the increase in the authorized capital stock of the Bank, of which two hundred ten thousand eight hundred and four shall be callable and seventeen thousand and ninety-two shall be paid-in, and (B) to contribute to the Fund for Special Operations $630,000,000; except that any commitment to make such subscriptions to paid-in and callable capital stock and to make such contributions to the fund for Special Operations shall be effective only to such extent or in such amounts as are provided in advance in appropriation Acts.

(b) In order to pay for the increase in the United States subscription and contribution provided for in this section, there are authorized to be appropriated, without fiscal year limitation, for payment by the Secretary of the Treasury (1) $2,474,287,189 for the United States subscription to the capital stock of the Bank, and (2) $630,000,000 for the United States share of the increase in the resources of the Fund for Special Operations: Provided, however, That for contributions to the Fund for Special Operations, not more than $175,000,000 may be made available for the fiscal year 1982, and not more than $105,000,000 may be made available for the fiscal year 1983.35

(c) For the purpose of keeping to a minimum the cost to the United States, the Secretary of the Treasury

(1) shall pay the United States contribution to the Fund for Special Operations authorized by this section by letter of credit in four annual installments; and

(2) shall take the steps necessary to obtain a certification from the Bank that any undisbursed balances resulting from drawdowns on such letter of credit will not exceed at any time in the United States share of expected disbursement requirements for the following three-month period.

(d) None of the funds authorized to be appropriated by this section may be used for any form of assistance to any country which is not a member of the Bank.

SEC. 30.36 (a) The United States Governor of the Bank is authorized on behalf of the United States to contribute to the Fund for Special Operations $70,000,000: Provided, however, That any commitment to make such contribution shall be made subject to obtaining the necessary appropriations.

(b) In order to pay for a portion of the increase in the United States subscription to the capital stock of the Bank provided for in section 29(a) and for the United States contribution to the Fund for Special Operations provided for in this section, there are authorized to be appropriated, without fiscal year limitation, for payment by the Secretary of the Treasury, (1) $274,920,799 for the United States subscription, and (2) $70,000,000 for the United States contri

35 The proviso clause was added by sec. 1351(b) of Public Law 97-35 (95 Stat. 744). Appropriations for U.S. payments authorized in sec. 29 have been provided in the following amounts and Public Laws: fiscal year 1980-Bank capital stock, $588.7 million ($27.3 million paid-in capital; $561.4 million callable capital); FSO, $175 million (Public Law 96-123); fiscal year 1981-Bank capital stock, $612.2 million $51.5 million paid-in capital; $560.7 million callable capital); FSO, $175 million (Public Law 96-536); fiscal year 1982-Bank capital stock, $657.7 million ($48.1 million paid-in capital; $609.6 million callable capital); FSO, $173.2 million (Public Law 97-121); fiscal year 1983-Bank capital stock, $615.6 million ($41.8 million paid-in capital; $573.8 million callable capital); FSO, $105 million (Public Law 97-377); fiscal year 1984-FSO, $1.8 million (Public Law 98-151).

36 22 U.S.C. 283z-2. Sec. 30 was added by sec. 1351(a) of Public Law 97-35 (95 Stat. 744).

bution to the Fund for Special Operations: Provided, however, That no funds may be made available for such contribution to the Fund for Special Operations for the fiscal year 1982.37

SEC. 31.38 (a)(1) The United States Governor of the Bank is authorized to vote for resolutions

(A) Which were proposed by the Governors at a special meeting in February 1983;

(B) Which are pending before the Board of Governors of the Bank; and

(C) Which provide for—

(i) an increase in the authorized capital stock of the Bank and subscriptions thereto; and

(ii) an increase in the resources of the Fund for Special Operations and contributions thereto.

(2)(A) Upon adoption of the resolutions specified in paragraph (1), the United States Governor of the Bank is authorized on behalf of the United States to

(i) subscribe to 427,396 shares of the increase in the authorized capital stock of the bank; and

(ii) contribute $350,000,000 to the Fund for Special Operations.

(B) any commitment to make such subscriptions to paid-in and callable capital stock and to make such contributions to the Fund for Special Operations shall be effective only to such extent or in such amounts as are provided in advance in appropriation Acts.

