Sec. 109. Findings and sense of Congress regarding the United States International Development Finance Corporation
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Congress finds the following: The COVID–19 pandemic is causing a global economic recession, as evidenced by the global economic indicators described in paragraphs
(2)through (4). The United Nations Conference on Trade and Development determined that the COVID–19 pandemic pushed the global economy into recession in 2020 on a scale that has not been witnessed since the 1930s. Developed countries are expected to experience a relatively more significant rebound in gross domestic product growth during 2021 than is expected to be experienced in developing countries, leading to concerns about a further expansion in the gap between rich and poor countries, particularly if this trend continues into 2022. Global markets have suffered losses ranging between 5 percent and over 10 percent since the beginning of the pandemic. While markets are recovering in 2021, global job losses and unemployment rates remain high, with— approximately 33,000,000 labor hours have been lost globally (13 per cent of the total hours lost) due to outright unemployment; and an estimated additional 81,000,000 labor hours have been lost due to inactivity or underemployment. Given the prolonged nature of the COVID–19 pandemic, African finance ministers have requested continued efforts to provide— additional liquidity; better market access; more concessional resources; and an extension in the Debt Service Suspension Initiative established by the Group of 20. It is the sense of Congress that— even when markets begin to recover in the future, it is likely that access to capital will be especially challenging for developing countries, which still will be struggling with the containment of, and the recovery from, the COVID–19 pandemic; economic uncertainty and the inability of individuals and households to generate income are major drivers of political instability and social discord, which creates conditions for insecurity; it is in the security and economic interests of the United States to assist in the economic recovery of developing countries that are made more vulnerable and unstable from the public health and economic impacts of the COVID–19 pandemic; United States foreign assistance and development finance institutions should seek to blunt the impacts of a COVID–19 related economic recession by supporting investments in sectors critical to maintaining economic stability and resilience in low and middle income countries; the need for the United States International Development Finance Corporation’s support for advancing development outcomes in less developed countries, as mandated by the Better Utilization of Investments Leading to Development Act of 2018 ( 22 U.S.C. 9601 et seq. ), is critical to ensuring lasting and resilient economic growth in light of the COVID–19 pandemic’s exacerbation of economic hardships and challenges; the United States International Development Finance Corporation should adjust its view of risk versus return by taking smart risks that may produce a lower rate of financial return, but produce significant development outcomes in responding to the economic effects of COVID–19; and to mitigate the economic impacts of the COVID–19 recession, the United States International Development Finance Corporation should use its resources and authorities, among other things— to ensure loan support for small- and medium-sized enterprises; to offer local currency loans to borrowers for working capital needs; to create dedicated financing opportunities for new customers that are experiencing financial hardship due to the COVID–19 pandemic; and to work with other development finance institutions to create co-financing facilities to support customers experiencing hardship due to the COVID–19 pandemic.
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Sec. 109
Findings and sense of Congress regarding the United States International Development Finance Corporation
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