12 USC 635i-6 - Debt reduction; Enterprise for the Americas Initiative

U.S Code last checked for updates: Nov 22, 2024

§ 635i–6.

Debt reduction; Enterprise for the Americas Initiative

(a)

Definitions

For purposes of this section—

(1)

the term “eligible country” means a country designated by the President in accordance with subsection (b);

(2)

the term “Facility” means the entity established in the Department of the Treasury by section 1738 of title 7; and

(3)

the term “IMF” means the International Monetary Fund.

(b)

Eligibility for benefits under the Facility

(1)

Requirements

To be eligible for benefits from the Facility under this section, a country must—

(A)

be a Latin American or Caribbean country;

(B)

have in effect, have received approval for, or, as appropriate in exceptional circumstances, be making significant progress toward—

(i)

an IMF standby arrangement, extended IMF arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility or, in exceptional circumstances, an IMF monitored program or its equivalent; and

(ii)

as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development or the International Development Association;

(C)

have put in place major investment reforms in conjunction with an Inter-American Development Bank loan or otherwise be implementing, or making significant progress toward, an open investment regime; and

(D)

if appropriate, have agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction.

(2)

Eligibility determinations

(c)

Loans eligible for sale, reduction, or cancellation

(1)

Authority to sell, reduce, or cancel certain loans

Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible purchaser any loan or portion thereof made before January 1, 1992, to any eligible country or any agency thereof pursuant to this subchapter, or, on receipt of payment from an eligible purchaser, reduce or cancel such loan or portion thereof, only for the purpose of facilitating—

(A)

debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps; or

(B)

a debt buy-back by an eligible country of its own qualified debt, only if the eligible country uses an additional amount of the local currency of the eligible country, equal to not less than 40 percent of the price paid for such debt by such eligible country, or the difference between the price paid for such debt and the face value of such debt, to support activities that link conservation and sustainable use of natural resources with local community development, and child survival and other child development activities, in a manner consistent with sections 1738f through 1738k of title 7,

if the sale, reduction, or cancellation would not contravene any term or condition of any prior agreement relating to such loan.

(2)

Terms and conditions

(3)

Treatment under securities laws

(4)

Administration

(5)

Limitations

(d)

Deposit of proceeds

(e)

Eligible purchasers

(f)

Debtor consultation

(g)

Authorization of appropriations

(July 31, 1945, ch. 341, § 12, formerly § 18, as added and renumbered § 12, Pub. L. 102–429, title I, §§ 108, 121(c)(6), Oct. 21, 1992, 106 Stat. 2191, 2199; amended Pub. L. 107–189, § 24(b)(5), June 14, 2002, 116 Stat. 709; Pub. L. 110–246, title III, § 3001(b)(1)(A), (2)(L), June 18, 2008, 122 Stat. 1820.)

cite as: 12 USC 635i-6