22 USC 5331 - International initiative

U.S Code last checked for updates: Nov 26, 2024

§ 5331.

International initiative

(a)

Directive

(1)

Study

(2)

Explanation of determinations

(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), 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.