§1738p Sale, Reduction, or Cancellation of Qualified Debt to Facilitate Certain Debt Swaps

Summary

Lets the President sell, cut, or cancel some of an eligible country's debt to help set up debt-for-development or debt-for-nature swaps. The President must make the rules for how those deals work. Debt can be sold only to buyers who give plans the President approves for using the debt in eligible swaps. Debt can be reduced or cancelled only if a payor gives plans the President approves for the same purpose. The President should talk with the country first about amounts and uses. The country must be offered the chance to buy the debt first and must decline. No more than 40 percent of a country's qualified debt can be sold, reduced, or cancelled under this rule or under section 1738o. A designated facility will notify the Commodity Credit Corporation of approved buyers and payors, and the CCC will carry out the transactions and record them. Actions require money approved in advance by Congress, and any proceeds go into U.S. government accounts for repaying that debt.