INTEREST OF NEW OBLIGATIONS.

SEC. 606. [7 U.S.C. 1738e] INTEREST OF NEW OBLIGATIONS. (a) Rate of Interest.—New obligations issued to an eligible country under section 604 shall bear interest at a concessional rate. (b) Currency of Payment, Deposits.— (1) United states dollars.—An eligible country to which a new obligation has been issued under section 604 that has not entered into an agreement under section 607, shall be required to pay interest on such obligation in United States dollars which shall be deposited in Commodity Credit Corporation accounts. (2) Local currency.—If an eligible country to which a new obligation has been issued under section 604 has entered into an agreement under section 607, interest under such obligation may be paid in the local currency of the eligible country and deposited into an Environmental Fund as provided for in section 608. Such interest shall be the property of the eligible country until such time as it is disbursed under section 608. Such local currencies shall be used for the purposes specified in the agreement entered into under section 607. (c) Interest Previously Paid.—If an eligible country to which a new obligation has been issued under section 604 enters into an agreement under section 607 subsequent to the date on which interest first becomes due on such new obligation, any interest paid on such new obligation prior to such agreement being entered into shall not be redeposited into the Fund established for the eligible country under section 608(a) but shall be deposited into Commodity Credit Corporation accounts.