§ 286nn. — Approval of contributions for debt reductions for the poorest countries.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC286nn]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 7--INTERNATIONAL BUREAUS, CONGRESSES, ETC.
SUBCHAPTER XV--INTERNATIONAL MONETARY FUND AND BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Sec. 286nn. Approval of contributions for debt reductions for
the poorest countries
For the purpose of mobilizing the resources of the Fund in order to
help reduce poverty and improve the lives of residents of poor countries
and, in particular, to allow those poor countries with unsustainable
debt burdens to receive deeper, broader, and faster debt relief, without
allowing gold to reach the open market or otherwise adversely affecting
the market price of gold, the Secretary of the Treasury is authorized to
instruct the United States Executive Director of the Fund to vote--
(1) to approve an arrangement whereby the Fund--
(A) sells a quantity of its gold at prevailing market prices
to a member or members in nonpublic transactions sufficient to
generate 2.226 billion Special Drawing Rights in profits on such
sales;
(B) immediately after, and in conjunction with each such
sale, accepts payment by such member or members of such gold to
satisfy existing repurchase obligations of such member or
members so that the Fund retains ownership of the gold at the
conclusion of such payment; and
(C) uses the earnings on the investment of the profits of
such sales through a separate subaccount, only for the purpose
of providing debt relief from the Fund under the modified
Heavily Indebted Poor Countries (HIPC) Initiative (as defined in
section 262p-6 of this title); and
(2) to support a decision that shall terminate the Special
Contingency Account 2 (SCA-2) of the Fund so that the funds in the
SCA-2 shall be made available to the poorest countries. Any funds
attributable to the United States participation in SCA-2 shall be
used only for debt relief from the Fund under the modified HIPC
Initiative.
(July 31, 1945, ch. 339, Sec. 62, as added Pub. L. 106-113, div. B,
Sec. 1000(a)(5) [title V, Sec. 503(a)], Nov. 29, 1999, 113 Stat. 1536,
1501A-316; amended Pub. L. 106-429, Sec. 101(a) [title VIII,
Sec. 801(a)], Nov. 6, 2000, 114 Stat. 1900, 1900A-64.)
Amendments
2000--Par. (1)(B), (D). Pub. L. 106-429 inserted ``and'' at end of
subpar. (B) and struck out subpar. (D) which read as follows: ``shall
not use more than \9/14\ of the earnings on the investment of the
profits of such sales; and''.
Certification to Congress Relating To Use of Profits To Augment
International Monetary Fund
Pub. L. 106-113, div. B, Sec. 1000(a)(5) [title V, Sec. 503(b)],
Nov. 29, 1999, 113 Stat. 1536, 1501A-316, provided that: ``Within 15
days after the United States Executive Director casts the votes
necessary to carry out the instruction described in section 62 of the
Bretton Woods Agreements Act [22 U.S.C. 286nn], the Secretary of the
Treasury shall certify to the Congress that neither the profits nor the
earnings on the investment of profits from the gold sales made pursuant
to the instruction or of the funds attributable to United States
participation in SCA-2 will be used to augment the resources of any
reserve account of the International Monetary Fund for the purpose of
making loans.''
