§1738o Sale of qualified debt to eligible countries

Summary

The President can sell up to 40 percent of an eligible country’s qualified debt back to that country. The sale can only happen if the country also provides, in local currency (separate from the price it paid), an amount equal to either at least 40 percent of the price it paid or the difference between the price paid and the debt’s face value. The President will set the sale terms, including how much the country must pay. The President should help countries set up and run the required Environmental Funds. Environmental Fund — a fund created under related law; for Mexico it can be called the Good Neighbor Environmental Fund for the Border. The President should consult with the country beforehand about the debt amount and how the resulting funds will be used. These sales may only be done if Congress has provided money in advance through appropriations. A sale is not treated as foreign assistance. The Facility must direct the Commodity Credit Corporation to carry out the sale. The Commodity Credit Corporation will adjust its accounts and put the sale proceeds into the accounts used to record the country’s debt repayment.