Editorial Notes
References in Text
“Such committees” and “such debt relief”, referred to in par. (2), mean the Committee on Foreign Relations of the Senate, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Appropriations of each House of Congress named as the ongoing recipients of any information respecting debt relief negotiations with foreign governments regarding any debts owing to the United States in par. (1) provisions prior to repeal thereof by section 734(a)(1) of Pub. L. 97–113.
Amendments
1981—Par. (1). Pub. L. 97–113 struck out par. (1) which required Secretary of State keep the Committee on Foreign Relations of the Senate, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Appropriations of each House of Congress informed respecting any debt relief negotiations with foreign governments regarding any debts owing to the United States.
Statutory Notes and Related Subsidiaries
Actions To Provide Bilateral Debt Relief
Pub. L. 106–113, div. B, § 1000(a)(5) [title V, § 501], Nov. 29, 1999, 113 Stat. 1536, 1501A–311, as amended by Pub. L. 108–447, div. D, title V, § 591(b), Dec. 8, 2004, 118 Stat. 3037; Pub. L. 109–102, title V, § 578, Nov. 14, 2005, 119 Stat. 2232; Pub. L. 110–161, div. J, title VI, § 699H(b)(1), Dec. 26, 2007, 121 Stat. 2372; Pub. L. 116–94, div. J, title IX, § 904(b), Dec. 20, 2019, 133 Stat. 3086; Pub. L. 116–260, div. K, title VII, § 7042(j)(2), Dec. 27, 2020, 134 Stat. 1772, provided that:
“(a) Cancellation of Debt.—
Subject to the availability of amounts provided in advance in appropriations Acts, the President shall cancel all amounts owed to the United States (or any agency of the United States) by any country eligible for debt reduction under this section, as a result of loans made or credits extended prior to June 20, 1999, under any of the provisions of law specified in subsection (b).
“(b) Provisions of Law.—The provisions of law referred to in subsection (a) are the following:
“(1)
Sections 221 and 222 of the Foreign Assistance Act [of 1961] [
22 U.S.C. 2181, 2182].
“(c) Other Debt Reduction Authorities.—
The authority provided in this section is in addition to any other debt relief authority and does not in any way limit such authority.
“(d) Eligible Countries.—A country that is performing satisfactorily under an economic reform program shall be eligible for cancellation of debt under this section if—
“(1)
the country, as of December 31, 2000, is eligible to borrow from the International Development Association;
“(2)
the country, as of December 31, 2000, is not eligible to borrow from the International Bank for Reconstruction and Development; and
“(3)
(A)
the country has outstanding public and publicly guaranteed debt, the net present
value of which on
December 31, 1996, was at least 150 percent of the average annual
value of the exports of the country for the period 1994 through 1996; or
“(B)
(i)
the country has outstanding public and publicly guaranteed debt, the net present
value of which, as of the date the President determines that the country is eligible for debt relief under this section, is at least 150 percent of the annual
value of the exports of the country; or
“(ii)
the country has outstanding public and publicly guaranteed debt, the net present
value of which, as of the date the President determines that the country is eligible for debt relief under this section, is at least 250 percent of the annual fiscal revenues of the country, and has minimum ratios of exports to Gross Domestic Product of 30 percent, and of fiscal revenues to Gross Domestic Product of 15 percent.
“(e) Priority.—
In carrying out subsection (a), the President should seek to leverage scarce foreign assistance and give priority to heavily indebted poor countries with demonstrated need and the capacity to use such relief effectively.
“(f) Exceptions.—A country shall not be eligible for cancellation of debt under this section if the government of the country—
“(1)
has an excessive level of military expenditures;
“(3)
is failing to cooperate on international narcotics control matters; or
“(4)
(including its military or other security forces), engages in a consistent pattern of gross violations of internationally recognized human rights.
