H.R.2494 - International Development and Finance Act of 1989101st Congress (1989-1990)
|Sponsor:||Rep. Fauntroy, Walter E. [D-DC-At Large] (Introduced 05/25/1989)(by request)|
|Committees:||House - Banking, Finance, and Urban Affrs | Senate - Foreign Relations|
|Committee Reports:||H.Rept 101-271|
|Latest Action:||12/19/1989 Became Public Law No: 101-240. (All Actions)|
|Roll Call Votes:||There has been 1 roll call vote|
This bill has the status Became Law
Here are the steps for Status of Legislation:
- Passed House
- Passed Senate
- Resolving Differences
- To President
- Became Law
Summary: H.R.2494 — 101st Congress (1989-1990)All Information (Except Text)
Passed Senate amended (11/22/1989)
International Development and Finance Act of 1989 - Title I: Export-Import Bank Act Amendments - Amends the Export-Import Bank Act of 1945 to remove a certain limitation on the Bank's authority to make interest subsidy payments. Limits the amounts authorized to be appropriated for such payments for FY 1990 and 1991. Extends the Bank's authority to make interest subsidy payments to October 1, 1991. Extends the Bank's authority to make interest subsidy payments to October 1, 1991.
Makes technical amendments to provisions concerning the administration of the tied aid credit program. Authorizes appropriations through FY 1991 for the Tied Aid Credit Fund.
Prohibits the Bank from providing any export financing, loans, or financial services to China. Waives such prohibitions with respect to food or agricultural commodities. Authorizes the President to waive such prohibitions if he reports to the Congress that: (1) the Chinese Government has made progress on a program of political reform in China and Tibet; or (2) it is in the U.S. national interest to terminate such suspension.
Authorizes the Bank to accept reimbursement for travel and subsistence expenses incurred by Bank employees.
Prohibits the Bank from guaranteeing, insuring, or extending credit in connection with the exports of goods (other than food or agricultural commodities) or services to Angola until the President certifies to the Congress that free and fair elections have been held in Angola and that the Angolan Government: (1) is seeking to achieve an equitable political settlement of conflict through a mutual cease-fire and a dialogue with opposition armed forces; and (2) has demonstrated progress in protecting human and worker rights and other attributes of political pluralism and democracy.
Title II: Inter-American Development Bank - Amends the Inter-American Development Bank Act to authorize the U.S. Governor of the Bank to vote for resolutions which: (1) were transmitted by the Board of Executive Directors to the Governors by resolution of April 19, 1989; (2) are pending before the Board of Governors of the Bank; and (3) provide for increases in the authorized capital stock of the Bank and resources of the Fund for Special Operations. Permits the Governor, upon adoption of such resolutions, to subscribe to a certain number of shares of the increase in capital stock and contribute a certain amount to the Fund. Authorizes appropriations to pay for such increases.
Prohibits the Secretary of the Treasury from making payments for such subscription and contribution unless the Bank has: (1) established an environmental unit to promote environmentally sustainable development in borrower countries; (2) increased the number of staff with environmentally oriented responsibilities and training and the number of environmentally beneficial projects financed by the Bank; and (3) designed a process for ensuring the access of indigenous non-governmental organizations to the process for designing such projects.
Prohibits the Secretary from making such payments until certifying to the Congress that: (1) the Bank has given the U.S. Comptroller General access to the audit memorandum issued by the Bank's Auditor General with respect to the November 1987 disbursement of funds to the Nicaraguan Government; (2) the Bank has implemented and continues to implement revised procedures issued in 1988 for collecting loan services payments in arrears and such procedures satisfy the recommendations of the Auditor General; and (3) the U.S. Comptroller General has access to all Bank documents on the same terms and conditions as such documents are available to the U.S. Executive Director of the Bank.
Directs the Secretary to instruct the U.S. Executive Director of the Bank, from 1990 to 1994, to promote an increase in the proportion of Bank lending in support of projects supporting investments in human capital and to seek the implementation by the Bank of mechanisms of consultation with locally affected populations in borrower countries through representative non-governmental organizations.
