U.S Code last checked for updates: Apr 28, 2024
§ 1736e.
Debt forgiveness
(a)
Authority
The President, taking into account the financial resources of a country, may waive payments of principal and interest that such country would otherwise be required to make to the Commodity Credit Corporation under dollar sales agreements under subchapter II if—
(1)
that country is a least developed country; and
(2)
either—
(A)
an International Monetary Fund standby agreement is in effect with respect to that country;
(B)
a structural adjustment program of the International Bank for Reconstruction and Development or of the International Development Association is in effect with respect to that country;
(C)
a structural adjustment facility, enhanced structural adjustment facility, or similar supervised arrangement with the International Monetary Fund is in effect with respect to that country; or
(D)
even though such an agreement, program, facility, or arrangement is not in effect, the country is pursuing national economic policy reforms that would promote democratic, market-oriented, and long term economic development.
(b)
Request for debt relief by President
The President may provide debt relief under subsection (a) only if a notification is submitted to Congress at least 10 days prior to providing the debt relief. Such a notification shall—
(1)
specify the amount of official debt the President proposes to liquidate; and
(2)
identify the countries for which debt relief is proposed and the basis for their eligibility for such relief.
(c)
Appropriations action required
(d)
Limitation on new credit assistance
(e)
Applicability
(July 10, 1954, ch. 469, title IV, § 411, as added Pub. L. 91–524, title VII, § 704, Nov. 30, 1970, as added Pub. L. 93–86, § 1(26), Aug. 10, 1973, 87 Stat. 237; amended Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3654; Pub. L. 102–237, title III, §§ 322, 326, 336, Dec. 13, 1991, 105 Stat. 1857, 1859.)
cite as: 7 USC 1736e