International Financial Institution Improvements Act of 2024

Bill: 118-hr-10059
Sponsor: full_name: Rep. Waters, Maxine [D-CA-43]
Introduced: 2024-10-25
Policy area: International Affairs
Latest action: action_date: 2024-10-25
text: Referred to the House Committee on Financial Services.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 10059 IN THE HOUSE OF REPRESENTATIVES October 25, 2024 Ms. Waters (for herself and Mrs. Beatty ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To enhance the operations and accountability of international financial institutions, strengthen support for low-income countries, and promote human rights and environmental standards in global financial projects.

1. Short title This Act may be cited as the International Financial Institution Improvements Act of 2024 . 2. Table of contents The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Title I—International financial institutions Sec. 101. Improvement of transparency in host nations. Sec. 102. Collaboration with civil society organizations. Sec. 103. United States leadership in debt forgiveness. Title II—Multilateral development banks Sec. 201. Amendment of the Articles of Agreement of the International Bank for Reconstruction and Development. Sec. 202. Aligning regulations for International Development Association securities. Sec. 203. United States coordination with the International Bank for Reconstruction and Development on human rights. Sec. 204. Timeliness of project preparation and execution by the International Bank for Reconstruction and Development and the International Development Association. Sec. 205. Protections for human rights, including LGBTQ+ persons. Sec. 206. IDA private sector lending window. Sec. 207. World Bank support for Haiti development. Sec. 208. World Bank feasibility study on a consortium bank in the Caribbean region. Sec. 209. Treasury report on accountability of the International Finance Corporation regarding Bridge Academies. Sec. 210. Shipping transparency risk mitigation. Sec. 211. World Bank support for efforts to deny safe havens for stolen assets. Sec. 212. Continuation of pause on World Bank disbursements and commitments to Burma. Sec. 213. Digital public infrastructure safeguards for international financial institutions projects and financing. Sec. 214. Independent accountability mechanisms. Sec. 215. Sexual exploitation and assault prevention. Sec. 216. Publication of loan agreements. Sec. 217. Enhancing transparency to combat corruption. Sec. 218. Adoption of anti-reprisal standards. Sec. 219. Reporting on human rights abuses in for-profit healthcare investments. Sec. 220. Combatting climate change. Sec. 221. United States advocacy for investment in projects that decrease reliance on Russia for agricultural commodities. Sec. 222. Urging the World Bank to eliminate harmful labor indicators from its Business Ready Report. Title III—International Monetary Fund Sec. 301. United States advocacy of debt suspension by International Monetary Fund for low-income and small countries that experience a climate-related disaster. Sec. 302. Loan conditionality. Sec. 303. Anti-corruption measures in lending agreements. Sec. 304. Fifth Deputy Managing Director. Sec. 305. Resilience and Sustainability Trust financing. Sec. 306. Quota increase. Sec. 307. New Arrangements to Borrow. Sec. 308. Annual report on surcharges. Title IV—Multilateral development bank capital increases Sec. 401. African Development Fund replenishment. Sec. 402. African Development Bank general callable capital increase. Sec. 403. European Bank for Reconstruction and Development general capital increase. I International financial institutions 101. Improvement of transparency in host nations Title XV of the International Financial Institutions Act (22 U.S.C. 262o–262o–4) is amended by adding at the end the following: 1506. Improvement of transparency in host nations The Secretary of the Treasury shall instruct the United States Executive Director at each international financial institution (as defined in section 1701(c)(2)) to encourage the respective institution to publicize the nature and purpose of any project, loan, investment, or other activity being pursued by the institution in any country, in simple terms designed to increase the understanding of the citizens of the country of the good work conducted by the institution and better explain who will benefit from the activity. . 102. Collaboration with civil society organizations (a) In general Title XV of the International Financial Institutions Act (22 U.S.C. 262o–262o–4) is further amended by adding at the end the following: 1507. Collaboration with civil society organizations (a) In general The Secretary of the Treasury shall instruct the United States Executive Director at each international financial institution (as defined in section 1701(c)(2)) to use the voice, vote, and influence of the United States to work to develop policies, to be approved by the Board of Executive Directors of the respective institution following a wide and extensive consultation with civil society, to require the staff of the institution to engage and consult in meaningful ways with civil society organizations (which should include women’s rights organizations; organizations working on economic, fiscal justice, and anti-corruption issues; and worker representatives, including care workers). (b) Specific policies (1) In general The policies developed pursuant to subsection (a) should— (A) articulate mechanisms for how to engage in different contexts and should be adapted to the purpose of the engagement, and set clear timelines and dates for consultations, taking into account project timelines; (B) require mission chiefs to meet with a wide range of stakeholders from civil society from conceptualization through completion of the project or loan involved; (C) should require the institution to set clear parameters, dates, and