Sanctions, which sanctions?

New African, May 2007 by Ankomah, Baffour

Section 4. Support for democratic transition and economic recovery

(a) Findings - Congress makes the following findings:

(1) Through economic mismanagement, undemocratic practices, and the costly deployment of troops to the Democratic Republic of Congo, the government of Zimbabwe has rendered itself ineligible to participate in International Bank for Reconstruction and Development [also known as the World Bank] and International Monetary Fund [IMF] programmes, which would otherwise be providing substantial resources to assist in the recovery and modernisation of Zimbabwe's economy. The people of Zimbabwe have thus been denied the economic and democratic benefits envisioned by the donors to such programmes, including the United States.

(2) In September 1999, the IMF suspended its support under a 'standby arrangement', approved the previous month, for economic adjustment and reform in Zimbabwe.

(3) In October 1999, the International Development Association (in this section referred to as 'IDA') suspended all structural adjustment loans, credits, and guarantees to the government of Zimbabwe.

(4) In May 2000, the IDA suspended all other new lending to the government of Zimbabwe.

(5) In September 2000, the IDA suspended disbursement of funds for ongoing projects under previously approved loans, credits, and guarantees to the government of Zimbabwe.

(b) Support for democratic transition and economic recovery:

(1) Bilateral debt relief - Upon receipt of the appropriate congressional committee of a certification described in subsection (d), the secretary of the treasury shall undertake a review of the feasibility of restructuring, rescheduling, or eliminating the sovereign debt of Zimbabwe held by any agency of the United States government.

(2) Multilateral debt relief and other financial assistance - It is the sense of Congress that, upon receipt by the appropriate congressional committee of a certification described in subsection (d), the secretary of the treasury should:

(a) Direct the United States executive director of each multilateral development bank to propose that the bank should undertake a review of the feasibility of restructuring, rescheduling, or eliminating the sovereign debt of Zimbabwe held by that bank; and (b) Direct the United States executive director of each international financial institution to which the United States is a member to propose to undertake financial and technical support for Zimbabwe, especially support that is intended to promote Zimbabwe's economic recovery and development, the stabilisation of the Zimbabwean dollar, and the viability of Zimbabwe's democratic institutions.

(c) Multilateral financing restriction - Until the president [of the United States] makes the certification described in subsection (d), and except as may be required to meet basic human needs or for good governance, the secretary of the treasury shall instruct the United States executive director to each international financial institution to oppose and vote against. (1) Any extension by the respective institution of any loan, credit, or guarantee to the government of Zimbabwe, or (2) Any cancellation or reduction of indebtedness owed by the government of Zimbabwe to the United States or any international financial institution.