Page:United States Statutes at Large Volume 103 Part 3.djvu/433

 PUBLIC LAW 101-240—DEC. 19, 1989 103 STAT. 2501 "SEC. 66. DISCUSSIONS TO ENHANCE THE CAPACITY OF THE FUND TO ALLEVIATE THE POTENTIALLY ADVERSE IMPACTS OF FUND PROGRAMS ON THE POOR AND THE ENVIRONMENT. "The Secretary of the Treasury shall instruct the United States Executive Director of the Fund to seek policy changes by the Fund, through formal initiatives and through bilateral discussions, which will result in— "(1) the initiation of a systematic review of policy prescrip- tions implemented by the Fund, for the purpose of determining whether the Fund's objectives were met and the social and environmental impacts of such policy prescriptions; and "(2) the establishment of procedures which ensure the inclu- sion, in future economic reform programs approved by the Fund, of policy options which eliminate or reduce the potential adverse impact on the well-being of the poor or the environment resulting from such programs.". TITLE IV—INTERNATIONAL DEBT PROVISIONS 22 USC 286kk. SEC. 401. SHORT TITLE. This title may be cited as the 1989". ' Foreign Debt Reserving Act of SEC. 402. ADDITIONAL RESERVE REQUIREMENTS. (a) FINDINGS. —The Congress finds that— (1) since the adoption of the International Lending Super- vision Act of 1983, the credit quality of loans by United States banking institutions to highly indebted countries has deterio- rated and the prospects for full repayment of such loans have diminished; (2) in general during this period, the level of country exposure and transfer risk associated with loans by United States bank- ing institutions to highly indebted countries has not been ade- quately reflected in the reserve levels established by many individual United States banking institutions or the reserve requirements imposed by Federal banking agencies pursuant to such Act; (3) during the last 3 years and particularly in recent months, United States banking institutions have increased their re- serves for possible losses from loans to highly indebted countries but such reserves remain, in some cases, significantly lower than reserves established by banking institutions in a number of foreign countries and may not be adequate to deal with potential risks; and (4) in order to fulfill the purposes of such Act, the Federal banking agencies should take a more active role in reviewing reserve levels established by United States banking institutions for potential losses from loans to highly indebted countries and in requiring appropriate levels of both special and general reserves to reflect the increased risk of such loans. (b) IN GENERAL.—The International Lending Supervision Act of 1983 (12 U.S.C. 3901 et seq.) is amended by inserting after section 905 the following new section: Foreign Debt Reserving Act of 1989. Loans. 12 USC 3901 note. 12 USC 3904a note.

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