§1738e Interest of New Obligations

Summary

New loans to an eligible country must carry a reduced (concessional) interest rate. If the country has not signed the related agreement, interest must be paid in U.S. dollars and put into Commodity Credit Corporation accounts. If the country has signed the agreement, interest can be paid in the country’s local currency and placed in an Environmental Fund. The local currency in that Fund belongs to the country until it is spent under the agreement. If the country signs the agreement after interest first became due, any interest already paid before signing stays in Commodity Credit Corporation accounts and is not moved into the Environmental Fund.