Brazil Making First Payment On Bank Interest This Week
BRASILIA -- Brazil will pay $900 million to international private banks on Friday, its first payment under an agreement reached in April to pay $8.5 billion in interest arrears, a top official said.
"The $900 million will be in the creditor banks' accounts on Friday, the 28th of June," Roberto Figueiredo, treasury director, told the official Agencia Brasil.
Approval by Senate
Last week, Brazil's Senate approved the debt agreement on the arrears, paving the way to begin payments to the international creditors.
The $900 million is due on Sunday, but Brazil in paying it on Friday because that is the last business day of the month, Mr. Figueiredo said.
Under the pact, Brazil will pay another $1.1 billion before the end of this year. The remaining $6.5 billion will be paid in 10-year bonds.
The interest arrears accumulated between July 1989 and the end of last year on medium- and long-term bank debt of $60 billion.
Financial Signatures Sought
Francisco Gros, president of the central bank, and Pedro Malan, Brazil's chief debt negotiator, begin on Friday a trip to the United States and Europe to talk with commercial bank creditors, Mr. Figueiredo said.
The talks are aimed at getting their official approval of the pact on the debt arrears. The pact in April was made with the creditors' steering committee. All of Brazil's creditor banks - some 600 - must individually agree.