debt restructuring

debt restructuring Sec. 594. (a) Debt Reduction.—Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the following new chapter: “Chapter 12—Enterprise for the Americas Initiative “SEC. 499 REDUCTION OF CERTAIN DEBT. “(a) Authority To Reduce Debt.—(1) The President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of January 1, 1992, as a result of concessional loans made to an eligible country by the United States under part I or chapter 4 of part II of the Foreign Assistance Act of 1961 (or predecessor foreign economic assistance legislation). “(2) The authorities of this section may be exercised only in such amounts or to such extent as is specifically provided in advance by appropriations Acts. “(3) Any debt reduction pursuant to this section shall be accomplished at the direction of the Facility established pursuant to section 601 of the Agricultural Trade Development and Assistance Act of 1954, as amended, in a manner consistent with sections 604 (b) and (c) of that Act. “(b) Eligibility for Debt Reduction.—(1) In addition to meeting the requirements of section 603(a) of that Act, to be eligible for debt reduction under this section a country must have a government that is democratically elected, not repeatedly providing support for acts of international terrorism, not failing to cooperate on international narcotics control matters, and not engaging in a consistent pattern of gross violations of internationally recognized human rights. “(2) The President shall determine whether a country is eligible for debt reduction under this section. “(c) Repayment of Principal.—The principal amount of each new obligation issue pursuant to subsection (a) shall be repaid in United States dollars and deposited in the appropriate United States Government account. “(d) Interest on New Obligations.—Interest on each new obligation issued pursuant to subsection (a) shall be paid consistent with section 606 of that Act: Provided, That— “(1) in addition to those set forth in section 612(a) of that Act, activities eligible to receive assistance from a fund established consistent with section 608 of that Act shall include child survival and other child development activities; “(2) in addition to those set forth in section 612(d) of that Act, entities eligible for grants from such a fund shall include nongovernmental child survival or child development organizations; “(3) the administering body established consistent with section 607(c) of that Act shall include at least one representative from a nongovernmental organization with experience and expertise in child survival or child development; and 106 STAT. 1693 “(4) the Board established under section 610 of that Act shall include at least one representative from a nongovernmental organization with experience and expertise in child survival or child development. “(e) Annual Report.—The President shall prepare an annual report to Congress on the implementation of this section in conjunction with the report required under section 614 of that Act.”. (b) Multilateral Investment Fund.—The Inter-American Development Bank Act (22 U.S.C. 283-283z-8) is amended by adding at the end the following: “Sec. 37. (a) The Secretary of the Treasury is authorized to contribute, and to make payment of, $500,000,000 to the Multilateral Investment Fund established pursuant to the agreements of February 11, 1992: Provided, That such funds shall only be disbursed from the Fund to countries that have governments that are democratically elected, that do not harbor or sponsor international terrorists; that do not fail to cooperate in narcotics matters; and that do not engage in a consistent pattern of gross violations of internationally recognized human rights. “(b) There is hereby authorized to be appropriated without fiscal year limitation $500,000,000 for the contribution authorized in subsection (a).”. “(c) If an Enterprise for the Americas Multilateral Investment Fund is established pursuant to this section, the Secretary of the Treasury shall instruct the United States representative to the Fund not to vote in favor of any action proposed to be taken by the Fund which may have a significant adverse effect on the environment unless an assessment of the impact of the action on the environment has been available for at least 120 days before the vote.”.