Sec. 2. Statement of policy on United States leadership at international financial institutions
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/bill/117/s/4617/is/section-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It is the policy of the United States— to recognize rising debt stock in emerging market and developing countries as a national security and economic security threat and raise its importance in multilateral fora; to leverage the voice and vote of the United States at international financial institutions to prevent future unsustainable debt stocks in emerging market and developing countries; to promote rule-writing standards for transparency and disclosure that hold both debtors and creditors accountable, allow accurate debt sustainability assessments, and promote better debt management; to lead the international community in translating the G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (commonly known as the Common Framework ) into tangible action, including effective standstill for debt payments and credit revisions for petitioner countries and finalizing the debt treatment for the petitioner countries, beginning with Chad, Ethiopia, and Zambia; to reduce timelines and increase confidence in outcomes for the Common Framework so that private creditors continue to provide sufficient finances to petitioner countries and other countries witness the benefits of petitioning; to expand the Common Framework and offer its financial assistance to other heavily indebted lower-middle-income countries, beyond those currently covered; to cooperate with counterparts in the Group of Twenty (G20), international financial institutions, private credit rating agencies, and regulators to explore and develop new bond and loan contract issuance standards that authorize temporary suspensions of debt services to both private and public creditors without triggering a default in crisis situations; to engage with petitioner countries, before those countries exhaust their reserves, to strategize their ascension into the Common Framework and prevent further economic costs; to leverage the voice and vote of the United States in the International Monetary Fund and the World Bank so that the Fund and the Bank complete preliminary assessments of the debt relief needed by each country eligible for Common Framework treatment before such countries petition for debt relief; that assessments described in paragraph
(9)should— include realistic growth and fiscal projections; include implications of Common Framework debt relief; and be based on accurate and comprehensive debt data; to support international financial institutions lending into arrears for the Common Framework in the case that private lenders fail to uphold their initial commitments; to leverage the voice and vote of the United States at international financial institutions to promote and finance international initiatives to procure and deploy more affordable and accessible COVID–19 vaccinations and treatments for emerging market and developing countries; and to address the near-term problems associated with the pandemic-induced global recession and longer term problems of unsustainable credit lending and borrowing that victimize emerging market and developing countries.