mechanisms to conduct genuine and meaningful consultations with civil society organization policy in the different review processes, and develop new policies and strategies. (2) International monetary fund In the case of the International Monetary Fund, as the Fund identifies and builds the work of the Fund on issues of critical importance to macroeconomic trends and policies, such as inequality, climate change, gender, and anti-corruption, the policies developed pursuant to subsection (a) should also provide for increasing engagement with civil society organizations with expertise in those issues. (c) Solicitation of views of civil society organizations The Secretary of the Treasury shall meet semiannually with a range of civil society organizations to solicit the views of the organizations on United States participation in and policies at the international financial institutions (as so defined). . (b) Report Within 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate a written report on the steps that the United States has taken to encourage collaboration with civil society organizations. 103. United States leadership in debt forgiveness (a) Report to the Congress Within 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate a written report that contains an assessment of— (1) the commonalities in successive debt-restructuring challenges across the frameworks and forums in which the United States participates, such as the types of debt relief that countries are able to provide, the terms of debt relief, and the reclassification of public debt as private debt by certain creditors; (2) the options available to provide debt relief to developing countries with an intransigent creditor while protecting United States taxpayer resources and ensuring that United States taxpayer money is not being used to fund payments to intransigent creditor nations; (3) the oversight and policy priorities of the United States in the negotiations in the debt-negotiation forums in which the United States participates; (4) the likelihood that low-income developing countries can gain or retain access to private capital markets even if the countries are in default on debt owed to sovereign creditors, and how to increase that likelihood; and (5) the implications for the economic and national security interests of the United States of the extent to which the debt of developing countries impedes or prevents the countries from taking on additional debt to finance future projects. (b) Advocation for integration of certain elements in the IMF review of the Debt Sustainability Framework for Low-Income Countries The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use the voice, vote, and influence of the United States to strongly advocate for the integration of the following elements in the review by the Fund of the Debt Sustainability Framework for Low-Income Countries: (1) Making informing debt restructuring processes an explicit purpose of the Framework. (2) Increasing the transparency of macroeconomic assumptions used to inform sustainability estimates and the rationale for the assumptions, including for projected gross domestic product, exports, fiscal balance, fiscal balance financing, and expected debt restructuring. (3) Including investments identified in national plans to meet the Sustainable Development Goals and the Nationally Determined Contributions under the Paris Climate Agreement in the fiscal balance projections and the impact of the investments on economic growth. (4) Ensuring that when debt restructuring is needed, it is sufficient to lower such country to no more than a moderate risk of debt distress even in medium-term stress scenarios. (5) Increasing the severity of stress scenarios to counteract the historical optimism bias of the Framework. (6) Adding the ratio of total (external plus domestic) public debt service to government revenue, as an indicator of debt sustainability. II Multilateral development banks 201. Amendment of the Articles of Agreement of the International Bank for Reconstruction and Development The Bretton Woods Agreements Act ( 22 U.S.C. 286–286aaa ) is amended— (1) by redesignating section 73 (as added by section 1901 of division P of Public Law 116–94 ) and section 74 as sections 74 and 75, respectively; and (2) by adding at the end the following: 76. Acceptance of amendment to the Articles of Agreement of the Bank The United States Governor of the Bank may accept on behalf of the United States an amendment to Articles of Agreement of the Bank to delete Article III, Section 3, of the Articles of Agreement of the Bank. . 202. Aligning regulations for International Development Association securities (a) In general The International Development Association Act ( 22 U.S.C. 284–284cc ) is amended by adding at the end the following: 32. Exemption of securities of the International Development Association from the securities laws (a) Exemption from securities laws; reports to Securities and Exchange Commission Any securities issued by the Association (including any guaranty by the Association, whether or not limited in scope) and any securities guaranteed by the Association as to both principal and interest shall be deemed to be exempted securities within the meaning of section 3(a)(2) of the Securities Act of 1933 ( 15 U.S.C. 77c(a)(2) ) and section 3(a)(12) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(12) ). The Association shall file with the Securities and Exchange Commission such annual and other reports with regard to such securities as the Commission shall determine to be appropriate in view of the special character of the Association and its operations and necessary in the public interest or for the protection of investors. (b) Authority of Securities and Exchange Commission To suspend exemption; reports to Congress The Securities and Exchange Commission, acting in consultation with the National Advisory Council on