12 U.S.C. § 635i–8 — Special debt relief for poorest, most heavily indebted countries
submitted 81 years ago by Pub. L. 103-87 to r/title-12-BANKS-AND-BANKING · 254 words · no verdicts yet
The President may reduce principal and interest that an eligible country owes the Bank from loans or guarantees under this subchapter. The authority is limited to specified multilateral debt-relief agreements and countries meeting the section’s economic, political, and human-rights conditions.
(a) Debt reduction. The President may reduce principal and interest an eligible country owes the Bank because of loans or guarantees made under this subchapter.
(b) Limits. (1) The President may use this authority only to carry out multilateral agreements reducing official bilateral debt, as stated in the minutes of the “Paris Club,” also called the “Paris Club Agreed Minutes.”
(2)(A) “Eligible country” means a country that (i) has excessively burdensome foreign debt, (ii) can borrow from the International Development Association, and (iii) cannot borrow from the International Bank for Reconstruction and Development. (B) Subject to that definition, the President may decide whether a country is eligible.
(c) Conditions. The authority may be used only for a country whose government—(1) does not have excessive military spending; (2) has not repeatedly supported international terrorism; (3) is not failing to cooperate on international narcotics-control matters; and (4), including its military and other security forces, does not consistently commit gross violations of internationally recognized human rights.
(d) Appropriations. The authority may be used only in amounts or to the extent provided in advance by appropriations Acts.
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.
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”).
As used in subsection (a), the term “eligible country” means any country that—
has excessively burdensome external debt;
is eligible to borrow from the International Development Association; and
is not eligible to borrow from the International Bank for Reconstruction and Development.
Subject to subparagraph (A), the President may determine whether a country is an eligible country for purposes of subsection (a).
The authority provided by this section may be exercised only with respect to a country whose government—
does not have an excessive level of military expenditures;
has not repeatedly provided support for acts of international terrorism;
is not failing to cooperate on international narcotics control matters; and
(including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights.
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.
Source credit: (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.)
- 1945Enacted · Pub. L. 103-87 · 107 Stat. 970
- 1994Amended · Pub. L. 103-428 · 108 Stat. 4376
- 2002Amended · Pub. L. 107-189 · 116 Stat. 709
A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-87 on 1945-07-31.
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