(A) IN GENERAL.—A reduction of debt pursuant to this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country. (B) ADDITIONAL REQUIREMENT.-The authority of this section may be exercised notwithstanding section 620(r) of this Act or section 321 of the International Development and Food Assistance Act of 1975. (b) IMPLEMENTATION OF DEBT REDUCTION.— (1) IN GENERAL.-Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). (2) EXCHANGE OF OBLIGATIONS.— (A) IN GENERAL.-The Facility shall notify the agency primarily responsible for administering part I of this Act of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) ADDITIONAL REQUIREMENT.-At the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation for the country shall be established relating to the agreement. and the agency primarily responsible for administering part I of this Act shall make an adjustment in its accounts to reflect the debt reduction. (c) ADDITIONAL TERMS AND CONDITIONS. (1) 1249 The following additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 704(a)(1) of this Act: (A) 1249 The provisions relating to repayment of principal under section 705 of this Act. (B) 1249 The provisions relating to interest on new obligations under section 706 of this Act. (2) 1249 In addition to the application of the provisions relating to repayment of principal under section 705 of this Act to the reduction of debt under subsection (a)(1) (in accordance with paragraph (DA) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Tropical Forent Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 706 of this Act. (d) 1260 AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS AFTER FISCAL YEAR 2001.-For the cost (as defined in section 602(b) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section or section 807, there are authorized to be appropriated to the President the following: ****66 (a) of Public Law 108-323 (118 Stat. 1218) struck out "The following" and inserted He hem thereof "(1) The following"; redesignated paras. (1) and (2) as subparas. (A) and (B); and wded a new para (2). *** 20) of Public Law 107-26 (115 Stat. 206) added subsec. (d) through para. (3) Sec. I of Public Law 108 323 (118 Stat. 1218) added paras. (4), (5), and (6). (1) $50,000,000 for fiscal year 2002. (6) $30,000,000 for fiscal year 2007. (e) 1251 USE OF FUNDS TO CONDUCT PROGRAM AUDITS AND EVALUATIONS. Of the amounts made available to carry out this part for a fiscal year, $200,000 is authorized to be made available to carry out audits and evaluations of programs under this part, including personnel costs associated with such audits and evaluations. SEC. 807.1252 REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954. (a) AUTHORITY TO REDUCE DEBT.— (1) AUTHORITY.-Notwithstanding any other provision of law, the President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of January 1, 1998, as a result of any credits extended under title I of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a country eligible for benefits from the Facility. (2) AUTHORIZATION OF APPROPRIATIONS.— (A) IN GENERAL.-For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President (i) $25,000,000 for fiscal year 1999; (ii) $50,000,000 for fiscal year 2000; and (B) LIMITATION.-The authority provided by this section shall be available only to the extent that appropriations for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of the modification of any debt pursuant to this section are made in advance. (b) IMPLEMENTATION OF DEBT REDUCTION.— (1) IN GENERAL.-Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). (2) EXCHANGE OF OBLIGATIONS.— (A) IN GENERAL.-The Facility shall notify the Commodity Credit Corporation of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) ADDITIONAL REQUIREMENT.-At the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation shall be established for the country relating to the agree 1251 Sec. 2 of Public Law 108-323 (118 Stat. 1218) added subsec. (e). 1252 22 U.S.C. 2431e. ment, and the Commodity Credit Corporation shall make an adjustment in its accounts to reflect the debt reduction. (c) ADDITIONAL TERMS AND CONDITIONS. (1) 1253 The following additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 604(a)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1738c): (A) 1253 The provisions relating to repayment of principal under section 605 of such Act. (B) 1253 The provisions relating to interest on new obligations under section 606 of such Act. (2) 1253 In addition to the application of the provisions relating to repayment of principal under section 605 of the Agricultural Trade Development and Assistance Act of 1954 to the reduction of debt under subsection (a)(1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Tropical Forest Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 606 of such Act. SEC. 808.1254 AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND DEBT BUYBACKS. (a) LOANS AND CREDITS ELIGIBLE FOR SALE, REDUCTION, OR CAN CELLATION.— (1) DEBT-FOR-NATURE SWAPS.— (A) IN GENERAL.-Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible purchaser described in subparagraph (B) any concessional loans described in section 806(a)(1) or any credits described in section 807(a)(1), or on receipt of payment from an eligible purchaser described in subparagraph (B), reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt-fornature swap to support eligible activities described in section 809(d). (B) ELIGIBLE PURCHASER DESCRIBED.