Brazil Pays 1st Interest in 10 Months
Brazil on Tuesday made the first interest payments in 10 months on its debt to commercial banks but said it will not officially end its payment moratorium until it gets more concessions from the lenders.
Central Bank President Fernando Milliet said that, under an agreement with creditor banks, Brazil was withdrawing $367 million from a special account in the Bank of International Settlements in Switzerland and depositing it with Citicorp in New York, which represents about 800 private creditor banks around the world.
Added to that $367 million in the Citicorp account was $733 million from the banks themselves that was part of a new loan agreement signed this month. The $1.1 billion from the two sources will be used to cover interest Brazil owes for October through mid-December.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
