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Export-Import Bank Act of 1945, as Amended
Debt Reduction; Enterprise for the Americas Initiative
- (a) Definitions
For purposes of this section -
- (1) the term ''eligible country'' means a
country designated by the President in accordance
with section [1] (b) of this section;
- (2) the term ''Facility'' means the entity
established in the Department of the Treasury by section 1738 of title 7; and
- (3) the term ''IMF'' means
the International Monetary Fund.
- (b) Eligibility
for benefits under the Facility
- (1) Requirements
To be eligible for benefits from the Facility under
this
section, a country must -
- (A) be a Latin American or Caribbean country;
- (B) have in effect, have received approval
for, or, as appropriate in exceptional circumstances,
be making
significant progress toward -
- (i) an IMF standby arrangement, extended
IMF arrangement, or an arrangement under the
structural adjustment
facility or enhanced structural adjustment
facility or, in exceptional circumstances,
an IMF monitored program or its equivalent;
and
- (ii) as appropriate, structural or sectoral
adjustment loans from the International
Bank for Reconstruction
and Development or the International Development
Association;
- (C) have put in place major investment reforms
in conjunction with an Inter-American Development
Bank loan or
otherwise be implementing, or making significant
progress toward, an open investment regime; and
- (D) if appropriate, have agreed with its commercial
bank lenders on a satisfactory financing program,
including,
as
appropriate, debt or debt service reduction.
- (2) Eligibility determinations
The President shall determine whether a country is
an eligible country for purposes of paragraph (1).
- (c) Loans
eligible for sale, reduction, or cancellation
- (1) Authority to sell, reduce, or cancel certain
loans Notwithstanding any other provision of law,
the President
may, in accordance with this section, sell to any eligible
purchaser any loan or portion thereof made before
January 1, 1992, to any eligible country or any agency
thereof
pursuant to this subchapter, 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-development
swaps, or debt-for-nature swaps; or
- (B) a debt
buy-back by an eligible country of its own qualified
debt, only if the eligible
country uses
an additional amount of the local currency of
the eligible country, equal to not less than 40
percent of
the price
paid for such
debt by such eligible country, or the difference
between the price paid for such debt and the face
value
of such debt, to
support activities that link conservation and
sustainable use of natural resources with local
community
development,
and child survival and other child development
activities, in a manner consistent with sections 1738f through 1738k of title 7, if the sale, reduction,
or cancellation would not contravene any term
or condition of any prior agreement relating
to such loan.
- (2) Terms and conditions
Notwithstanding any other provision of law, the
President shall, in accordance with this section,
establish
the
terms and conditions under which loans may be sold,
reduced, or canceled pursuant to this section.
- (3) Treatment under securities laws
The filing of a registration statement under the Securities
Act of 1933 (15 U.S.C. 77a et seq.) shall not be
required
with
respect to the sale or offer for sale by the Bank of
a loan or any interest therein pursuant to this section.
For purposes
of the Securities Act of 1933, the Bank shall not be
deemed to be an issuer or underwriter with respect
to any subsequent sale or other disposition of such
loan (or any interest therein) or any security received
by an eligible purchaser pursuant to any debt-for-equity
swap, debt-for-development swap, or debt-for-nature
swap.
- (4) Administration
The Facility shall notify the Bank of purchasers
that the President has determined to be eligible,
and
shall direct
the Bank to carry out the sale, reduction, or cancellation
of a loan pursuant to this section. The Bank shall
make an adjustment in its accounts to reflect
the sale, reduction, or cancellation.
- (5) Limitations
The authorities of this subsection may be exercised
only to such extent as provided for in advance in
appropriations
Acts, as necessary to implement the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.).
- (d) Deposit
of proceeds
The proceeds from the sale, reduction, or cancellation
of any loan sold, reduced, or canceled pursuant
to this section
shall be deposited in the United States Government account
or accounts established for the repayment of such
loan.
- (e) Eligible
purchasers
A loan may be sold pursuant to subsection (c)(1)(A) of this
section only to a purchaser who presents plans satisfactory
to the President for using the loan for the purpose of engaging
in debt-for-equity swaps, debt-for-development swaps, or
debt-for-nature swaps.
- (f) Debtor
consultation
Before the sale to any eligible purchaser, or any reduction
or cancellation pursuant to this section, of any loan made
to an eligible country, the President shall consult with
the country concerning the amount of loans to be sold, reduced,
or canceled and their uses for debt-for-equity swaps, debt-for-development
swaps, or debt-for-nature swaps.
- (g) Authorization
of appropriations
For the sale, reduction, and cancellation of loans or portions
thereof pursuant to this section, there are authorized to
be appropriated to the President such sums as may be necessary,
which are authorized to remain available until expended.
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