22 U.S.C. § 286aa — Instructions to United States Executive Director; Communist dictatorships

Congress finds that Communist dictatorships severely restrict how freely labor and capital can move, and create other inefficient supply problems. Congress says these problems help cause balance-of-payments deficits — money problems between what a country pays other countries and what it receives — which goes against the IMF's own goals. Because of this, the Secretary of the Treasury must instruct the U.S. Executive Director of the Fund to actively oppose any use of IMF credit by a Communist dictatorship. There is one exception. It applies only if the Secretary certifies and documents in writing, when asked, and appears (if requested) before the Senate Foreign Relations Committee, the Senate Banking, Housing, and Urban Affairs Committee, and the House Banking, Finance and Urban Affairs Committee — at least 21 days before any vote on the drawing — that the drawing meets all three of these conditions: (1) it gives the country a real basis for fixing its balance-of-payments problems and reaching a sustainable position; (2) it would ease the severe labor and capital mobility restrictions or other inefficient rigidities, and push the country toward more market-based policies; and (3) it serves the economic interest of most people in that country. If the Secretary doesn't meet a request to appear at least 21 days before the vote and doesn't certify in writing that all three conditions are met, the U.S. Executive Director must vote against the program.