§5414 Debt-for-equity swaps and other special techniques

Summary

The President must look for and support new ways to reduce the debts owed to governments and businesses by East European countries that have made real progress toward democracy and a more open economy. Even if other laws say otherwise, the President may sell U.S. government-held debt of those countries to private buyers at a discount, but only if the sale helps create debt-for-equity or debt-for-development swaps. In those swaps, the buyer gives the debt back in exchange for local money, policy promises, other assets for development, or ownership shares in a company the government used to own.