§635i–8 — Title 12 Banks and Banking | U.S. Code

Summary

The President may reduce the principal and interest a qualifying country owes to the Bank because of loans or guarantees under this law. The President can only do this to carry out multilateral Paris Club agreements that cut official bilateral debt. eligible country — a country with very heavy external debt that can borrow from the International Development Association but not from the International Bank for Reconstruction and Development; the President can decide if a country meets this. The relief can be used only for governments that do not spend too much on the military, do not repeatedly support terrorism, cooperate on drug control, and do not have a steady pattern of gross human rights abuses. Any debt cuts must be paid for by money Congress provides in advance in appropriations laws.

Title 12, §635i–8

Banks and Banking — Source: USLM XML via OLRC

(a)The President may reduce amounts of principal and interest owed by any eligible country to the Bank as a result of loans or guarantees made under this subchapter.

(b)(1)The authority provided by subsection (a) may be exercised only to implement multilateral agreements to reduce the burden of official bilateral debt as set forth in the minutes of the so-called “Paris Club” (also known as “Paris Club Agreed Minutes”).

(2)(A)As used in subsection (a), the term “eligible country” means any country that—

(i)has excessively burdensome external debt;

(ii)is eligible to borrow from the International Development Association; and

(iii)is not eligible to borrow from the International Bank for Reconstruction and Development.

(B)Subject to subparagraph (A), the President may determine whether a country is an eligible country for purposes of subsection (a).

(c)The authority provided by this section 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; and

(4)(including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights.

(d)The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided in advance in appropriations Acts.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2002—Subsec. (a). Pub. L. 107–189 substituted “principal” for “principle”.

Executive Documents

Delegation of Authority With Respect to Debt Reduction for Poorest Countries Memorandum of President of the United States, June 20, 1994, 59 F.R. 33413, provided: Memorandum for the Secretary of the Treasury By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 570 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994 (Public Law 103–87) (the “Act”) [enacting 12 U.S.C. 635i–8], section 14 of the Export-Import Bank Act of 1945 (12 U.S.C. 635—635i–8) [probably means 12 U.S.C. 635i–8], and section 301 of title 3 of the United States Code, it is hereby ordered as follows: 1. There are delegated to the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Defense, the functions, authorities, and duties conferred upon the President by section 570(a) of the Act [107 Stat. 970]. 2. There are delegated to the Secretary of the Treasury, in consultation with the Secretary of State and the President of the Export-Import Bank, the functions, authorities, and duties conferred upon the President by section 570(b) of the Act and section 14(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635—635i–8). The Secretary of the Treasury is authorized and directed to publish this memorandum in the Federal Register. William J. Clinton.

§635i–8 Special debt relief for poorest, most heavily indebted countries