International Monetary and Financial Problems, is authorized to suspend the provisions of subsection (a) of this section at any time as to any or all securities issued or guaranteed by the Association during the period of such suspension. The Commission shall include in its annual reports to the Congress such information as it shall deem advisable with regard to the operations and effect of this section. . (b) Effective date The amendment made by subsection (a) shall take effect 30 days after the date of the enactment of this Act. 203. United States coordination with the International Bank for Reconstruction and Development on human rights The Secretary of the Treasury shall direct the United States Executive Director at the International Bank for Reconstruction and Development— (1) to use the voice, vote, and influence of the United States to oppose the provision of support for any project that has been turned down or withdrawn from by a department or agency of the United States due to environmental, social, or human rights concerns, unless the head of the department or agency, as the case may be, verifies to the United States Executive Director that all such concerns have been adequately resolved; and (2) to inform the Committee on Financial Services of the House of Representatives and the Committee on Finance of the Senate whenever the Bank agrees to provide support for any project that has been turned down or withdrawn from by such a department or agency. 204. Timeliness of project preparation and execution by the International Bank for Reconstruction and Development and the International Development Association (a) Use of voice, vote, and influence of the United States The Secretary of the Treasury shall direct the United States Executive Directors at the International Bank for Reconstruction and Development and the International Development Association to use the voice, vote, and influence of the United States to assess the cause of bottlenecks and identify potential efficiencies in project preparation and execution by the Bank and the Association. (b) Report on bottlenecks and potential efficiencies Within 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Finance of the Senate a report that describes the findings of the United States Executive Directors at the Bank and the Association regarding bottlenecks and potential efficiencies referred to in subsection (a). (c) Report on addressing bottlenecks and capitalizing on potential efficiencies Within 180 days after the date of the submission of the report required by subsection (b), the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Finance of the Senate a report that describes how the Secretary and the United States Executive Directors at the Bank and the Association are actively working to address any such bottlenecks and capitalize on any such potential efficiencies. 205. Protections for human rights, including LGBTQ+ persons (a) In general The Secretary of the Treasury shall direct the United States Executive Directors at the International Bank for Reconstruction and Development and the African Development Bank to use the voice and vote of the United States to oppose the provision by the respective bank of financial assistance for a project in any country that engages in human rights abuses, including of persons who identify as lesbian, gay, bisexual, transgender, queer, or questioning, or another diverse gender identity, as reported by the Department of State in the Annual Country Reports on Human Rights Practices, unless the bank makes public the details of how the project would be widely inclusive for the groups that the report has identified as marginalized. (b) National interest waiver The Secretary of the Treasury may waive the requirement of subsection (a) if the Secretary determines that it is in the national interest of the United States to do so. 206. IDA private sector lending window The Secretary of the Treasury shall direct the United States Executive Director at the International Development Association to use the voice and vote of the United States to oppose the provision by the International Development Association of any additional funding for the Private Sector Window in any replenishment round. 207. World Bank support for Haiti development The Secretary of the Treasury shall direct the United States Executive Directors at the International Bank for Reconstruction and Development and at the Inter-American Development Bank to use the voice, vote, and influence of the United States to advocate that the Bank create a long-term strategy and plan for economic development in Haiti, and, within 180 days after the date of the enactment of this Act, the Secretary shall submit to the Congress a written report analyzing Bank support for Haiti and how to strengthen the support. 208. World Bank feasibility study on a consortium bank in the Caribbean region The Secretary of the Treasury shall direct the United States Executive Director at the International Development Association to use the voice, vote, and influence of the United States to advocate that the Bank conduct a feasibility study on the development of a consortium bank model in the Caribbean region, with goals including managing issues related to financial access and correspondent banking services and reversing the trend of regional bank de-risking, and to complete the study within 180 days after the date of the enactment of this Act. 209. Treasury report on accountability of the International Finance Corporation regarding Bridge Academies (a) In general The Secretary of the Treasury shall submit to the Congress quarterly reports, in writing, on actions completed by the World Bank to compensate survivors of child sexual abuse with financial compensation and other relief, and on actions to hold accountable any entity involved in the Bridge Academies project. Each such report shall include details of any steps taken by the Corporation or the staff of the Corporation to block the Department of the Treasury from sharing with the Congress any information about the report or the Bridge Academies case. (b) Sunset Subsection (a) shall have no force or effect beginning 3 years after the date of the enactment of this section. 