Pub. L. 88-205, pt. I, ch. 2, tit. i, sec. 102

Sec. 102. Title I of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to the development loan fund, is amended as follows: (a) Amend section 201, which relates to general authority, as follows: (1) In the second sentence of subsection (b), which relates to considerations to be taken into account in making loans from the development loan fund, strike out clauses (1) and (2) and insert in lieu thereof the following: “(1) whether financing could be obtained in whole or in part from other free-world sources on reasonable terms, including private sources within the United States, (2) the economic and technical soundness of the activity to be financed, including the capacity of the recipient country to repay the loan at a reasonable rate of interest,”. (2) Subsection (d), which relates to interest rates on development loans, is amended by inserting immediately after “in no event” the following: “shall such funds (except funds loaned under section 205 and funds which prior to the date of enactment of the Foreign Assistance Act of 1963 were authorized or committed to be loaned upon terms which do not meet the minimum terms set forth herein) be loaned at a rate of interest of less than 2 per centum per annum commencing not later than ten years fol-lowing the date on which the funds are initially made available under the loan, during which ten-year period the rate of interest shall not be lower than threefourtlis of 1 per centum per annum, nor”. (3) Add the following new subsection (f): “(f) No assistance shall be furnished under this title for a project unless the President determines that such project will promote the economic development of the requesting country, taking into account the current human and material resource requirements of that country and the relationship between the ultimate objectives of the project and the overall economic development of the country, and that such project specifically provides for appropriate participation by private enterprise.” (b) Amend section 202(a), which relates to authorizations for the development loan fund, as follows: (1) Strike out “and $1,500,000,000 for each of the next four succeeding fiscal years,” and insert in lieu thereof “, $1,500,000,000 for the fiscal year 1963, $925,000,000 for the fiscal year 1964, and $1,500,000,000 for each of the next two succeeding fiscal years,”. (2) Immediately before the period at the end thereof insert the following: “: Provided further, That, in order to effectuate the purposes and provisions of sections 102, 201, 601, and 602 of this Act, not less than 50 per centum of the funds appropriated pur-77 Stat. 381suant to this subsection for the fiscal years ending June 30, 1965, and June 30, 1966, respectively, shall be available for loans made to encourage economic development through private enterprise”.