Laws: Cases and Codes : U.S. Code : Title 12 : Section 635i-8


   
U.S. Code as of: 01/19/04
Section 635i-8. Special debt relief for poorest, most heavily indebted countries

    (a) Debt reduction authority
      The President may reduce amounts of principal and interest owed
    by any eligible country to the Bank as a result of loans or
    guarantees made under this subchapter.
    (b) Limitations
      (1) Types of debt reduction
        The authority provided by subsection (a) of this section may be
      exercised only to implement multilateral agreements to reduce the
      burden of official bilateral debt as set forth in the minutes of
      the so-called "Paris Club" (also known as "Paris Club Agreed
      Minutes").
      (2) Eligible countries
        (A) "Eligible country" defined
          As used in subsection (a) of this section, the term "eligible
        country" means any country that - 
            (i) has excessively burdensome external debt;
            (ii) is eligible to borrow from the International
          Development Association; and
            (iii) is not eligible to borrow from the International Bank
          for Reconstruction and Development.
        (B) Determinations
          Subject to subparagraph (A), the President may determine
        whether a country is an eligible country for purposes of
        subsection (a) of this section.
    (c) Conditions
      The authority provided by this section may be exercised only with
    respect to a country whose government - 
        (1) does not have an excessive level of military expenditures;
        (2) has not repeatedly provided support for acts of
      international terrorism;
        (3) is not failing to cooperate on international narcotics
      control matters; and
        (4) (including its military or other security forces) does not
      engage in a consistent pattern of gross violations of
      internationally recognized human rights.
    (d) Appropriations
      The authority provided by subsection (a) of this section may be
    exercised only in such amounts or to such extent as is provided in
    advance in appropriations Acts.



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