[Propriety of USIA Debt Conversion Activities]

The U.S. Information Agency (USIA) requested a decision regarding its authority to engage in debt conversion activities to fund educational and cultural exchange programs. GAO held that USIA could not use appropriated funds to purchase foreign debt and convert it to foreign currency or foreign currency denominated bonds, but could accept donations of foreign debt. Accordingly, USIA did not have authority to purchase discounted foreign debt from commercial lenders.