International Monetary Fund (IMF)

1. To enable the IMF to respond to grave threats to the stability of the international monetary system, particularly in developing countries severely impacted by the financial crisis, the bill provides an increase in the U.S. quota in the IMF of roughly 5 billion in Special Drawing Rights valued at about $8 billion. The bill also provides for loans to the IMF, as requested, to enable the U.S. to increase its share of the New Arrangements to Borrow, which establishes a set of credit lines extended to the IMF, from approximately $10 billion (6.6 billion in SDRs) to the equivalent of $100 billion.

2. The bill authorizes the Secretary of the Treasury to agree to the sale of nearly 13 million ounces of IMF gold which will finance an endowment the return on which will fund a portion of IMF administrative expenses and expand the IMF’s investment authority. A portion of the sale of gold (at least $4 billion) would also be used to address the short-term financing needs of low-income countries.

It is averred, however, that the goal is to make the IMF an international branch of the U.S. Treasury Dept.