§ 5414. — Debtforequity swaps and other special techniques.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC5414]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 63--SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED)
SUBCHAPTER I--STRUCTURAL ADJUSTMENT
Sec. 5414. Debt-for-equity swaps and other special techniques
(a) Reduction of debt burden
The President shall take all appropriate actions to explore and
encourage innovative approaches to the reduction of the government-to-
government and commercial debt burden of East European countries which
have taken substantive steps toward political democracy and economic
pluralism.
(b) Authority for discounted sales of debt
Notwithstanding any other provision of law, the President may
undertake the discounted sale, to private purchasers, of United States
Government debt obligations of an East European country which has taken
substantive steps toward political democracy and economic pluralism,
subject to subsection (c) of this section.
(c) Condition
An obligation may be sold under subsection (b) of this section only
if the sale will facilitate so-called debt-for-equity or debt-for-
development swaps wherein such newly privatized debt is exchanged by the
new holder of the obligation for--
(1) local currencies, policy commitments, or other assets needed
for development or other economic activities, or
(2) for an equity interest in an enterprise theretofore owned by
the particular East European government.
(Pub. L. 101-179, title I, Sec. 104, Nov. 28, 1989, 103 Stat. 1304.)
Delegation of Functions
Functions of President under this section delegated to Secretary of
the Treasury by section 4 of Ex. Ord. No. 12703, Feb. 20, 1990, 55 F.R.
6351, set out as a note under section 5401 of this title.
