DIRECT CREDIT SALES.

SEC. 707. DIRECT CREDIT SALES. (a) Required Determinations.— Section 201(c) of the Agricultural Trade Act of 1978 (7 U.S.C. 5621(c)) is amended by inserting after paragraph (3) the following: “The reference in paragraphs (1) and (2) to ‘on a long-term basis’ shall not apply in the case of determinations with respect to sales to the independent states of the former Soviet Union.”. (b) Eligible Countries.— Section 201(d)(1)(C) of the Agricultural Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)) is amended to read as follows: 106 STAT. 3351 “(C) to assist countries in meeting their food and fiber needs, particularly— “(i) developing countries; and “(ii) countries that are emerging democracies that have committed to carry out, or are carrying out, policies that promote economic freedom, private domestic production of food commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of agricultural commodities; and”. (c) Restrictions.— Section 201 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621) is amended by adding at the end the following new subsection: “(f) Restrictions.— The Commodity Credit Corporation may not make export sales financing authorized under this section available in connection with sales of an agricultural commodity to any country that the Secretary determines cannot adequately service the debt associated with such sale.”. (d) Regulations.— The Secretary of Agriculture shall issue final regulations to implement section 201 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621), as amended by this section, not later than 30 days after the date of enactment of this Act.