For the purpose of mobilizing the resources of the Fund in order to
help reduce poverty and improve the lives of residents of poor countries and,
in particular, to allow those poor countries with unsustainable debt burdens
to receive deeper, broader, and faster debt relief, without allowing gold to
reach the open market or otherwise adversely affecting the market price of
gold, the Secretary of the Treasury is authorized to instruct the United
States Executive Director of the Fund to vote—
(1) to approve an arrangement whereby the Fund—
(A) sells a quantity of its gold at prevailing market prices to a member or
members in nonpublic transactions sufficient to generate 2.226 billion
Special Drawing Rights in profits on such sales;
(B) immediately after, and in conjunction with each such sale, accepts
payment by such member or members of such gold to satisfy existing repurchase
obligations of such member or members so that the Fund retains ownership of
the gold at the conclusion of such payment; and
(C) uses the earnings on the investment of the profits of such sales
through a separate subaccount, only for the purpose of providing debt relief
from the Fund under the modified Heavily Indebted Poor Countries (HIPC)
Initiative (as defined in section 1623 of the International Financial
Institutions Act); and
(2) to support a decision that shall terminate the Special Contingency
Account 2 (SCA-2) of the Fund so that the funds in the SCA-2 shall be made
available to the poorest countries. Any funds attributable to the United
States participation in SCA-2 shall be used only for debt relief from the
Fund under the modified HIPC Initiative.
[22 USC 286nn. As added by act of Nov. 29, 1999 (113 Stat.
1501A-316) and amended by act of Nov. 6, 2000 (114 Stat.
1900A-64).]
