U.S. Senate approves $18 billion for IMF
WASHINGTON, Sept 2 (Reuters) - The U.S. Senate on Wednesday approved $18 billion for the cash-strapped International Monetary Fund to help the lending agency shore up Russia and crisis-hit Asian economies and fend off a global downturn.
The Clinton administration's funding request was approved as part of the fiscal 1999 foreign aid package, and now goes to the House of Representatives, where an uphill battle was expected. House Republican leaders have said they may only agree to give the IMF $3.4 billion, Washington's share of a special fund to help the agency deal with new crises.
The Senate approved the package on a vote of 90-to-3.
If agreed by the House, the $18 billion would replenish IMF reserves drained by multibillion-dollar bailouts for Russia and three Asian states, and help the Washington-based lending agency put rescue packages together for other countries when needed.
The Senate bill calls for the U.S. Treasury Secretary to certify that the Group of Seven major industrial nations -- the United States, Britain, France, Germany, Japan, Canada and Italy -- use their combined clout to support lending reforms at the IMF.
These changes would require countries that receive IMF assistance to comply with international trade agreements and would call for them to end government-directed lending and subsidies. The legislation also urges the IMF to open its books to congressional audits, and urges nations that receive IMF aid to treat foreign and domestic creditors equally.
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