Aligning SEC Regulations for the World Bank’s International Development Association Act

This bill would let the World Bank’s International Development Association (IDA) sell or guarantee its bonds without going through the usual U.S. securities registration steps, similar to other global development banks. IDA would still have to give the Securities and Exchange Commission (SEC) routine reports the SEC thinks are needed. The SEC could pause this special treatment at any time. IDA is a World Bank arm that gives loans and grants to developing countries.

The change would start 30 days after the law is signed. But it would not start if, before that date, the Treasury Department reports that IDA is helping a country whose government the State Department has labeled as repeatedly supporting terrorism.

• Who is affected: IDA, investors who buy IDA-backed bonds, and U.S. financial regulators.
• What changes: IDA’s bonds and guarantees get an exemption from certain U.S. securities rules; IDA must file reports; the SEC can suspend the exemption.
• When: 30 days after enactment, unless blocked by the terrorism-related report described above.