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1 1 (September 9, 2022)

handle is hein.crs/goveiuk0001 and id is 1 raw text is: ,a Congr ssionaI Re piiraud hiforing Ih legislative de s arch Servic batesnc '1914 Updated September 9, 2022 International Financial Institutions: FY2023 Budget Request For FY2023, the Biden Administration is requesting $4.37 billion for the international financial institutions (IFIs). The IFIs include the International Monetary Fund (IMF), the multilateral development banks (MDBs), and associated multilateral trust funds focused on climate change and food security. The FY2023 request for the IFIs would be more than double the amount enacted in FY2022 ($2.06 billion, Figure 1), and accounts for about 6% of the total FY2023 State, Foreign Operations, and Related Programs budget request. The budget request for the IFIs comes through the Treasury Department, which is responsible for managing U.S. participation in these institutions. Congress authorizes and appropriates U.S. contributions to the IFIs. The Senate Committee on Foreign Relations and the House Committee on Financial Services are responsible for managing MDB authorization legislation. The Foreign Operations Subcommittees of the House and Senate Committees on Appropriations manage the relevant appropriations legislation. During the past several decades, authorizations and appropriations for U.S. contributions to the IFIs have been included in the annual foreign operations appropriations or a larger omnibus appropriations act. Figure I. Treasury's International Programs Budget Request Multilateral Dev. Banks U IMF Climate Change & Env. F ood Security Off. of Techn Assist. Debt Restructuring FY2022 $ Enacted $1,527 $2,056 FY2023 II Reuest $1,906 $4,375 $ in millions Source: U.S. Treasury Department, International Programs Congressional Justification for Appropriations, FY2023. Overview of the FY2023 Request Two components of the request account for more than 95% of the FY2023 IFI budget request: $1.91 billion for the MDBs, which finance development projects in low- and middle-income countries, and $2.30 billion for multilateral climate change and environmental trust funds. The Administration is also requesting funding to support low-income countries at the IMF ($20 million), debt restructuring for developing countries ($67 million), and multilateral food security initiatives ($43 million). The request also includes funding for the Treasury Department's Office of Technical Assistance ($38 million), which helps developing countries strengthen their capacity to manage public finance and safeguard their financial sectors. Multilateral Development Banks Of the $1.91 billion requested by the Administration for the MDBs, about 85% is for the World Bank. Most of these commitments are the annual installments of previous, multi- year pledges by the United States. The request includes funding for two lending facilities at the World Bank: * $206.5 million for the International Bank for Reconstruction and Development (IBRD), which provides financial assistance at market-rates (non- concessional financial assistance), and ' * $1.4 billion for the International Development Association (IDA), which provides grants and low-cost loans (concessional financial assistance) to low-income countries. For the regional multilateral development banks, the Administration is requesting * $54.6 million for the African Development Bank, which provides non-concessional financial assistance; * $171.3 million for the African Development Fund, the concessional lending facility of the African Development Bank; and * $43.6 million for the Asian Development Fund, the concessional lending arm of the Asian Development Bank. Capital Increase at the Inter-American Development Bank (IDB)? The Administration did not include any appropriations or authorizations for a capital increase at the Inter-American Development Bank (IDB). Legislation was introduced late in the 1 160 Congress (S. 4997), and in the 117h Congress (S. 616; S. 1169) to authorize U.S. participation in an $80 billion capital increase for the IDB. The legislation outlines that the U.S. portion would be about $24 billion, mostly through callable capital (guarantees) extended to the IDB. In previous capital increases at MDBs, an agreement among member countries in principle has preceded congressional authorization for U.S. participation. There is currently no agreement among IDB members for a general capital increase, but in March 2022 the IDB Board of Governors signaled support for a more targeted capital increase of the IDB's private-sector arm (IDB Invest). International Monetary Fund The COVID-19 pandemic and Russia's war on Ukraine have created challenges for many economies, and the Administration is seeking $20 million for the IMF to provide additional support for developing countries. The funds would go to the IMF's Poverty Reduction and Growth Trust (PRGT), which provides concessional lending to low-income countries, and the IMF's Resilience

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