Brazil, Citibank OK $82-Billion Debt Restructuring Plan
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NEW YORK — Brazil and Citibank today announced completion of a historic $82-billion debt restructuring package, which will allow the nation to start drawing funds by the middle of the month.
The package should enable Brazil to bring back-interest payments to commercial banks up to date and in turn boost U.S. commercial banks’ fourth-quarter earnings.
The loan agreement will give Brazil $5.2 billion in new loans. It also reschedules old loans and covers various short-term trade loans.
The agreement will allow Brazil to make the first drawdown, totaling $4 billion, in the next two weeks and bring back-interest payments up to date for the first time since February, 1987.
Brazil is the developing world’s largest debtor, with $120.3 billion of external debt.
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