SUBCHAPTER I—STRUCTURAL ADJUSTMENT
§5411. Multilateral support for structural adjustment in Poland and Hungary
(a) Multilateral assistance for Poland and Hungary
(1) In general
To the extent that Poland and Hungary continue to evolve toward pluralism and democracy and to develop and implement comprehensive economic reform programs, the United States Government shall take the leadership in mobilizing international financial institutions, in particular the International Monetary Fund and the International Bank for Reconstruction and Development and its affiliated institutions in the World Bank group, to provide timely and appropriate resources to help Poland and Hungary.
(2) World Bank structural adjustment loan for Poland
In furtherance of paragraph (1), the Secretary of the Treasury shall direct the United States Executive Director of the International Bank for Reconstruction and Development to urge expeditious approval and disbursement by the Bank of a structural adjustment loan to Poland in an appropriate amount in time to facilitate the implementation of major economic reforms scheduled for early 1990, including the termination of energy, export, and agricultural subsidies and wage indexation.
(b) Stabilization assistance, debt relief, and agricultural assistance for Poland
To the extent that Poland continues to evolve toward pluralism and democracy and to develop and implement comprehensive economic reform programs, the United States Government shall do the following:
(1) Stabilization assistance
The United States Government, in conjunction with other member governments of the Organization of Economic Cooperation and Development (OECD) and international financial institutions (including the International Monetary Fund), shall support the implementation of a plan of the Government of Poland to attack hyperinflation and other structural economic problems, address pressing social problems, carry out comprehensive economic reform, and relieve immediate and urgent balance of payments requirements in Poland, through the use of mechanisms such as—
(A) the Exchange Stabilization Fund pursuant to
(B) the authority provided in
(2) Debt relief
The United States Government—
(A) shall urge all members of the "Paris Club" of creditor governments and other creditor governments to adopt, and participate in, a generous and early rescheduling program for debts owed by the Government of Poland; and
(B) in coordination with other creditor governments, shall seek to expedite consultations between the Government of Poland and its major private creditors in order to facilitate a rescheduling and reduction of payments due on debt owed to such creditors in a manner consistent with the international debt policy announced by the Secretary of the Treasury on March 10, 1989.
(3) Agricultural assistance
The United States Government shall provide agricultural assistance for Poland in accordance with
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§5412. Stabilization assistance for Poland
(a) Immediate emergency assistance
To the extent that the ongoing International Monetary Fund review of the Polish economy projects a probable balance of payments shortage for the fourth quarter of 1989, the United States Government, in carrying out paragraph (1) of
(1) should work closely with the European Community and international financial institutions to determine the extent of emergency assistance required by Poland for the fourth quarter of 1989, and
(2) should consider extending a bridge loan to relieve immediate and urgent balance of payments requirements using the Exchange Stabilization Fund in accordance with paragraph (1)(A) of
(b) Immediate, multilateral response to Poland's economic stabilization needs
In furtherance of
(c) Additional authority to provide stabilization assistance
(1) Authority
In order to carry out paragraph (1) of
(2) Authorization of appropriations
For purposes of providing the assistance authorized by this subsection, there are authorized to be appropriated $200,000,000 for fiscal year 1990 to carry out
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Editorial Notes
References in Text
The Foreign Assistance Act of 1961, referred to in subsec. (c)(2), is
§5413. Agricultural assistance
(a) Agricultural assistance strategy
(1) United States assistance
A principal component of the SEED Program shall be the provision by the United States of food and other agricultural commodities and products to alleviate crucial shortages that may be created in an East European country by the transition from state-directed controls to a free market economy.
(2) Assistance from other countries
In order to ensure the necessary quantity and diversity of agricultural assistance for that purpose, the United States shall take all appropriate steps to encourage parallel efforts by the European Community and other agricultural surplus countries.
(3) Avoiding disincentives to private agricultural production and marketing
In participating in such multilateral agricultural assistance, the United States shall seek to strike a balance wherein agricultural commodities and products are supplied in such quantities as will be effective in overcoming severe shortages and dampening inflation but without impeding the development of incentives for private agricultural production and marketing in the recipient country.
(b) Agricultural assistance for Poland
Pursuant to
(1) shall make available to Poland, in coordination with the European Community, United States agricultural assistance—
(A) to alleviate immediate food shortages (such assistance to be specifically targeted toward elements of the Polish population most vulnerable to hunger and malnutrition, in particular the infirm, the elderly, and children), and
(B) to facilitate the transition from state-directed controls to a free market economy, while avoiding disincentives to domestic agricultural production and reform; and
(2) in order to ensure the necessary quantity and diversity of such agricultural assistance, shall take all appropriate steps to encourage parallel efforts by the European Community and other agricultural surplus countries.
(c) FY 1990 minimum level of agricultural assistance for Poland
In carrying out subsection (b) of this section, the level of assistance for Poland for fiscal year 1990 under
(1) to the maximum extent practicable, shall be provided through nongovernmental organizations; and
(2) shall emphasize feed grains.
(d) Consistency with budget requirements
Subsection (c) should not be construed to authorize or require any budgetary obligations or outlays that are inconsistent with House Concurrent Resolution 106 of the 101st Congress (setting forth the congressional budget for the United States Government for fiscal year 1990).
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Editorial Notes
References in Text
The Food for Peace Act, referred to in subsec. (c), is act July 10, 1954, ch. 469,
House Concurrent Resolution 106 of the 101st Congress, referred to in subsec. (d), is H. Con. Res. 106, May 18, 1989,
Amendments
2008—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Amendment by
§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 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 Government debt obligations of an East European country which has taken substantive steps toward political democracy and economic pluralism, subject to subsection (c).
(c) Condition
An obligation may be sold under subsection (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.
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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