Multilateral Debt Relief Act of 2005 - Authorizes: (1) the Secretary of the Treasury to instruct the U.S. executive director of each international financial institution (the World Bank, the International Monetary Fund, the Inter-American Development Bank, the African Development Bank, and the African Development Fund) to reach an agreement among the shareholders to permanently cancel 100 percent of the debts owed to each such institution by an eligible country (as defined by this Act); and (2) appropriations for the U.S. contribution to such agreement if other members of the international financial institutions contribute funds for such purpose.
Expresses the sense of Congress that the Secretary should pursue additional bilateral and multilateral debt relief for each country eligible for International Development Association grants.
Amends the International Development Association Act to authorize, and authorize appropriations for, the U.S. Governor of the Association to contribute necessary sums to the fourteenth replenishment of the Association.
Amends the African Development Fund Act to authorize, and authorize appropriations for, The U.S. Governor of the Fund to contribute necessary sums to the tenth replenishment of the Fund.
Authorizes appropriations to fulfill U.S. commitments to the Enhanced HIPC Initiative (as defined by this Act).
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1320 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1320
To provide multilateral debt cancellation for Heavily Indebted Poor
Countries, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 28, 2005
Mr. DeWine (for himself, Mr. Biden, Mr. Santorum, Mr. Feingold, Mr.
Lugar, and Mr. Obama) introduced the following bill; which was read
twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To provide multilateral debt cancellation for Heavily Indebted Poor
Countries, 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 ``Multilateral Debt Relief Act of
2005''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) In 1996, the international community created the
Heavily Indebted Poor Countries Initiative (the HIPC
Initiative) to reduce the debt burden that curtailed spending
on economic development and poverty-reducing programs in many
impoverished countries.
(2) Since adoption of the original HIPC Initiative in 1996
and the Enhanced HIPC Initiative in 1999, donor countries have
committed more than $50,000,000,000 in bilateral and
multilateral debt stock cancellation to eligible countries.
(3) The 27 countries that have received debt relief through
the HIPC Initiative are estimated by World Bank and the
International Monetary Fund to have increased poverty reduction
expenditures by an average of approximately 75 percent between
1999 and 2004.
(4) Congress has demonstrated its support for bilateral and
multilateral debt relief through the enactment of comprehensive
debt relief initiatives for heavily indebted poor countries by
title V of H.R. 3425 of the 106th Congress, as enacted into law
by section 1000(a)(5) of the Act entitled ``An Act making
consolidated appropriations for the fiscal year ending
September 30, 2000, and for other purposes'', approved November
29, 1999 (Public Law 106-113; 113 Stat. 1501-311) and the
amendments made by such title, title II of H.R. 5526 of the
106th Congress, as enacted into law by section 101(a) of the
Act entitled ``An Act making appropriations for foreign
operations, export financing, and related programs for the
fiscal year ending September 30, 2001, and for other
purposes'', approved November 6, 2000 (Public Law 106-429; 114
Stat. 1900A-5), and title V of the United States Leadership
Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003 (Public
Law 108-25; 117 Stat. 747) and the amendment made by such
title.
(5) A number of countries, including the United States,
have canceled 100 percent of the bilateral loans made by such
countries to countries that are eligible for debt relief under
the Enhanced HIPC Initiative, and other major donor nations
have canceled a large percentage of such loans, however, a
number of countries eligible for such debt relief will continue
to owe substantial debts to international financial
institutions such as the International Monetary Fund, the
International Development Association, and the African
Development Fund.
(6) Permanently canceling 100 percent of the debt owed by
the countries that are eligible for debt relief under the
Enhanced HIPC Initiative to multilateral institutions would
allow countries to increase investments in economic and social
infrastructure, including improving the quality of and access
to health care, education, and poverty reduction programs, and
thereby help them to move towards sustainable economic growth
and to achieve the Millennium Development Goals set out in
United Nations Millennium Declaration, resolution 55/1 adopted
by the General Assembly of the United Nations on September 8,
2000, for eradicating extreme poverty and hunger and promoting
human development.
(7) On June 11, 2005, finance ministers representing the
members of the Group of 8 agreed to make a proposal, prior to
September 2005, to the shareholders of the World Bank, the
International Monetary Fund, and the African Development Bank,
for the immediate cancellation of 100 percent of the debt stock
owed to such institutions by 18 eligible countries, and the
eventual cancellation of such debt owed by an additional 20
countries.
(8) That proposal would cancel approximately
$40,000,000,000 in debt stock owed by 18 countries immediately,
and would ultimately result in the cancellation of a total of
approximately $56,000,000,000 in debt stock owed by 38
countries, saving such countries, on average, $1,500,000,000
each year in debt service payments. To offset foregone interest
and principal repayments, donors would provide additional
resources to the World Bank and African Development Bank for
grants and lending to the poorest countries for investments in
the health, education, and well-being of the people of such
countries.
