§2431d Reduction of Debt Owed to United States as Result of Concessional Loans Under This Chapter

Summary

The President may reduce what an eligible country owed the United States on January 1, 1998 for concessional loans made under subchapter I, part IV of subchapter II, or earlier foreign economic assistance laws. Money is authorized to pay the cost of those reductions (as defined in section 661a(5) of title 2): $25,000,000 for fiscal year 1999, $75,000,000 for fiscal year 2000, and $100,000,000 for fiscal year 2001. Additional amounts are authorized: $50,000,000 for FY2002, $75,000,000 for FY2003, $100,000,000 for FY2004, $20,000,000 for FY2005, $25,000,000 for FY2006, $30,000,000 for FY2007, and $20,000,000 for each of FY2019, FY2020, FY2023, FY2024, FY2025, FY2026, and FY2027. Debt reductions must be done at the Facility’s direction by swapping a new obligation for the old ones that were outstanding on January 1, 1998. The Facility must tell the agency that runs subchapter I about the swap. The old debts are canceled and a new debt is created, and the agency must update its accounts. Rules about repaying principal and paying interest from sections 2430d and 2430e apply. Principal payments on the new obligation can be made in the country’s local currency and put into the country’s Conservation Fund in the same way interest payments are handled under section 2430e. These debt cuts do not count as aid for laws that limit aid, and the authority can be used despite section 2370(r) or section 321 of the International Development and Food Assistance Act of 1975. Of the money made available each year to carry out this subchapter, $300,000 may be used for audits, evaluations, monitoring, and administration, including staff costs.