-A loan or credit may be sold, reduced, or canceled under subparagraph (A) only to a purchaser who presents plans satisfactory to the President for using the loan or credit for the purpose of engaging in debt-for-nature swaps to support eligible activities described in section 809(d). (C) CONSULTATION REQUIREMENT.-Before the sale under subparagraph (A) to any eligible purchaser described in subparagraph (B), or any reduction or cancellation under such subparagraph (A), of any loan or credit made to an eligible country, the President shall consult with the country concerning the amount of loans or credits to be sold. reduced, or canceled and their uses for debt-for-nature 23 Sec. 3(b) of Public Law 108-323 (118 Stat. 1219) struck out "The following" and inserted in lieu thereof "(1) The following"; redesignated paras. (1) and (2) as subparas. (A) and (B), and added a new para. (2). 1264 22 U.S.C. 2431f. swaps to support eligible activities described in section 809(d). (D) AUTHORIZATION OF APPROPRIATIONS.-For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to subparagraph (A), amounts authorized to be appropriated under sections 806(a)(2), 807(a)(2), and 806(d) 1255 shall be made available for such reduction of debt pursuant to subparagraph (A). (2) DEBT BUYBACKS.-Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible country any concessional loans described in section 806(a)(1) or any credits described in section 807(a)(1), or on receipt of payment from an eligible country, reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt buyback 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 the lessor of 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 eligible activities described in section 809(d). (3) LIMITATION.-The authority provided by paragraphs (1) and (2) shall be available only to the extent that appropriations for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of the modification of any debt pursuant to such paragraphs are made in advance. (4) 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 and credits may be sold, reduced, or canceled pursuant to this section. (5) ADMINISTRATION. (A) IN GENERAL.-The Facility shall notify the administrator of the agency primarily responsible for administering part I of this Act or the Commodity Credit Corporation, as the case may be, of eligible purchasers described in paragraph (1)(B) that the President has determined to be eligible under paragraph (1), and shall direct such agency or Corporation, as the case may be, to carry out the sale, reduction, or cancellation of a loan pursuant to such paragraph. (B) ADDITIONAL REQUIREMENT.-Such agency or Corporation, as the case may be, shall make an adjustment in its accounts to reflect the sale, reduction, or cancellation. (b) 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. 1255 Sec. 2(b) of Public Law 107-26 (115 Stat. 206) struck out "to appropriated under sections 806(a)2) and 807(a)(2)" and inserted in lieu thereof "to be appropriated under sections 806(a)(2), 807(a)(2), and 806(d)". SEC. 809.1256 TROPICAL FOREST AGREEMENT. (a) AUTHORITY.— (1) IN GENERAL.-The Secretary of State is authorized, in consultation with other appropriate officials of the Federal Government, to enter into a Tropical Forest Agreement with any eligible country concerning the operation and use of the Fund for that country. (2) CONSULTATION.-In the negotiation of such an Agreement, the Secretary shall consult with the Board in accordance with section 811. (b) CONTENTS OF AGREEMENT.-The requirements contained in section 708(b) of this Act (relating to contents of an agreement) shall apply to an Agreement in the same manner as such requirements apply to an Americas Framework Agreement. (c) ADMINISTERING BODY.— (1) IN GENERAL.-Amounts disbursed from the Fund in each beneficiary country shall be administered by a body constituted under the laws of that country. (2) COMPOSITION. (A) IN GENERAL.-The administering body shall consist of (i) one or more individuals appointed by the United States Government; (ii) one or more individuals appointed by the government of the beneficiary country; and (iii) individuals who represent a broad range of (I) environmental nongovernmental organizations of, or active in, the beneficiary country; (II) local community development nongovernmental organizations of the beneficiary country; and (III) scientific, academic, or forestry organizations of the beneficiary country. (B) ADDITIONAL REQUIREMENT.-A majority of the members of the administering body shall be individuals described in subparagraph (A)(iii). (3) RESPONSIBILITIES.-The requirements contained in section 708(c)(3) of this Act (relating to responsibilities of the administering body) shall apply to an administering body described in paragraph (1) in the same manner as such requirements apply to an administering body described in section 708(c)(1) of this Act. (d) ELIGIBLE ACTIVITIES.-Amounts deposited in a Fund shall be used only to provide grants to conserve, maintain, and restore the tropical forests in the beneficiary country, through one or more of the following activities: (1) Establishment, restoration, protection, and maintenance of parks, protected areas, and reserves. (2) Development and implementation of scientifically sound systems of natural resource management, including land and ecosystem management practices. 1256 22 U.S.C. 2431g. |