§1738e Interest of New Obligations

Summary

New obligations given to an eligible country must carry a lower-than-normal interest rate. If the country has not made an agreement under section 1738f, interest must be paid in U.S. dollars and put into Commodity Credit Corporation accounts. If the country has an agreement under section 1738f, interest can be paid in the country’s local currency and put into an Environmental Fund under section 1738g. That local money belongs to the country until it is paid out under section 1738g and must be used as the agreement says. If the agreement is signed after interest first becomes due, interest already paid stays in Commodity Credit Corporation accounts and is not moved into the Fund.