7 U.S.C. § 1738p — Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps

(a) Authority.—For eligible debt swaps, the President may, under this section, (1) sell an eligible country’s qualified debt to an eligible purchaser under (c)(1), or (2) reduce or cancel it after receiving payment from an eligible payor under (c)(2). (b) Terms.—The President must set the terms and conditions for selling, reducing, or canceling the debt. (c) Eligible purchasers and payors.—(1) A purchaser may buy debt only if it gives the President satisfactory plans to use it for eligible debt swaps. (2) Debt may be reduced or canceled only if the payor gives satisfactory plans to use that reduction or cancellation to facilitate eligible debt swaps. (d) Consultation and first refusal.—(1) Before acting, the President should consult the country about, among other things, the debt amount and its use for swaps. (2) The country’s qualified debt may be sold, reduced, or canceled under this section only if that country was offered the opportunity to purchase that debt under section 1738o and did not accept the offer. (e) Limit.—Together, no more than 40 percent of a country’s qualified debt may be sold, reduced, or canceled under this section or sold under section 1738o. (f) Administration.—The Facility must tell the Commodity Credit Corporation which purchasers and payors qualify and direct the Corporation to act. The Corporation must adjust its accounts. (g) Appropriations.—This authority may be used only as advance appropriations Acts provide. (h) Proceeds.—Proceeds go into United States Government accounts established for repaying the debt. (i) “Eligible debt swap” means a debt-for-development swap or debt-for-nature swap.