“(g) Additional Requirement.—A country which is otherwise eligible to receive cancellation of debt under this section may receive such cancellation only if the country has committed, in connection with a social and economic reform program—
“(1)
to enable, facilitate, or encourage the implementation of policy changes and institutional reforms under economic reform programs, in a manner that ensures that such policy changes and institutional reforms are designed and adopted through transparent and participatory processes;
“(3)
to take steps so that the financial benefits of debt relief are applied to programs to combat poverty (in particular through concrete measures to improve economic infrastructure, basic services in education, nutrition, and health, particularly treatment and prevention of the leading causes of mortality) and to redress environmental degradation;
“(4)
to take steps to strengthen and expand the private sector, encourage increased trade and investment, support the development of free markets, and promote broad-scale economic growth;
“(5)
to implement transparent policy making and budget procedures, good governance, and effective anticorruption measures;
“(6)
to broaden public participation and popular understanding of the principles and goals of poverty reduction, particularly through economic growth, and good governance; and
“(7)
to promote the participation of citizens and nongovernmental organizations in the economic policy choices of the government.
“(h) Certain Prohibitions Inapplicable.—
Except as the President may otherwise determine for reasons of national security, a cancellation of debt under this section shall not be considered to be assistance for purposes of any provision of law limiting assistance to a country. The authority to provide for cancellation of debt under this section may be exercised notwithstanding section 620(r) of the
Foreign Assistance Act of 1961 [
22 U.S.C. 2370(r)], or any similar provision of law.
“(i) Authorization of Appropriations.—
For the cost (as defined in section 502(5) of the
Federal Credit Reform Act of 1990 [
2 U.S.C. 661a(5)]) of the cancellation of any debt under this section, there are authorized to be appropriated to the President such sums as may be necessary for each of the fiscal years 2000–2025, which shall remain available until expended.
“(j) Annual Reports to the Congress.—
Not later than December 31 of each year, the President shall prepare and transmit to the Committees on Banking and Financial Services [now Committee on Financial Services], Appropriations, and International Relations [now Committee on Foreign Affairs] of the House of Representatives, and the Committees on Banking, Housing, and Urban Affairs, Foreign Relations, and Appropriations of the Senate a report, which shall be made available to the public, concerning the cancellation of debt under subsection (a), and a detailed description of debt relief provided by the United States as a member of the Paris Club of Official Creditors for the prior fiscal year.”
[Pub. L. 108–447, § 591(b), which directed amendment of section 501(i) of Public Law 106–113 by substituting “2000–2006” for “2003–2004”, was executed in section 1000(a)(5) [title V, § 501] of div. B of Pub. L. 106–113, set out above, by making substitution for “2000 through 2004”, to reflect the probable intent of Congress.]
Notification to Congress on Debt Relief Agreements
Pub. L. 102–391, title V, § 548, Oct. 6, 1992, 106 Stat. 1673, provided that:
“The Secretary of State shall transmit to the Appropriations Committees of the Congress and to such other Committees as appropriate, a copy of the text of any agreement with any foreign government which would result in any debt relief no less than thirty days prior to its entry into force, other than one entered into pursuant to this Act, together with a detailed justification of the interest of the United States in the proposed debt relief: Provided, That the term ‘debt relief’ shall include any and all debt prepayment, debt rescheduling, and debt restructuring proposals and agreements: Provided further, That the Secretary of State and the Secretary of the Treasury should in every feasible instance notify the Appropriations Committees of the Congress and such other Committees as appropriate not less than 15 days prior to any formal multilateral or bilateral negotiation for official debt restructuring, rescheduling, or relief: Provided further, That the Secretary of State or the Secretary of the Treasury, as appropriate, shall report not later than February 1 of each year a consolidated statement of the budgetary implications of all debt-related agreements entered into force during the preceding fiscal year.”
Similar provisions were contained in the following prior appropriation acts:
Pub. L. 101–513, title V, § 550, Nov. 5, 1990, 104 Stat. 2020.
Pub. L. 101–167, title V, § 555, Nov. 21, 1989, 103 Stat. 1237.
Pub. L. 100–461, title V, § 557, Oct. 1, 1988, 102 Stat. 2268–38.
Pub. L. 100–202, § 101(e) [title V, § 563], Dec. 22, 1987, 101 Stat. 1329–131, 1329–172.
