IMF Reform and Integrity Act

IMF Reform and Integrity Act

This bill amends the Bretton Woods Agreements Act to direct the United States to oppose:

• International Monetary Fund (IMF) financing in conjunction with financing by a multilateral organization of which the United States is not a member if such organization's financing would exceed the IMF's financing or the debtor's IMF obligation is not made explicitly senior to the debtor's obligation to the multilateral organization;
• any proposal to make additional resources available to the IMF or to increase the quota of any IMF member who is a member of a multilateral organization of which the United States is not a member if, during the previous 24 months, either the IMF has approved or disbursed financing in conjunction with financing provided by such multilateral organization or an obligation to the IMF from such approval or disbursement has not been fully repaid;
• any proposed IMF loan to a country about which an IMF staff analytical report finds no high probability that the country's public debt is sustainable in the medium term (currently, only if the proposed loan is not likely to be repaid in full); and
• any proposal that would alter IMF criteria for exceptional access lending such that an ineligible country would become eligible for such lending, unless the Department of the Treasury has submitted a justification for such proposal, including its effects on repayment risk.

The bill cancels and rescinds certain deactivated IMF funds.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1573 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1573

  To oppose International Monetary Fund participation in foreign-led 
        agreements, reduce moral hazard, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2017

 Mr. Huizenga introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To oppose International Monetary Fund participation in foreign-led 
        agreements, reduce moral hazard, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``IMF Reform and Integrity Act''.

SEC. 2. OPPOSITION OF THE UNITED STATES TO FINANCIAL PARTICIPATION BY 
              THE INTERNATIONAL MONETARY FUND IN FOREIGN-LED 
              AGREEMENTS.

    The Bretton Woods Agreements Act (22 U.S.C. 286-286xx) is amended 
by adding at the end the following:

``SEC. 73. OPPOSITION OF THE UNITED STATES TO FINANCIAL PARTICIPATION 
              BY THE INTERNATIONAL MONETARY FUND IN FOREIGN-LED 
              AGREEMENTS.

    ``The Secretary of the Treasury shall instruct--
            ``(1) the United States Executive Director at the Fund--
                    ``(A) to use the voice and vote of the United 
                States to oppose the provision by the Fund of 
                financing, including the disbursement of financing 
                approved before the enactment of this section, in 
                conjunction with financing to be provided by a 
                multilateral organization of which the United States is 
                not a member if--
                            ``(i) the present value of the financing to 
                        be provided by the multilateral organization 
                        would exceed the present value of the financing 
                        to be provided by the Fund; or
                            ``(ii) the obligation of the debtor with 
                        respect to the financing provided by the Fund 
                        is not explicitly made senior to the obligation 
                        of the debtor with respect to the financing 
                        provided by the multilateral organization; and
                    ``(B) not later than 7 days after the approval by 
                the Fund of any financing to which paragraph (1) 
                applies, to transmit a certification to the Committees 
                on Financial Services and Foreign Affairs of the House 
                of Representatives and the Committees on Banking, 
                Housing, and Urban Affairs and Foreign Relations of the 
                Senate that the obligation of the debtor with respect 
                to the financing provided by the Fund has been 
                explicitly made senior to the obligation of the debtor 
                with respect to the financing provided by the 
                multilateral organization; and
            ``(2) the United States Governor of the Fund to use the 
        voice and vote of the United States to oppose any proposal to 
        make additional resources available to the Fund in the 
        aggregate, or increase the quota of any member of the Fund who 
        is a member of a multilateral organization of which the United 
        States is not a member, if, during the 24 months before 
        consideration of the proposal by the Board of Governors of the 
        Fund--
                    ``(A) the Fund has approved the provision of, or 
                disbursed, financing in conjunction with financing 
                provided or to be provided by the multilateral 
                organization, as described in paragraph (1); or
                    ``(B) an obligation to the Fund resulting from such 
                an approval or disbursement has not been repaid in 
                full.''.

SEC. 3. REPEAL OF THE NEW ARRANGEMENTS TO BORROW; RESCISSION OF FUNDS.

    (a) Repeal.--
            (1) In general.--Section 17 of the Bretton Woods Agreements 
        Act (22 U.S.C. 286e-2) is amended--
                    (A) by striking subsections (a), (b), (d), and (f); 
                and
                    (B) in subsection (c)--
                            (i) by striking ``(c)''; and
                            (ii) by striking ``In addition to the 
                        amount authorized in subsection (b), there'' 
                        and inserting ``There''.
            (2) Conforming repeal.--Section 9001 of the Department of 
        State, Foreign Operations, and Related Programs Appropriations 
        Act, 2016 (22 U.S.C. 286e-2 note; division K of Public Law 114-
        113) is amended by striking paragraph (3).
    (b) Rescission.--The unobligated balances made available to carry 
out subsections (a) and (b) of section 17 of the Bretton Woods 
Agreements Act, as in effect before the enactment of this Act, are 
rescinded.

SEC. 4. OPPOSITION OF THE UNITED STATES TO INTERNATIONAL MONETARY FUND 
              LOAN TO A COUNTRY WHOSE PUBLIC DEBT IS NOT LIKELY TO BE 
              SUSTAINABLE IN THE MEDIUM TERM.

    Section 68(a) of the Bretton Woods Agreements Act (22 U.S.C. 
286tt(a)) is amended--
            (1) in paragraph (2), by inserting after the comma the 
        following: ``or a staff analytical report of the Fund states 
        that there is not a high probability that the public debt of 
        the country is sustainable in the medium term,''; and
            (2) by adding at the end the following:
            ``(3) Presidential waiver authority.--The President of the 
        United States may waive paragraph (2) if the President provides 
        a written certification to the Committees on Financial Services 
        and Foreign Affairs of the House of Representatives and the 
        Committees on Foreign Relations and Banking, Housing, and Urban 
        Affairs of the Senate that the waiver is important to the 
        national security interest of the United States, and includes 
        with the certification a written statement of the reasons 
        therefor.''.

SEC. 5. CONGRESSIONAL NOTIFICATION WITH RESPECT TO EXCEPTIONAL ACCESS 
              LENDING.

    The Bretton Woods Agreements Act (22 U.S.C. 286-286xx), as amended 
by section 2 of this Act, is amended by adding at the end the 
following:

``SEC. 74. CONGRESSIONAL NOTIFICATION WITH RESPECT TO EXCEPTIONAL 
              ACCESS LENDING.

    ``The United States Executive Director at the International 
Monetary Fund may not support any proposal that would alter the 
criteria used by the Fund for exceptional access lending if the 
proposal would permit a country that is ineligible, before the proposed 
alteration, to receive exceptional access lending, unless, not later 
than 30 days before consideration of the proposal by the Board of 
Executive Directors of the Fund, the Secretary of the Treasury has 
submitted to the Committee on Financial Services and the Committee on 
Foreign Affairs of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs and the Committee on Foreign 
Relations of the Senate a report on the justification for the proposal 
and the effects of the proposed alteration on moral hazard and 
repayment risk at the Fund.''.

SEC. 6. MONITORING AND TECHNICAL ASSISTANCE.

    Nothing in this Act shall be interpreted as requiring the 
opposition of the United States to the provision of monitoring, 
technical assistance, or advisory services by the International 
Monetary Fund.
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