§2431e Reduction of debt owed to United States as result of credits extended under title I of Food for Peace Act

Summary

The President may reduce money a country owes the United States if the debt was outstanding on January 14, 2019 and came from title I credits of the Food for Peace Act to a country that can get help from the Facility. To pay the cost of doing this, Congress may provide up to $25,000,000 for fiscal year 1999, $50,000,000 for fiscal year 2000, and $50,000,000 for fiscal year 2001. The President can only use this power if those appropriations are made in advance. The Facility will carry out the reduction by swapping a new obligation for the old ones. The Facility must tell the Commodity Credit Corporation about any swap, the old debts are canceled, a new debt is recorded, and the CCC adjusts its accounts. Repayment and interest rules follow the same rules as under section 604(a)(1) of the Food for Peace Act, including the repayment rules in section 605 and the interest rules in section 606. Principal on the new obligation may be paid in the country’s local currency and put into the country’s Conservation Fund like interest payments.