article: SECTION 1. SHORT TITLE. This Act may be cited as the ``IMF Reform Act of 2000''. SEC. 2. REFORMS OF THE INTERNATIONAL MONETARY FUND. (a) In General.--The Bretton Woods Agreements Act (22 U.S.C. 286- 286nn) is amended by adding at the end the following: ``SEC. 63. REFORMS OF THE INTERNATIONAL MONETARY FUND. ``(a) Annual Reports.-- ``(1) Contents.--The Secretary of the Treasury shall submit annually to the Committee on Banking and Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate a written report on whether the Fund has complied with the requirements of subsection (b) throughout the 12-month period covered by the report. If, during such period, the Fund has instituted a quota increase, the report shall document the reasons why it is not feasible for the Fund to obtain sufficient funds from the private sector. ``(2) Effects of failure to submit report or failure to certify imf compliance with requirements.--If the Secretary of the Treasury fails to submit the report for a 12-month period before the beginning of the first fiscal year that begins after the end of the 12-month period, or if the report submitted pursuant to this section fails to comply with the preceding sentence or fails to certify that the Fund has complied with each requirement of subsection (b) throughout the 12-month period, then subsection (c) shall apply for such fiscal year. ``(b) Requirements.--The requirements of this subsection are the following: ``(1) Market interest rates.--The Fund is prohibited from charging, and does not charge, interest on any loan unless the interest rate is-- ``(A) except as provided in subparagraph (B), comparable to the rates of interest in the financial markets, adjusted for risk; and ``(B) is not less than 400 basis points greater than the London InterBank Offered Rate. ``(2) 1-year loan maturity.--The Fund is prohibited from making, and has not made, a loan with a maturity of more than 1 year after the date on which made. ``(3) Loans only to address currency crises.--The Fund is prohibited from making, and does not make, a loan except for the purpose of addressing a currency crisis. ``(4) Termination of esaf.--The Fund has abolished the Enhanced Structural Adjustment Facility of the Fund. ``(5) Release and reorganization of operational budgets.-- The Fund is required to, and does, publish each operational budget of the Fund, with any information that could disrupt financial markets or affect adversely the national security of any country redacted, and is required to, and does, reorganize and restate the publicly available financial statements of the Fund in a manner consistent with the Fund's code of good practices, and with the principles of transparency and accountability. ``(6) No loans for countries falsifying loan documents.-- The Fund is prohibited from making, and has not made, a loan to or for the benefit of the government of any country which the Secretary of the Treasury or the Fund has found during the preceding 5 years to have falsified any item of information on any loan documentation submitted to the Fund. In addition, the Fund is required to institute, and has implemented, accounting controls and safeguards to curb potential misuse of loans by borrowers, and in any case in which the controls and safeguards are considered insufficient to prevent such a misuse, the Fund is prohibited from making, and has not made, a loan. ``(7) Exhaustion of opportunities for private borrowing before instituting quota increase.--The Fund is required to exhaust, and has exhausted, all feasible opportunities to borrow from the private sector before instituting a quota increase for the member countries of the Fund. ``(c) Withdrawal of Authority To Make Loans to the Fund; Reduction of Reserve Tranche Position of the United States.--If this subsection applies for a fiscal year-- ``(1) the Secretary of the Treasury may not make a loan under section 17 during the fiscal year; and ``(2) the Secretary of the Treasury shall cause the reserve tranche position of the United States at the Fund to be maintained at a level that is not more than $5,000,000,000 less than the lesser of-- ``(A) in the case of the first fiscal year for which this subsection applies, the level of the reserve tranche position immediately before this subsection applies; or ``(B) in the case of any other fiscal year, the level at which this subsection required the reserve tranche position to be maintained during the most recent prior fiscal year for which this subsection applied.''. (b) Effective Date.--The amendment made by this section shall take effect 3 years after the date of the enactment of this section. SEC. 3. END OF UNITED STATES PARTICIPATION IN AND SUPPORT FOR THE ENHANCED STRUCTURAL ADJUSTMENT FACILITY OF THE INTERNATIONAL MONETARY FUND. (a) Prohibition on Future Funding.--No officer, employee, or agent of the United States may, directly or indirectly, provide any thing of value to the International Monetary Fund for the purpose of providing resources to, or supporting the activities of the Enhanced Structural Adjustment Facility or other concessional lending facility of the International Monetary Fund. (b) Veto of Use of Available Funds.--Section 5 of the Bretton Woods Agreements Act (22 U.S.C. 286c) is further amended by adding at the end the following: ``The director appointed to represent the United States at the Fund shall use every effort to terminate the Enhanced Structural Adjustment Facility of the Fund within one year after the date of the enactment of this sentence. No director appointed to represent the United States at the Fund shall vote for any proposal to use resources of the Enhanced Structural Adjustment Facility of the Fund for any purpose, except for a proposal to abolish the Facility and return any remaining resources to the member countries of the Fund in proportion to the quotas of such countries during calendar year 1975, or to General Resources of the Fund.''.
summary: Declares that the Secretary, if he or she fails to report or if the report fails to certify that the Fund has complied with the requirements of this Act, shall: (1) not make any foreign loans; and (2) cause the reserve tranche position of the United States at the Fund to be maintained at a certain level. Prohibits any U.S. officer or employee from providing any thing of value to the Fund for the purpose of providing resources to, or supporting the activities of the Facility or any other concessional lending facility of the Fund. Requires the U.S. director at the Fund to use every effort to terminate the Enhanced Structural Adjustment Facility.