---
kind: "section"
citation: "22 U.S.C. § 5414"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "5414"
heading: "Debt-for-equity swaps and other special techniques"
release: "119-102"
url: "https://uscodex.org/usc/22/5414"
units:
  - "Chapter 63 — Support for East European Democracy (seed)"
  - "Subchapter I — Structural Adjustment"
---

# §5414. 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](/usc/22/5402.md?p=c) 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](/usc/22/1395.md?p=a-1) Government debt obligations of an [East European country](/usc/22/5402.md?p=c) which has taken substantive steps toward political democracy and economic pluralism, subject to [subsection (c)](#c).
- (c) **Condition—** An obligation may be sold under [subsection (b)](#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.

## Source credit

(Pub. L. 101–179, title I, § 104, Nov. 28, 1989, 103 Stat. 1304.)

## Notes

### 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, Feb. 20, 1990, 55 F.R. 6351, set out as a note under section 5401 of this title.