Alan, here's the full text from the HOUSE:
Thursday October 8, 8:01 pm Eastern Time
TEXT-Republican proposal for IMF reform
WASHINGTON, Oct 8 (Reuters) - Here is the text of a draft proposal from the
Republicans to reform the International Monetary Fund in return for the party's support for
an administration request for extra money for the agency.
IMF Legislation - Provides total Administration request of $17.9 billion for IMF quota/NAB
- Conditions funds on notification by Treasury Secretary and Fed Chairman that major shareholders of the IMF have agreed
to, and will implement, policies that:
1. Require recipient countries, in accordance with a specific timetable, to liberalize trade restrictions, eliminate government
directed lending on noncommercial terms, and provide a legal basis for non-discriminatory treatment in bankruptcy
proceedings for all creditors, and others.
2. Require transparency by the Fund to include public disclosures of full written summaries of Executive Board meetings,
Letters of Intent, and Policy Framework Papers, with certain exceptions.
3. Require fund lending be at market rates, adjusted for risk, and shall not be less than 300 basis points in excess of the
monthly LIBOR rate denominated in U.S. dollars. In countries with exceptional balance of payments difficulties, financing from
the Fund is at shorter maturities and higher interest rate as an incentive for early repayment and private financing.
4. Require policies providing that no Fund loan arrangement be for a period exceeding one year.
- Craig/Chenoweth/Crapo/Cannon Korea language
- Creates advisory commission to report to Congress on the future role and responsibilities of the international financial
institutions, the WTO, and the Bank for International Settlements.
- Requires the Secretary of the Treasury to urge the creation of a permanent international advisory committee to the Fund
consisting of elected members of the national legislatures of the Fund's Executive Board, and seeks to grant it access to
appropriate information from the Fund.
- Includes extensive House Banking Committee authorization language.
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I would add that the US be guaranteed on the loans that we
make to these countries and that we be paid back in US currency
or natural resources(oil,gold,whatever) when the note comes due.
Too harsh? The first thing my bank asked when I got my loans was,
"where's the collateral?" I ASK," Where's the collateral"?
Later,
BR |
