22 U.S. Code § 262p–4c - Initiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation
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The Congress finds that—
(1) voluntary debt-for-development swaps in heavily indebted developing nations can simultaneously facilitate reduction of the burden of external indebtedness and increase the resources available within the country for charitable, educational, and scientific purposes, including environmental conservation, education, human welfare, health, agricultural research and development, microenterprise credit, and development of indigenous nonprofit organizations; and
(b) Initiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation
(1) In general
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to initiate discussions with the directors of such bank, the International Development Association, and the International Finance Corporation and propose that such institutions provide advice and assistance, as appropriate, to borrowing country governments desiring to facilitate debt-for-development swaps, on mechanisms (including trust funds) to accomplish this purpose, particularly in the context of debt rescheduling, which mechanisms result in sound management of the macroeconomic impact of such swaps on such countries, and preserve the value of the capital obtained through such swaps.
As used in this section:
(A) Debt-for-development swap
The term “debt-for-development swap” means the purchase of qualified debt by, or the donation of such debt to, an organization described in section 501 (c)(3) of title 26 which is exempt from taxation under section 501 (a) of title 26, and the subsequent transfer of such debt to an organization located in such foreign country in exchange for an undertaking by such tax-exempt organization, such foreign government, or such foreign organization to engage in a charitable, educational, or scientific activity.
(B) Qualified debt
The term “qualified debt” means—
Source(Pub. L. 95–118, title XVI, § 1608, as added Pub. L. 100–461, title V, § 555,Oct. 1, 1988, 102 Stat. 2268–36.)
Section 1608 ofPub. L. 95–118is based on 8 of H.R. 4645, One Hundredth Congress, as reported Sept. 28, 1988, and enacted into law by Pub. L. 100–461.
The definitions in section 262p–5 of this title apply to this section.