Page:United States Statutes at Large Volume 103 Part 3.djvu/440

 103 STAT. 2508 PUBLIC LAW 101-240—DEC. 19, 1989 (ii) there will be in place an organization, either governmental or nongovernmental, that will have the commitment to assure the long-term viability of the project; and (iii) the allocation of the resources provided for con- < servation and sustainable development projects through the debt restructuring agreement is done in a manner that will not overwhelm or distort economic conditions in the host country. SEC. 612. MULTILATERAL DEVELOPMENT BANKS AND DEBT-FOR-NATURE EXCHANGES. The International Financial Institutions Act (22 U.S.C. 262c et seq.) is amended by redesignating section 1614 (as so redesignated by 22 USC 262p-5. section 501 of this Act) as section 1617, and by inserting after section 1613 (as added by such section 501) the following: Conservation. "SEC. 1614. MULTILATERAL DEVELOPMENT BANKS AND DEBT-FOR- 22 USC 262p-4i. NATURE EXCHANGES. "(a) DIRECTIONS TO THE UNITED STATES EXECUTIVE DIRECTORS.— The Secretary of the Treasury shall direct the United States Execu- tive Directors of the multilateral development banks to— "(1) negotiate for the creation in each respective multilateral development bank, except where the Secretary of the Treasury determines that the provisions of this subsection have pre- viously been met, of a department that will— "(A) be responsible for environmental protection and re- source conservation, including support for restoration, protection, and sustainable use policies; "(B) develop and monitor strict environmental guidelines and policies to govern lending activities; and '.* ' - "(C) actively promote, coordinate and facilitate debt-for- nature exchaiiges and the restoration, protection, and sustainable use of tropical forests, renewable natural resources, endangered ecosystems and species in debtor ,«. K countries; "(2) support and encourage the approval of multilateral devel- opment bank loans which include provisions that foster and facilitate the implementation of a sound and effective environ- mental policy in the borrowing country; "' "(3) encourage the banks to assist such countries in reducing •' and restructuring private debt through the use of a portion of a project or policy based environmental loan in ways which will ' enable such countries to buy back private debt at a rate of discount available for such debt, at auction in the secondary market or through negotiations with creditors holding such debt; "(4) seek to ensure that staff of each bank facilitate debtor countries' collaboration with local and international non- governmental or private organizations in implementing debt- for-nature exchanges; and "(5) seek to ensure that each bank adopts polico'^ guidelines which to the maximum extent possible provide for— "(A) the inclusion of sustainable use policies in loan agreements negotiated with borrower members; "(B) the adoption of economic programs to foster sound environmental policies; and

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