((a)) ** Requirements** To be eligible for benefits from the Facility under this subchapter, a country must be a Latin American or Caribbean country—

((1)) whose government is democratically elected;

((2)) whose government has not repeatedly provided support for acts of international terrorism;

((3)) whose government is not failing to cooperate on international narcotics control matters;

((4)) whose government (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights;

((5)) that has in effect, has received approval for, or, as appropriate in exceptional circumstances, is making significant progress toward—

((A)) an International Monetary Fund standby arrangement, extended Fund arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility, or in exceptional circumstances, a Fund monitored program or its equivalent, unless the President determines (after consultation with the Enterprise for the Americas Board) that such an arrangement or program (or its equivalent) could reasonably be expected to have significant adverse social or environmental effects; and

((B)) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development or the International Development Association, unless the President determines (after consultation with the Enterprise for the Americas Board) that the resulting adjustment requirements could reasonably be expected to have significant adverse social or environmental effects;

((6)) has put in place major investment reforms in conjunction with an Inter-American Development Bank loan or otherwise is implementing, or is making significant progress toward, an open investment regime; and

((7)) if appropriate, has agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction.

((b)) ** Eligibility determinations** Consistent with subsection (a), the President shall determine whether a country is eligible to receive benefits under this subchapter. The President shall notify the appropriate congressional committees of his intention to designate a country as an eligible country at least 15 days in advance of any formal determination.