Title 22 — Foreign Relations and IntercourseRelease 119-73not60
§2151v Aid to Relatively Least Developed Countries
Title 22 › Chapter 32— FOREIGN ASSISTANCE › Subchapter I— INTERNATIONAL DEVELOPMENT › Part I— Declaration of Policy; Development Assistance Authorizations › § 2151v
Summary
Relatively least developed countries are those with extreme poverty, very little infrastructure, and weak government capacity to run basic programs. The President can give U.S. development help to these countries mostly as grants when that best meets U.S. development goals. On a case-by-case basis, the President may let a country keep payments it would otherwise send to the United States and put equal value into local currency accounts for local development projects, with agreement from the agency that runs the programs. The President may also cancel interest charges on loans for a country that cannot use the local currency amounts. Any total of interest forgiven plus amounts put into local currency accounts in one fiscal year cannot be larger than what Congress approves in the annual appropriations and the amount allowed by annual authorization laws. Amounts due in fiscal year 1981 may be approved up to $10,845,000. The President should coordinate with other creditor countries. The President may also waive requirements for host-country financial or in-kind contributions for projects in these countries, and a separate rule limiting grants does not apply to them.
Full Legal Text
Title 22, §2151v
Foreign Relations and Intercourse — Source: USLM XML via OLRC
(a)Relatively least developed countries (as determined on the basis of criteria comparable to those used for the United Nations General Assembly list of “least developed countries”) are characterized by extreme poverty, very limited infrastructure, and limited administrative capacity to implement basic human needs growth strategies. In such countries special measures may be necessary to insure the full effectiveness of assistance furnished under subchapter I of this chapter.
(b)For the purpose of promoting economic growth in these countries, the President is authorized and encouraged to make assistance under this part available on a grant basis to the maximum extent that is consistent with the attainment of United States development objectives.
(c)(1)The Congress recognizes that the relatively least developed countries have virtually no access to private international capital markets. Insofar as possible, prior assistance terms should be consistent with present grant assistance terms for relatively least developed countries. Therefore, notwithstanding section 2370(r) of this title and section 321 of the International Development and Food Assistance Act of 1975 but subject to paragraph (2) of this subsection, the President on a case-by-case basis, taking into account the needs of the country for financial resources and the commitment of the country to the development objectives set forth in section 2151 and 2151–1 of this title—
(A)may permit a relatively least developed country to place amounts, which would otherwise be paid to the United States as payments on principal or interest on liability incurred by that country under subchapter I of this chapter (or any predecessor legislation) into local currency accounts (in equivalent amounts of local currencies as determined by the official exchange rate for United States dollars) for use by the relatively least developed country, with the concurrence of the Administrator of the agency primarily responsible for administering subchapter I of this chapter, for activities which are consistent with section 2151–1 of this title; and
(B)may waive interest payments on liability incurred by a relatively least developed country under subchapter I of this chapter (or any predecessor legislation) if the President determines that that country would be unable to use for development purposes the equivalent amounts of local currencies which could be made available under subparagraph (A).
(2)The aggregate amount of interest waived and interest and principal paid into local currency accounts under this subsection in any fiscal year may not exceed the amount approved for such purpose in an Act appropriating funds to carry out this part for that fiscal year, which amount may not exceed the amount authorized to be so approved by the annual authorizing legislation for development assistance programs. Amounts due and payable during fiscal year 1981 to the United States from relatively least developed countries on loans made under this subchapter (or any predecessor legislation) are authorized to be approved for use, in accordance with the provisions of paragraph (1) of this subsection, in an amount not to exceed $10,845,000.
(3)In exercising the authority granted by this subsection, the President should act in concert with other creditor countries.
(d)The President may on a case-by-case basis waive the requirement of section 2151h(a) of this title for financial or “in kind” contributions in the case of programs, projects, or activities in relatively least developed countries.
(e)section 2151h(b) of this title shall not apply with respect to grants to relatively least developed countries.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 321 of the International Development and Food Assistance Act of 1975, referred to in subsec. (c)(1), is section 321 of Pub. L. 94–161, Dec. 20, 1975, 89 Stat. 868, which is set out as a note under section 2220a of this title.
Amendments
1980—Subsec. (c)(2). Pub. L. 96–533 substituted “fiscal year 1981” and “$10,845,000” for “fiscal year 1980” and “$18,800,000”, respectively. 1979—Subsec. (c)(2). Pub. L. 96–53 inserted provisions respecting use of funds due and payable during fiscal year 1980 to the United States.
Statutory Notes and Related Subsidiaries
References to Subchapter I Deemed To Include Certain Parts of Subchapter IIReferences to subchapter I of this chapter are deemed to include parts IV (§ 2346 et seq.), VI (§ 2348 et seq.), and VIII (§ 2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of this title, and section 2348c and 2349aa–5 of this title.
Effective Date
of 1979 AmendmentAmendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of this title.
Effective Date
Pub. L. 95–424, title I, § 112(a)(2), Oct. 6, 1978, 92 Stat. 949, provided that: “The authority granted by section 124(c) of the Foreign Assistance Act of 1961 [subsec. (c) of this section] shall not become effective until October 1, 1979.” Section effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as an
Effective Date
of 1978 Amendment note under section 2151 of this title. Presidential Authority During Fiscal Years 1990 and 1991 Pub. L. 100–461, title V, § 572, Oct. 1, 1988, 102 Stat. 2268–44, provided that during fiscal years 1990 and 1991, President could use authority of paragraphs (A) and (B) of subsection (c)(1) of this section with respect to such aggregate amounts of principal and interest payable during each of those fiscal years as President determined, or at any time after Sept. 30, 1989, President could, if he determined it was in national interest to do so, use authority of those paragraphs with respect to such aggregate amounts of outstanding principal and interest payable at any time after that date, and that such authority could be exercised with respect to specified countries, and be exercised notwithstanding subsection (c)(2) of this section.
Executive Documents
Delegation of Functions For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title.
Reference
Citations & Metadata
Citation
22 U.S.C. § 2151v
Title 22 — Foreign Relations and Intercourse
Last Updated
Apr 5, 2026
Release point: 119-73not60