REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN ASSISTANCE ACT OF 1961.

SEC. 806. [22 U.S.C. 2431d] REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN ASSISTANCE ACT OF 1961. (a) Authority To Reduce Debt.— (1) Authority.—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, 1998, as a result of concessional loans made to an eligible country by the United States under part I of this Act, chapter 4 of part II of this Act, or predecessor foreign economic assistance legislation. (2) Authorization of appropriations.—For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President— (A) $25,000,000 for fiscal year 1999; (B) $75,000,000 for fiscal year 2000; and (C) $100,000,000 for fiscal year 2001. (3) Certain prohibitions inapplicable.— (A) In general.—A reduction of debt pursuant to this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country. (B) Additional requirement.—The authority of this section may be exercised notwithstanding section 620(r) of this Act or section 321 of the International Development and Food Assistance Act of 1975. (b) Implementation of Debt Reduction.— (1) In general.—Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). (2) Exchange of obligations.— (A) In general.—The Facility shall notify the agency primarily responsible for administering part I of this Act of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) Additional requirement.—At the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation for the country shall be established relating to the agreement, and the agency primarily responsible for administering part I of this Act shall make an adjustment in its accounts to reflect the debt reduction. (c) Additional Terms and Conditions.—(1) The following additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 704(a)(1) of this Act: (A) The provisions relating to repayment of principal under section 705 of this Act. (B) The provisions relating to interest on new obligations under section 706 of this Act. (2) In addition to the application of the provisions relating to repayment of principal under section 705 of this Act to the reduction of debt under subsection (a)(1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Conservation Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 706 of this Act. (d) Authorization of Appropriations for Fiscal Years After Fiscal Year 2001.—For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section or section 807, there are authorized to be appropriated to the President the following: (1) $50,000,000 for fiscal year 2002. (2) $75,000,000 for fiscal year 2003. (3) $100,000,000 for fiscal year 2004. (4) $20,000,000 for fiscal year 2005. (5) $25,000,000 for fiscal year 2006. (6) $30,000,000 for fiscal year 2007. (7) $20,000,000 for fiscal year 2019. (8) $20,000,000 for fiscal year 2020. (9) $20,000,000 for fiscal year 2023. (10) $20,000,000 for fiscal year 2024. (11) $20,000,000 for fiscal year 2025. (12) $20,000,000 for fiscal year 2026. (13) $20,000,000 for fiscal year 2027. (e) Use of Funds To Conduct Program Audits, Evaluations, Monitoring, and Administration.—Of the amounts made available to carry out this part for a fiscal year, $300,000 is authorized to be made available to carry out audits, evaluations, monitoring, and administration of programs under this part, including personnel costs associated with such audits, evaluations, monitoring and administration.