International Debt Policy Act

International Debt Policy Act - Expresses the sense of the Congress that Federal banking regulations which affect the international assets of U.S. commercial banks should allow such banks to negotiate principal and interest reductions with respect to obligations of heavily indebted foreign borrowers. Declares the intent of the Congress that Federal agencies which regulate the depository institutions should allow such institutions flexibility to determine the asset value of restructured loans to such borrowers. Requires the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation to conduct a study to determine any regulatory obstacle to reductions in the debt service of foreign loans. Sets forth specified factors to be included in such study.

Directs the Secretary of the Treasury (Secretary) to seek negotiations with other countries to propose the establishment of an international debt adjustment facility to: (1) assist creditor banks in the voluntary disposition, in the private sector, of loans to heavily indebted borrowers; (2) encourage countries with strong capital surpluses to invest in heavily indebted countries; (3) purchase bank loans at a discount; and (4) establish mechanisms to pass the benefit of such discount to the debtor country.

Requires the Secretary to direct the U.S. Executive Director of the International Bank for Reconstruction and Development (World Bank) and the U.S. Executive Director of the International Monetary Fund to take specified monetary actions to establish the international debt adjustment facility.

Requires the Secretary to instruct the U.S. Executive Director of the World Bank to propose to the Bank's other directors that a temporary adjustment be made in current disbursement practices of such Bank that would permit, for at least four years, full release of committed loan funds to the central bank of the recipient country at the beginning of a project period to the extent that: (1) adequate accounting safeguards can be maintained to insure that the terms of the respective loan agreements are honored; and (2) the recipient country adequately describes how the accelerated disbursement will contribute to long-term economic growth.

Requires the Secretary to instruct the U.S. Executive Directors of the multilateral development banks to propose to the other directors of such banks that each bank's share of any project loan already approved and awaiting disbursement should be immediately increased by the appropriate amount taking into account the current ability of the recipient country to provide matching local currency.

Requires the Secretary, in order to promote the economic policy adjustments which are needed to help developing countries, to instruct the U.S. Executive Director of the World Bank to initiate discussions with other directors of the Bank to propose: (1) an increase be made in the amount of structural adjustment lending by each such bank and any percentage limitation on the number of structural adjustment loans in such bank's lending portfolio be removed (reflecting the U.S. policy of favoring the addition of structural adjustment lending to the bank's loan mix); (2) appropriate action be taken to ensure that the aims of such lending can be achieved; (3) the conditionality of structural adjustment lending should include innovative requirements designed to minimize any adverse impact of such lending on the lowest income groups in the developing countries; and (4) appropriate action be taken to ensure that such lending is consistent with environmentally sound and responsible development practices.

Directs the Secretary to transmit a report to the House Committee on Banking, Finance and Urban Affairs and the Senate Committee on Foreign Relations concerning the effectiveness of increased reliance on structural adjustment lending as a means of achieving economic reforms.

Expresses the sense of the Congress that: (1) transfers of capital from developing countries pose a problem to the resolution of the international debt crises and the sustained economic growth of such countries; and (2) the U.S. Executive Director of the World Bank should initiate discussions with other directors of the Bank to develop proposals for both developed countries and developing countries to reduce the level of capital transfers from developing countries, and report such proposal that is applicable to the United States to the Secretary and the Chairman of the Board of Governors of the Federal Reserve System.