SEC. 3. DEFINITIONS.
In this Act:
(1) Eligible country.--The term ``eligible country'' means
a country whose government is described in paragraphs (1)
through (5) of section 557(c) of H.R. 3422 of the 106th
Congress, as enacted into law by section 1000(a)(2) of the Act
entitled ``An Act making consolidated appropriations for the
fiscal year ending September 30, 2000, and for other
purposes'', approved November 29, 1999 (Public Law 106-113; 113
Stat. 1501A-101)
(2) Enhanced hipc initiative.--The term ``Enhanced HIPC
Initiative'' has the meaning given that term in section 1625 of
the International Financial Institutions Act (22 U.S.C. 262p-
8).
(3) HIPC initiative.--The term ``HIPC Initiative'' means
the initiative established in 1996 by the World Bank and the
International Monetary Fund for the purpose of reducing the
debt burdens of the world's poorest countries.
(4) International financial institution.--The term
``international financial institution'' means the World Bank,
the International Monetary Fund, the Inter-American Development
Bank, the African Development Bank, and the African Development
Fund.
(5) Members of the group of 8.--The term ``members of the
Group of 8'' means Canada, France, Germany, Italy, Japan,
Russia, the United Kingdom, and the United States.
(6) World bank.--The term ``World Bank'' means the
International Bank for Reconstruction and Development, the
International Development Association, the International
Finance Corporation, and the Multilateral Investment Guarantee
Agency.
SEC. 4. AUTHORITY.
(a) In General.--The Secretary of the Treasury is authorized to
instruct the Untied States Executive Director of each international
financial institution to use the voice and vote of the United States to
reach an agreement among the shareholders of such international
financial institutions to permanently cancel 100 percent of the debts
owed to each such institution by an eligible country.
(b) Relationship to Other Laws.--The authority provided in
subsection (a) is in addition to any other authority of the Secretary
of the Treasury to promote debt relief and may not be construed to
limit any such other authority.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the President such sums as may be necessary for the
United States contribution to the implementation of the agreement
referred to in subsection (a), if other members of the international
financial institutions contribute funds for such purpose.
SEC. 5. SENSE OF CONGRESS ON DEBT RELIEF.
It is the sense of Congress that the Secretary of the Treasury
should pursue additional bilateral and multilateral debt relief for
each country that is eligible for grant assistance from the
International Development Association.
SEC. 6. CONTRIBUTIONS TO MULTILATERAL DEVELOPMENT BANKS.
(a) World Bank.--The International Development Association Act (22
U.S.C. 284 et seq.) is amended by adding at the end the following new
section:
``SEC. 23. FOURTEENTH REPLENISHMENT.
``(a) Contribution Authority.--
``(1) In general.--The United States Governor of the
Association is authorized to contribute on behalf of the United
States such sums as may be necessary to the fourteenth
replenishment of the resources of the Association.
``(2) Subject to appropriations.--Any commitment to make
the contribution authorized by paragraph (1) shall be effective
only to such extent or in such amounts as are provided in
advance in appropriations Acts.
``(b) Authorization of Appropriations.--For the contribution
authorized by subsection (a), there are authorized to be appropriated
such sums as may be necessary for payment by the Secretary of the
Treasury.''.
(b) African Development Bank Fund.--The African Development Fund
Act (22 U.S.C. 290g et seq.) is amended by adding at the end the
following new section:
``SEC. 218. TENTH REPLENISHMENT.
``(a) Contribution Authority.--
``(1) In general.--The United States Governor of the Fund
is authorized to contribute on behalf of the United States such
sums as may be necessary to the tenth replenishment of the
resources of the Fund.
``(2) Subject to appropriations.--Any commitment to make
the contribution authorized by paragraph (1) shall be effective
only to such extent or in such amounts as are provided in
advance in appropriations Acts.
``(b) Authorization of Appropriations.--For the contribution
authorized by subsection (a), there are authorized to be appropriated
such sums as may be necessary for payment by the Secretary of the
Treasury.''.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS OF THE ENHANCED HIPC
INITIATIVE.
There is authorized to be appropriated to the President such sums
as may be necessary for the President to contribute on behalf of the
United States to fulfill the commitments made by the United States
related to the Enhanced HIPC Initiative.
SEC. 8. REPORTS TO CONGRESS.
(a) Requirement.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter, the Secretary of the
Treasury shall submit to the appropriate congressional committees a
report on the status of negotiations to achieve bilateral and
multilateral debt relief for impoverished, highly indebted countries
that did not benefit from the HIPC Initiative or the Enhanced HIPC
Initiative.
(b) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means the Committee
on Appropriations and the Committee on Foreign Relations of the Senate
and the Committee on Appropriations and the Committee on International
Relations of the House of Representatives.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S7525-7526)
Read twice and referred to the Committee on Foreign Relations.
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