12 U.S.C. § 635i–8 (BANKS AND BANKING)
§ 635i–8. Special debt relief for poorest, most heavily indebted countries
(a) Debt reduction authority
The President may reduce amounts of principal and interest owed by any eligible country to the Bank as a result of loans or guarantees made under this subchapter.
(b) Limitations
(1) Types of debt reduction
The authority provided by subsection (a) may be exercised only to implement multilateral agreements to reduce the burden of official bilateral debt as set forth in the minutes of the so-called “Paris Club” (also known as “Paris Club Agreed Minutes”).
(2) Eligible countries
(A) “Eligible country” defined
As used in subsection (a), the term “eligible country” means any country that—
(i) has excessively burdensome external debt;
(ii) is eligible to borrow from the International Development Association; and
(iii) is not eligible to borrow from the International Bank for Reconstruction and Development.
(B) Determinations
Subject to subparagraph (A), the President may determine whether a country is an eligible country for purposes of subsection (a).
(c) Conditions
The authority provided by this section 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; and
(4) (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights.
(d) Appropriations
The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided in advance in appropriations Acts.
(July 31, 1945, ch. 341, § 14, formerly § 11, as added Pub. L. 103–87, title V, § 570(b), Sept. 30, 1993, 107 Stat. 970; renumbered § 14, Pub. L. 103–428, § 2(b), Oct. 31, 1994, 108 Stat. 4376; Pub. L. 107–189, § 24(b)(6), June 14, 2002, 116 Stat. 709.)
heading: Editorial Notes
heading: Amendments
text: 2002—Subsec. (a). Pub. L. 107–189 substituted “principal” for “principle”.
heading: Executive Documents
heading: Delegation of Authority With Respect to Debt Reduction for Poorest Countries
text: Memorandum of President of the United States, June 20, 1994, 59 F.R. 33413, provided:
Memorandum for the Secretary of the Treasury
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 570 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994 (Public Law 103–87) (the “Act”) [enacting 12 U.S.C. 635i–8], section 14 of the Export-Import Bank Act of 1945 (12 U.S.C. 635—635i–8) [probably means 12 U.S.C. 635i–8], and section 301 of title 3 of the United States Code, it is hereby ordered as follows:
1. There are delegated to the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Defense, the functions, authorities, and duties conferred upon the President by section 570(a) of the Act [107 Stat. 970].
2. There are delegated to the Secretary of the Treasury, in consultation with the Secretary of State and the President of the Export-Import Bank, the functions, authorities, and duties conferred upon the President by section 570(b) of the Act and section 14(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635—635i–8).
The Secretary of the Treasury is authorized and directed to publish this memorandum in the Federal Register.
William J. Clinton.