BILL TEXT: H.R. 3331

IMF Transparency and Efficiency Act of 1998 (Introduced in the House)

HR 3331 IH

To ensure the transparency of International Monetary Fund operations.

March 4, 1998

Mr. SAXTON (for himself, Mr. ARMEY, and Mr. CAMPBELL) introduced the following bill; which was referred to the Committee on Banking and Financial Services

To ensure the transparency of International Monetary Fund operations.

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 `IMF Transparency and Efficiency Act of 1998'.

SEC. 2. DENIAL OF FEDERAL FUNDS TO THE INTERNATIONAL MONETARY FUND IF ITS OPERATIONS ARE NOT MADE MORE TRANSPARENT.

Title XV of the International Financial Institutions Act (22 U.S.C. 262o-262o-1) is amended by adding at the end the following:

`SEC. 1503. DENIAL OF FEDERAL FUNDS TO THE INTERNATIONAL MONETARY FUND IF ITS OPERATIONS ARE NOT MADE MORE TRANSPARENT.

`(a) IN GENERAL- An officer, employee, or agent of the United States may not, directly or indirectly, provide Federal funds to, or for the benefit of the International Monetary Fund unless--

`(1) there is in effect a written certification, made by the Secretary of the Treasury to the Committee on Banking and Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, that the International Monetary Fund has met the requirements of subsection (b); and

`(2) the Congress has enacted a joint resolution approving the certification.

`(b) REQUIREMENTS- The requirements of this subsection are the following:

`(1) Within 3 months after any meeting of the Board of Governors or the Executive Board of the International Monetary Fund, an edited copy of the minutes of the meeting shall be made available for public inspection, with the following information redacted:

`(A) Information which, if released, would adversely affect the national security of a country, and which is of the type that would be classified by United States Government.

`(B) Information which, if released, would disrupt markets.

`(C) Proprietary information.

`(2) Within 3 months after staff of the International Monetary Fund makes a loan document, written review, program document, or assessment of any proposed or ongoing loan program of the International Monetary Fund a copy of the review, document, or assessment, and all related and supporting materials, shall be made available for public inspection, with the following information redacted:

`(A) Information which, if released, would adversely affect the national security of a country, and which is of the type that would be classified by United States Government.

`(B) Information which, if released, would disrupt markets.

`(C) Proprietary information.

`(3) Not later than 18 months after the date of the enactment of this section:

`(A) The International Monetary Fund shall establish an independent advisory board to review the research, operations, and loan programs of the International Monetary Fund.

`(B) The legislature of each country which is represented on the Executive Board of the International Monetary Fund shall each appoint to the advisory board 1 individual with expertise in private sector finance gained in the private sector or in academia.

`(C) The advisory board shall issue annual reports summarizing its activities, which shall be available immediately for public inspection.

`(4) The annual rate at which the International Monetary Fund charges interest on loans made after the date of the enactment of this section shall be comparable to the average annual rate of interest in financial markets for loans of comparable maturity, adjusted for risk.

`(c) EFFECTIVE PERIOD OF CERTIFICATION-

`(1) IN GENERAL- A certification made under this section shall cease to be in effect 1 year after the date the certification is made.

`(2) REVOCATION-

`(A) IN GENERAL- A certification made under this section shall cease to be in effect if the Secretary of the Treasury revokes the certification.

`(B) CAUSE FOR REVOCATION- The Secretary of the Treasury shall revoke a certification made under this section if the Secretary of the Treasury is made aware that the International Monetary Fund has ceased to meet a requirement of subsection (b).'.

SEC. 3. EFFECTIVE DATE.

This Act shall take effect 6 months after the date of the enactment of this Act.

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