Federal

To amend the International Financial Institutions Act to provide instructions with respect to the U.S. policy on co-financing arrangements at the multilateral development banks, and for other purposes.

Source: Congress.gov · 393 words in original text

What This Bill Does

This bill changes U.S. policy on how the country votes at multilateral development banks (large international financial institutions run by many countries). It requires the U.S. Treasury Secretary to give instructions to U.S. representatives at these banks to vote against certain programs or projects, unless specific conditions are met.

Who It Affects

The Secretary of the Treasury (head of the federal department managing money and finances). United States Executive Directors (government officials who represent the U.S. at international development banks). The Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate (congressional committees that oversee this policy).

Key Provisions

• The Secretary of the Treasury must instruct U.S. Executive Directors at multilateral development banks to vote against any program or project that includes financing from the Asian Infrastructure Investment Bank, unless the Secretary certifies two conditions have been met (Sec. 1634) • Before voting against such projects, the Secretary must certify that the Asian Infrastructure Investment Bank has the authority and resources to provide grants and concessional assistance (money given at favorable terms rather than repaid as a loan) to eligible countries in the same way the International Development Association does (Sec. 1634) • The Secretary must also certify that the Asian Infrastructure Investment Bank has demonstrated a track record of providing such assistance to these eligible countries (Sec. 1634)

What Changes

The bill amends Title XVI of the International Financial Institutions Act by adding a new section that requires the described voting instructions from the Treasury Secretary.

Important Definitions

None defined in this bill text.

I 118TH CONGRESS 1ST SESSION H. R. 692 To amend the International Financial Institutions Act to provide instructions with respect to the U.S. policy on co-financing arrangements at the multilateral development banks, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 31, 2023 Mr. TORRES of New York introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the International Financial Institutions Act to provide instructions with respect to the U.S. policy on co-financing arrangements at the multilateral develop- ment banks, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. U.S. POLICY ON CO-FINANCING ARRANGE- 3 MENTS AT THE MULTILATERAL DEVELOP- 4 MENT BANKS. 5 Title XVI of the International Financial Institutions 6 Act (22 U.S.C. 262p et seq.) is amended by adding at 7 the end the following: 8 VerDate Sep 11 2014 06:33 Feb 16, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H692.IH H692 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 692 IH ‘‘SEC. 1634. U.S. POLICY ON CO-FINANCING ARRANGEMENTS 1 AT THE MULTILATERAL DEVELOPMENT 2 BANKS. 3 ‘‘The Secretary of the Treasury shall instruct the 4 United States Executive Directors at the multilateral de- 5 velopment banks (as defined in section 1701(c)(4)) to use 6 the voice and vote of the United States to vote against 7 any program or project at the respective institution if it 8 includes joint or parallel financing provided by the Asian 9 Infrastructure Investment Bank unless the Secretary of 10 the Treasury has certified to the Committee on Financial 11 Services of the House of Representatives and the Com- 12 mittee on Foreign Relations of the Senate that the Asian 13 Infrastructure Investment Bank— 14 ‘‘(1) has the authority and the resources to pro- 15 vide grants and concessional assistance to countries 16 eligible to borrow from the International Develop- 17 ment Association on terms similar to those provided 18 to these countries by the International Development 19 Association; and 20 ‘‘(2) has demonstrated a track record of pro- 21 viding such assistance to these countries.’’. 22 Æ VerDate Sep 11 2014 06:33 Feb 16, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H692.IH H692 kjohnson on DSK79L0C42PROD with BILLS

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