Page:United States Statutes at Large Volume 113 Part 2.djvu/834

 113 STAT. 1501A-316 PUBLIC LAW 106-113—APPENDIX E relief under the modified Heavily Indebted Poor Countries Initiative are consistent with the Poverty Reduction Strategies. "(8) Strengthening the linkage between borrower country performance and lending operations by IDA and the reformed ESAF on the basis of clear and monitorable indictors. "(9) Full public disclosure of the proposed objectives and financial organization of the successor to the ESAF at least 90 days before any decision by the Executive Board of the IMF to consider its adoption.". SEC. 503. ACTIONS TO FUND THE PROVISION OF MULTILATERAL DEBT RELIEF. (a) CONTRIBUTIONS FOR DEBT REDUCTIONS FOR THE POOREST COUNTRIES. —The Bretton Woods Agreements Act (22 U.S.C. 286 et seq.) is amended by adding at the end the following: "SEC. 62. APPROVAL OF CONTRIBUTIONS FOR DEBT REDUCTIONS FOR THE POOREST COUNTRIES. "For the purpose of mobilizing the resources of the Fund in order to help reduce poverty and improve the lives of residents of poor countries and, in particular, to allow those poor countries with unsustainable debt burdens to receive deeper, broader, and faster debt relief, without allowing gold to reach the open market or otherwise adversely affecting the market price of gold, the Secretary of the Treasury is authorized to instruct the United States Executive Director of the Fund to vote— "(1) to approve an arrangement whereby the Fund— "(A) sells a quantity of its gold at prevailing market prices to a member or members in nonpublic transactions sufficient to generate 2.226 billion Special Drawing Rights in profits on such sales; "(B) immediately after, and in conjunction with each such sale, accepts payment by such member or members of such gold to satisfy existing repurchase obligations of such member or members so that the Fund retains ownership of the gold at the conclusion of such payment; "(C) uses the earnings on the investment of the profits of such sales through a separate subaccount, only for the purpose of providing debt relief from the Fund under the modified Heavily Indebted Poor Countries (HIPC) Initiative (as defined in section 1623 of the International Financial Institutions Act); and "(D) shall not use more than ^i4 of the earnings on the investment of the profits of such sales; and "(2) to support a decision that shall terminate the Special Contingency Account 2 (SCA-2) of the Fund so that the funds in the SCA-2 shall be made available to the poorest countries. Any funds attributable to the United States participation in SCA-2 shall be used only for debt relief from the Fund under the modified HIPC Initiative.". (b) CERTIFICATION. —Within 15 days after the United States Executive Director casts the votes necessary to carry out the instruction described in section 62 of the Bretton Woods Agreements Act, the Secretary of the Treasury shall certify to the Congress that neither the profits nor the earnings on the investment of profits from the gold sales made pursuant to the instruction or of the funds attributable to United States participation in SCA- 2 will be used to augment the resources of any reserve account

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