Title 22 — Foreign Relations and Intercourse
Chapter 63 — Support for East European Democracy (seed)
§ 5414. Debt-for-equity swaps and other special techniques
Statutory text
Reduction of debt burden
The President shall take all appropriate actions to explore and encourage innovative approaches to the reduction of the government-to-government and commercial debt burden of East European countries which have taken substantive steps toward political democracy and economic pluralism.
Authority for discounted sales of debt
Notwithstanding any other provision of law, the President may undertake the discounted sale, to private purchasers, of United States Government debt obligations of an East European country which has taken substantive steps toward political democracy and economic pluralism, subject to subsection (c).
Condition
An obligation may be sold under subsection (b) only if the sale will facilitate so-called debt-for-equity or debt-for-development swaps wherein such newly privatized debt is exchanged by the new holder of the obligation for—
local currencies, policy commitments, or other assets needed for development or other economic activities, or
for an equity interest in an enterprise theretofore owned by the particular East European government.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Support for East European Democracy (SEED) Act of 1989
Pub. L. 101–179 title I § 104 · 103 Stat. 1298
Enacted · 22 U.S.C. § 5414
(Pub. L. 101–179, title I, § 104, Nov. 28, 1989, 103 Stat. 1304.)
Source evidence
Code source credit
(Pub. L. 101–179, title I, § 104, Nov. 28, 1989, 103 Stat. 1304.)Enacted provision · exact public law section
SEC. 104. DEBT-FOR-EQUITY SWAPS AND OTHER SPECIAL TECHNIQUES. (a) Reduction of Debt Burden.— The President shall take all appropriate actions to explore and encourage innovative approaches to the reduction of the government-to-government and commercial debt burden of East European countries which have taken substantive steps toward political democracy and economic pluralism. (b) Authority for Discounted Sales of Debt.— Notwithstanding any other provision of law, the President may undertake the discounted sale, to private purchasers, of United States Government debt obligations of an East European country which has taken substantive steps toward political democracy and economic pluralism, subject to subsection (c). (c) Condition.— An obligation may be sold under subsection (b) only if the sale will facilitate so-called debt-for-equity or debt-for-development swaps wherein such newly privatized debt is exchanged by the new holder of the obligation for— (1) local currencies, policy commitments, or other assets needed for development or other economic activities, or (2) for an equity interest in an enterprise theretofore owned by the particular East European government.
1 of 1 references resolved to an enrolled provision
Executive Documents
Delegation of Functions
Functions of President under this section delegated to Secretary of the Treasury by section 4 of Ex. Ord. No. 12703, , 55 F.R. 6351, set out as a note under section 5401 of this title.