Jt. Econ Committee on IMF

[Robert Weissman <rob@essential.org>]

FOCUS-U.S. Congress report to urge more open IMF
Date: Mon Feb 23 16:05:53 CST 1998                                         
         WASHINGTON, Feb 23 (Reuters) - A U.S. Congress report due to be
released by next week will urge the International Monetary Fund to be
more open and recommend creating an outside advisory board to review IMF
lending plans. 
         Sources from the Joint Economic Committee said on Monday that
their report would also urge the IMF to use market-based interest rates
in its lending programs, and to consider selling bonds to raise funds
rather than relying on contributions from member countries like the
United States. 
         "We're going to suggest specific ways that the IMF should be
reformed," an official with the committee said. "They (the IMF) are
excessively secretive in the way they operate." 
         The Clinton administration has asked a skeptical Congress to
approve $18 billion of new IMF funding in a capital increase which will
replenish resources drained by last year's multibillion dollar bailouts
for Indonesia, South Korea and Thailand. 
         On Monday, Vice President Al Gore asked U.S. state governors to
use their influence with Congress to push the funding package through. 
         "I would like to encourage you to use the authority that you
have and the influence that you have to persuade Congress to do the
right thing for the future of our exports and the future of our
economy," he told governors at the White House. 
         The White House has gained some ground in the Senate after
aggressive lobbying from administration officials. But the House
Republican Whip's office says the administration does not have enough
votes in the House to pass the package. 
         Senate Majority Leader Trent Lott warned on Monday that the
administration was not going about things the right way in its efforts
to win congressional approval of the IMF package. 
         "I don't think they are focused on it. I have told them two
times the way to deal with this, and they just drift off into other
issues. I just think they have too many incoming missiles," Lott told a
news briefing. 
         Lott, a Mississippi Republican, said any deal to fund the IMF
must include reforms. 
         "Everybody knows we need more transparency," Lott said,
referring specifically to decision-making. "Clearly, we have to have
some other requirements in regard to how loans are handled." 
         Lott said the Senate would be able to deal with the entire $18
billion package once reform issues were resolved. 
         Joint Economic Committee staff would not provide many details
from the committee's report, which is due for release later this week or
early next week. But they said it would focus on increasing transparency
at the IMF. 
         Sources said the report would urge the IMF to release minutes
of its board meetings and other documents about IMF economic programs as
well as suggesting different ways to fund the institution, which was set
up after World War Two to promote international trade and stable
exchange rates. 
         There is nothing to stop the IMF from borrowing on capital
markets, but such a move would have to be approved by all member
countries. The IMF, unlike its sister organization the World Bank, has
never tapped world capital markets. 
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Lawmaker "cautiously optimistic" on congressional IMF funding
Date: Mon Feb 23 16:23:11 CST 1998
                                         
   WASHINGTON, Feb 23 (AFP) - The chairman of a key congressional panel
said Monday he was "cautiously optimistic" about winning approval of
some 18 billion dollars in US funds to shore up IMF coffers following
the Asian economic rescues. 
   Representative Jim Leach, chairman of the House Banking Committee,
said his committee would begin action, or markup, of the legislation
next week, and that there was mixed support among both Democrats and
Republicans. 
   "I'm cautiously optimistic as we go to markup next Thursday, that
we'll get a positive result," Leach told a forum on the Asian crisis at
the US Institute of Peace. 
   Leach said most Republicans "have an open mind" about the plan to
boost the reserves of the International Monetary Fund, and that
Democrats "want to give the president the benefit of the doubt." 
   President Bill Clinton is requesting an additional 18 billion dollars
for the Fund, which is low on money after bailing out ailing Asian
economies. About 3.5 billion of that would be to increase the emergency
lending fund, with the rest to increase the IMF reserves. 
   Another banking committee member, Representative Doug Bereuter, told
the forum that he was skeptical about winning approval of the full
amount, but that lawmakers may approve the 3.5 billion dollar program
for starters. 
   "The IMF has always been a relatively unpopular, misunderstood
institution" in Congress, he said. 
   Bereuter said it was likely that Congress may approve the partial
funding by late March or early April. 
   Complicating the process is how lawmakers design the legislation;
some want to include bans on funds for abortion, while others hope to
include the measure with an appropriation for payment of United Nations'
arrears. 
   Leach said he has advocated putting the IMF and UN funding together,
saying it could attract enough support for passage, and added that the
White House has given some indication of supporting this approach. 
   "Traditionally, IMF measures have not come up on their own, they come
up in packages," Leach said. 
-=-=-