Section 1 Short title
This Act may be cited as the “International Financial Institutions Mobilization Act of 2022”.
International Financial Institutions Mobilization Act of 2022
A BILL
To authorize contributions to international financial institutions to help build the resilience of member countries, and for other purposes.
Sec. 2 Statement of policy on United States leadership at international financial institutions
It is the policy of the United States—
to recognize rising debt stock in emerging market and developing countries as a national security and economic security threat and raise its importance in multilateral fora;
to leverage the voice and vote of the United States at international financial institutions to prevent future unsustainable debt stocks in emerging market and developing countries;
to promote rule-writing standards for transparency and disclosure that hold both debtors and creditors accountable, allow accurate debt sustainability assessments, and promote better debt management;
to lead the international community in translating the G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (commonly known as the “Common Framework”) into tangible action, including effective standstill for debt payments and credit revisions for petitioner countries and finalizing the debt treatment for the petitioner countries, beginning with Chad, Ethiopia, and Zambia;
to reduce timelines and increase confidence in outcomes for the Common Framework so that private creditors continue to provide sufficient finances to petitioner countries and other countries witness the benefits of petitioning;
to expand the Common Framework and offer its financial assistance to other heavily indebted lower-middle-income countries, beyond those currently covered;
to cooperate with counterparts in the Group of Twenty (G20), international financial institutions, private credit rating agencies, and regulators to explore and develop new bond and loan contract issuance standards that authorize temporary suspensions of debt services to both private and public creditors without triggering a default in crisis situations;
to engage with petitioner countries, before those countries exhaust their reserves, to strategize their ascension into the Common Framework and prevent further economic costs;
to leverage the voice and vote of the United States in the International Monetary Fund and the World Bank so that the Fund and the Bank complete preliminary assessments of the debt relief needed by each country eligible for Common Framework treatment before such countries petition for debt relief;
that assessments described in paragraph (9) should—
include realistic growth and fiscal projections;
include implications of Common Framework debt relief; and
be based on accurate and comprehensive debt data;
to support international financial institutions lending into arrears for the Common Framework in the case that private lenders fail to uphold their initial commitments;
to leverage the voice and vote of the United States at international financial institutions to promote and finance international initiatives to procure and deploy more affordable and accessible COVID–19 vaccinations and treatments for emerging market and developing countries; and
to address the near-term problems associated with the pandemic-induced global recession and longer term problems of unsustainable credit lending and borrowing that victimize emerging market and developing countries.
Sec. 3 Loans to International Monetary Fund facilities and trust funds
Authorization of appropriations—
In general— There are authorized to be appropriated to the Secretary of the Treasury for fiscal year 2023, $20,000,000, for contribution to the Poverty Reduction and Growth Trust or the Resilience and Sustainability Trust of the International Monetary Fund.
Availability of amounts— Amounts appropriated pursuant to the authorization of appropriations under paragraph (1) shall remain available until December 31, 2031.
Loans authorized—
In general— The Secretary of the Treasury may make loans to the Poverty Reduction and Growth Trust or the Resilience and Sustainability Trust of the International Monetary Fund.
Use of amounts— Amounts described in paragraph (3) shall be available—
to cover the cost (as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of loans authorized under paragraph (1); and
to subsidize gross obligations for the principal amount of such loans, not to exceed $21,000,000,000 in the aggregate.
Amounts described— Amounts described in this paragraph are—
amounts appropriated pursuant to the authorization of appropriations under subsection (a); and
amounts—
appropriated under the heading “Contributions to the International Monetary Fund Facilities and Trust Funds” in any Act making appropriations for the Department of State, foreign operations, and related programs for a fiscal year before fiscal year 2023; and
available for obligation as of the date of the enactment of this Act.
Authorization of certain transactions— The Exchange Stabilization Fund established under section 5302 of title 31, United States Code, and the financing account corresponding to transactions with the International Monetary Fund are authorized to enter into such transactions as are necessary to effectuate loans authorized under paragraph (1).
