H.R. 1095 Summary :: Highly Indebted Poor Countries (HIPC) Debt Relief :: Research Archive :: Center for International Development at Harvard University (CID)

Highly Indebted Poor Countries (HIPC) Debt Relief

H.R. 1095 Summary

Bill Summary for the 106th Congress

H.R.1095

SPONSOR: Rep Leach, James A. (introduced 03/11/99)

SUMMARY:

(AS INTRODUCED)

Debt Relief for Poverty Reduction Act of 1999 - Amends the Foreign Assistance Act of 1961 to direct the President, subject to authorization of appropriations, to cancel or reduce all amounts owed to the United States by heavily indebted poor countries (HIPCs) as a result of concessional and nonconcessional loans made, guarantees issued, or credits extended prior to January 1, 1996, under any provision of law. Sets forth eligibility requirements for cancellation or reduction of debt for HIPCs. Directs the President, in canceling or reducing debt, to give priority to HIPCs that have demonstrated a sustained commitment to poverty alleviation or have recently suffered a major natural disaster.

(Sec. 2) Provides that cancellation or reduction of debt shall not be considered to be assistance for purposes of any law limiting assistance to a country.

Authorizes appropriations.

Sets forth certain procedures for the making of new loans, extending new credits, or issuing new guarantees to the governments of developing countries.

(Sec. 3) Amends the International Financial Institutions Act to urge the President, in order to accelerate multilateral debt relief and promote economic and human development and poverty alleviation in HIPCs, to commence diplomatic efforts within the Paris Club of Official Creditors, as well as the International Bank for Reconstruction and Development (World Bank), the International Monetary Fund (IMF), and other appropriate multilateral development institutions to make certain modifications in the Heavily Indebted Poor Countries (HIPC) Initiative, including: (1) the placing of a limit on maximum waiting period before a country receives debt relief; (2) the incorporation of poverty reduction and environmental protection as conditions for HIPC debt relief; (3) the revision of country eligibility requirements under the HIPC Initiative; (4) the adoption of a human development action plan and fund by HIPCs; (5) limits on the amount of debt reduction; (6) transparency and participation by HIPCs in HIPC decision making; and (7) the provision of HIPC review.

Authorizes appropriations for the HIPC Trust Fund. Declares the sense of Congress that the amounts that would otherwise be provided by the United States for development aid or other debt relief should not be reduced on account of any such appropriations.

Directs the President to work with the member countries of international financial institutions to ensure transparency and public participation in decisions to make new loans (including terms and conditions of such loans) to developing countries.

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