210. Shipping transparency risk mitigation The Secretary of the Treasury shall direct the United States Executive Director at the International Bank for Reconstruction and Development to use the voice, vote, and influence of the United States to encourage the Bank to require that the provision of financing for a shipping or port project include risk mitigation plans to minimize corruption and crime, including— (1) dedicated port security personnel plans which identify— (A) specialized compliance officers trained in international shipping regulations and sanctions compliance; (B) risk assessment teams responsible for evaluating potential threats and suspicious activities; and (C) on-site legal advisors to provide immediate guidance on compliance and legal issues; (2) enhanced vessel tracking systems, such as long-range identification and tracking systems, to provide continuous monitoring of vessel positions; (3) integrated information management systems, such as centralized data management platforms for real-time sharing of vessel and cargo information among port authorities, customs, and security agencies; (4) plans for regular compliance audits and inspections, including— (A) scheduled and random audits of shipping documentation, cargo, and vessel operations to ensure adherence to regulations; (B) comprehensive inspection protocols for high-risk shipments, including physical checks and verification of cargo manifests; and (C) personnel trained in verifying the origin of petroleum and petroleum products and their blends and grades, and in corroborating certificates of origin for oil cargos; (5) community and stakeholder engagement plans, including— (A) public awareness campaigns to educate local communities and port workers about the importance of shipping transparency and compliance; and (B) collaboration with industry stakeholders to develop and implement best practices for risk mitigation and compliance; (6) technology-driven surveillance capacity, including satellite imagery for remote monitoring of port activities and vessel movements; and (7) robust reporting and whistleblower programs, including— (A) confidential reporting channels for employees and stakeholders to report suspicious activities without fear of retaliation; and (B) incentive programs to encourage the reporting of compliance breaches and illicit activities. 211. World Bank support for efforts to deny safe havens for stolen assets The Secretary of the Treasury shall direct the United States Executive Director at the International Bank for Reconstruction and Development to use the voice and vote of the United States to advocate that the Bank work internally and with partner organizations to support international efforts to deny safe havens for stolen assets and promote asset recovery to return assets to their legitimate owners. 212. Continuation of pause on World Bank disbursements and commitments to Burma The Secretary of the Treasury shall direct the United States Executive Director at the International Bank for Reconstruction and Development to use the voice and vote of the United States to continue the pause by the Bank on disbursements and the making of new financing commitments to the Government of Burma, which was initiated after a military coup overthrew the democratically elected Government of Burma in 2021, unless the Secretary of the Treasury determines that it is not in the public interest to do so. 213. Digital public infrastructure safeguards for international financial institutions projects and financing (a) Determination of applicability of safeguards The Secretary of the Treasury shall convene meetings of the heads of such Federal agencies, and such representatives of private sector organizations and civil society, as the Secretary deems appropriate, for the purpose of determining which digital public infrastructure safeguards should be applied to projects of, and financing provided by, the international financial institutions (as defined in section 1701(c)(2) of the International Financial Institutions Act). At the meetings, the participants should consider the minimum safeguards proposed in version 1.0 of the United Nations (UN) Universal DPI Safeguards Framework, and measures to protect privacy, ensure private sector participation, and deter and detect fraud, financial crime, and corruption. (b) Report to the Congress Within 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate a written report on any determinations and recommendations made pursuant to subsection (a). 214. Independent accountability mechanisms (a) In general The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as defined in section 1701(c)(4) of the International Financial Institutions Act) to use the voice, vote, and influence of the United States to support and increase the effectiveness of the independent accountability mechanisms (in this section referred to as IAM ) of the respective bank, through engagement with bank management and other executive directors at the bank. (b) Responsible exit policies The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as so defined) to use the voice, vote, and influence of the United States to advocate for the adoption by the respective bank of responsible exit policies for projects that require remediation before exit, and to support the prohibition of project exit during the accountability process without the consent of complainants. (c) Report to Congress The Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate annual written reports on— (1) all IAM cases that have been opened in the year covered by the report or remain open; and (2) provision of information on the engagement by each such bank in the IAM cases including implementation of Management Action Plans developed in response to IAM cases, noting when any such bank has not sufficiently implemented a Management Action Plan in a timely manner. 