DEBT SETTLEMENT
ITALY AND AMERICA
ON SAME LINES AS BRITISH
IN AbOORDANOE WITH CAPACITY-
TO PAY.
tOmU nit* tia<X!UIItMMM»nRR.t
ifftttotittt TtLlMifc.l
12th Nowmber.
The Treasury Department has announced an agreement in Connection with the funding negotiations for the settlement of Italy's debt to the United States. The announcement is made in the following' terms ■—
"The amount to be refunded as at lSth June, 1925, is the original indebtedness of 1,648,060,000 dollars, plus accrtied interest to date as in other recent settlements.' Tile Italian Government agrees to the repayment of this amount, namely, 2,042,000,000 dollars, upon proportionately the same schedule of annual instalments as in the agreement with" Great Britain, except that during the"first five years the payments are 5,000,tX)0 dollars annually, after, which the interest is fixed at one-eiglith ot 1 per cent, for ten years, With increases during successive ten-year periods .to -a quarter, a half > three-quarters of 1 per cent., and 1 per cent.; and for the last'seven years at 2 per cent. Under this ar/angertient the total annual payments will begin at 5,000,000 dollars, and reach "8,000;000 dollars in the last year. For the original debt the United States will receive during tile period of the agreement' a total of 2,407,000,----000 dollars. The basis of the settlement has been the repayment of principal and full payment of interßst in accordance with the capacity bf Italy to pay.
"Th 6 Commission- ha* made the most exhaustive examination into Italy's fiscal and economic situation". Italy is poof in natural. resources; her Visible balance of, trade is. adverse; food to support her. rapidly increasing jjopulation, also coal, oil, iron, and copper have to be. imported. Her future depends upon the development of hor industry ancl the labour of her people. .It is felt that the settlement lays as heavy n, burden upon the Italian peoplo as we are justified in imposing, and represents Italy's' capacity to pay/The final agreement is' fcein* driifted,. and should be signed on Saturday."
DEBT SETTLEMENT
Evening Post, Volume CX, Issue 118, 14 November 1925, Page 7
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