§5414 — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

The President must promote ways to reduce government and commercial debt of East European countries that have moved toward democracy and market reforms. The President may sell U.S. government debt of such countries at a discount to private buyers only if the buyer can swap the debt for local currency, development assets or policies, or shares in a formerly state-owned company.

Title 22, §5414

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)The President shall take all appropriate actions to explore and encourage innovative approaches to the reduction of the government-to-government and commercial debt burden of East European countries which have taken substantive steps toward political democracy and economic pluralism.

(b)Notwithstanding any other provision of law, the President may undertake the discounted sale, to private purchasers, of United States Government debt obligations of an East European country which has taken substantive steps toward political democracy and economic pluralism, subject to subsection (c).

(c)An obligation may be sold under subsection (b) only if the sale will facilitate so-called debt-for-equity or debt-for-development swaps wherein such newly privatized debt is exchanged by the new holder of the obligation for—

(1)local currencies, policy commitments, or other assets needed for development or other economic activities, or

(2)for an equity interest in an enterprise theretofore owned by the particular East European government.

Executive Documents

Delegation of Functions Functions of President under this section delegated to Secretary of the Treasury by section 4 of Ex. Ord. No. 12703, Feb. 20, 1990, 55 F.R. 6351, set out as a note under section 5401 of this title.

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

Summary

Title 22, §5414

Notes & Related Subsidiaries

Executive Documents

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