841 
sion of law, the President may, in accordance with 
this section, sell to any eligible purchaser any 
concessional loan or portion thereof made before 
January 1, 1995, pursuant to the Foreign Assist-
ance Act of 1961, to the government of any eligible 
country as defined in section 702(6) of that Act or 
on receipt of payment from an eligible purchaser, re-
duce or cancel such loan or portion thereof, only for 
the purpose of facilitating— 
(A) debt-for-equity swaps, debt-for-develop-
ment swaps, or debt-for-nature swaps; or 
(B) a debt buyback 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 develop-
ment, and child survival and other child devel-
opment, in a manner consistent with sections 
707 through 710 of the Foreign Assistance Act 
of 1961, if the sale, reduction, or cancellation 
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842 
would not contravene any term or condition of 
any prior agreement relating to such loan. 
(2) TERMS AND CONDITIONS.—Notwithstanding 
any other provision of law, the President shall, in ac-
cordance with this section, establish the terms and 
conditions under which loans may be sold, reduced, 
or canceled pursuant to this section. 
(3) ADMINISTRATION.—The Facility, as defined 
in section 702(8) of the Foreign Assistance Act of 
1961, shall notify the administrator of the agency 
primarily responsible for administering part I of the 
Foreign Assistance Act of 1961 of purchasers that 
the President has determined to be eligible, and 
shall direct such agency to carry out the sale, reduc-
tion, or cancellation of a loan pursuant to this sec-
tion. Such agency shall make adjustment in its ac-
counts to reflect the sale, reduction, or cancellation. 
(4) LIMITATION.—The authorities of this sub-
section shall be available only to the extent that ap-
propriations for the cost of the modification, as de-
fined in section 502 of the Congressional Budget Act 
of 1974, are made in advance. 
(b) DEPOSIT OF PROCEEDS.—The proceeds from the 
sale, reduction, or cancellation of any loan sold, reduced, 
or canceled pursuant to this section shall be deposited in 
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843 
the United States Government account or accounts estab-
lished for the repayment of such loan. 
(c) ELIGIBLE PURCHASERS.—A loan may be sold 
pursuant to subsection (a)(1)(A) only to a purchaser who 
presents plans satisfactory to the President for using the 
loan for the purpose of engaging in debt-for-equity swaps, 
debt-for-development swaps, or debt-for-nature swaps. 
(d) DEBTOR CONSULTATIONS.—Before the sale to 
any eligible purchaser, or any reduction or cancellation 
pursuant to this section, of any loan made to an eligible 
country, the President should consult with the country 
concerning the amount of loans to be sold, reduced, or 
canceled and their uses for debt-for-equity swaps, debt- 
for-development swaps, or debt-for-nature swaps. 
(e) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to 
funds appropriated by this Act under the heading ‘‘Debt 
Restructuring’’. 
SPECIAL DEBT RELIEF FOR THE POOREST 
SEC. 7033. (a) AUTHORITY TO REDUCE DEBT.—The 
President may reduce amounts owed to the United States 
(or any agency of the United States) by an eligible country 
as a result of— 
(1) guarantees issued under sections 221 and 
222 of the Foreign Assistance Act of 1961; 
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