Sovereign Debt Contract Capacity Act

IIB 117TH CONGRESS 1ST SESSION H. R. 4111 IN THE SENATE OF THE UNITED STATES OCTOBER 26, 2021 Received; read twice and referred to the Committee on Foreign Relations AN ACT To require the Secretary of the Treasury to direct the United States Executive Director at the International Monetary Fund to advocate that the Fund provide technical assist- ance to Fund members seeking to enhance their capacity to evaluate the legal and financial terms of sovereign debt contracts, and for other purposes. VerDate Sep 11 2014 23:22 Oct 26, 2021 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H4111.RFS H4111 kjohnson on DSK79L0C42PROD with BILLS 2 HR 4111 RFS Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Sovereign Debt Con- 4 tract Capacity Act’’. 5 SEC. 2. SUPPORT TO ENHANCE THE CAPACITY OF INTER- 6 NATIONAL MONETARY FUND MEMBERS TO 7 EVALUATE THE LEGAL AND FINANCIAL 8 TERMS OF SOVEREIGN DEBT CONTRACTS. 9 (a) IN GENERAL.—Title XVI of the International Fi- 10 nancial Institutions Act (22 U.S.C. 262p–262p–13) is 11 amended by adding at the end the following: 12 ‘‘SEC. 1630. SUPPORT TO ENHANCE THE CAPACITY OF FUND 13 MEMBERS TO EVALUATE THE LEGAL AND FI- 14 NANCIAL TERMS OF SOVEREIGN DEBT CON- 15 TRACTS. 16 ‘‘The Secretary of the Treasury shall instruct the 17 United States Executive Director at the International 18 Monetary Fund to use the voice and vote of the United 19 States to advocate that the Fund promote international 20 standards and best practices with respect to sovereign 21 debt contracts and provide technical assistance to Fund 22 members, and in particular to lower middle-income coun- 23 tries and countries eligible to receive assistance from the 24 International Development Association, seeking to en- 25 VerDate Sep 11 2014 23:22 Oct 26, 2021 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4111.RFS H4111 kjohnson on DSK79L0C42PROD with BILLS 3 HR 4111 RFS hance their capacity to evaluate the legal and financial 1 terms of sovereign debt contracts with multilateral, bilat- 2 eral, and private sector creditors.’’. 3 (b) REPORT TO THE CONGRESS.—Within 1 year after 4 the date of the enactment of this Act, and annually there- 5 after for the next 4 years, the Secretary of the Treasury 6 shall report to the Committee on Financial Services of the 7 House of Representatives and the Committee on Foreign 8 Relations of the Senate on— 9 (1) the activities of the International Monetary 10 Fund in the then most recently completed fiscal year 11 to provide technical assistance described in section 12 1630 of the International Financial Institutions Act, 13 including the ability of the Fund to meet the de- 14 mand for the assistance; and 15 (2) the efficacy of efforts by the United States 16 to achieve the policy goal described in such section 17 and any further actions that should be taken, if nec- 18 essary, to implement that goal. 19 VerDate Sep 11 2014 23:22 Oct 26, 2021 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4111.RFS H4111 kjohnson on DSK79L0C42PROD with BILLS 4 HR 4111 RFS (c) SUNSET.—The amendment made by subsection 1 (a) shall have no force or effect after the 5-year period 2 that begins with the date of the enactment of this Act. 3 Passed the House of Representatives October 25, 2021. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:22 Oct 26, 2021 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4111.RFS H4111 kjohnson on DSK79L0C42PROD with BILLS