U.S. Code > Title 12 Banks and Banking > CHAPTER 6A—EXPORT-IMPORT BANK OF THE UNITED STATES (§§ 635—635t) > SUBCHAPTER I—GENERAL PROVISIONS (§§ 635—635i9) > § 635i-8. Special debt relief for poorest, most heavily indebted countries

§ 635i-8. Special debt relief for poorest, most heavily indebted countries

(a) Debt reduction authority
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.
(b) Limitations
(1) Types of debt reduction
The authority provided by subsection (a) of this section 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”).
(2) Eligible countries
(A) “Eligible country” defined
As used in subsection (a) of this section, the term “eligible country” means any country that—
(i) has excessively burdensome external debt;
(ii) is eligible to borrow from the International Development Association; and
(iii) is not eligible to borrow from the International Bank for Reconstruction and Development.
(B) Determinations
Subject to subparagraph (A), the President may determine whether a country is an eligible country for purposes of subsection (a) of this section.
(c) Conditions
The authority provided by this section may be exercised only with respect to a country whose government—
(1) does not have an excessive level of military expenditures;
(2) has not repeatedly provided support for acts of international terrorism;
(3) is not failing to cooperate on international narcotics control matters; and
(4) (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights.
(d) Appropriations
The authority provided by subsection (a) of this section may be exercised only in such amounts or to such extent as is provided in advance in appropriations Acts.