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er) in accordance with the regular notification procedures 
of the Committees on Appropriations.
DEBT-FOR-DEVELOPMENT 
SEC. 528. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of 
the United States Agency for International Development 
may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title II of this Act and, subject 
to the regular notification procedures of the Committees 
on Appropriations, and any interest earned on such invest-
ment shall be used for the purpose for which the assist-
ance was provided to that organization. 
SEPARATE ACCOUNTS 
SEC. 529. (a) SEPARATE ACCOUNTS
FOR LOCAL 
CURRENCIES.—(1) If assistance is furnished to the gov-
ernment of a foreign country under chapters 1 and 10 of 
part I or chapter 4 of part II of the Foreign Assistance 
Act of 1961 under agreements which result in the genera-
tion of local currencies of that country, the Administrator 
of the United States Agency for International Develop-
ment shall—
(A) require that local currencies be deposited in 
a separate account established by that government;
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(B) enter into an agreement with that govern-
ment which sets forth—
(i) the amount of the local currencies to be 
generated; and 
(ii) the terms and conditions under which 
the currencies so deposited may be utilized, con-
sistent with this section; and 
(C) establish by agreement with that govern-
ment the responsibilities of the United States Agen-
cy for International Development and that govern-
ment to monitor and account for deposits into and 
disbursements from the separate account. 
(2) USES OF LOCAL CURRENCIES.—As may be agreed 
upon with the foreign government, local currencies depos-
ited in a separate account pursuant to subsection (a), or 
an equivalent amount of local currencies, shall be used 
only—
(A) to carry out chapter 1 or 10 of part I or 
chapter 4 of part II (as the case may be), for such 
purposes as—
(i) project and sector assistance activities; 
or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of the 
United States Government.
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(3) PROGRAMMING ACCOUNTABILITY.—The United 
States Agency for International Development shall take all 
necessary steps to ensure that the equivalent of the local 
currencies disbursed pursuant to subsection (a)(2)(A) 
from the separate account established pursuant to sub-
section (a)(1) are used for the purposes agreed upon pur-
suant to subsection (a)(2). 
(4) TERMINATION
OF
ASSISTANCE
PROGRAMS.—
Upon termination of assistance to a country under chapter 
1 or 10 of part I or chapter 4 of part II (as the case 
may be), any unencumbered balances of funds which re-
main in a separate account established pursuant to sub-
section (a) shall be disposed of for such purposes as may 
be agreed to by the government of that country and the 
United States Government. 
(5) REPORTING REQUIREMENT.—The Administrator 
of the United States Agency for International Develop-
ment shall report on an annual basis as part of the jus-
tification documents submitted to the Committees on Ap-
propriations on the use of local currencies for the adminis-
trative requirements of the United States Government as 
authorized in subsection (a)(2)(B), and such report shall 
include the amount of local currency (and United States 
dollar equivalent) used and/or to be used for such purpose 
in each applicable country.