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Title XV: 15.1 Registration of Advisers to Private Funds

<< Title XV Overview

15.1 Restriction on U.S.Funding of IMF Loans to Heavily Indebted Countries



            15.1.     Restriction on U.S.Funding of IMF Loans to Heavily Indebted Countries.  The Treasury Secretary is directed to instruct the U.S. Executive Director at the IMF to evaluate, prior to consideration by the Board of Executive Directors, any proposal submitted to make a loan to a country where (i) the country's public debt exceeds its gross domestic product, and (ii) that country is not eligible for assistance from the International Development Association.  The U.S. Executive Director at the IMF is required to oppose the proposal if the evaluation indicates that the proposed loan is not likely to be repaid in full. 

If the IMF Board of Executive Directors approves such a loan, the Treasury Secretary is required to produce a report to Congress within 30 days of the approval of the loan, and annually thereafter assessing the likelihood that the loans will be repaid in full, which report will include the borrowing country's debt status; its vulnerabilities that may affect its ability to repay the loan; and its debt management strategy. [§1501]