Special Debt Relief for the Poorest

Special Debt Relief for the PoorestSec. 565. (a) Authority To Reduce Debt.—The President may reduce amounts owed to the United States (or any agency of the United States) by an eligible country as a result of—(1) guarantees issued under sections 221 and 222 of the Foreign Assistance Act of 1961;(2) credits extended or guarantees issued under the Arms Export Control Act; or(3) any obligation or portion of such obligation, to pay for purchases of United States agricultural commodities guaranteed by the Commodity Credit Corporation under export credit guarantee programs authorized pursuant to section 5(f) of the Commodity Credit Corporation Charter Act of June 29, 1948, as amended, section 4(b) of the Food for Peace Act of 1966, as amended (Public Law 89–808), or section 202 of the Agricultural Trade Act of 1978, as amended (Public Law 95–501).(b) Limitations.—(1) The authority provided by subsection (a) may be exercised only to implement multilateral official debt relief and 119 STAT. 2226 referendum agreements, commonly referred to as “Paris Club Agreed Minutes”.(2) The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided in advance by appropriations Acts.(3) The authority provided by subsection (a) may be exercised only with respect to countries with heavy debt burdens that are eligible to borrow from the International Development Association, but not from the International Bank for Reconstruction and Development, commonly referred to as “IDA-only” countries.(c) Conditions.—The authority provided by subsection (a) 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;(4) (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights; and(5) is not ineligible for assistance because of the application of section 527 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995.(d) Availability of Funds.—The authority provided by subsection (a) may be used only with regard to the funds appropriated by this Act under the heading “Debt Restructuring”.(e) Certain Prohibitions Inapplicable.—A reduction of debt pursuant to subsection (a) shall not be considered assistance for the purposes of any provision of law limiting assistance to a country. The authority provided by subsection (a) may be exercised notwithstanding section 620(r) of the Foreign Assistance Act of 1961 or section 321 of the International Development and Food Assistance Act of 1975.