Congress and the White House reached a deal Wednesday to provide $18 billion to the International Monetary Fund.
While IMF funding and reforms have been finalized, its approval is contingent upon the White House and Congress striking an agreement on a much broader $500 billion spending bill that includes the IMF language.
The reform package, according to a recent draft, would require the IMF to alter its lending practices. Not only will loan maturities be reduced to between one and two and a half years, but those loans must also be made at 3% above the London interbank offered rate.
The IMF board must disclose more information about its meetings as well as information regarding lending practices. The Treasury Department, through a new commission that includes members of Congress, must confirm that other IMF member countries support the reforms and that the organization is following through with them.
Deputy Treasury Secretary Lawrence Summers said Wednesday that the package "enables us to strengthen global economies, which in turn strengthens our economy."