215. Sexual exploitation and assault prevention (a) In general The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as defined in section 1701(c)(4) of the International Financial Institutions Act) to use the voice, vote, and influence of the United States to improve the implementation of the policies of the respective bank on preventing sexual exploitation and assault (in this section referred to as SEA ). (b) Operationalization of policies The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as so defined) to use the voice, vote, and influence of the United States to consult with the multilateral development banks on how they are operationalizing their policies and guidance on preventing SEA, and to require the bank to provide ways to improve policies and guidance. (c) Report to Congress Within 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate a written report on how the multilateral development banks (as so defined) are operationalizing their commitments to prevent SEA, which shall include information on how many SEA cases were reported to each such bank by civil society organizations and other entities, and information on the number of the cases that involved minors. 216. Publication of loan agreements The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as defined in section 1701(c)(4) of the International Financial Institutions Act) to use the voice, vote, and influence of the United States to advocate that any loan agreement entered into by the respective bank, whether for a public or private sector project, be made public. 217. Enhancing transparency to combat corruption (a) In general The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as defined in section 1701(c)(4) of the International Financial Institutions Act) to use the voice, vote, and influence of the United States to ensure that all support for public-private partnerships to deliver infrastructure and services, whether through the public or private sector arm of the respective bank, follows best practice approaches, including competitive bidding and contracting transparency, to provide full details of terms, pricing, and financial obligations of the State involved, including through State-owned enterprises. (b) Opposition To subsidies for certain private sector investments The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as so defined) to use the voice, vote, and influence of the United States to oppose subsidization of private sector investments that are not offered on competitive or open-offer terms. (c) Publication of data on investments The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as so defined) to use the voice, vote, and influence of the United States to require that, with respect to private sector investments, the respective bank consistently publish investment data including sub-national location, domicile of investee, total investment cost, funding source, currency of investment, co-financing, mobilization, updated disbursement and instrument-specific disclosure (share of equity, interest rate, and loan tenor) indicators, and project level rate of return on investment at exit. 218. Adoption of anti-reprisal standards The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as defined in section 1701(c)(4) of the International Financial Institutions Act) to use the voice, vote, and influence of the United States to encourage the respective bank to adopt anti-reprisal and retaliation standards in the safeguards policies and loan agreements of the bank to enhance accountability when reprisals occur. 219. Reporting on human rights abuses in for-profit healthcare investments (a) Report to Congress The Secretary of the Treasury shall biennially submit to the Congress written reports on any known accusations, made by community groups, civil society organizations, media, or other credible actors, of human rights abuses at hospitals funded by the private sector arm of the respective bank or the International Finance Corporation, and on actions completed by the private sector arm of any multilateral development bank (as defined in section 1701(c)(4) of the International Financial Institutions Act) to investigate and adequately address or remedy the human rights abuses, and the details of any reforms adopted by the International Finance Corporation to prevent human rights abuses at such a hospital. (b) Advocacy for independent evaluations The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as so defined) to use the voice, vote, and influence of the United States to advocate for the independent evaluation groups of the respective bank to undertake independent evaluation of the active and historic investments of the bank in healthcare to determine contribution to universal health coverage, national health system strengthening, and reducing health inequities. 220. Combatting climate change The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank (as defined in section 1701(c)(4) of the International Financial Institutions Act) to use the voice, vote, and influence of the United States to support the public disclosure by the respective bank of— (1) the internal methodologies of the bank for calculating the extent to which projects financed by the bank affect climate change; and (2) an explanation of the processes and practices of the bank for making these calculations. 