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U.S. Code as of:
01/19/04
Section 262k. Financial assistance to international financial institutions; considerations and criteria
(a) Congressional declaration of intent
United States active participation in international financial
institution activity is based on our national objective of
furthering the economic and social development of the nations of
the world, in particular the developing nations. The attainment of
this national objective is most effectively realized through a
world economic and financial system which is both free and stable.
Therefore, it is the intent of the United States Congress that
United States financial assistance to the international financial
institutions should be primarily directed to those projects that
would not generate excess commodity supplies in world markets,
displace private investment initiatives or foster departures from a
market-oriented economy.
(b) Effect of country adjustment programs; minimization of
projected adverse impacts; avoidance of government subsidization
The Secretary of the Treasury shall instruct the representatives
of the United States to the international financial institutions
described in subsection (d) of this section to take into account in
their review of loans, credits, or other utilization of the
resources of their respective institutions, the effect that country
adjustment programs would have upon individual industry sectors and
international commodity markets in order to -
(1) minimize any projected adverse impacts on such sector or
markets of making such loans, credits, or utilization of
resources; and
(2) avoid whenever possible government subsidization of
production and exports of international commodities without
regard to economic conditions in the markets for such
commodities.
(c) Project proposals relating to mining, smelting, refining, and
fabricating of minerals and metal products
More specifically, the following criteria should be considered as
a basis for a vote by the respective United States Executive
Director to each of the international financial institutions
described in subsection (d) of this section against a project
proposal involving the creation of new capacity or the expansion,
improvement, or modification of mining, smelting, refining, and
fabricating of minerals and metal products:
(1) Analysis shows that the risks, returns, and incentives of a
project are such that it could be financed at reasonable terms by
commercial lending services.
(2) Analysis by the United States Bureau of Mines indicates
that surplus capacity in the industry for the primary product of
the defined project would exist over half the period of the
economic life of the project because of projected world demand
and capacity conditions.
(3) United States imports of the commodity constitute less than
50 percent of the domestic production of the primary product in
those cases where the United States is the substantial producer
of such commodities.
(d) International financial institutions
The international financial institutions referred to in
subsections (a) and (b) of this section are the International
Monetary Fund, the International Bank for Reconstruction and
Development, the International Development Association, the
Inter-American Development Bank, the Asian Development Bank, and
the African Development Bank.
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