§1738e Interest of new obligations

Summary

New loans to an eligible country must have a reduced interest rate. If the country has not signed the agreement under section 1738f, it must pay interest in U.S. dollars and that interest goes into Commodity Credit Corporation accounts. If the country has signed the section 1738f agreement, interest can be paid in the country’s local currency and put into an Environmental Fund under section 1738g. That money belongs to the country until it is spent under the fund rules. If the agreement is signed after interest first became due, any interest paid before the agreement stays in Commodity Credit Corporation accounts and is not moved into the Fund.