§ 635i–8 — Special Debt Relief For Poorest, Most Heavily Indebted Countries

(a) 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. (1) The authority provided by subsection (a) 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”). (A) As used in subsection (a), 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) Subject to subparagraph (A), the President may determine whether a country is an eligible country for purposes of subsection (a). (c) 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) The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided in advance in appropriations Acts.