(b) In order to pay for the increase in the United States subscription and contribution provided for in this section, there are authorized to be appropriated, without fiscal year limitation, for payment by the Secretary of the Treasury

(1) $5,155,862,744 for the United States subscriptions to the capital stock of the Bank; and

39

(2) $350,000,000 for the United States share of the increase in the resources of the Fund for Special Operations.3 SEC. 32.40 The United States Governor of the Inter-American Development Bank is hereby authorized to agree to and to accept the amendments to the Articles of Agreement in the proposed resolu

37 The Further Continuing Appropriations Act, 1983 (Public Law 97-377), provided the following funding during fiscal year 1983 for this authorization: Bank capital stock, $274.9 million ($20.6 million paid-in capital; $254.3 million callable capital); FSO, $70 million.

38 22 U.S.C. 283z-3. Sec. 31 was added by sec. 1001 of Public Law 98-181 (97 Stat. 1284).

39 Appropriations for U.S. payments authorized in sec. 31 have been provided in the following amounts and Public Laws: fiscal year 1984-Bank capital stock, $844.5 million ($38 million paidin capital; $806.5 million callable capital); FSO, $0 (Public Law 98-151); fiscal year 1985-Bank capital stock, $844.5 ($38 million paid-in capital; $806.5 million callable capital); FSO, $72.5 million (Public Law 98-473); fiscal year 1985 supplemental-FSO, $42.5 million; Bank capital stock $889 million ($40 million paid-in capital; $849 million callable capital) (Public Law 99-88); fiscal year 1986-FSO, $40 million; Bank capital stock, $1,269 million ($38 million paid-in capital; $1,231 million callable capital) (Public Law 99-190); fiscal year 1987-FSO, $17.3 million; Bank capital stock, $1,127.9 million ($16.4 million paid-in capital; $1,111.6 million callable capital) (Public Law 99-591); fiscal year 1988-FSO, $25.7 million; Bank capital stock, $151 million ($31.6 million paid-in capital; $119.4 million callable capital) (Public Law 100-202); fiscal year 1990– FSO, $63.7 million; Bank capital stock, $31.6 million (paid-in capital) (Public Law 101-167).

40 22 U.S.C 283z-4. Title I of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (sec. 101(e) of the Continuing Appropriations, 1988; Public Law 100202; 101 Stat. 1329 at 1329-134), added sec. 32 by enacting into law the amendment made by sec. 501 of H.R. 3750, as introduced by the House Committee on Banking, Finance and Urban Affairs, on December 11, 1987.

tion entitled "Merger of Inter-regional and Ordinary Capital Resources".

CAPITAL INCREASE; INCREASE IN RESOURCES OF FUND FOR SPECIAL

OPERATIONS

SEC. 33.41 (a) AUTHORITY TO VOTE FOR, AND TO SUBSCRIBE AND CONTRIBUTE TO, INCREASE IN AUTHORIZED CAPITAL STOCK OF BANK AND INCREASE IN RESOURCES OF FUND FOR SPECIAL OPERATIONS.—

(1) VOTE AUTHORIZED.-The United States Governor of the Bank is authorized to vote for resolutions which

(A) were transmitted by the Board of Executive Directors to the Governors of the Bank by resolution of April 19, 1989;

(B) are pending before the Board of Governors of the Bank; and

(C) provide for

(i) an increase in the authorized capital stock of the Bank and subscriptions to the Bank; and

(ii) an increase in the resources of the Fund for Special Operations and contributions to the Fund.

(2) SUBSCRIPTION AND CONTRIBUTION AUTHORITY.-To the extent and in the amounts provided in advance in appropriations Acts, on adoption of the resolutions described in paragraph (1), the United States Governor of the Bank may, on behalf of the United States—

(A) subscribe to 760,112 shares of the increase in the authorized capital stock of the Bank; and

(B) contribute $82,304,000 to the Fund for Special Operations.

(b) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS.-To pay for the subscription and contribution authorized under subsection (a), there are authorized to be appropriated, without fiscal year limitation, for payment by the Secretary of the Treasury

(1) $9,169,559,712, for the United States subscription to the capital stock of the Bank; and

(2) $82,304,000, for the United States contribution to the Fund for Special Operations.

(c) ORGANIZATIONAL CHANGES REQUIRED TO BE MADE BEFORE PAYMENT FOR SUBSCRIPTION TO CAPITAL STOCK AND CONTRIBUTION TO THE FUND FOR SPECIAL OPERATIONS.-The Secretary of the Treasury may not make any payment for the subscription and contribution authorized under subsection (a) unless the Bank

(1) has established an environmental unit with responsibility for the development, evaluation, and integration of Bank policies, projects, and programs designed to promote environmentally sustainable development in borrower countries;

(2) has increased the number of the staff of the Bank with environmentally oriented responsibilities and training;

(3) provides for an increase in the number of environmentally beneficial projects and programs financed by the Bank; and

41 22 U.S.C. 283z-5. Added by sec. 201 of the International Development and Finance Act of 1989 (Public Law 101-240; 103 Štat. 2496).