Requires the Chairman of the National Advisory Council on International Monetary and Financial Policies to include within a certain FY 1991 report a report on the progress by the Bank in achieving investments in human capital.
Directs the Secretary to encourage the Bank to: (1) limit the aggregate value of policy based loans, with specified exceptions, from 1990 through 1994; (2) instruct the U.S. Executive Director of the Bank to explore ways to use the resources made available to the Bank through the subscription and contribution for debt reduction and debt service reduction; and (3) report to the Congress on such matters.
Requires the Secretary to instruct the U.S. Executive Director of the Bank to enter into discussions with the management of the Bank and with other member countries to seek to increase Bank lending to the Caribbean region for projects which will: (1) result in expanded regional economic integration and diversification, industrial and agricultural production, and improved infrastructure; and (2) seek to ensure equitable and environmentally sustainable economic growth.
Expresses the sense of the Congress that loans made by the Bank from 1990 to 1994 should promote economic development which will reduce the growing economic dependence on the production and transit of illicit narcotics in certain borrower countries.
Directs the Secretary of the Treasury to instruct the U.S. Executive Director of the Bank to encourage the provision of technical assistance to borrower countries to transform enterprises owned by the governments of such countries into privately owned, self-sufficient enterprises.
Title III: International Monetary Fund Enhanced Structural Adjustment Facility - Amends the Bretton Woods Agreements Act to authorize the U.S. Governor of the International Monetary Fund to contribute $150,000,000 to the Interest Subsidy Account of the Enhanced Structural Adjustment Facility of the Fund. Prohibits the U.S. Governor from making a commitment to contribute before such amount has been appropriated for such purpose.
Requires the Secretary to instruct the U.S. Executive Director of the Fund to seek policy changes which will result in: (1) the initiation of a review of policy prescriptions to determine the social and environmental impacts of such prescriptions and whether the Fund's objectives were met; and (2) the establishment of policy options to eliminate the potential adverse impact on the well-being of the poor or the environment from economic reform programs.
Title IV: International Debt Provisions - Foreign Debt Reserving Act of 1989 - Amends the International Lending Supervision Act of 1983 to direct appropriate Federal banking agencies, by December 31, 1990, to review the exposure to risk of U.S. banking institutions arising from outstanding medium- and long-term loans made by such institutions to any highly indebted country. Requires such agencies to provide direction to such institutions regarding additions to general reserves for potential loan losses and requirements for special reserves arising from such review. Directs such agencies to include within reports required under such Act a report on such actions.
Directs the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Comptroller of the Currency to report to the House Committee on Banking, Finance and Urban Affairs and the Senate Committee on Banking, Housing, and Urban Affairs on the merits of mark to market accounting treatment for the sovereign debt of highly indebted countries which is held by U.S. commercial banks.
Requires the Secretary to: (1) instruct the U.S. Executive Director of the International Monetary Fund to propose that the Fund conduct a study on means by which the banking industry might help reverse capital flight from countries engaged in debt restructuring; and (2) report to the House and Senate Banking Committees on such study.
Directs the Secretary to: (1) consider specified factors when determining U.S. policy with respect to debt reduction for highly indebted countries which have substantial shares of the export market for agricultural commodities for which the United States also has a substantial share; and (2) report to the Congress on the effects of such policy on such factors in highly indebted countries.
Expresses the sense of the Congress that the Secretary should continue to encourage trade liberalization as an element of economic reform programs.
Requires the Secretary to: (1) instruct the U.S. Executive Directors of the multilateral development banks, in voting on debt reduction loans, to give preferences to countries which are major producers, processors, traffickers, or exporters of illegal drugs to the United States and which show marked improvement in reducing the cultivation, trafficking, and export to the United States of illegal drugs; and (2) include in a specific report required under the International Narcotics Control Act a discussion of such program.
