(a) In general. The Secretary of the Treasury shall instruct the
United States Executive Director at the International Monetary Fund—
(1) to evaluate, prior to
consideration by the Board of Executive Directors of the Fund, any
proposal submitted to the Board for the Fund to make a loan to a country
if—
(A) the amount of the public debt of
the country exceeds the gross domestic product of the country as of
the most recent year for which such information is available; and
(B) the country is
not eligible for assistance from the International Development Association.
(2) Opposition to loans unlikely to be
repaid in full. If any such evaluation indicates that the proposed
loan is not likely to be repaid in full, the Secretary of the Treasury
shall instruct the United States Executive Director at the Fund to
use the voice and vote of the United States to oppose the proposal.
(b) Reports to Congress. Within 30 days after the Board of Executive Directors of the Fund
approves a proposal described in subsection (a), and annually thereafter
by June 30, for the duration of any program approved under such proposals,
the Secretary of the Treasury shall report in writing to the Committee
on Financial Services of the House of Representatives and the Committee
on Foreign Relations and the Committee on Banking, Housing, and Urban
Affairs of the Senate assessing the likelihood that loans made pursuant
to such proposals will be repaid in full, including—
(1) the borrowing country’s current debt
status, including, to the extent possible, its maturity structure,
whether it has fixed or floating rates, whether it is indexed, and
by whom it is held;
(2) the borrowing country’s external and internal vulnerabilities
that could potentially affect its ability to repay; and
(3) the borrowing country’s
debt management strategy.
[22 USC 286tt. As added
by act of July 21, 2010 (124 Stat. 2212).]
