§2151t Development assistance authority

Summary

The President can give grants and make loans to countries and regions, either directly or through regional, multilateral, or private groups, on terms he decides. Loans must be paid back in U.S. dollars. The President sets the interest rate and must think about the borrower’s economy and ability to repay. However, interest rules say the rate for a loan cannot be lower than 2% per year during the first ten years after the loan funds are first used, and must be at least 3% per year starting no later than ten years after that date; the rate also cannot exceed the legal maximum in the country where the loan is made. Money paid back from these loans goes into the U.S. Treasury as miscellaneous receipts. Up to $10,000,000 each fiscal year of the funds for this program may be used to help U.S. research and educational institutions build programs about economic and social development in developing countries. The President must set up a Development Loan Committee made of officers from U.S. agencies he chooses. That Committee will make standards and rules for lending that follow U.S. foreign and financial policy. Most members must be appointed by the President with the Senate’s approval unless they already hold jobs that were confirmed by the Senate.