Page:United States Statutes at Large Volume 111 Part 3.djvu/337

 PUBLIC LAW 105-118—NOV. 26, 1997 111 STAT. 2425 an eligible purchaser, reduce or cancel such loan or portion thereof, only for the purpose of facilitating— (A) debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps; or (B) 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 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 activities that link conservation and sustainable use of natural resources with local community development, and child survival and other child development, in a manner consistent with sections 707 through 710 of the Foreign Assisteince Act of 1961, if the sale, reduction, or cancellation would not contravene any term or condition of any prior agreement relating to such loan. (2) TERMS AND CONDITIONS. —Notwithstanding any other President, provision of law, the President shall, in accordance with this section, establish the terms and conditions under which loans may be sold, reduced, or canceled pursuant to this section. (3) ADMINISTRATION.—The Facility, as defined in section 702(8) of the Foreign Assistance Act of 1961, shall notify the administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 of purchasers that the President has determined to be eligible, and shall direct such agency to carry out the sale, reduction, or cancellation of a loan pursueint to this section. Such agency shall make an. adjustment in its accounts to reflect the sale, reduction, or cancellation. (4) LIMITATION.— The authorities of this subsection shall be available only to the extent that appropriations for the cost of the modification, as defined in section 502 of the Congressional Budget Act of 1974, are made in advance. (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 repa5ment of such loan. (c) ELIGIBLE PURCHASERS.— A loan may be sold pursuant to subsection (a)(1)(A) only to a purchaser who presents plans satisfactory to the President for using the loan for the purpose of engaging in debt-for-equity swaps, debt-for-development swaps, or debt-fornature swaps. (d) DEBTOR CONSULTATIONS.— Before the sale to any eligible purchaser, or any reduction or cancellation pursuant to this section, of any loan made to an eligible country, the President should consult with the country concerning the amount of loans to be sold, reduced, or canceled and their uses for debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps. (e) AVAILABILITY OF FUNDS. —The authority provided by subsection (a) may be used only with regard to funds appropriated by this Act under the heading "Debt restructuring ". INTERNATIONAL FINANCIAL INSTITUTIONS SEC. 560. (a) AUTHORIZATIONS.—The Secretary of the Treasury 22 USC 284s may, to fulfill commitments of the United States: (1) effect the note, 285c note, United States participation in the first general icapital increase 290i-4note.

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