Page:United States Statutes at Large Volume 113 Part 2.djvu/830

 113 STAT. 1501A-312 PUBLIC LAW 106-113—APPENDIX E (ii) the country has outstanding public and publicly guaranteed debt, the net present value of which, as of the date the President determines that the country is eligible for debt relief under this section, is at least 250 percent of the annual fiscal revenues of the country, and has minimum ratios of exports to Gross Domestic Product of 30 percent, and of fiscal revenues to Gross Domestic Product of 15 percent. (e) PRIORITY.—In carrying out subsection (a), the President should seek to leverage scarce foreign assistance and give priority to heavily indebted poor countries with demonstrated need and the capacity to use such relief effectively. (f) EXCEPTIONS.— ^A country shall not be eligible for cancellation of debt under this section if the government of the country— (1) has an excessive level of military expenditures; (2) has repeatedly provided support for acts of international terrorism, as determined by the Secretary of State under section 6(j)(l) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(l)) or section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)); (3) is failing to cooperate on international narcotics control matters; or (4) (including its military or other security forces), engages in a consistent pattern of gross violations of internationaly recognized human rights. (g) ADDITIONAL REQUIREMENT. — ^A country which is otherwise eligible to receive cancellation of debt under this section may receive such cancellation only if the country has committed, in connection with a social and economic reform program— (1) to enable, facilitate, or encourage the implementation of policy changes and institutional reforms under economic reform programs, in a manner that ensures that such policy changes and institutional reforms are designed and adopted through transparent and participatory processes; (2) to adopt an integrated development strategy of the type described in section 1624(a) of the International Financial Institutions Act, to support poverty reduction through economic growth, that includes monitorable poverty reduction goals; (3) to take steps so that the financial benefits of debt relief are applied to programs to combat poverty (in particular through concrete measures to improve economic infrastructure, basic services in education, nutrition, and health, particularly treatment and prevention of the leading causes of mortality) and to redress environmental degradation; (4) to take steps to strengthen and expand the private sector, encourage increased trade and investment, support the development of free markets, and promote broad-scale economic growth; (5) to implement transparent policy making and budget procedures, good governance, and effective anticorruption measures; (6) to broaden public participation and popular understanding of the principles and goals of poverty reduction, particularly through economic growth, and good governance; and (7) to promote the participation of citizens and nongovernmental organizations in the economic policy choices of the government.

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