Page:United States Statutes at Large Volume 118.djvu/230

 118 STAT. 200 PUBLIC LAW 108–199—JAN. 23, 2004 Reconstruction and Development, commonly referred to as ‘‘IDA only’’ 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 expendi tures; (2) has not repeatedly provided support for acts of inter national 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 inter nationally recognized human rights; and (5) is not ineligible for assistance 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 sub section (a) may be used only with regard to the 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 the purposes of any provision of law limiting assistance to a country. The authority provided by subsection (a) may be exercised notwith standing section 620(r) of the Foreign Assistance Act of 1961 or section 321 of the International Development and Food Assistance Act of 1975. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES SEC. 575. (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 Presi dent may, in accordance 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 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 develop ment, 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. (2) TERMS AND CONDITIONS.—Notwithstanding any other provision of law, the President shall, in accordance with this

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