Page:United States Statutes at Large Volume 104 Part 3.djvu/707

 PUBLIC LAW 101-513—NOV. 5, 1990 104 STAT. 2059 the Secretary of Defense to the Secretary of the Treasury that are related to any guarantees of any AECA Loans (including all notes or other obligations issued under subsection (b)) by multiplying it by a fraction, the numerator of which shall equal the value of the AECA Loans as determined under paragraph (1), and the denominator of which shall equ^ the sum of (i) the amount owed by the Secretary of Defense under notes issued to the Secretary of the Treasury pursuant to subsection G)X1), plus (ii) the amount owed by Egypt as a result of the AECA Loans to the Secretary of Defense as of October 1, 1990, plus (iii) the amount that Egypt would have owed as a result of the AECA Loans to the Secretary of Defense in respect of the period beginning October 1, 1990, and ending immediately before the President makes the reduction described in subsection (c)(2)(A). The military debt reduction authority provided by this subsection shall be limited such that no reduction shall result in a decrease in the principal value of the AECA Loans below the discounted net present value which would result from a restructuring of the AECA Loans according to the terms and conditions which apply to the loans of the International Development Association (principal shall be repayable over 40 years and shall bear no interest, and there shall be a 10 year grace period after which period 2 per centum of the loan shall be repaid annually for a period of 10 years, and 4 per centum of the loan shall be repaid annually during the remaining years). (d) DEBT CANCELLATION AUTHORITY,— (1) The President, notwithstanding any other provision of law, in the context of the multilateral debt negotiations provided for in this section may reduce to zero the amended notes (in the manner specified in subsection (e)(2)(A) and (B)) only if other major holders of EgjHptian military debt agree to equal or comparable reductions. If such other creditors do not agree to comparable reductions in Reports, their Egyptian military debt the President shall so report to Congress. (2) If the President reports to Congress under paragraph (1) then he may further determine that it is essential to the national security interests of the United States to unilaterally cancel the requirement of Egypt to repay the United States for such Egyptian military debt. (e) CONSIDERATIONS.— (1) In making this determination under subsection (d)(2), the President may consider— (A) the unique nature of Egypt's contribution to Desert Shield, and its leadership role in supporting international efforts in the face of Iraqi aggression in the Arabian Peninsula; (B) the impact on the Egyptian economy of the events surrounding the Iraqi aggression; (C) the long-term prospects for economic growth and stability in Egypt, and the effect on those prospects of such a determination; (D) the role that Egypt's assumption of FMS debt played in furtherance of the common security interests of Egypt

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