
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2151v]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
                 SUBCHAPTER I--INTERNATIONAL DEVELOPMENT
 
  Part I--Declaration of Policy; Development Assistance Authorizations
 
Sec. 2151v. Aid to relatively least developed countries


(a) Characterization of least developed countries

    Relatively least developed countries (as determined on the basis of 
criteria comparable to those used for the United Nations General 
Assembly list of ``least developed countries'') are characterized by 
extreme poverty, very limited infrastructure, and limited administrative 
capacity to implement basic human needs growth strategies. In such 
countries special measures may be necessary to insure the full 
effectiveness of assistance furnished under subchapter I of this 
chapter.

(b) Assistance on grant basis

    For the purpose of promoting economic growth in these countries, the 
President is authorized and encouraged to make assistance under this 
part available on a grant basis to the maximum extent that is consistent 
with the attainment of United States development objectives.

(c) Waiver of principal and interest on prior liability

    (1) The Congress recognizes that the relatively least developed 
countries have virtually no access to private international capital 
markets. Insofar as possible, prior assistance terms should be 
consistent with present grant assistance terms for relatively least 
developed countries. Therefore, notwithstanding section 2370(r) of this 
title and section 321 of the International Development and Food 
Assistance Act of 1975 but subject to paragraph (2) of this subsection, 
the President on a case-by-case basis, taking into account the needs of 
the country for financial resources and the commitment of the country to 
the development objectives set forth in sections 2151 and 2151-1 of this 
title--
        (A) may permit a relatively least developed country to place 
    amounts, which would otherwise be paid to the United States as 
    payments on principal or interest on liability incurred by that 
    country under subchapter I of this chapter (or any predecessor 
    legislation) into local currency accounts (in equivalent amounts of 
    local currencies as determined by the official exchange rate for 
    United States dollars) for use by the relatively least developed 
    country, with the concurrence of the Administrator of the agency 
    primarily responsible for administering subchapter I of this 
    chapter, for activities which are consistent with section 2151-1 of 
    this title; and
        (B) may waive interest payments on liability incurred by a 
    relatively least developed country under subchapter I of this 
    chapter (or any predecessor legislation) if the President determines 
    that that country would be unable to use for development purposes 
    the equivalent amounts of local currencies which could be made 
    available under subparagraph (A).

    (2) The aggregate amount of interest waived and interest and 
principal paid into local currency accounts under this subsection in any 
fiscal year may not exceed the amount approved for such purpose in an 
Act appropriating funds to carry out this part for that fiscal year, 
which amount may not exceed the amount authorized to be so approved by 
the annual authorizing legislation for development assistance programs. 
Amounts due and payable during fiscal year 1981 to the United States 
from relatively least developed countries on loans made under this 
subchapter (or any predecessor legislation) are authorized to be 
approved for use, in accordance with the provisions of paragraph (1) of 
this subsection, in an amount not to exceed $10,845,000.
    (3) In exercising the authority granted by this subsection, the 
President should act in concert with other creditor countries.

(d) Waiver of requirement of contribution

    The President may on a case-by-case basis waive the requirement of 
section 2151h(a) of this title for financial or ``in kind'' 
contributions in the case of programs, projects, or activities in 
relatively least developed countries.

(e) Waiver of time limitations on aid

    Section 2151h(b) of this title shall not apply with respect to 
grants to relatively least developed countries.

(Pub. L. 87-195, pt. I, Sec. 124, as added Pub. L. 95-424, title I, 
Sec. 112(a)(1), Oct. 6, 1978, 92 Stat. 948; amended Pub. L. 96-53, title 
I, Sec. 109, Aug. 14, 1979, 93 Stat. 363; Pub. L. 96-533, title III, 
Sec. 308, Oct. 16, 1980, 94 Stat. 3147.)

                       References in Text

    Section 321 of the International Development and Food Assistance Act 
of 1975, referred to in subsec. (c)(1), is section 321 of Pub. L. 94-
161, Dec. 20, 1975, 89 Stat. 868, which is set out as a note under 
section 2220a of this title.


References to Subchapter I Deemed To Include Certain Parts of Subchapter 
                                   II

    References to subchapter I of this chapter are deemed to include 
parts IV (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 2349aa et seq.) of subchapter II of this chapter, and references 
to subchapter II are deemed to exclude such parts. See section 202(b) of 
Pub. L. 92-226, set out as a note under section 2346 of this title, and 
sections 2348c and 2349aa-5 of this title.


                               Amendments

    1980--Subsec. (c)(2). Pub. L. 96-533 substituted ``fiscal year 
1981'' and ``$10,845,000'' for ``fiscal year 1980'' and ``$18,800,000'', 
respectively.
    1979--Subsec. (c)(2). Pub. L. 96-53 inserted provisions respecting 
use of funds due and payable during fiscal year 1980 to the United 
States.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-53 effective Oct. 1, 1979, see section 
512(a) of Pub. L. 96-53, set out as a note under section 2151 of this 
title.


                             Effective Date

    Section 112(a)(2) of Pub. L. 94-424 provided that: ``The authority 
granted by section 124(c) of the Foreign Assistance Act of 1961 [subsec. 
(c) of this section] shall not become effective until October 1, 1979.''
    Section effective Oct. 1, 1978, see section 605 of Pub. L. 95-424, 
set out as an Effective Date of 1978 Amendment note under section 2151 
of this title.

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.


        Presidential Authority During Fiscal Years 1990 and 1991

    Pub. L. 100-461, title V, Sec. 572, Oct. 1, 1988, 102 Stat. 2268-44, 
provided that during fiscal years 1990 and 1991, President could use 
authority of paragraphs (A) and (B) of subsection (c)(1) of this section 
with respect to such aggregate amounts of principal and interest payable 
during each of those fiscal years as President determined, or at any 
time after Sept. 30, 1989, President could, if he determined it was in 
national interest to do so, use authority of those paragraphs with 
respect to such aggregate amounts of outstanding principal and interest 
payable at any time after that date, and that such authority could be 
exercised with respect to specified countries, and be exercised 
notwithstanding subsection (c)(2) of this section.
