22 U.S.C. § 262k — Financial assistance to international financial institutions; considerations and criteria

(a) Congressional declaration of intent The U.S. takes part in international financial institutions to help other countries, especially developing ones, grow economically and socially. Congress believes this goal is best reached through a free and stable world economic system. So Congress intends U.S. financial help to these institutions to mainly support projects that will not flood world markets with extra commodities, replace private investment, or push countries away from market-based economies. (b) Effect of country adjustment programs; minimization of projected adverse impacts; avoidance of government subsidization The Secretary of the Treasury must instruct U.S. representatives at the institutions named in subsection (d) to consider how a country's economic adjustment programs would affect specific industries and international commodity markets when reviewing loans, credits, or other use of the institution's resources. They must do this in order to: (1) Reduce any expected harm to those industries or markets from the loan or resource use. (2) Avoid, when possible, having governments subsidize production and exports of commodities without regard to actual market conditions. (c) Project proposals relating to mining, smelting, refining, and fabricating of minerals and metal products For projects that create new capacity or expand, improve, or change mining, smelting, refining, or metal fabricating operations, the U.S. Executive Director at each institution named in subsection (d) should vote against the project if these criteria are met: (1) The project's risks, returns, and incentives show it could get reasonable financing from commercial lenders instead. (2) The U.S. Bureau of Mines finds that, based on projected world demand and capacity, the industry will likely have surplus capacity for the project's primary product over more than half the project's economic life. (3) The U.S. is a substantial producer of the commodity, and U.S. imports of it are less than 50 percent of domestic production. (d) International financial institutions The institutions covered by subsections (a) and (b) are: the International Monetary Fund, the International Bank for Reconstruction and Development, the International Development Association, the Inter-American Development Bank, the Asian Development Bank, and the African Development Bank.