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(or any agency of the United States) by an eligible country
as a result of—
(1) guarantees issued under sections 221 and 222
of the Foreign Assistance Act of 1961;
(2) credits extended or guarantees issued under
the Arms Export Control Act; or
(3) any obligation or portion of such obligation,
to pay for purchases of United States agricultural
commodities guaranteed by the Commodity Credit
Corporation under export credit guarantee programs
authorized pursuant to section 5(f) of the Commodity
Credit Corporation Charter Act of June 29, 1948, as
amended, section 4(b) of the Food for Peace Act of
1966, as amended (Public Law 89–808), or section
202 of the Agricultural Trade Act of 1978, as amend-
ed (Public Law 95–501).
(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, commonly
referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such ex-
tent as is provided in advance by appropriations
Acts.
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(3) The authority provided by subsection (a)
may be exercised only with respect to countries with
heavy debt burdens that are eligible to borrow from
the International Development Association, but not
from the International Bank for Reconstruction and
Development, commonly referred to as ‘‘IDA-only’’
countries.
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country
whose government—
(1) does not have an excessive level of military
expenditures;
(2) has not repeatedly provided support for acts
of international terrorism;
(3) is not failing to cooperate on international
narcotics control matters;
(4) (including its military or other security
forces) does not engage in a consistent pattern of gross
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
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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
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