§2431d Reduction of debt owed to United States as result of concessional loans under this chapter

Summary

The President may reduce what a country owed the United States from certain concessional loans that were still unpaid on January 1, 1998. This applies to loans made under subchapter I, part IV of subchapter II, or earlier foreign economic assistance laws. Money to pay the cost (as defined in 2 U.S.C. 661a(5)) is authorized: $25,000,000 for fiscal year 1999, $75,000,000 for fiscal year 2000, and $100,000,000 for fiscal year 2001. The debt reductions do not count as "assistance" for laws that limit aid to a country. The President may use this authority even if other laws (section 2370(r) of this title or section 321 of the International Development and Food Assistance Act of 1975) would otherwise restrict it. The reductions must be done by the Facility exchanging a new obligation for the old outstanding obligations. The Facility must tell the agency that runs subchapter I about each exchange. At the Facility’s direction, the old obligations are canceled, a new obligation is created, and the agency updates its accounts. The same repayment and interest rules in sections 2430d and 2430e apply to these new obligations. Principal repayments may be made in the beneficiary country’s local currency and put into that country’s Conservation Fund under the same rules that apply to interest. Additional amounts are authorized to be appropriated for these debt-reduction costs: $50,000,000 for FY2002; $75,000,000 for FY2003; $100,000,000 for FY2004; $20,000,000 for FY2005; $25,000,000 for FY2006; $30,000,000 for FY2007; $20,000,000 for FY2019; $20,000,000 for FY2020; $20,000,000 for FY2023; $20,000,000 for FY2024; $20,000,000 for FY2025; $20,000,000 for FY2026; and $20,000,000 for FY2027. Up to $300,000 of amounts for this subchapter each year may be used for audits, evaluations, monitoring, and administration.