221. United States advocacy for investment in projects that decrease reliance on Russia for agricultural commodities (a) In general Title XIV of the International Financial Institutions Act (22 U.S.C. 262n–262n–3) is amended by adding at the end the following: 1405. Advocacy for investment in projects that decrease reliance on Russia for agricultural commodities (a) In general The Secretary of the Treasury shall instruct the United States Executive Director at each international financial institution (as defined in section 1701(c)(2)) to use the voice, vote, and influence of the United States, to the maximum extent practicable, to encourage the respective institution to— (1) support projects that decrease the reliance of countries on Russia for agricultural commodities, particularly fertilizer and grain; (2) ensure the resilience of global grain supplies; and (3) stimulate private investment in the projects. (b) Waiver authority The Secretary of the Treasury may waive subsection (a) in the national interest of the United States. . (b) Repeal Section 1405 of such Act, as added by this section, is repealed effective on the earlier of— (1) the date that is 5 years after the date of the enactment of this Act; or (2) the date that is 30 days after the date the President reports to the Congress that the termination of such section 1405 is important to the national interest of the United States, with an explanation of the reasons therefor. 222. Urging the World Bank to eliminate harmful labor indicators from its Business Ready Report The Secretary of the Treasury shall direct the United States Executive Director at the International Bank for Reconstruction and Development to use the voice, vote, and influence of the United States to strongly urge the Bank to eliminate the indicators with respect to the Minimum Wage Rate, which is a labor indicator that penalizes countries for having high minimum wages, and the Financial Burden on Firms, which is a labor indicator that penalizes countries with higher corporate taxes, from the Business Ready Report of the Bank. III International Monetary Fund 301. United States advocacy of debt suspension by International Monetary Fund for low-income and small countries that experience a climate-related disaster Title XIII of the International Financial Institutions Act (22 U.S.C. 262m–262m–8) is amended by adding at the end the following: 1309. Advocacy of debt suspension by the International Monetary Fund for low-income and small countries that experience significant climate-related events The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use the voice and vote of the United States to advocate for a program that allows any country that is eligible for assistance from the International Development Association or that the Fund considers a small state, and that experiences a climate-related disaster (as defined by the Fund), to suspend all debt repayments to the Fund and the accrual of any additional interest on debt to the Fund, for 5 years or until the gross domestic product of the country is at least 80 percent of the gross domestic product of the country before the disaster, whichever is later. . 302. Loan conditionality Title XVI of the International Financial Institutions Act (22 U.S.C. 262p–262p–18) is amended by adding at the end the following: 1634. Loan conditionality The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use the voice and vote of the United States to encourage the Fund to reduce or eliminate conditions on loans made by the Fund that— (1) limit spending on key social needs such as health, education, or climate action; (2) weaken environmental, labor, public health regulations; or (3) increase taxes or reduce subsidies in such a way that falls regressively on recipient country populations. . 303. Anti-corruption measures in lending agreements Title XV of the International Financial Institutions Act (22 U.S.C. 262o–262o–4) is further amended by adding at the end the following: 1508. Anti-corruption measures in lending agreements The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use the voice and vote of the United States to encourage— (1) the incorporation into Fund lending agreements of anti-corruption measures, including by ensuring that governments receiving loans make specific, measurable, and time-bound commitments as part of the loan agreements with consequences for noncompliance, which commitments should be tailored to the needs of each country, made in consultation with local civil society organizations, and made in consideration with baselines for proper governance worldwide, such as through beneficial ownership registries, transparent and competitive public contracting, asset declarations for public officials, a strong anti-money laundering and combating terrorist financing regime, robust oversight by independent government entities and civil society organizations, and independent judiciaries; (2) the production of more governance diagnostics as part of loan programs, the urging of governments to agree to the exercise, incorporating recommendations of the diagnostics as commitments, and the continuation of leveraging Article IV consultations and Financial Sector Assessment Programs to elevate anticorruption and financial integrity issues among their broader economic and policy analysis; (3) the engagement of in-country civil society organizations (CSOs) and local experts throughout loan programs, including by— (A) consulting CSOs at the outset of negotiations to help inform Fund staff assessments of loan program priorities; (B) providing updates to and request input from CSOs during the program development process, and (C) ensuring sufficient access to information and resources for CSO monitoring of commitment implementation, without threats or other retaliation by governments if there are honest critiques raised by a CSO; (4) the improvement of transparency by including on the Funds country pages, on the website of the Fund, a list of the prior actions and structural benchmarks included in loan programs, and pursuing a consistent cross-country approach to assessing government implementation and linking findings to surveillance and lending transparency; (5) the holding of governments accountable to their commitments, by— (A) ensuring that governments credibly carry out commitments; (B) refraining from issuing waivers of non-observance for benchmarks related to governance and financial integrity due to lack of political will; and (C) promptly publishing audits; and (6) the public reporting of the progress of implementing the governance commitments that governments make as part of the loan agreements. . 