119
HR 4818 RH 
considered assistance for the purposes of any provision of 
law limiting assistance to a country. The authority pro-
vided by subsection (a) may be exercised notwithstanding 
section 620(r) of the Foreign Assistance Act of 1961 or 
section 321 of the International Development and Food 
Assistance Act of 1975. 
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES 
SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
(1) AUTHORITY TO SELL, REDUCE, OR CANCEL 
CERTAIN LOANS.—Notwithstanding any other provi-
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
120
HR 4818 RH 
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 
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-
121
HR 4818 RH 
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 
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.
122
HR 4818 RH 
(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-
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
123
HR 4818 RH 
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 
section shall not be considered ‘‘assistance’’ for the pur-
poses of provisions of law limiting assistance to a country. 
TRADE CAPACITY BUILDING 
SEC. 570. Of the funds appropriated by this Act, 
under the headings ‘‘Trade and Development Agency’’, 
‘‘Development 
Assistance’’, 
‘‘Transition 
Initiatives’’, 
‘‘Economic Support Fund’’, ‘‘International Affairs Tech-
nical Assistance’’, and ‘‘International Organizations and 
Programs’’, not less than $517,000,000 should be made 
available for trade capacity building assistance. 
EXCESS DEFENSE ARTICLES FOR CENTRAL AND SOUTH 
EUROPEAN COUNTRIES AND CERTAIN OTHER COUNTRIES 
SEC. 571. Notwithstanding section 516(e) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2321j(e)), during 
fiscal year 2005, funds available to the Department of De-