Page:United States Statutes at Large Volume 103 Part 3.djvu/445

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PUBLIC LAW 101-240—DEC. 19, 1989 103 STAT. 2513 Public Works of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives— "(A) not later than the end of the 1-year period beginning on the date of the enactment of this section, a pn^ress report on the efficacy of efforts by the United States to 1 en(x>urage consistent and timely environmental impact assessment of actions proposed to be taken by the multilat- eral development bai^ and on the progress made by the multilateral development banks in developing and institut- ing environmental assessment policies ana procedures; and (B) not later than January 1, 1993, a detailed report on the matters described in subpars^graph (A). "(2) AVAILABILITY OF REPORTS.— The reports required by para- graph (1) shall be made available to the member governments of, and the borrowers from, the multilateral development banks, and to the public". Subtitle D—Debt-for-Development Swaps Public information. SEC. 531. ENCOURAGEHENT OF DEBT-FOR-DEVELOPMENT THROUGH LOCAL CURRENCY REPAYMENT. SWAPS 12 USC 3901 note. % (a) STATEMENT OP POLICY. — It is the sense of the Congress that— (1) debt-for-development swaps, where payment is made in local currency at the free market rate, serve a useful purpose by providing banking institutions with constructive opportunities for the reduction of the external debt of highly indebted devel- oping countries in a process that involves the participation of private, nonprofit groups in providing a stimidus to the eco- nomic and sodal development of such developing countries; (2) debt-for-development swaps provide highly indebted devel- oping countries wim a creative method of reducing external debt burdens, while promoting their economic growth and restructuring objectives; (3) banking institutions should give carefiil consideration to engaging in such swaps as one means of strengthening overall loan portfolios through the reduction of high external debt burdens while eq>anding economic opportunities through pri- vate sector initiatives; and (4) in order to avoid any bias against such swaps in the regulatory framework applicable to the financial reporting of banking institutions, where payment is made in local currency at the free market rate, appropriate recognition of the fair market exchange value of the currency so received should be made. (b) NOTIFICATION RELATING TO LOCAL CURRENCY REPAYMENT THROUGH DEBT-FOR-DEVELOPMENT SWAPS. —Before the end of the 6^ month period b^;iimiiig on the date of the enactment of this section, each appropriate Federal banking agency shall adopt uniform g^de- Imes that will effectuate the policy set forth in subsection (a) concerning the r^ulatory framework and accounting treatment of debtrfor-development swaps involving repayment in local currency at the free market rate. For the purpose of such guidelines, the impact of such swaps on reported loan loss reserves shall be deter- mined by valuing currency received in such swaps at fair market exchange value. (c) DEFINITIONS. — As used in this section: Loans.