“(B) the annual payments due on such public and publicly guaranteed debt to not more than "(i) 10 percent or, in the case of a country suffering a public health crisis (as defined in subsection (e)), not more than 5 percent, of the amount of the annual current revenues received by the country from internal resources; or "(ii) a percentage of the gross national product of the country, or another benchmark, that will yield a result substantially equivalent to that which would be achieved through application of clause (i).30 "(2) LIMITATION.-In financing the objectives of the Enhanced HIPC Initiative, an international financial institution shall give priority to using its own resources. "(b) RELATION TO POVERTY AND THE ENVIRONMENT. - Debt cancellation under the modifications to the Enhanced HIPC Initiative described in subsection (a) should not be conditioned on any agreement by an impoverished country to implement or comply with policies that deepen poverty or degrade the environment, including any policy that "(1) implements or extends user fees on primary education or primary health care, including prevention and treatment efforts for HIV/AIDS, tuberculosis, malaria, and infant, child, and maternal well-being; "(2) provides for increased cost recovery from poor people to finance basic public services such as education, health care, clean water, or sanitation; "(3) reduces the country's minimum wage to a level of less than $2 per day or undermines workers' ability to exercise effectively their internationally recognized worker rights, as defined under section 526(e) of the Foreign Operations, Export Financing and Related Programs Appropriations Act, 1995 (22 U.S.C. 262p 4p); or “(4) promotes unsustainable extraction of resources or results in reduced budget support for environmental programs. "(c) CONDITIONS.-A country shall not be eligible for cancellation of debt under modifications to the Enhanced HIPC Initiative described in subsection (a) if the government of the country "(1) has an excessive level of military expenditures; "(2) has repeatedly provided support for acts of international terrorism, as determined by the Secretary of State under section 6(j)(1) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)) or section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)); "(3) is failing to cooperate on international narcotics control matters; or “(4) engages in a consistent pattern of gross violations of internationally recognized human rights (including its military or other security forces). 30 Sec. 596 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2004 (division D of Public Law 108-199; 118 Stat. 209), amended sec. 1625(a)(1)(B)(ii) of the International Financial Institutions Act by striking “subparagraph (A)” and inserting in lieu thereof "clause (i)”. “(d) PROGRAMS TO COMBAT HIV/AIDS AND POVERTY.-A country that is otherwise eligible to receive cancellation of debt under the modifications to the Enhanced HIPC Initiative described in subsection (a) may receive such cancellation only if the country has agreed "(1) to ensure that the financial benefits of debt cancellation are applied to programs to combat HIV/AIDS and poverty, in particular through concrete measures to improve basic services in health, education, nutrition, and other development priorities, and to redress environmental degradation; "(2) to ensure that the financial benefits of debt cancellation are in addition to the government's total spending on poverty reduction for the previous year or the average total of such expenditures for the previous 3 years, whichever is greater; "(3) to implement transparent and participatory policymaking and budget procedures, good governance, and effective anticorruption measures; and "(4) to broaden public participation and popular understanding of the principles and goals of poverty reduction. "(e) DEFINITIONS.-In this section: “(1) COUNTRY SUFFERING A PUBLIC HEALTH CRISIS.—The term 'country suffering a public health crisis' means a country in which the HIV/AIDS infection rate, as reported in the most recent epidemiological data for that country compiled by the Joint United Nations Program on HIV/AIDS, is at least 5 percent among women attending prenatal clinics or more than 20 percent among individuals in groups with high-risk behavior. "(2) DECISION POINT.-The term 'Decision Point' means the date on which the executive boards of the International Bank for Reconstruction and Development and the International Monetary Fund review the debt sustainability analysis for a country and determine that the country is eligible for debt relief under the Enhanced HIPC Initiative. “(3) ENHANCED HIPC INITIATIVE.-The term 'Enhanced HIPC Initiative' means the multilateral debt initiative for heavily indebted poor countries presented in the Report of G-7 Finance Ministers on the Cologne Debt Initiative to the Cologne Economic Summit, Cologne, June 18-20, 1999.". SEC. 502.31 REPORT ON EXPANSION OF DEBT RELIEF TO NON-HIPC COUNTRIES. (a) IN GENERAL.-Not later than 90 days after the date of enactment of this Act, the Secretary of the Treasury shall submit to Congress a report on (1) the options and costs associated with the expansion of debt relief provided by the Enhanced HIPC Initiative to include poor countries that were not eligible for inclusion in the Enhanced HIPC Initiative; (2) options for burden-sharing among donor countries and multilateral institutions of costs associated with the expansion of debt relief; and (3) options, in addition to debt relief, to ensure debt sustainability in poor countries, particularly in cases when the poor 31 22 U.S.C. 7681. country has suffered an external economic shock or a natural disaster. (b) SPECIFIC OPTIONS TO BE CONSIDERED.-Among the options for the expansion of debt relief provided by the Enhanced HIPC Initiative, consideration should be given to making eligible for that relief poor countries for which outstanding public and publicly guaranteed debt requires annual payments in excess of 10 percent or, in the case of a country suffering a public health crisis (as defined in section 1625(e) of the Financial Institutions Act, as added by section 501 of this Act), not more than 5 percent, of the amount of the annual current revenues received by the country from internal resources. (c) ENHANCED HIPC INITIATIVE DEFINED.