(4) has designed a process for ensuring the access of indigenous non-governmental organizations to the process for designing projects and programs.

(d) CERTIFICATION OF ACCESS TO BANK RECORDS REQUIRED BEFORE PAYMENT FOR SUBSCRIPTION TO CAPITAL STOCK AND CONTRIBUTION TO FUND FOR SPECIAL OPERATIONS.-The Secretary of the Treasury shall not make any payment for the subscription and contribution authorized under subsection (a) until the Secretary, after consultation with the United States Executive Director of the Bank, certifies to the Congress that

(1) the Bank has given the Comptroller General of the United States access to the audit memorandum issued by the Auditor General of the Bank with respect to the November 1987 disbursement of funds to the Government of Nicaragua; (2) the Bank has implemented and is continuing to implement revised procedures issued in 1988 for collecting loan services payments in arrears;

(3) the revised procedures referred to in paragraph (2) satisfy the recommendations of the Auditor General of the Bank; and (4) the Comptroller General of the United States has access to all documents of the Bank on the same terms and under the same conditions as such documents are made available to the United States Executive Director of the Bank.

INVESTMENT IN HUMAN CAPITAL

SEC. 34.42 (a) IN GENERAL.-The Secretary of the Treasury shall instruct the United States Executive Director of the Inter-American Development Bank to propose and use the voice and vote of such director, during the 4-year period beginning on January 1, 1990, to vigorously promote an increase in the proportion of Bank lending in support of projects and programs which support investments in human capital and to seek the rapid implementation by the Bank of systematic mechanisms of consultation with locally affected populations in borrower countries either directly or through appropriate representative non-governmental organizations.

(b) INVESTMENTS IN HUMAN CAPITAL DEFINED.-As used in subsection (a), the term 'investments in human capital' means investments in projects, policies, and programs designed to improve urban and rural health care and sanitation, basic nutrition, education, the small-producer private sector, the economic activities of women, and the development of indigenous non-governmental organizations.

42 22 U.S.C. 283a-6. Added by sec. 202(a) of the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2498).

Sec. 202(b) of that Act (22 U.S.C. 283z-6 note) provided the following: "(b) REPORT TO THE CONGRESS.-The Chairman of the National Advisory Council on International Monetary and Financial Policies shall include in the report required by section 1701 of the International Financial Institutions Act for fiscal year 1991 a report on the efforts undertaken by the United States Executive Director of the Inter-American Development Bank, and the progress to date, in achieving the objectives of section 34 of the Inter-American Development Bank Act.".

LIMITATIONS ON POLICY BASED LENDING

SEC. 35.43 The Secretary of the Treasury shall

(1) take all necessary steps to encourage the Bank to limit the aggregate value of the policy based loans made by the Bank (other than policy based loans made to any country which the Bank has determined is economically less developed or has a limited market economy, which are used to purchase sovereign debt of such country or to reduce the debt or debt service burden of such country) during the 4-year period beginning on January 1, 1990, to 25 percent of the aggregate value of all loans made by the Bank during such 4-year period;

(2) take all necessary steps to encourage the Bank to limit the aggregate value of the policy based loans made by the Bank to the government of a particular country during such 4year period, to 50 percent of the aggregate value of all loans made by the Bank to such government during such 4-year period;

(3) instruct the United States Executive Director of the Bank to explore with the other Executive Directors of the Bank ways to use a portion of the resources made available to the Bank by reason of the subscription and contribution described in section 33(a)(2) for debt reduction and debt service reduction for countries described in paragraph (1); and

(4) before the end of the 12-month period beginning on the date of the enactment of this section, report to the Congress on the matters described in paragraph (3).

INCREASE IN LENDING TO THE CARIBBEAN

SEC. 36.44 The Secretary of the Treasury shall instruct the United States Executive Director of the Bank to enter into discussions with the management of the Bank and with other member country governments to seek to increase Bank lending to the Caribbean region, directly or through appropriate financial intermediaries, for viable projects which will

(1) result in expanded regional economic integration, diversification, and industrial and agricultural production, and improved infrastructure; and

(2) seek to ensure equitable and environmentally sustainable economic growth.

43 22 U.S.C. 283z-7. Added by sec. 203 of the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2498).

44 22 U.S.C. 283z-8. Added by sec. 204 of the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2499).