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U.S. Code as of:
01/19/04
Section 635i-6. Debt reduction; Enterprise for the Americas Initiative
(a) Definitions
For purposes of this section -
(1) the term "eligible country" means a country designated by
the President in accordance with subsection (b) of this section;
(2) the term "Facility" means the entity established in the
Department of the Treasury by section 1738 of title 7; and
(3) the term "IMF" means the International Monetary Fund.
(b) Eligibility for benefits under the Facility
(1) Requirements
To be eligible for benefits from the Facility under this
section, a country must -
(A) be a Latin American or Caribbean country;
(B) have in effect, have received approval for, or, as
appropriate in exceptional circumstances, be making significant
progress toward -
(i) an IMF standby arrangement, extended IMF arrangement,
or an arrangement under the structural adjustment facility or
enhanced structural adjustment facility or, in exceptional
circumstances, an IMF monitored program or its equivalent;
and
(ii) as appropriate, structural or sectoral adjustment
loans from the International Bank for Reconstruction and
Development or the International Development Association;
(C) have put in place major investment reforms in conjunction
with an Inter-American Development Bank loan or otherwise be
implementing, or making significant progress toward, an open
investment regime; and
(D) if appropriate, have agreed with its commercial bank
lenders on a satisfactory financing program, including, as
appropriate, debt or debt service reduction.
(2) Eligibility determinations
The President shall determine whether a country is an eligible
country for purposes of paragraph (1).
(c) Loans eligible for sale, reduction, or cancellation
(1) Authority to sell, reduce, or cancel certain loans
Notwithstanding any other provision of law, the President may,
in accordance with this section, sell to any eligible purchaser
any loan or portion thereof made before January 1, 1992, to any
eligible country or any agency thereof pursuant to this
subchapter, 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 buy-back 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 development activities, in a manner
consistent with sections 1738f through 1738k of title 7,
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 section, establish the terms and
conditions under which loans may be sold, reduced, or canceled
pursuant to this section.
(3) Treatment under securities laws
The filing of a registration statement under the Securities Act
of 1933 [15 U.S.C. 77a et seq.] shall not be required with
respect to the sale or offer for sale by the Bank of a loan or
any interest therein pursuant to this section. For purposes of
the Securities Act of 1933, the Bank shall not be deemed to be an
issuer or underwriter with respect to any subsequent sale or
other disposition of such loan (or any interest therein) or any
security received by an eligible purchaser pursuant to any
debt-for-equity swap, debt-for-development swap, or
debt-for-nature swap.
(4) Administration
The Facility shall notify the Bank of purchasers that the
President has determined to be eligible, and shall direct the
Bank to carry out the sale, reduction, or cancellation of a loan
pursuant to this section. The Bank shall make an adjustment in
its accounts to reflect the sale, reduction, or cancellation.
(5) Limitations
The authorities of this subsection may be exercised only to
such extent as provided for in advance in appropriations Acts, as
necessary to implement the Federal Credit Reform Act of 1990 [2
U.S.C. 661 et seq.].
(d) Deposit of proceeds
The proceeds from the sale, reduction, or cancellation of any
loan sold, reduced, or canceled pursuant to this section shall be
deposited in the United States Government account or accounts
established for the repayment of such loan.
(e) Eligible purchasers
A loan may be sold pursuant to subsection (c)(1)(A) of this
section only to a purchaser who presents plans satisfactory to the
President for using the loan for the purpose of engaging in
debt-for-equity swaps, debt-for-development swaps, or
debt-for-nature swaps.
(f) Debtor consultation
Before the sale to any eligible purchaser, or any reduction or
cancellation pursuant to this section, of any loan made to an
eligible country, the President shall 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.
(g) Authorization of appropriations
For the sale, reduction, and cancellation of loans or portions
thereof pursuant to this section, there are authorized to be
appropriated to the President such sums as may be necessary, which
are authorized to remain available until expended.
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