Title V: Alleviation of Poverty; Environmental Provisions; Debt-for-Development Swaps; Consolidation of Reporting Requirements - Subtitle A: Alleviation of Poverty - Amends the International Financial Institutions Act to direct the Secretary to instruct the U.S. Executive Directors of the multilateral banks to: (1) advocate an increase in the productive role of the poor in the economies of borrowing countries; (2) encourage and assist such countries in developing plans to eliminate poverty and achieve economic participation of the poor; and (3) require countries which receive structural adjustment assistance to have such participation strategies. Requires the Secretary to report to specified congressional committees on the progress made in implementing such programs.
Subtitle B: International Debt Exchanges and the Environment - Expresses the sense of the Congress that: (1) the Secretary should include support for sustainable development and conservation projects when negotiating or facilitating exchanges or reductions of commercial debt of foreign countries; and (2) the Secretary and the Secretary of State should support efforts to provide adequate resources for such projects as components of the restructured commercial bank debt of heavily indebted foreign countries.
Directs the Secretary of the Treasury to instruct the U.S. Executive Directors of multilateral development banks to: (1) negotiate for the creation of a department in such banks to be responsible for environmental protection and resource conservation policies; (2) encourage the approval of loans which facilitate the implementation of an effective environmental policy in borrowing countries; (3) encourage such banks to assist such countries in reducing and restructuring debt through environmental loans which enable such countries to buy back debt at discount rates, at auctions in the secondary market, or through creditor negotiations; (4) seek to ensure that bank staff facilitates such countries' collaboration with local and international nongovernmental or private organizations in implementing debt-for-nature exchanges; and (5) seek to ensure that such banks adopt specified environmental policy guidelines.
Requires U.S. Executive Directors of such banks to negotiate with the other directors to provide guidelines for restoration, protection, or sustainable use policies.
Directs the Secretary to instruct the U.S. Executive Director of the International Bank for Reconstruction and Development (World Bank) to initiate discussions with the other directors and the management and propose the establishment of a project and policy based environmental lending program to be made available to interested countries with demonstrated commitments to natural resource conservation.
Requires the Secretary to instruct the U.S. Executive Directors of multilateral banks to promote policies which: (1) increase collaboration with, strengthen, and provide assistance to nongovernmental organizations in such countries which are concerned with environmental protection; and (2) encourage international information exchange and project enhancement with such organizations, government agencies, and private voluntary organizations concerned with environmental protection in such countries.
Subtitle C: Environmental Impact Assessments - Precludes the U.S. Executive Directors of multilateral development banks from voting in favor of any proposed action which would have a significant environmental impact unless a comprehensive environmental impact assessment has been furnished. Directs the Secretary to seek the adoption of policies which make such assessments available to member countries. Requires that: (1) an environmental impact assessment accompany loan proposals through the agency review process; (2) such banks develop and make available to member governments and borrowers a systematic environmental assessment procedure for development projects; and (3) appropriate U.S. government personnel be made available to train and assist bank staff in making environmental impact assessments.
Directs the Secretary of the Treasury to report to certain congressional committees on the efficacy of U.S. efforts to encourage consistent and timely environmental impact assessments of proposed multilateral development bank actions.
Subtitle D: Debt-for-Development Swaps - Expresses the sense of the Congress that: (1) debt-for-development swaps provide banking institutions with constructive opportunities for debt reduction and highly-indebted countries with a creative method of reducing debt; (2) such institutions should give consideration to engaging in such swaps as a means of strengthening loan portfolios; and (3) in order to avoid bias against such swaps in the regulatory framework applicable to financial reporting by such institutions, where payment is made in local currency at the free market rate, recognition of the fair market exchange value of such currency should be made. Requires appropriate Federal banking agencies to adopt uniform guidelines concerning the regulatory framework and accounting treatment of swaps involving payments in local currency.
Subtitle E: Consolidation of Certain Reporting Requirements - Directs the Chairman of the National Advisory Council on International Monetary and Financial Policies to report annually to the Speaker of the House of Representatives, the President of the Senate, and the President on U.S. participation in international financial institutions. Requires the Chairman, at the request of the House Banking Committee, to testify on such reports.
Directs the Secretary to transmit to the Congress copies of the monthly operating summary of the World Bank (showing loan proposals or appraisal reports) and comparable documents prepared by other multilateral development banks.
