Page:United States Statutes at Large Volume 117.djvu/766

 PUBLIC LAW 108–25—MAY 27, 2003

117 STAT. 747

TITLE V—INTERNATIONAL FINANCIAL INSTITUTIONS SEC. 501. MODIFICATION OF THE ENHANCED HIPC INITIATIVE.

Title XVI of the International Financial Institutions Act (22 U.S.C. 262p–262p–7) is amended by adding at the end the following new section: ‘‘SEC. 1625. MODIFICATION OF THE ENHANCED HIPC INITIATIVE.

22 USC 262p–8.

‘‘(a) AUTHORITY.— ‘‘(1) IN GENERAL.—The Secretary of the Treasury should immediately commence efforts within the Paris Club of Official Creditors, the International Bank for Reconstruction and Development, the International Monetary Fund, and other appropriate multilateral development institutions to modify the Enhanced HIPC Initiative so that the amount of debt stock reduction approved for a country eligible for debt relief under the Enhanced HIPC Initiative shall be sufficient to reduce, for each of the first 3 years after the date of enactment of this section or the Decision Point, whichever is later— ‘‘(A) the net present value of the outstanding public and publicly guaranteed debt of the country— ‘‘(i) as of the decision point if the country has already reached its decision point; or ‘‘(ii) as of the date of enactment of this Act, if the country has not reached its decision point, to not more than 150 percent of the annual value of exports of the country for the year preceding the Decision Point; and ‘‘(B) the annual payments due on such public and publicly guaranteed debt to not more than— ‘‘(i) 10 percent or, in the case of a country suffering a public health crisis (as defined in subsection (e)), not more than 5 percent, of the amount of the annual current revenues received by the country from internal resources; or ‘‘(ii) a percentage of the gross national product of the country, or another benchmark, that will yield a result substantially equivalent to that which would be achieved through application of subparagraph (A). ‘‘(2) LIMITATION.—In financing the objectives of the Enhanced HIPC Initiative, an international financial institution shall give priority to using its own resources. ‘‘(b) RELATION TO POVERTY AND THE ENVIRONMENT.—Debt cancellation under the modifications to the Enhanced HIPC Initiative described in subsection (a) should not be conditioned on any agreement by an impoverished country to implement or comply with policies that deepen poverty or degrade the environment, including any policy that— ‘‘(1) implements or extends user fees on primary education or primary health care, including prevention and treatment efforts for HIV/AIDS, tuberculosis, malaria, and infant, child, and maternal well-being; ‘‘(2) provides for increased cost recovery from poor people to finance basic public services such as education, health care, clean water, or sanitation;

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