Formatting necessary for an accurate reading of this text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF.
[Page H4890]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
IMF IN THE PANDEMIC
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Arkansas (Mr. Hill) for 5 minutes.
Mr. HILL of Arkansas. Mr. Speaker, I rise today to raise awareness
about an ongoing issue that is happening at the International Monetary
Fund as it combats COVID-19.
As the lead Republican on the Subcommittee for National Security,
International Development, and Monetary Policy for the House Financial
Services Committee, I invite your attention to a bad policy proposal.
During this time of crisis, the IMF provides financial assistance and
debt service relief to its 189 member countries. As a part of the COVID
relief, some IMF members, particularly China, have been lobbying for
billions in extra relief through a new allocation of Special Drawing
Rights, or SDRs.
SDRs are an international reserve asset used to provide liquidity and
supplement countries' official reserves. And unlike a typical IMF loan,
Mr. Speaker, SDRs do not require repayment. Now, this idea has gained
traction among certain congressional Democrats, notably Senator Durbin
and Representatives Waters and Garcia, who have proposed allocating no
fewer than two trillion SDRs--equivalent to $2.8 trillion--to the IMF's
member countries.
What the Democrats might not fully understand is that if the IMF were
to allocate this additional two trillion SDRs, the allocation would be
made in line with IMF shareholding weights, not financial need.
This means that the bulk of SDRs would not go to the poorest
countries with hundreds of billions of dollars instead going to the
richest nations in the world.
{time} 0930
Even worse, Mr. Speaker, $170 billion would go to China, $20 billion
to Iran, $75 billion to Russia, $17 billion to Assad's Syria, and $20
billion to the failed state in Venezuela.
These billions would represent no-strings-attached liquidity for the
world's most brutal dictatorships. However, there is an alternate way
to ensure the IMF is able to provide assistance to countries that truly
need it.
The IMF has two trust funds that can lend or provide grants to the
poorest and most vulnerable countries during emergencies, as we have
with the pandemic. This is the proposal of House Republicans and of the
Trump administration.
Preventing blanket SDR allocations demonstrates that the United
States is a leader to help the poorest nations in the midst of this
pandemic, but also a leader in accountability in our multilateral
institutions. A financial windfall for terrorists and authoritarians is
the wrong approach.
Historic Breakthrough for Middle East Peace
Mr. HILL of Arkansas. Mr. Speaker, I was honored to attend the
signing of the historic Abraham Accords at the White House, which
represents a historic breakthrough for peace in the Middle East.
Bahrain and the UAE are the first Arab countries to normalize relations
with Israel in two decades.
I applaud President Trump, Prime Minister Netanyahu, Sheikh Mohammed
bin Zayed, and King Hamad Al Khalifa for coming together to achieve
this critical milestone and step forward.
This achievement proves the success of President Trump's undeniable
support for the State of Israel and dedication to U.S. leadership in
the region.
I look forward to continuing to work with the administration and our
allies around the world to build upon these agreements, develop deeper
diplomatic ties, and strengthen our relationships.
Recognizing Candace Franks
Mr. HILL of Arkansas. Mr. Speaker, I rise today to recognize the
career of Candace Franks, who is retiring as the commissioner of the
Arkansas State Bank Commission after 13 years in that top position and
more than 40 years with the Arkansas State Bank Department. I am proud
to have known and worked alongside Candace for over a quarter century.
Candace Franks has been a trailblazer in many regards. Candace is the
first woman to serve as the Arkansas bank commissioner in its 107-year
history, the first professional bank regulator to serve in the
position, and the longest serving commissioner as well.
During Candace's many years of service, she has been a good steward
for Arkansas' funds. In 1980, when she began her career, the
institutions under the Arkansas State Bank Department held $7 billion
in assets. Today, they hold more than $123 billion.
In addition to her work as Arkansas bank commissioner, she serves as
the chairman of the Conference of State Bank Supervisors, a member of
the State Board of Finance, and a member of the Board of the Arkansas
Teacher Retirement System.
I thank Candace for her devotion.
____________________