Requires the Administrator of the Agency for International Development to consolidate reports required under the International Financial Institutions Act and the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 and submit a combined report to specified congressional committees on the effect of multilateral development bank loans on the environment, public health, and indigenous peoples.
Directs the Secretary to instruct the U.S. Executive Directors of the multilateral development banks to ensure that information relating to potential procurement opportunities for U.S. firms is expeditiously communicated to the Secretary, the Secretary of State, the Secretary of Commerce, and to businesses.
Requires the Secretary of the Treasury to consult with the Chairman and specified congressional members before any discussion by any U.S. official concerning the placement or removal of a principal officer of an international financial institution.
Incorporates provisions of the Omnibus Trade and Competitiveness Act of 1988 concerning export enhancement and multilateral development bank procurement into the International Financial Institutions Act.
Requires the Secretary to report quarterly to the Chairman and to specified congressional members on all loans considered by international financial institutions listed under the International Financial Institutions Act.
Title VI: Miscellaneous Provisions - Expresses the sense of the Congress that the Secretary should instruct the U.S. Executive Directors of the World Bank and the International Monetary Fund to urge that their institutions move as expeditiously as possible in acting upon loan requests from, and disbursing approved loans to, Poland.
Expresses the sense of the Congress that the Secretary should instruct certain multilateral lending institutions to: (1) act promptly upon requests by Poland for the establishment of financial institutions and businesses involved in credit and financial services in Poland; and (2) propose that such institutions prohibit financial assistance or debt forgiveness to Poland until the Polish Government allows privately owned entities in foreign countries to invest in private commercial ventures in Poland.
Expresses the sense of the Congress that the President should: (1) instruct the U.S. Executive Directors of the World Bank and the Asian Development Bank to oppose the extension of any financial or technical assistance to China; and (2) consider China to be a country engaging in gross violations of human rights for purposes of the International Financial Institutions Act until the President determines that the repression and reprisals against persons in connection with prodemocracy demonstrations has ended.
Title VII: Miscellaneous - Global Environmental Protection Assistance Act of 1989 - Part A: Commercial Debt-for-Nature Exchanges - Amends the Foreign Assistance Act of 1961 to authorize the Administrator of the Agency for International Development to furnish grants to nongovernmental organizations for the purchase of a foreign government's discounted commercial debt which will be canceled or redeemed as part of a debt-for-nature exchange. Requires the Administrator to ensure that such exchanges support specified environmental activities. Directs the Administrator to identify areas which are in particular need of immediate attention to prevent the loss of unique biological life or a valuable ecosystem. Requires the Administrator to encourage as many countries as possible to propose such exchanges to demonstrate the feasibility and benefits of sustainable development. Directs the Administrator, in order for a country to be eligible for a debt-for-nature exchange, to determine that the country has a long-term plan and an agency to oversee the long-term viability of a nature program. Prohibits the U.S. Government from accepting title or interest in any land in a foreign country as a condition of the debt exchange.
Requires the Administrator to invite the government of each Subsaharan African country to submit a list of: (1) areas of severely degraded natural resources which threaten human survival and well-being and the opportunity for future economic growth; or (2) areas of biological and ecological importance in such country. Directs the Administrator to reach agreement with a host country for the restoration and sustainable use of such areas. Authorizes the Administrator to make grants to nongovernmental organizations for the purchase of such countries' discounted commercial debt in exchange for such countries' commitments to restore natural resources and develop plans for sustainable use of such resources.
Part B: Multilateral Foreign Assistance Coordination - Expresses the sense of the Congress that the Secretary of State should seek to develop an increased consideration of global warming, tropical deforestation, sustainable development, and biological diversity among the highest goals of bilateral foreign assistance programs of all countries. Declares that the Secretary, acting through the Development Assistance Committee of the Organization for Economic Cooperation and Development, should initiate negotiations among member countries on a coordinated approach to global warming, tropical deforestation, sustainable development, and biological diversity through bilateral assistance programs.
Title VIII: Effective Date - Provides that this Act shall take effect on the date of enactment of this Act.