Page:United States Statutes at Large Volume 112 Part 4.djvu/219

 PUBLIC LAW 105-277—OCT. 21, 1998 112 STAT. 2681-190 (3) The authority provided by subsection (a) may be exercised only with respect to countries with heavy debt burdens that are eligible to borrow from the International Development Association, but not from the International Bai^ for Reconstruction and Development, commonly referred to as "IDA-onl3^* countries. (c) CONDITIONS.— The authority provided by subsection (a) may be exercised only with respect to a country whose government— (1) does not have an excessive level of military expenditures; (2) has not repeatedly provided support for acts of international terrorism; (3) is not failing to cooperate on international narcotics control matters; (4) (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationaly recognized human rights; and (5) is not ineligible for assistemce because of the application of section 527 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995. (d) 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". (e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt pursuant to subsection (a) shall not be considered assistance for purposes of any provision of law limiting assistance to a country. The authority provided by subsection (a) may be exercised notwithstanding section 620(r) of the Foreign Assistance Act of 1961. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES SEC. 560. (a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR CAN- CELLATION. — (1) AUTHORITY TO SELL, REDUCE, OR CANCEL CERTAIN LOANS. —Notwithstanding any other provision of law, the President may, in accordsmce with this section, sell to any eligible purchaser any concessional loan or portion thereof made before January 1, 1995, pursuant to the Foreign Assistance Act of 1961, to the government of any eligible country as defined in section 702(6) of that Act or on receipt of payment from an eligible purchsiser, 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 natured resources with local community development, and child survival and other child development, in a manner consistent with sections 707 through 710 of the Foreign Assistance Act of 1961, if the sale, reduction, or cancellation would not contravene any term or condition of any prior agreement relating to such loan.

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