§2430e Interest on New Obligations

Summary

New obligations a beneficiary country issues under the exchange must carry a reduced (concessional) interest rate. If the country has an Americas Framework Agreement, interest is paid in the country’s local money and put into that country’s Americas Fund. That money belongs to the beneficiary country until it is paid out under the agreement and must be used as the agreement says. If the country does not have such an agreement, interest is paid in United States dollars and placed in the U.S. government account set up for those obligations. If the country signs an Americas Framework Agreement after interest first became due, interest already paid will not be moved into the Americas Fund.