[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC262p-4c]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 7--INTERNATIONAL BUREAUS, CONGRESSES, ETC.
Sec. 262p-4c. Initiation of discussions to facilitate debt-for-
development swaps for human welfare and environmental
conservation
(a) Findings
The Congress finds that--
(1) voluntary debt-for-development swaps in heavily indebted
developing nations can simultaneously facilitate reduction of the
burden of external indebtedness and increase the resources available
within the country for charitable, educational, and scientific
purposes, including environmental conservation, education, human
welfare, health, agricultural research and development,
microenterprise credit, and development of indigenous nonprofit
organizations; and
(2) heavily indebted developing countries may desire to
facilitate such swaps to the maximum extent consistent with sound
domestic economic management and minimization of inflationary
impact.
(b) Initiation of discussions to facilitate debt-for-development swaps
for human welfare and environmental conservation
(1) In general
The Secretary of the Treasury shall instruct the United States
Executive Director of the International Bank for Reconstruction and
Development to initiate discussions with the directors of such bank,
the International Development Association, and the International
Finance Corporation and propose that such institutions provide
advice and assistance, as appropriate, to borrowing country
governments desiring to facilitate debt-for-development swaps, on
mechanisms (including trust funds) to accomplish this purpose,
particularly in the context of debt rescheduling, which mechanisms
result in sound management of the macroeconomic impact of such swaps
on such countries, and preserve the value of the capital obtained
through such swaps.
(2) Definitions
As used in this section:
(A) Debt-for-development swap
The term ``debt-for-development swap'' means the purchase of
qualified debt by, or the donation of such debt to, an
organization described in section 501(c)(3) of title 26 which is
exempt from taxation under section 501(a) of title 26, and the
subsequent transfer of such debt to an organization located in
such foreign country in exchange for an undertaking by such tax-
exempt organization, such foreign government, or such foreign
organization to engage in a charitable, educational, or
scientific activity.
(B) Qualified debt
The term ``qualified debt'' means--
(i) sovereign debt issued by a foreign government;
(ii) debt owed by private institutions in the country
governed by such foreign government; and
(iii) debt owed by institutions in the country governed
by such foreign government, which are owned, in part, by
private persons and, in part, by public institutions.
(Pub. L. 95-118, title XVI, Sec. 1608, as added Pub. L. 100-461, title
V, Sec. 555, Oct. 1, 1988, 102 Stat. 2268-36.)
Codification
Section 1608 of Pub. L. 95-118 is based on section 8 of H.R. 4645,
One Hundredth Congress, as reported Sept. 28, 1988, and enacted into law
by Pub. L. 100-461.
Definitions
The definitions in sec
