International 
        Monetary Fund.
            (2) Use of amounts.--Amounts described in paragraph (3) 
        shall be available--
                    (A) to cover the cost (as defined in section 502 of 
                the Congressional Budget Act of 1974 (2 U.S.C. 661a)) 
                of loans authorized under paragraph (1); and
                    (B) to subsidize gross obligations for the 
                principal amount of such loans, not to exceed 
                $21,000,000,000 in the aggregate.
            (3) Amounts described.--Amounts described in this paragraph 
        are--
                    (A) amounts appropriated pursuant to the 
                authorization of appropriations under subsection (a); 
                and
                    (B) amounts--
                            (i) appropriated under the heading 
                        ``Contributions to the International Monetary 
                        Fund Facilities and Trust Funds'' in any Act 
                        making appropriations for the Department of 
                        State, foreign operations, and related programs 
                        for a fiscal year before fiscal year 2023; and
                            (ii) available for obligation as of the 
                        date of the enactment of this Act.
            (4) Authorization of certain transactions.--The Exchange 
        Stabilization Fund established under section 5302 of title 31, 
        United States Code, and the financing account corresponding to 
        transactions with the International Monetary Fund are 
        authorized to enter into such transactions as are necessary to 
        effectuate loans authorized under paragraph (1).

SEC. 4. INTERNATIONAL DEVELOPMENT ASSOCIATION TWENTIETH REPLENISHMENT.

    The International Development Association Act (22 U.S.C. 284 et 
seq.) is amended by adding at the end the following:

``SEC. 32. TWENTIETH REPLENISHMENT.

    ``(a) In General.--The United States Governor of the International 
Development Association is authorized to contribute on behalf of the 
United States $3,500,000,000 to the twentieth replenishment of the 
resources of the Association, subject to obtaining the necessary 
appropriations.
    ``(b) Authorization of Appropriations.--In order to pay for the 
United States contribution provided for in subsection (a), there are 
authorized to be appropriated, without fiscal year limitation, 
$3,500,000,000 for payment by the Secretary of the Treasury.''.

SEC. 5. ASIAN DEVELOPMENT FUND TWELFTH REPLENISHMENT.

    The Asian Development Bank Act (22 U.S.C. 285 et seq.) is amended 
by adding at the end the following:

``SEC. 37. TWELFTH REPLENISHMENT.

    ``(a) In General.--The United States Governor of the Bank is 
authorized to contribute, on behalf of the United States, $177,440,000 
to the twelfth replenishment of the resources of the Fund, subject to 
obtaining the necessary appropriations.
    ``(b) Authorization of Appropriations.--In order to pay for the 
United States contribution provided for in subsection (a), there are 
authorized to be appropriated, without fiscal year limitation, 
$177,440,000 for payment by the Secretary of the Treasury.''.

SEC. 6. SUPPORT FOR INTER-AMERICAN DEVELOPMENT BANK GROUP REFORM AND 
              IDB INVEST CAPITAL INCREASE.

    (a) Support for Reform of Inter-American Development Bank Group.--
The Secretary of the Treasury shall instruct the United States 
Executive Director of the Inter-American Development Bank (in this 
section referred to as the ``Bank'') to use the voice and vote of the 
United States to take steps to advance operational and institutional 
reforms to improve the effectiveness of the Inter-American Development 
Bank Group and accelerate modernization efforts that strengthen its 
responsiveness to the varied development challenges of the countries of 
Latin America and the Caribbean, with particular attention to enhancing 
the region's ability to attract private investment, increase social 
inclusion, and raise climate ambition.
    (b) Support for New Business Model for IDB Invest.--
            (1) In general.--The Secretary shall instruct the United 
        States Executive Director of the Bank to use the voice and vote 
        of the United States to take steps to advance a proposal for a 
        new vision and business model for the Inter-American Investment 
        Corporation (commonly known as ``IDB Invest'') to increase 
        sustainable and inclusive private investment in Latin America 
        and the Caribbean, including--
                    (A) elaboration on the financial, resource, 
                operational, and institutional implications, such as 
                the potential recalibration of shareholding at the 
                Board of Directors of IDB Invest, of implementing the 
                new vision and business model; and
                    (B) as necessary, the redesign and modification of 
                the management of IDB Invest to reflect the new vision 
                and business model.
            (2) Contingent support for increase in capital stock of idb 
        invest.--
                    (A) In general.--If and when the Boards of 
                Directors of the Bank and the IDB Invest endorse a 
                proposal described in paragraph (1), the Secretary 
                shall commence negotiations for an increase in the 
                authorized capital stock of IDB Invest.
                    (B) Consultations.--The Secretary shall consult 
                with the Committee on Foreign Relations of the Senate 
                and the Committee on Financial Services of the House of 
                Representatives regarding the progress of any 
                negotiations described in subparagraph (A), including 
                with respect to anticipated timelines for such 
                negotiations.
    (c) Authorization to Subscribe to Additional Shares of Stock of IDB 
Invest.--
            (1) Sense of congress.--It is the sense of Congress that 
        the United States Governor to the Bank should use the voice and 
        vote of the United States to take steps--
                    (A) to redouble the commitment of the United States 
                to IDB Invest and the Inter-American Development Bank 
                Group; and
                    (B) to double the financial capacity of IDB Invest.
            (2) Authorization.--
                    (A) In general.--After a decision by the Board of 
                Governors of IDB Invest to increase the authorized 
                capital stock of IDB Invest, the United States Governor 
                is authorized to subscribe on behalf of the United 
                States to additional shares of stock in such amounts as 
                the Governor considers appropriate, subject to 
                subparagraph (B).
                    (B) Limitation.--The United States Governor may not 
                subscribe on behalf of the United States to additional 
                shares of stock in IDB Invest if such additional shares 
                would result in the share of stock held by the United 
                States in IDB Invest to exceed the share of stock held 
                by the United States in the Bank.
            (3) Report required.--
                    (A) In general.--Not later than 15 days after the 
                conclusion of negotiations described in subsection 
                (b)(2) and not less than 15 days before the United 
                States Governor subscribes on behalf of the United 
                States to additional shares of stock in IDB Invest 
                under paragraph (2), the Secretary shall submit to the 
                Committee on Foreign Relations of the Senate and the 
                Committee on Financial Services of the House of 
                Representatives a report setting forth--
                            (i) the amount of the proposed increase in 
                        the capital stock of IDB Invest;
                            (ii) the amount of shares proposed for 
                        subscription by the United States in connection 
                        with the proposed increase;
                            (iii) the share of the stock of IDB Invest 
                        held by each member country and the 
                        corresponding change in that share associated 
                        with the proposed increase;
                            (iv) the anticipated increased financing 
                        levels to be achieved by the proposed increase;
                            (v) the expected financial and operational 
                        impact of the proposed increase, including a 
                        description of relevant institutional reforms 
                        by IDB Invest; and
                            (vi) a description of whether the Bank and 
                        IDB Invest are successfully responding to the 
                        mandates outlined by their respective Boards of 
                        Governors in resolutions AG-7/22 and CII/AG-3/
                        22 of March 28, 2022.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to pay for the 
        subscription to additional shares of stock in IDB Invest 
        authorized by paragraph (2).
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