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Colombia Suspends Foreign Debt Payment

Associated Press

The Colombian government Friday suspended payment on its $16.5-billion foreign debt for three months, at which time the government is to obtain a new loan to meet the payments.

Treasury Minister Luis Fernando Alarcon said the country’s creditors agreed to the suspension.

The minister said Colombia will receive in April an international loan of $1.7 billion that will ensure it will have the funds needed to pay interest and principal on the foreign debt until 1990.

In the meantime, he said, the 90-day moratorium means Colombia will not pay $300 million, which can be used for economic development programs.

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