-In this section, the term "Enhanced HIPC Initiative" means the multilateral debt initiative for heavily indebted poor countries presented in the Report of G-7 Finance Ministers on the Cologne Debt Initiative to the Cologne Economic Summit, Cologne, June 18-20, 1999. SEC. 503.32 AUTHORIZATION OF APPROPRIATIONS. (a) IN GENERAL.-There are authorized to be appropriated to the President such sums as may be necessary for the fiscal year 2004 32 22 U.S.C. 7682. Title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), provided the following: "DEBT RESTRUCTURING *Provided further, That up to $75,000,000 of the funds appropriated under this heading may be used by the Secretary of the Treasury to pay to the Heavily Indebted Poor Countries (HIPC) Trust Fund administered by the International Bank for Reconstruction and Development amounts for the benefit of countries that are eligible for debt reduction pursuant to title V of H.R. 3425 as enacted into law by section 1000(a)(5) of Public Law 106-113: Provided further, That amounts paid to the HIPC Trust Fund may be used only to fund debt reduction under the enhanced HIPC initiative by "(1) the Inter-American Development Bank; "(2) the African Development Fund; "(3) the African Development Bank; and "(4) the Central American Bank for Economic Integration: "Provided further, That funds may not be paid to the HIPC Trust Fund for the benefit of any country if the Secretary of State has credible evidence that the government of such country is engaged in a consistent pattern of gross violations of internationally recognized human rights or in military or civil conflict that undermines its ability to develop and implement measures to alleviate poverty and to devote adequate human and financial resources to that end: Provided further, That on the basis of final appropriations, the Secretary of the Treasury shall consult with the Committees on Appropriations concerning which countries and international financial institutions are expected to benefit from a United States contribution to the HIPC Trust Fund during the fiscal year: Provided further, That the Secretary of the Treasury shall inform the Committees on Appropriations not less than 15 days in advance of the signature of an agreement by the United States to make payments to the HIPC Trust Fund of amounts for such countries and institutions: Provided further, That the Secretary of the Treasury may disburse funds designated for debt reduction through the HIPC Trust Fund only for the benefit of countries that "(1) have committed, for a period of 24 months, not to accept new market-rate loans from the international financial institution receiving debt repayment as a result of such disbursement, other than loans made by such institutions to export-oriented commercial projects that generate foreign exchange which are generally referred to as 'enclave' loans; and “(2) have documented and demonstrated their commitment to redirect their budgetary resources from international debt repayments to programs to alleviate poverty and promote economic growth that are additional to or expand upon those previously available for such purposes: "Provided further, That any limitation of subsection (e) of section 411 of the Agricultural Trade Development and Assistance Act of 1954 shall not apply to funds appropriated under this heading: Provided further, That none of the funds made available under this heading in this or any other appropriations Act shall be made available for Sudan or Burma unless the Secretary of the Treasury determines and notifies the Committees on Appropriations that a democratically elected government has taken office: Provided further, That none of the funds appropriated under this heading may be paid to the HIPC Trust Fund for the benefit of any country Continued and each fiscal year thereafter to carry out section 1625 of the International Financial Institutions Act, as added by section 501 of this Act. (b) AVAILABILITY OF FUNDS.-Amounts appropriated pursuant to subsection (a) are authorized to remain available until expended. that has accepted loans from an international financial institution between such country's decision point and completion point: Provided further, That the terms 'decision point' and 'completion point' shall have the same meaning as defined by the International Monetary Fund.". See also Legislation on Foreign Relations Through 2004, vol. I-B, for legislation on international debt relief. i. Afghanistan (1) Afghanistan Freedom Support Act of 2002 Public Law 107-327 [S. 2712], 116 Stat. 2797, approved December 4, 2002; amended by Public Law 108-106 [Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004; H.R. 3289], 117 Stat. 1209, approved November 6, 2003; Public Law 108-287 [Department of Defense Appropriations Act, 2005; H.R. 4613], 118 Stat. 951, approved August 5, 2004; and by Public Law 108-458 [Intelligence Reform and Terrorism Prevention Act of 2004; S. 2845], 118 Stat. 3638, approved December 17, 2004 AN ACT To authorize economic and democratic development assistance for Afghanistan and to authorize military assistance for Afghanistan and certain other foreign countries. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1.1 SHORT TITLE; TABLE OF CONTENTS; DEFINITION. (a) SHORT TITLE.-This Act may be cited as the "Afghanistan Freedom Support Act of 2002”. (b)2 TABLE OF CONTENTS.-The table of contents for this Act is as follows: Sec. 105. Sense of Congress regarding promoting cooperation in opium producing areas 615 Sec. 106. Administrative provisions 615 Sec. 107. Relationship to other authority 616 Sec. 108. Authorization of appropriations 616 TITLE II-MILITARY ASSISTANCE FOR AFGHANISTAN AND CERTAIN OTHER FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS Sec. 201. Support for security during transition in Afghanistan Sec. 202. Authorization of assistance 617 617 Sec. 203. Eligible foreign countries and eligible international organizations 618 618 Sec. 205. Congressional notification requirements 618 Sec. 206. Promoting secure delivery of humanitarian and other assistance in 619 623 122 U.S.C. 7501 note. 2 Sec. 7104(j)(3) of the Afghanistan Freedom Support Act Amendments of 2004 (sec. 7104 of Public Law 108-458; 118 Stat. 3638) redesignated secs. 207 and 208 as secs. 208 and 209, respectively, and added a new sec. 207 to the table of contents. Sec. 7104(e)(4)(B) of the Afghanistan Freedom Support Act Amendments of 2004 (sec. 7104 of Public Law 108-458; 118 Stat. 3638) added sec. 305 to the table of contents. |