((a)) ** Authority to reduce debt**

((1)) ** Authority** The President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of , as a result of concessional loans made to an eligible country by the United States under subchapter I of this chapter, part IV of subchapter II of this chapter, or predecessor foreign economic assistance legislation.January 1, 19921992-01-01

((2)) ** Appropriations requirement** The authority provided by this section may be exercised only in such amounts or to such extent as is provided in advance by appropriations Acts.

((3)) ** Certain prohibitions inapplicable**

((A)) A reduction of debt pursuant to this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country.

((B)) The authority of this section may be exercised notwithstanding or section 321 of the International Development and Food Assistance Act of 1975.

((b)) ** Implementation of debt reduction**

((1)) ** In general** Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations outstanding as of the date specified in subsection (a)(1).

((2)) ** Exchange of obligations** The Facility shall notify the agency primarily responsible for administering subchapter I of this chapter of the agreement with an eligible country to exchange a new obligation for outstanding obligations pursuant to this subsection. At the direction of the Facility, the old obligations shall be canceled and a new debt obligation for the country shall be established, and the agency primarily responsible for administering subchapter I of this chapter shall make an adjustment in its accounts to reflect the debt reduction.