H. R. 1105—351 
(2) assistance for any program, project, or activity that 
contributes to the violation of internationally recognized 
workers rights, as defined in section 507(4) of the Trade Act 
of 1974, of workers in the recipient country, including any 
designated zone or area in that country: Provided, That the 
application of section 507(4)(D) and (E) of such Act should 
be commensurate with the level of development of the recipient 
country and sector, and shall not preclude assistance for the 
informal sector in such country, micro and small-scale enter-
prise, and smallholder agriculture. 
INTERNATIONAL FINANCIAL INSTITUTIONS 
SEC. 7030. (a) None of the funds appropriated in title V of 
this Act may be made as payment to any international financial 
institution while the United States Executive Director to such 
institution is compensated by the institution at a rate which, 
together with whatever compensation such Director receives from 
the United States, is in excess of the rate provided for an individual 
occupying a position at level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, or while any alternate 
United States Director to such institution is compensated by the 
institution at a rate in excess of the rate provided for an individual 
occupying a position at level V of the Executive Schedule under 
section 5316 of title 5, United States Code. 
(b) The Secretary of the Treasury shall instruct the United 
States Executive Director at each international financial institution 
to oppose any loan, grant, strategy or policy of these institutions 
that would require user fees or service charges on poor people 
for primary education or primary healthcare, including prevention, 
care and treatment for HIV/AIDS, malaria, tuberculosis, and infant, 
child, and maternal well-being, in connection with the institutions’ 
financing programs. 
(c) The Secretary of the Treasury shall instruct the United 
States Executive Director at the International Monetary Fund to 
use the voice and vote of the United States to oppose any loan, 
project, agreement, memorandum, instrument, or other program 
of the International Monetary Fund that would not exempt 
increased government spending on health care or education from 
national budget caps or restraints, hiring or wage bill ceilings 
or other limits imposed by the International Monetary Fund in 
Heavily Indebted Poor Countries. 
(d) For purposes of this section ‘‘international financial institu-
tions’’ are the International Bank for Reconstruction and Develop-
ment, the Inter-American Development Bank, the Asian Develop-
ment Bank, the Asian Development Fund, the African Development 
Bank, the African Development Fund, the International Monetary 
Fund, the North American Development Bank, and the European 
Bank for Reconstruction and Development. 
DEBT-FOR-DEVELOPMENT 
SEC. 7031. In order to enhance the continued participation 
of nongovernmental organizations in debt-for-development and debt- 
for-nature exchanges, a nongovernmental 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
H. R. 1105—352 
provided under title III of this Act and, subject to the regular 
notification procedures of the Committees on Appropriations, any 
interest earned on such investment shall be used for the purpose 
for which the assistance was provided to that organization. 
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES 
SEC. 7032. (a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR CAN-
CELLATION.— 
(1) AUTHORITY
TO
SELL, REDUCE, OR
CANCEL
CERTAIN 
LOANS.—Notwithstanding any other provision of law, the Presi-
dent 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 Assistance 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, 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 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 
development, and child survival and other child develop-
ment, 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 accordance 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 admin-
istering part I of the Foreign Assistance Act of 1961 of pur-
chasers that the President has determined to be eligible, and 
shall direct such agency to carry out the sale, reduction, or 
cancellation of a loan pursuant to this section. Such agency 
shall make adjustment in its accounts to reflect the sale, reduc-
tion, or cancellation. 
(4) LIMITATION.—The authorities of this subsection shall 
be available only to the extent that appropriations for the 
cost of the modification, as defined in section 502 of the 
Congressional Budget Act of 1974, are made in advance. 
(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduc-
tion, or cancellation of any loan sold, reduced, or canceled pursuant 
to this section shall be deposited in the United States Government 
account or accounts established 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 satisfac-
tory to the President for using the loan for the purpose of engaging