304. Fifth Deputy Managing Director The Bretton Woods Agreements Act ( 22 U.S.C. 286–286aaa ) is further amended— (1) by redesignating section 73 (as added by section 1901 of division P of Public Law 116–94 ) and section 74 as sections 74 and 75, respectively; and (2) by adding at the end the following: 77. Fifth Deputy Managing Director of the IMF The Secretary of the Treasury shall instruct the United States Executive Director at the Fund to advocate that the Fund have a Fifth Deputy Managing Director who is a national of a low- or middle-income country and who represents all low- or middle-income countries other than the People’s Republic of China. . 305. Resilience and Sustainability Trust financing (a) In general Title XVI of the International Financial Institutions Act (22 U.S.C. 262p–262p–18) is further amended by adding at the end the following: 1635. Resilience and Sustainability Trust financing The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use the voice and vote of the United States to advocate for the Fund to support the Resilience and Sustainability Trust and the Poverty Reduction and Growth Trust with Fund resources. . (b) Availability of funds Section 7071(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024 (division F of Public Law 118–47 ) is amended— (1) by striking all that precedes of the Treasury and inserting the following: (c) Energy Security and IMF Accountability The Secretary ; (2) by striking (in this subsection referred to as the PRGT ) of the International Monetary Fund (in this subsection referred to as the IMF ) and inserting or the Resilience and Sustainability Trust of the International Monetary Fund ; (3) by striking to the PRGT, subject to paragraph (2) ; and (4) by striking paragraph (2). 306. Quota increase The Bretton Woods Agreements Act ( 22 U.S.C. 286–286aaa ) is further amended by adding at the end the following: 78. Quota increase (a) In general The United States Governor of the Fund may consent to an increase in the United States quota in the Fund equivalent to 41,497,100,000 Special Drawing Rights. (b) Subject to appropriations The authority provided by subsection (a) shall be effective only to such extent and in such amounts as are provided in advance in appropriations Acts. . 307. New Arrangements to Borrow Section 17(a)(3) of the Bretton Woods Agreements Act ( 22 U.S.C. 286e–2(a)(3) ) is amended by inserting , and, of the amounts authorized under this paragraph, the authorization for the dollar equivalent of 9,186,740,000 Special Drawing Rights shall expire as of the date when the rollback of the United States credit arrangement in the New Arrangements to Borrow of the International Monetary Fund is effective, but no earlier than when the increase of the United States quota authorized in section 77 of the Bretton Woods Agreements Act becomes effective before the period. 308. Annual report on surcharges (a) In general The Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate an annual report on— (1) the surcharges imposed by the International Monetary Fund on member countries of the Fund; and (2) whether the surcharges harm the ability of the member countries to pay loans provided by the Fund. (b) Sunset Subsection (a) shall have no force or effect 1 year after the date that the Secretary determines that the International Monetary Fund has eliminated the imposition of surcharges with respect to loans provided by the Fund. IV Multilateral development bank capital increases 401. African Development Fund replenishment The African Development Fund Act (22 U.S.C. 290g–290g–26) is amended by adding at the end the following: 228. Sixteenth replenishment (a) In general The United States Governor of the Fund is authorized to contribute on behalf of the United States $591,000,000 to the sixteenth 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, $591,000,000 for payment by the Secretary of the Treasury. . 402. African Development Bank general callable capital increase The African Development Bank Act (22 U.S.C. 290i–290i–12) is amended by inserting at the end the following: 1346. General callable capital increase (a) Subscription authorized (1) In general The United States Governor of the Bank may subscribe on behalf of the United States to 800,000 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. (b) Authorization of appropriations For the increase in the United States subscription to the Bank under subsection (a), there is authorized to be appropriated, without fiscal year limitation, $7,800,000,000, for payment by the Secretary of the Treasury for callable shares of the Bank. . 403. European Bank for Reconstruction and Development general capital increase The European Bank for Reconstruction and Development Act (22 U.S.C. 290l–290l–9) is amended by adding at the end the following: (13) Capital increase (A) Subscription authorized (i) “The United States Governor of the Bank is authorized to subscribe on behalf of the United States to 40,000 additional shares of the paid-in capital stock of the Bank. (ii) Any subscription by the United States to additional paid-in capital stock of the Bank shall be effective only to such extent and in such amounts as are provided in advance in appropriations Acts. (B) Authorization of appropriations In order to pay for the increase in the United States subscription to the Bank under subparagraph (A), there are authorized to be appropriated, without fiscal year limitation, $439,100,000, for payment by the Secretary of the Treasury. .