
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC5331]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
               CHAPTER 62--INTERNATIONAL FINANCIAL POLICY
 
                    SUBCHAPTER II--INTERNATIONAL DEBT
 
             Part B--International Debt Management Authority
 
Sec. 5331. International initiative


(a) Directive

                              (1) Study

        The Secretary of the Treasury shall study the feasibility and 
    advisability of establishing the International Debt Management 
    Authority described in this section.

                  (2) Explanation of determinations

        If the Secretary of the Treasury determines that initiation of 
    international discussions with regard to such authority would (A) 
    result in material increase in the discount at which sovereign debt 
    is sold, (B) materially increase the probability of default on such 
    debt, or (C) materially enhance the likelihood of debt service 
    failure or disruption, the Secretary shall include in his interim 
    reports to the Congress an explanation in detail of the reasons for 
    such determination.

                    (3) Initiation of discussions

        Unless such a determination is made, the Secretary of the 
    Treasury shall initiate discussions with such industrialized and 
    developing countries as the Secretary may determine to be 
    appropriate with the intent to negotiate the establishment of the 
    International Debt Management Authority, which would undertake to--
            (A) purchase sovereign debt of less developed countries from 
        private creditors at an appropriate discount;
            (B) enter into negotiations with the debtor countries for 
        the purpose of restructuring the debt in order to--
                (i) ease the current debt service burden on the debtor 
            countries; and
                (ii) provide additional opportunities for economic 
            growth in both debtor and industrialized countries; and

            (C) assist the creditor banks in the voluntary disposition 
        of their Third World loan portfolio.

(b) Objectives

    In any discussions initiated under subsection (a) of this section, 
the Secretary should include the following specific proposals:
        (1) That any loan restructuring assistance provided by such an 
    authority to any debtor nation should involve substantial 
    commitments by the debtor to (A) economic policies designed to 
    improve resource utilization and minimize capital flight, and (B) 
    preparation of an economic management plan calculated to provide 
    sustained economic growth and to allow the debtor to meet its 
    restructured debt obligations.
        (2) That support for such an authority should come from 
    industrialized countries, and that greater support should be 
    expected from countries with strong current account surpluses.
        (3) That such an authority should have a clearly defined close 
    working relationship with the International Monetary Fund and the 
    International Bank for Reconstruction and Development and the 
    various regional development banks.
        (4) That such an authority should be designed to operate as a 
    self-supporting entity, requiring no routine appropriation of 
    resources from any member government, and to function subject to the 
    prohibitions contained in the first sentence of section 5332(a) of 
    this title.
        (5) That such an authority should have a defined termination 
    date and a clear proposal for the restoration of creditworthiness to 
    debtor countries within this timeframe.

(c) Interim reports

    At the end of the 6-month period beginning on August 23, 1988, and 
at the end of the 12-month period beginning on August 23, 1988, the 
Secretary of the Treasury shall submit a report on the progress being 
made on the study or in discussions described in subsection (a) of this 
section to the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Foreign Relations of the Senate, and 
shall consult with such committees after submitting each such report.

(d) Final report

    On the conclusion of the study or of discussions described in 
subsection (a) of this section, the Secretary shall transmit a report 
containing a detailed description thereof to the Committee on Banking, 
Finance and Urban Affairs of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs and the Committee on 
Foreign Relations of the Senate, together with such recommendations for 
legislation which the Secretary may determine to be necessary or 
appropriate for the establishment of the International Debt Management 
Authority.

(Pub. L. 100-418, title III, Sec. 3111, Aug. 23, 1988, 102 Stat. 1376.)

                         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 sections 5332, 5333 of this title.
