§ 2431f. — Authority to engage in debtfornature swaps and debt buybacks.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2431f]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 32--FOREIGN ASSISTANCE
SUBCHAPTER IV--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL
FORESTS
Sec. 2431f. Authority to engage in debt-for-nature swaps and
debt buybacks
(a) Loans and credits eligible for sale, reduction, or cancellation
(1) Debt-for-nature swaps
(A) In general
Notwithstanding any other provision of law, the President
may, in accordance with this section, sell to any eligible
purchaser described in subparagraph (B) any concessional loans
described in section 2431d(a)(1) of this title or any credits
described in section 2431e(a)(1) of this title, or on receipt of
payment from an eligible purchaser described in subparagraph
(B), reduce or cancel such loans (or credits) or portion
thereof, only for the purpose of facilitating a debt-for-nature
swap to support eligible activities described in section
2431g(d) of this title.
(B) Eligible purchaser described
A loan or credit may be sold, reduced, or canceled under
subparagraph (A) only to a purchaser who presents plans
satisfactory to the President for using the loan or credit for
the purpose of engaging in debt-for-nature swaps to support
eligible activities described in section 2431g(d) of this title.
(C) Consultation requirement
Before the sale under subparagraph (A) to any eligible
purchaser described in subparagraph (B), or any reduction or
cancellation under such subparagraph (A), of any loan or credit
made to an eligible country, the President shall consult with
the country concerning the amount of loans or credits to be
sold, reduced, or canceled and their uses for debt-for-nature
swaps to support eligible activities described in section
2431g(d) of this title.
(D) Authorization of appropriations
For the cost (as defined in section 661a(5) of title 2) for
the reduction of any debt pursuant to subparagraph (A), amounts
authorized to be appropriated under sections 2431d(a)(2),
2431e(a)(2), and 2431d(d) of this title shall be made available
for such reduction of debt pursuant to subparagraph (A).
(2) Debt buybacks
Notwithstanding any other provision of law, the President may,
in accordance with this section, sell to any eligible country any
concessional loans described in section 2431d(a)(1) of this title or
any credits described in section 2431e(a)(1) of this title, or on
receipt of payment from an eligible country, reduce or cancel such
loans (or credits) or portion thereof, only for the purpose of
facilitating a debt buyback by an eligible country of its own
qualified debt, only if the eligible country uses an additional
amount of the local currency of the eligible country, equal to not
less than the lessor of 40 percent of the price paid for such debt
by such eligible country, or the difference between the price paid
for such debt and the face value of such debt, to support eligible
activities described in section 2431g(d) of this title.
(3) Limitation
The authority provided by paragraphs (1) and (2) shall be
available only to the extent that appropriations for the cost (as
defined in section 661a(5) of title 2) of the modification of any
debt pursuant to such paragraphs are made in advance.
(4) Terms and conditions
Notwithstanding any other provision of law, the President shall,
in accordance with this section, establish the terms and conditions
under which loans and credits may be sold, reduced, or canceled
pursuant to this section.
(5) Administration
(A) In general
The Facility shall notify the administrator of the agency
primarily responsible for administering subchapter I of this
chapter or the Commodity Credit Corporation, as the case may be,
of eligible purchasers described in paragraph (1)(B) that the
President has determined to be eligible under paragraph (1), and
shall direct such agency or Corporation, as the case may be, to
carry out the sale, reduction, or cancellation of a loan
pursuant to such paragraph.
(B) Additional requirement
Such agency or Corporation, as the case may be, shall make
an adjustment in its accounts to reflect the sale, reduction, or
cancellation.
(b) Deposit of proceeds
The proceeds from the sale, reduction, or cancellation of any loan
sold, reduced, or canceled pursuant to this section shall be deposited
in the United States Government account or accounts established for the
repayment of such loan.
(Pub. L. 87-195, pt. V, Sec. 808, as added Pub. L. 105-214, Sec. 1, July
29, 1998, 112 Stat. 889; amended Pub. L. 107-26, Sec. 2(b), Aug. 17,
2001, 115 Stat. 206.)
Amendments
2001--Subsec. (a)(1)(D). Pub. L. 107-26 substituted ``to be
appropriated under sections 2431d(a)(2), 2431e(a)(2), and 2431d(d) of
this title'' for ``to appropriated under sections 2431d(a)(2) and
2431e(a)(2) of this title''.
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 (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII
(Sec. 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.
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.
Section Referred to in Other Sections
This section is referred to in section 2431a of this title.
