§2431e Reduction of Debt Owed to United States as Result of Credits Extended Under Title I of Food for Peace Act

Summary

The President can reduce debts that countries owe the United States if those debts came from Title I Food for Peace credits and were still outstanding on January 14, 2019, for countries that qualify for help from the Facility. To pay the cost of these reductions, up to $25,000,000 is authorized for fiscal year 1999, $50,000,000 for fiscal year 2000, and $50,000,000 for fiscal year 2001. The debt-reduction power can only be used if those funds are actually appropriated in advance. The Facility will carry out any reduction by swapping a new debt obligation for the old ones. The Facility must notify the Commodity Credit Corporation (CCC) about each swap. The old obligations are canceled, a new obligation is created for the country, and the CCC updates its accounts to show the lower debt. The new obligation must follow the same repayment and interest rules that apply to similar Food for Peace debt reductions. Principal payments on the new obligation may be paid in the country’s local currency and put into that country’s Conservation Fund in the same way interest payments are handled.