{"identifier":"/us/usc/t22/s262p\u20134c","title":22,"num":"\u00a7\u202f262p\u20134c.","heading":"Initiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation","text":"\u00a7\u202f262p\u20134c.\nInitiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation\n(a)\nFindings\nThe Congress finds that\u2014\n(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\n(2) heavily indebted developing countries may desire to facilitate such swaps to the maximum extent consistent with sound domestic economic management and minimization of inflationary impact.\n(b)\nInitiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation\n(1)\nIn general\nThe 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.\n(2)\nDefinitions\nAs used in this section:\n(A)\nDebt-for-development swap\nThe term \u201cdebt-for-development swap\u201d means the purchase of qualified debt by, or the donation of such debt to, an organization described in\nsection 501(c)(3) of title 26\nsection 501(a) of title 26\n(B)\nQualified debt\nThe term \u201cqualified debt\u201d means\u2014\n(i) sovereign debt issued by a foreign government;\n(ii) debt owed by private institutions in the country governed by such foreign government; and\n(iii) debt owed by institutions in the country governed by such foreign government, which are owned, in part, by private persons and, in part, by public institutions.","url":"https://projectusc.org/usc/t22/s262p\u20134c.html","content":[{"t":"sec","id":"/us/usc/t22/s262p\u20134c","children":[{"t":"num","text":"\u00a7\u202f262p\u20134c."},{"t":"heading","text":"Initiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation"},{"t":"subsec","id":"/us/usc/t22/s262p\u20134c/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Findings"},{"t":"chapeau","text":"The Congress finds that\u2014"},{"t":"para","id":"/us/usc/t22/s262p\u20134c/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s262p\u20134c/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" heavily indebted developing countries may desire to facilitate such swaps to the maximum extent consistent with sound domestic economic management and minimization of inflationary impact.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s262p\u20134c/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Initiation of discussions to facilitate debt-for-development swaps for human welfare and environmental conservation"},{"t":"para","id":"/us/usc/t22/s262p\u20134c/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s262p\u20134c/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"As used in this section:"},{"t":"subpara","id":"/us/usc/t22/s262p\u20134c/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Debt-for-development swap"},{"t":"content","children":[{"t":"p","text":"The term \u201cdebt-for-development swap\u201d means the purchase of qualified debt by, or the donation of such debt to, an organization described in ","children":[{"t":"ref","text":"section 501(c)(3) of title 26","href":"/us/usc/t26/s501/c/3","tail":" which is exempt from taxation under "},{"t":"ref","text":"section 501(a) of title 26","href":"/us/usc/t26/s501/a","tail":", 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."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s262p\u20134c/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Qualified debt"},{"t":"chapeau","text":"The term \u201cqualified debt\u201d means\u2014"},{"t":"clause","id":"/us/usc/t22/s262p\u20134c/b/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" sovereign debt issued by a foreign government;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s262p\u20134c/b/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" debt owed by private institutions in the country governed by such foreign government; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s262p\u20134c/b/2/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" debt owed by institutions in the country governed by such foreign government, which are owned, in part, by private persons and, in part, by public institutions.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}