Brazil Says It Won’t Pay Interest on Debt, Calls for New Terms
- Share via
BRASILIA, Brazil — Brazil, the Third World’s biggest debtor, will not resume paying interest on its $115-billion commercial debt until it has negotiated new debt payment terms, a senior government official said today.
Secretary of the Economy Antonio Kandir ruled out any payments to banks until the government of President Fernando Collor de Mello has renegotiated its debt load.
Brazil has not paid interest on its debt to banks since last July and has accumulated arrears of more than $5.5 billion.
Kandir said it was necessary to cut foreign debt payments so that Brazil can increase imports to help modernize the country.
Collor, who took office in March, has said he will limit interest payments to $5 billion a year. The last time Brazil paid all of the interest was in 1988, when it paid out $9.8 billion.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
More From the Los Angeles Times
Podcasts
John Orr was a renowned fire investigator who was also a prolific arsonist, and whose thinly veiled novel helped to convict him. In this episode we hear from the fire captain who first suspected him—and from Orr himself.
Madison McGhee is joined by legendary Dateline host Josh Mankiewicz and esteemed L.A. Times Reporter Richard Winton as the three of them dive into all-things Menendez Brothers, the good, the bad, and the still unknown.
NPR climate editor Sadie Babits talks about why the media has long overlooked the climate crisis, and how that’s starting to change.
