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violations of internationally recognized human rights; 
and 
(5) is not ineligible for assistance because of the 
application of section 527 of the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995. 
(d) AVAILABILITY OF FUNDS.—The authority provided 
by subsection (a) may be used only with regard to the funds 
appropriated by this Act under the heading ‘‘Debt Restruc-
turing’’. 
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduc-
tion of debt pursuant to subsection (a) shall not be consid-
ered assistance for the purposes of any provision of law lim-
iting assistance to a country. The authority provided 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. 5066. (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 Jan-
uary 1, 1995, pursuant to the Foreign Assistance Act
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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-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 con-
servation and sustainable use of natural re-
sources with local community development, and 
child survival and other child development, 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-
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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 di-
rect 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 re-
flect 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 pur-
suant to subsection (a)(1)(A) only to a purchaser who pre-