Page:United States Statutes at Large Volume 123.djvu/896

 123STA T .876PUBLIC LA W 111 – 8 —M A R .11, 2 0 0 9indebt-for -e qu it yswap s , debt-for-de v e l op m ent swaps, or debt-for- nature swaps .( d )DEBTORC O NSUL T A T I ONS. —B efore t h e sale to any eli g ible pur c haser, or any reduction or cancellation pursuant to this section, of any loan made to an eligible country, the P resident 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) AV AILABILIT Y O FF UN D S.— T he authority provided by sub- section (a) may be used only with regard to funds appropriated by this Act under the heading ‘ ‘Debt R estructuring ’ ’. S P E C IAL DEBT RELIEF FOR T H E POOREST S EC. 703 3. (a) AUTHORITY TO REDUCE DEBT.—The President may reduce amounts owed to the U nited States (or any agency of the United States) by an eligible country as a result of— ( 1 ) guarantees issued under sections 2 21 and 222 of the Foreign Assistance Act of 1 96 1 (2) credits e x tended or guarantees issued under the Arms E xport Control Act; or (3) any obligation or portion of such obligation, to pay for purchases of United States agricultural commodities guaran- teed by the Commodity Credit Corporation under export credit guarantee programs authori z ed pursuant to section 5 (f) of the Commodity Credit Corporation Charter Act of J une 29, 19 48, as amended, section 4(b) of the Food for Peace Act of 1966, as amended (Public L aw 89 – 808), or section 202 of the Agricul- tural Trade Act of 1978, as amended (Public Law 95–501). (b) LI M ITATIONS.— (1) The authority provided by subsection (a) may be exer- cised only to implement multilateral official debt relief and referendum agreements, commonly referred to as ‘‘Paris Club Agreed M inutes’’. (2) The authority provided by subsection (a) may be exer- cised only in such amounts or to such extent as is provided in advance by appropriations Acts. (3) The authority provided by subsection (a) may be exer- cised only with respect to countries with heavy debt burdens that are eligible to borrow from the I nternational Development Association, but not from the International Ban k for 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 Y ears 1994 and 1995.