Sec. 4 International Development Association twentieth replenishment
The International Development Association Act (22 U.S.C. 284 et seq.) is amended by adding at the end the following:
“32. Twentieth replenishment
“(a) In general—The United States Governor of the International Development Association is authorized to contribute on behalf of the United States $3,500,000,000 to the twentieth replenishment of the resources of the Association, 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, $3,500,000,000 for payment by the Secretary of the Treasury.”
Sec. 5 Asian Development Fund twelfth replenishment
The Asian Development Bank Act (22 U.S.C. 285 et seq.) is amended by adding at the end the following:
“37. Twelfth replenishment
“(a) In general—The United States Governor of the Bank is authorized to contribute, on behalf of the United States, $177,440,000 to the twelfth 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, $177,440,000 for payment by the Secretary of the Treasury.”
Sec. 6 Support for Inter-American Development Bank Group reform and IDB Invest capital increase
Support for reform of Inter-American Development Bank Group— The Secretary of the Treasury shall instruct the United States Executive Director of the Inter-American Development Bank (in this section referred to as the “Bank”) to use the voice and vote of the United States to take steps to advance operational and institutional reforms to improve the effectiveness of the Inter-American Development Bank Group and accelerate modernization efforts that strengthen its responsiveness to the varied development challenges of the countries of Latin America and the Caribbean, with particular attention to enhancing the region’s ability to attract private investment, increase social inclusion, and raise climate ambition.
Support for new business model for IDB Invest—
In general— The Secretary shall instruct the United States Executive Director of the Bank to use the voice and vote of the United States to take steps to advance a proposal for a new vision and business model for the Inter-American Investment Corporation (commonly known as “IDB Invest”) to increase sustainable and inclusive private investment in Latin America and the Caribbean, including—
elaboration on the financial, resource, operational, and institutional implications, such as the potential recalibration of shareholding at the Board of Directors of IDB Invest, of implementing the new vision and business model; and
as necessary, the redesign and modification of the management of IDB Invest to reflect the new vision and business model.
Contingent support for increase in capital Stock of IDB Invest—
In general— If and when the Boards of Directors of the Bank and the IDB Invest endorse a proposal described in paragraph (1), the Secretary shall commence negotiations for an increase in the authorized capital stock of IDB Invest.
Consultations— The Secretary shall consult with the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives regarding the progress of any negotiations described in subparagraph (A), including with respect to anticipated timelines for such negotiations.
Authorization to subscribe to additional shares of stock of IDB Invest—
Sense of Congress— It is the sense of Congress that the United States Governor to the Bank should use the voice and vote of the United States to take steps—
to redouble the commitment of the United States to IDB Invest and the Inter-American Development Bank Group; and
to double the financial capacity of IDB Invest.
Authorization—
In general— After a decision by the Board of Governors of IDB Invest to increase the authorized capital stock of IDB Invest, the United States Governor is authorized to subscribe on behalf of the United States to additional shares of stock in such amounts as the Governor considers appropriate, subject to subparagraph (B).
Limitation— The United States Governor may not subscribe on behalf of the United States to additional shares of stock in IDB Invest if such additional shares would result in the share of stock held by the United States in IDB Invest to exceed the share of stock held by the United States in the Bank.
Report required—
In general— Not later than 15 days after the conclusion of negotiations described in subsection (b)(2) and not less than 15 days before the United States Governor subscribes on behalf of the United States to additional shares of stock in IDB Invest under paragraph (2), the Secretary shall submit to the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives a report setting forth—
the amount of the proposed increase in the capital stock of IDB Invest;
the amount of shares proposed for subscription by the United States in connection with the proposed increase;
the share of the stock of IDB Invest held by each member country and the corresponding change in that share associated with the proposed increase;
the anticipated increased financing levels to be achieved by the proposed increase;
the expected financial and operational impact of the proposed increase, including a description of relevant institutional reforms by IDB Invest; and
a description of whether the Bank and IDB Invest are successfully responding to the mandates outlined by their respective Boards of Governors in resolutions AG–7/22 and CII/AG–3/22 of March 28, 2022.
Authorization of appropriations— There are authorized to be appropriated such sums as may be necessary to pay for the subscription to additional shares of stock in IDB Invest authorized by paragraph (2).