Imf in the Pandemic
Floor Speech
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Mr. HILL of Arkansas. Mr. Speaker, I rise today to raise awareness about an ongoing issue that is happening at the International Monetary Fund as it combats COVID-19.
As the lead Republican on the Subcommittee for National Security, International Development, and Monetary Policy for the House Financial Services Committee, I invite your attention to a bad policy proposal.
During this time of crisis, the IMF provides financial assistance and debt service relief to its 189 member countries. As a part of the COVID relief, some IMF members, particularly China, have been lobbying for billions in extra relief through a new allocation of Special Drawing Rights, or SDRs.
SDRs are an international reserve asset used to provide liquidity and supplement countries' official reserves. And unlike a typical IMF loan, Mr. Speaker, SDRs do not require repayment. Now, this idea has gained traction among certain congressional Democrats, notably Senator Durbin and Representatives Waters and Garcia, who have proposed allocating no fewer than two trillion SDRs--equivalent to $2.8 trillion--to the IMF's member countries.
What the Democrats might not fully understand is that if the IMF were to allocate this additional two trillion SDRs, the allocation would be made in line with IMF shareholding weights, not financial need.
This means that the bulk of SDRs would not go to the poorest countries with hundreds of billions of dollars instead going to the richest nations in the world.
Even worse, Mr. Speaker, $170 billion would go to China, $20 billion to Iran, $75 billion to Russia, $17 billion to Assad's Syria, and $20 billion to the failed state in Venezuela.
These billions would represent no-strings-attached liquidity for the world's most brutal dictatorships. However, there is an alternate way to ensure the IMF is able to provide assistance to countries that truly need it.
The IMF has two trust funds that can lend or provide grants to the poorest and most vulnerable countries during emergencies, as we have with the pandemic. This is the proposal of House Republicans and of the Trump administration.
Preventing blanket SDR allocations demonstrates that the United States is a leader to help the poorest nations in the midst of this pandemic, but also a leader in accountability in our multilateral institutions. A financial windfall for terrorists and authoritarians is the wrong approach. Historic Breakthrough for Middle East Peace
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Mr. HILL of Arkansas. Mr. Speaker, I was honored to attend the signing of the historic Abraham Accords at the White House, which represents a historic breakthrough for peace in the Middle East. Bahrain and the UAE are the first Arab countries to normalize relations with Israel in two decades.
I applaud President Trump, Prime Minister Netanyahu, Sheikh Mohammed bin Zayed, and King Hamad Al Khalifa for coming together to achieve this critical milestone and step forward.
This achievement proves the success of President Trump's undeniable support for the State of Israel and dedication to U.S. leadership in the region.
I look forward to continuing to work with the administration and our allies around the world to build upon these agreements, develop deeper diplomatic ties, and strengthen our relationships. Recognizing Candace Franks
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Mr. HILL of Arkansas. Mr. Speaker, I rise today to recognize the career of Candace Franks, who is retiring as the commissioner of the Arkansas State Bank Commission after 13 years in that top position and more than 40 years with the Arkansas State Bank Department. I am proud to have known and worked alongside Candace for over a quarter century.
Candace Franks has been a trailblazer in many regards. Candace is the first woman to serve as the Arkansas bank commissioner in its 107-year history, the first professional bank regulator to serve in the position, and the longest serving commissioner as well.
During Candace's many years of service, she has been a good steward for Arkansas' funds. In 1980, when she began her career, the institutions under the Arkansas State Bank Department held $7 billion in assets. Today, they hold more than $123 billion.
In addition to her work as Arkansas bank commissioner, she serves as the chairman of the Conference of State Bank Supervisors, a member of the State Board of Finance, and a member of the Board of the Arkansas Teacher Retirement System.
I thank Candace for her devotion.
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