Title: To provide support for international initiatives to provide debt relief to developing countries with unsustainable levels of debt, and for other purposes.
Policy area: International Affairs

Summary:
This bill requires the Department of the Treasury to support and advocate for debt relief for developing countries.
Treasury must engage with international financial institutions and creditors to advocate for support, implementation, and improvement of the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (DSSI) (and any successor framework or similar coordinated international debt treatment process). (The DSSI is an initiative established by the Group of 20, the informal grouping of 19 major economies and the European Union, that provides temporary debt restructuring for the world's poorest countries. The common framework is a framework endorsed by 39 creditors to provide permanent debt forgiveness.)
Treasury must also engage with international financial institutions and creditors to advocate for a comprehensive debt payment standstill for each participating debtor while the debtor's application for relief under the common framework and negotiations related to such relief are pending or ongoing.
Treasury must also order U.S. representatives to the International Monetary Fund and the World Bank to advocate and vote for such initiatives and policies without undermining the respective institution's ability to provide new and additional aid and assistance.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6549 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 6549

To provide support for international initiatives to provide debt relief 
  to developing countries with unsustainable levels of debt, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2022

Ms. Ocasio-Cortez introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To provide support for international initiatives to provide debt relief 
  to developing countries with unsustainable levels of debt, 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. SUPPORT FOR INTERNATIONAL INITIATIVES TO PROVIDE DEBT RELIEF 
              TO DEVELOPING COUNTRIES WITH UNSUSTAINABLE LEVELS OF 
              DEBT.

    (a) Debt Relief.--The Secretary of the Treasury, in consultation 
with the Secretary of State, shall--
            (1) engage with international financial institutions and 
        official and commercial creditors to advance support for prompt 
        and effective implementation and improvement of the Common 
        Framework for Debt Treatments beyond the Debt Service 
        Suspension Initiative (in this section referred to as the 
        ``Common Framework''), and any successor framework or similar 
        coordinated international debt treatment process through the 
        establishment and publication of clear and accountable--
                    (A) debt treatment benchmarks designed to achieve 
                debt sustainability for each participating debtor;
                    (B) standards for equitable burden sharing among 
                all creditors with material claims on each 
                participating debtor, without regard for their 
                official, private, or hybrid status;
                    (C) robust debt disclosure, including but not 
                limited to inter-creditor data sharing and a broad 
                presumption in favor of public disclosure of material 
                terms and conditions of claims on participating 
                debtors;
                    (D) expanded eligibility criteria to include all 
                countries with unsustainable levels of sovereign debt;
                    (E) standards for comprehensive creditor 
                participation consistent with robust application of the 
                policies of the International Monetary Funds relating 
                to lending into arrears; and
                    (F) consistent enforcement and improvement of the 
                policies of multilateral institutions relating to 
                asset-based and revenue-based borrowing by 
                participating debtors, and coordinated standards on 
                restructuring collateralized debt;
            (2) engage with international financial institutions and 
        official and commercial creditors to advance support for a 
        comprehensive and effective debt payment standstill for each 
        participating debtor from the time of its application for, and 
        until the completion of its negotiations under, the Common 
        Framework, or any successor framework or similar coordinated 
        international debt treatment process: provided, however, that 
        any such standstill should incentivize prompt and comprehensive 
        debt restructuring agreement and provide temporary cash flow 
        relief for the debtor, without exacerbating its vulnerability 
        to debt distress; and
            (3) instruct the United States Executive Director at the 
        International Monetary Fund and the United States Executive 
        Director at the World Bank to use the voice and vote of the 
        United States to advance the efforts described in paragraphs 
        (1) and (2), including by urging international financial 
        institutions to participate in debt relief, without undermining 
        their ability to continue to provide new and additional flows 
        of aid and assistance.
    (b) Reporting Requirement.--Not later than 120 days after the date 
of the enactment of this Act, and annually thereafter until the end of 
the COVID-19 pandemic, as determined by the World Health Organization, 
the Secretary of the Treasury, in coordination with the Secretary of 
State, shall submit to the Committees on Banking, Housing, and Urban 
Affairs and Foreign Relations of the Senate and the Committees on 
Financial Services and Foreign Affairs of the House of Representatives 
a report that describes--
            (1) actions that have been taken, in coordination with 
        international financial institutions, by official creditors, 
        including the government of, and state-owned enterprises in, 
        the People's Republic of China, and relevant commercial 
        creditor groups to advance debt relief for countries with 
        unsustainable debt that have sought relief under the Common 
        Framework, any successor framework or mechanism, or under any 
        other coordinated international arrangement for sovereign debt 
        restructuring;
            (2) any implementation challenges that hinder the ability 
        of the Common Framework to provide timely debt restructuring 
        for any country with unsustainable debt that seeks debt relief 
        or debt payment relief, including any refusal of any creditors 
        to participate in equitable burden sharing, including but not 
        limited to failure to share (or publish, as appropriate) all 
        material information needed to assess debt sustainability and 
        inter-creditor equity;
            (3) recommendations on how to address challenges identified 
        in paragraph (2);
            (4) any United States policy concerns with respect to 
        providing debt relief to specific countries; and
            (5) the transparency and accountability measures 
        established or proposed to ensure that resources freed up by 
        the debt relief described in paragraph (1) are used for 
        activities that respond to the health, economic, and social 
        effects of the COVID-19 pandemic, climate change resiliency, or 
        help ensure equitable recoveries and growth.
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