Requires the Secretary to report to Congress on the options and costs associated with expanding debt relief under the Initiative to poor countries not eligible for inclusion in it.
Authorizes the President to reduce amounts owed to the United States (or any Federal agency) by an eligible country as a result of: (1) certain guarantees issued under the Foreign Assistance Act of 1961; (2) credits extended or guarantees issued under the Arms Export Control Act; or (3) any obligation (or portion of it) to pay for purchases of U.S. agricultural commodities guaranteed by the Commodity Credit Corporation under specified export credit programs.
Prescribes other specified conditions and prohibitions with respect to country eligibility.
Requires any country otherwise eligible to receive debt cancellation under the modifications to the Initiative made by this Act, among other things, to agree to: (1) ensure that the financial benefits of debt cancellation are applied to programs to combat HIV/AIDS and poverty; and (2) implement transparent and participatory policymaking and budget procedures, good governance, and effective anticorruption measures.
Amends the Foreign Assistance Act of 1961 (including the Enterprise for the Americas Initiative), the Arms Export Control Act, and the Export Administration Act of 1979 to modify specified prohibitions on assistance to countries to include countries that have failed to cooperate with the United States on efforts to combat international terrorism.