§2151v Aid to relatively least developed countries

Summary

The President can give U.S. development aid to the very poorest countries mainly as grants instead of loans. He can let a poor country keep sums it would otherwise pay to the U.S. on loans by letting those amounts go into local-currency accounts for use in local development, but only with the agreement of the U.S. agency that runs the program. The President can also cancel interest charges if a country could not use the local-currency option. He should try to act with other creditor countries when doing this. Limits apply. The total of interest forgiven and amounts put into local-currency accounts in any fiscal year cannot exceed what Congress approves in that year’s appropriation law and the annual authorization for development programs. For fiscal year 1981, up to $10,845,000 may be used this way for amounts due that year. The President may also waive required host-country cash or in-kind contributions case by case, and a usual rule that normally applies to grants does not apply to grants to these poorest countries. Relatively least developed countries: very poor countries with little infrastructure and weak ability to carry out basic development programs, similar to the U.N. “least developed countries.”