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(1) grants sanctuary from prosecution to any 
individual or group which has committed an act of 
international terrorism; or 
(2) otherwise supports international terrorism. 
(b) The President may waive the application of sub-
section (a) to a country if the President determines that 
national security or humanitarian reasons justify such 
waiver. The President shall publish each waiver in the 
Federal Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
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, any interest earned on such investment 
shall be used for the purpose for which the assistance was 
provided to that organization.
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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; 
(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-
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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. 
(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
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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. 
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—
(1) If assistance is made available to the government of 
a foreign country, under chapter 1 or 10 of part I or chap-
ter 4 of part II of the Foreign Assistance Act of 1961, 
as cash transfer assistance or as nonproject sector assist-
ance, that country shall be required to maintain such 
funds in a separate account and not commingle them with 
any other funds. 
(2)
APPLICABILITY
OF
OTHER
PROVISIONS
OF 
LAW.—Such funds may be obligated and expended not-
withstanding provisions of law which are inconsistent with 
the nature of this assistance including provisions which 
are referenced in the Joint Explanatory Statement of the
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Committee of Conference accompanying House Joint Res-
olution 648 (House Report No. 98–1159). 
(3) NOTIFICATION.—At least 15 days prior to obli-
gating any such cash transfer or nonproject sector assist-
ance, the President shall submit a notification through the 
regular notification procedures of the Committees on Ap-
propriations, which shall include a detailed description of 
how the funds proposed to be made available will be used, 
with a discussion of the United States interests that will 
be served by the assistance (including, as appropriate, a 
description of the economic policy reforms that will be pro-
moted by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance funds 
may be exempt from the requirements of subsection (b)(1) 
only through the notification procedures of the Commit-
tees on Appropriations. 
ENTERPRISE FUND RESTRICTIONS 
SEC. 530. (a) Prior to the distribution of any assets 
resulting from any liquidation, dissolution, or winding up 
of an Enterprise Fund, in whole or in part, the President 
shall submit to the Committees on Appropriations, in ac-
cordance with the regular notification procedures of the 
Committees on Appropriations, a plan for the distribution 
of the assets of the Enterprise Fund.
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(b) Funds made available by this Act for Enterprise 
Funds shall be expended at the minimum rate necessary 
to make timely payment for projects and activities. 
FINANCIAL MARKET ASSISTANCE IN TRANSITION 
COUNTRIES 
SEC. 531. 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’’, ‘‘Assistance for the Independent States 
of the Former Soviet Union’’, ‘‘Nonproliferation, Anti-ter-
rorism, Demining and Related Programs’’, and ‘‘Assist-
ance for Eastern Europe and Baltic States’’, not less than 
$40,000,000 should be made available for building capital 
markets and financial systems in countries in transition. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION 
SEC. 532. Unless expressly provided to the contrary, 
provisions of this Act, and provisions contained in prior 
Acts authorizing or making appropriations for foreign op-
erations, export financing, and related programs, shall not 
be construed to prohibit activities authorized by or con-
ducted under the Peace Corps Act, the Inter-American 
Foundation Act or the African Development Foundation 
Act. The agency shall promptly report to the Committees 
on Appropriations whenever it is conducting activities or