Debt discontent grows

Press, 25 February 1987, Page 10

Debt discontent grows

NZPA Reuter Manila The Philippine Government is considering a plan to postpone debt rescheduling talks due to start next week while it studies Brazil’s suspension of interest payments, central bank sources said yesterday. A senior bank official said a new hard-line strategy was likely to be considered today by the Finance Secretary, Jaime Ongpin, and Central Bank governor, Jose Fernandez.

The Philippines is seeking rescheduling for $6.6 billion dollars due for repayment to its 483 priv-ate-bank creditors between January, 1987, and December, 1992. It is also seeking a further stretching of $10.7 billion of debt rescheduled in 1985. Brazil last week announced suspension of interest payments on $126 billion of debt owed to private banks in a bid to gain better repayment terms. Argentina later

said it might also suspend payments on its $9B billion foreign debt if better terms were not granted. • The head of the Dominican Republic’s Central Bank, Luis Julian Perez, said yesterday his country would soon have to follow Brazil’s example. The Dominican Republic, which owes about $7.4 billion to foreign banks, is in the midst of a severe economic crisis because of dropping sugar sales, its primary export.