22 U.S.C. § 2430c — Reduction of certain debt

Page 947 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2430c tive Date note under section 8701 of Title 7, Agri- culture. § 2430b. Eligibility for benefits (a) Requirements To be eligible for benefits from the Facility under this subchapter, a country must be a Latin American or Caribbean country— (1) whose government is democratically elected; (2) whose government has not repeatedly provided support for acts of international ter- rorism; (3) whose government is not failing to co- operate on international narcotics control matters; (4) whose government (including its military or other security forces) does not engage in a consistent pattern of gross violations of inter- nationally recognized human rights; (5) that has in effect, has received approval for, or, as appropriate in exceptional cir- cumstances, is making significant progress to- ward— (A) an International Monetary Fund stand- by arrangement, extended Fund arrange- ment, or an arrangement under the struc- tural adjustment facility or enhanced struc- tural adjustment facility, or in exceptional circumstances, a Fund monitored program or its equivalent, unless the President deter- mines (after consultation with the Enter- prise for the Americas Board) that such an arrangement or program (or its equivalent) could reasonably be expected to have signifi- cant adverse social or environmental effects; and (B) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development or the International Development Associa- tion, unless the President determines (after consultation with the Enterprise for the Americas Board) that the resulting adjust- ment requirements could reasonably be ex- pected to have significant adverse social or environmental effects; (6) has put in place major investment re- forms in conjunction with an Inter-American Development Bank loan or otherwise is imple- menting, or is making significant progress to- ward, an open investment regime; and (7) if appropriate, has agreed with its com- mercial bank lenders on a satisfactory financ- ing program, including, as appropriate, debt or debt service reduction. (b) Eligibility determinations Consistent with subsection (a), the President shall determine whether a country is eligible to receive benefits under this subchapter. The President shall notify the appropriate congres- sional committees of his intention to designate a country as an eligible country at least 15 days in advance of any formal determination. (Pub. L. 87–195, pt. IV, § 703, as added Pub. L. 102–549, title VI, § 602(a), Oct. 28, 1992, 106 Stat. 3664.) Editorial Notes PRIOR PROVISIONS A prior section 703 of Pub. L. 87–195, pt. IV, Sept. 4, 1961, 75 Stat. 463, amended section 1613d of this title and enacted provisions set out as a note under section 1613d of this title, prior to repeal by Pub. L. 87–565, pt. IV, § 401, Aug. 1, 1962, 76 Stat. 263, except insofar as section 703 affected section 1613d. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13345, July 8, 2004, 69 F.R. 41901, set out as a note under section 1738 of Title 7, Agriculture. § 2430c. Reduction of certain debt (a) Authority to reduce debt (1) Authority The President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of Janu- ary 1, 1992, as a result of concessional loans made to an eligible country by the United States under subchapter I of this chapter, part IV of subchapter II of this chapter, or prede- cessor foreign economic assistance legislation. (2) Appropriations requirement The authority provided by this section may be exercised only in such amounts or to such extent as is provided in advance by appropria- tions Acts. (3) Certain prohibitions inapplicable (A) A reduction of debt pursuant to this sec- tion shall not be considered assistance for pur- poses of any provision of law limiting assist- ance to a country. (B) The authority of this section may be ex- ercised notwithstanding section 2370(r) of this title or section 321 of the International Devel- opment and Food Assistance Act of 1975. (b) Implementation of debt reduction (1) In general Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obliga- tion for obligations outstanding as of the date specified in subsection (a)(1). (2) Exchange of obligations The Facility shall notify the agency pri- marily responsible for administering sub- chapter I of this chapter of the agreement with an eligible country to exchange a new ob- ligation for outstanding obligations pursuant to this subsection. At the direction of the Fa- cility, the old obligations shall be canceled and a new debt obligation for the country shall be established, and the agency primarily responsible for administering subchapter I of this chapter shall make an adjustment in its accounts to reflect the debt reduction. (Pub. L. 87–195, pt. IV, § 