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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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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’’.
BASIC EDUCATION
SEC. 567. Of the funds appropriated by title II of
this Act, not less than $400,000,000 shall be made avail-
able for basic education.
RECONCILIATION PROGRAMS
SEC. 568. Of the funds appropriated under the head-
ing ‘‘Economic Support Fund’’, not less than $12,000,000
should be made available to support reconciliation pro-
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grams and activities which bring together individuals of
different ethnic, religious, and political backgrounds from
areas of civil conflict and war.
DEBT RESTRUCTURING AUTHORITY
SEC. 569. Funds appropriated under the heading
‘‘Iraq Relief and Reconstruction Fund’’ in title II of the
Emergency Supplemental Appropriations Act for Defense
and for the Reconstruction of Iraq and Afghanistan, 2004
(Public Law 108–106) may be made available for the
costs, as defined in section 502 of the Congressional
Budget Act of 1974, of modifying direct loans and loan
guarantees for Iraq, without regard to the sectoral alloca-
tions and related provisos under that heading in such Act:
Provided, That the authority of this section shall be used
subject to prior consultation with the Committees on Ap-
propriations: Provided further, That the obligation of
funds pursuant to the authority provided in this section
shall be subject to the regular notification procedures of
the Committees on Appropriations: Provided further, That
amounts made available pursuant to the authority of this
section are designated as an emergency requirement pur-
suant to section 402 of S. Con. Res. 95 (108th Congress),
as made applicable to the House of Representatives by H.
Res. 649 (108th Congress): Provided further, That
amounts made available pursuant to the authority of this