§1738o Sale of Qualified Debt to Eligible Countries

Summary

The President can sell up to 40 percent of a country’s qualified debt back to that country. The sale is allowed only if the country uses an amount of its own local currency (not counting the price it paid for the debt) equal to either at least 40 percent of the price it paid or the difference between the price paid and the debt’s face value, whichever is less. That local money must go through an Environmental Fund for eligible projects listed in section 1738k. The Environmental Fund means one set up under section 1738g (for Mexico it can be the Good Neighbor Environmental Fund for the Border). The President must set the sale terms and advise countries on how to run the fund. Sales can only happen if Congress provides funding. The Facility will direct the Commodity Credit Corporation to carry out the sale, record it, and put the sale proceeds into CCC accounts for repayment. The President should consult the country beforehand about amounts and uses.