Brazil and its bank advisory committee on debt restructuring have signed an agreement under which Brazil will issue about $7 billion of bonds to cover unpaid interest for 1989 and 1990.

The bonds will be issued as soon as banks holding 95% of the restructured debt add their signatures to the agreement, the advisory committee said.

Brazil owes foreign commercial banks some $44 billion. Banks and Brazil are currently finalizing a term sheet for a separate debt reduction deal covering that debt.

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