§1738p Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps

Summary

The President may sell, reduce, or cancel a country's qualified debt to help pay for eligible debt swaps. The President must set the rules for how that works. Sales go only to buyers who show plans the President approves for using the debt for debt swaps. Reductions or cancellations happen only if a payer shows approved plans and pays. The President should talk with the country first, and the country must have been offered the chance to buy the debt under a related law and declined. No more than 40 percent of a country’s qualified debt can be handled this way in total. A government facility will tell the Commodity Credit Corporation which buyers and payers are eligible and will direct the CCC to do the sale, reduction, or cancellation and update its accounts. These actions can only happen if Congress provides the money in advance. Any money from the transactions goes into U.S. government account(s) set up to repay that debt. Eligible debt swap — a debt-for-development swap or a debt-for-nature swap.