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

Bill: 117-hr-6549
Sponsor: full_name: Rep. Ocasio-Cortez, Alexandria [D-NY-14]
Introduced: 2022-02-01
Policy area: International Affairs
Subjects: Air quality

Asia

Cardiovascular and respiratory health

China

Climate change and greenhouse gases

Congressional oversight

Emergency medical services and trauma care

Foreign aid and international relief

Foreign loans and debt

Infectious and parasitic diseases

International monetary system and foreign exchange

International organizations and cooperation

Multilateral development programs
Latest action: action_date: 2022-02-01
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2022-02-01
action_desc: Introduced in House
text: <p>This bill requires the Department of the Treasury to support and advocate for debt relief for developing countries.</p> <p>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.)</p> <p>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. </p> <p>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. </p>

tv_txt: I 117th CONGRESS 2d Session H. R. 6549 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.

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.