
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC286cc]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
           CHAPTER 7--INTERNATIONAL BUREAUS, CONGRESSES, ETC.
 
 SUBCHAPTER XV--INTERNATIONAL MONETARY FUND AND BANK FOR RECONSTRUCTION 
                             AND DEVELOPMENT
 
Sec. 286cc. Sustaining economic growth


(a) Economic adjustment programs

    (1) The President shall instruct the Secretary of the Treasury, the 
Secretary of State, and other appropriate Federal officials, and shall 
request the Chairman of the Board of Governors of the Federal Reserve 
System, to use all appropriate means to encourage countries to formulate 
economic adjustment programs to deal with their balance of payment 
difficulties and external debt owed to private banks.
    (2) Such economic adjustment programs should be designed to 
safeguard, to the maximum extent feasible, international economic 
growth, world trade, employment, and the long-term solvency of banks, 
and to minimize the likelihood of civil disturbances in countries 
needing economic adjustment programs.

(b) Changes in Fund guidelines; limitations on debt service exceptions

    To ensure the effectiveness of economic adjustment programs 
supported by Fund resources--
        (1) the United States Executive Director of the Fund shall 
    recommend and shall work for changes in Fund guidelines, policies, 
    and decisions which would--
            (A) convert short-term bank debt which was made at high 
        interest rates into long-term debt at lower rates of interest;
            (B) assure that the annual external debt service, which 
        shall include principal, interest, points, fees, and other 
        charges required of the country involved, is a manageable and 
        prudent percentage of the projected annual export earnings of 
        such country; and
            (C) provide that in approving any economic adjustment 
        program the Fund shall take into account the number of countries 
        applying to the Fund for economic adjustment programs and the 
        aggregate effects that such programs will have on international 
        economic growth, world trade, exports and employment of other 
        member countries, and the long-term solvency of banks; and

        (2) except as provided in subsection (c) of this section, the 
    United States Executive Director of the Fund shall oppose and vote 
    against providing assistance from the Fund for any economic 
    adjustment program for a country in which the annual external debt 
    service exceeds 85 per centum of the annual export earnings of such 
    country, unless the Secretary of the Treasury first determines and 
    provides written documentation to the Committee on Banking, Housing, 
    and Urban Affairs and the Committee on Foreign Relations of the 
    Senate and the Committee on Banking, Finance and Urban Affairs of 
    the House of Representatives that--
            (A) the economic adjustment program converts high interest 
        rate, short-term bank debt into long-term debt at significantly 
        narrower interest rate spreads than the average interest rate 
        spreads prevailing on bank debt reschedulings negotiated between 
        August 1982 and August 1983 for countries receiving assistance 
        from the Fund for economic adjustment programs in order to 
        minimize the burdens of adjustment on the debtor nation, 
        provided that such interest rate spreads are consistent with 
        that nation's need to obtain adequate external private 
        financing;
            (B) the annual external debt service required of the country 
        involved is a manageable and prudent percentage of the projected 
        annual export earnings of such country; and
            (C) the economic adjustment program will not have an adverse 
        impact on international economic growth, world trade, exports, 
        and employment of other member countries, and the long-term 
        solvency of banks.

(c) Emergencies and extraordinary circumstances

    The provisions of subsection (b)(2) of this section shall not apply 
in any case in which the Secretary of the Treasury first determines and 
provides written documentation to the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Foreign Relations of the Senate and 
the Committee on Banking, Finance and Urban Affairs of the House of 
Representatives that--
        (1) an emergency exists in a nation that has applied to the Fund 
    for assistance that requires an immediate short-term loan to avoid 
    disrupting orderly financial markets;
        (2) a sudden decrease in export earnings in the country applying 
    to the Fund for assistance has increased the ratio of annual 
    external debt service to annual export earnings, to greater than 85 
    per centum for a period projected to be no more than one year; or
        (3) other extraordinary circumstances exist which warrant 
    waiving the provisions of subsection (b)(2) of this section.

(July 31, 1945, ch. 339, Sec. 45, as added Pub. L. 98-181, title VIII, 
Sec. 806, Nov. 30, 1983, 97 Stat. 1272.)

                         Change of Name

    Committee on Banking, Finance and Urban Affairs of House of 
Representatives treated as referring to Committee on Banking and 
Financial Services of House of Representatives by section 1(a) of Pub. 
L. 104-14, set out as a note preceding section 21 of Title 2, The 
Congress. Committee on Banking and Financial Services of House of 
Representatives abolished and replaced by Committee on Financial 
Services of House of Representatives, and jurisdiction over matters 
relating to securities and exchanges and insurance generally transferred 
from Committee on Energy and Commerce of House of Representatives by 
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.

                  Section Referred to in Other Sections

    This section is referred to in section 262r of this title.
