LIMITATIONS ON INTER-AMERICAN DEVELOPMENT BANK POLICY BASED LENDING.

SEC. 203. LIMITATIONS ON INTER-AMERICAN DEVELOPMENT BANK POLICY BASED LENDING.The Inter-American Development Bank Act (22 U.S.C. 283 et seq.) is amended by adding after the section added by section 202 of this Act the following: “SEC. 35, LIMITATIONS ON POLICY BASED LENDING. “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 103 STAT. 2499burden 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 4-year 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).”.