704, as added Pub. L. 102–549, title VI, § 602(a), Oct. 28, 1992, 106 Stat. 3665.) Page 948 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2430d Editorial Notes REFERENCES IN TEXT Section 321 of the International Development and Food Assistance Act of 1975, referred to in subsec. (a)(3)(B), is section 321 of Pub. L. 94–161, which is set out as a note under section 2220a of this title. PRIOR PROVISIONS A prior section 704 of Pub. L. 87–195, pt. IV, Sept. 4, 1961, 75 Stat. 463, amended section 1704 of Title 7, Agri- culture, prior to repeal by Pub. L. 87–565, pt. IV, § 401, Aug. 1, 1962, 76 Stat. 263, except insofar as section 704 affected section 1704. Statutory Notes and Related Subsidiaries REFERENCES TO SUBCHAPTER I DEEMED TO INCLUDE CERTAIN PARTS OF SUBCHAPTER II References to subchapter I of this chapter are deemed to include parts IV (§ 2346 et seq.), VI (§ 2348 et seq.), and VIII (§ 2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of this title, and sections 2348c and 2349aa–5 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. For delegation of functions of President under subsec. (a) of this section, see section 1 of Ex. Ord. No. 13345, July 8, 2004, 69 F.R. 41901, set out as a note under sec- tion 1738 of Title 7, Agriculture. § 2430d. Repayment of principal (a) Currency of payment The principal amount of each new obligation issued pursuant to section 2430c(b) of this title shall be repaid in United States dollars. (b) Deposit of payments Principal repayments of new obligations shall be deposited in the United States Government account established for principal repayments of the obligations for which those obligations were exchanged. (Pub. L. 87–195, pt. IV, § 705, as added Pub. L. 102–549, title VI, § 602(a), Oct. 28, 1992, 106 Stat. 3666.) Editorial Notes PRIOR PROVISIONS A prior section 705 of Pub. L. 87–195, pt. IV, Sept. 4, 1961, 75 Stat. 463, amended section 1964 of this title, prior to repeal by Pub. L. 87–565, pt. IV, § 401, Aug. 1, 1962, 76 Stat. 263, except insofar as section 705 affected section 1964. § 2430e. Interest on new obligations (a) Rate of interest New obligations issued by a beneficiary coun- try pursuant to section 2430c(b) of this title shall bear interest at a concessional rate. (b) Currency of payment; deposits (1) Local currency If the beneficiary country has entered into an Americas Framework Agreement, interest shall be paid in the local currency of the bene- ficiary country and deposited in an Americas Fund. Such interest shall be the property of the beneficiary country, until such time as it is disbursed pursuant to section 2430f(d) of this title. Such local currencies shall be used for the purposes specified in the Americas Frame- work Agreement. (2) United States dollars If the beneficiary country has not entered into an Americas Framework Agreement, in- terest shall be paid in United States dollars and deposited in the United States Govern- ment account established for interest pay- ments of the obligations for which the new ob- ligations were exchanged. (c) Interest already paid If a beneficiary country enters into an Amer- icas Framework Agreement subsequent to the date on which interest first became due on the newly issued obligation, any interest already paid on such new obligation shall not be rede- posited into the Americas Fund established for that country. (Pub. L. 87–195, pt. IV, § 706, as added Pub. L. 102–549, title VI, § 602(a), Oct. 28, 1992, 106 Stat. 3666.) Editorial Notes PRIOR PROVISIONS A prior section 706 of Pub. L. 87–195, pt. IV, Sept. 4, 1961, 75 Stat. 463, enacted section 1945 of this title, prior to repeal by Pub. L. 87–565, pt. IV, § 401, Aug. 1, 1962, 76 Stat. 263, except insofar as section 706 affected section 1945. § 2430f. Enterprise for the Americas Funds (a) Establishment Each beneficiary country that enters into an Americas Framework Agreement shall be re- quired to establish an Enterprise for the Amer- icas Fund to receive payments in local currency pursuant to section 2430e(b)(1) of this title. (b) Deposits Local currencies deposited in an Americas Fund shall not be considered assistance for pur- poses of any provision of law limiting assistance to a country. (c) Investment Deposits made in an Americas Fund shall be invested until disbursed. Any return on such in- vestment may be retained by the Americas Fund, without deposit in the Treasury of the United States and without further appropriation by the Congress. (d) Disbursements Funds in an Americas Fund shall be disbursed only pursuant to an Americas Framework Agreement. (Pub. L. 87–195, pt. IV, § 707, as added Pub. L. 102–549, title VI, § 602(a), Oct. 28, 1992, 106 Stat. 3666.) Editorial Notes PRIOR PROVISIONS A prior section 707 of Pub. L. 87–195, pt. IV, Sept. 4, 1961, 75 Stat. 464, amended section 1783 of this title,