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U.S. Code as of:
01/19/04
Section 262p-4c. Initiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation
(a) Findings
The Congress finds that -
(1) voluntary debt-for-development swaps in heavily indebted
developing nations can simultaneously facilitate reduction of the
burden of external indebtedness and increase the resources
available within the country for charitable, educational, and
scientific purposes, including environmental conservation,
education, human welfare, health, agricultural research and
development, microenterprise credit, and development of
indigenous nonprofit organizations; and
(2) heavily indebted developing countries may desire to
facilitate such swaps to the maximum extent consistent with sound
domestic economic management and minimization of inflationary
impact.
(b) Initiation of discussions to facilitate debt-for-development
swaps for human welfare and environmental conservation
(1) In general
The Secretary of the Treasury shall instruct the United States
Executive Director of the International Bank for Reconstruction
and Development to initiate discussions with the directors of
such bank, the International Development Association, and the
International Finance Corporation and propose that such
institutions provide advice and assistance, as appropriate, to
borrowing country governments desiring to facilitate
debt-for-development swaps, on mechanisms (including trust funds)
to accomplish this purpose, particularly in the context of debt
rescheduling, which mechanisms result in sound management of the
macroeconomic impact of such swaps on such countries, and
preserve the value of the capital obtained through such swaps.
(2) Definitions
As used in this section:
(A) Debt-for-development swap
The term "debt-for-development swap" means the purchase of
qualified debt by, or the donation of such debt to, an
organization described in section 501(c)(3) of title 26 which
is exempt from taxation under section 501(a) of title 26, and
the subsequent transfer of such debt to an organization located
in such foreign country in exchange for an undertaking by such
tax-exempt organization, such foreign government, or such
foreign organization to engage in a charitable, educational, or
scientific activity.
(B) Qualified debt
The term "qualified debt" means -
(i) sovereign debt issued by a foreign government;
(ii) debt owed by private institutions in the country
governed by such foreign government; and
(iii) debt owed by institutions in the country governed by
such foreign government, which are owned, in part, by private
persons and, in part, by public institutions.
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