§5414 Debt-for-equity Swaps and Other Special Techniques

Summary

The President must look for and push new ways to lower both the debts owed between governments and the debts owed to private lenders of Eastern European countries that have made real steps toward democratic government and market-based economies. The President may sell U.S. government-held debt tied to such a country at a discount to private buyers, but only if the sale helps a debt-for-equity or debt-for-development swap. In those swaps, the buyer trades the debt for local money, policy promises, or other assets needed for development or business, or for ownership shares in a company that used to belong to that government.