COMMERCIAL DEBTS

Evening Star, Issue 21993, 1 April 1935, Page 9

COMMERCIAL DEBTS

BRAZILIAN LIABILITIES TO BRITAIN SETTLEMENT ANNOUNCED / (British Official Wireless.) Press Association—By Telegraph—Copyright RUGBY, March 29. An agreement has been signed on behalf of the United Kingdom and Brazilian Governments with regard to the settlement of commercial debts due to United Kingdom exporters. The Brazilian Government agrees to set aside annually £1,200,000 out ol the percentage of foreign exchange reserved for that Government’s requirements, and on the termination of the arrangement* made in June, 1933, by which the Bank of Brazil agreed to settle arrears outstanding at that date, a further annual amount of £853,000 will be set aside, if necessary. For this purpose the Brazilian Government will create 4 per cent, sterling stock, the service of which will he met from the annuity. Creditors will be offered stock to the' face value of the sterling amount of debts in milrcis, which will be converted into sterling at the official rate of exchange when the debt fell due. The Brazilian Government undertakes to make every endeavour to provide within thirty days a lump sum of £1,000,000 for payment in cash of small trading debts and such proportion of other arrears as may bo agreed upon. The Government also declares its intention to maintain in force the existing regulations by which goods imported after February 11, 1935, arc paid for by the purchase of exchange in the free market, and 40 per cent, of all arrears of commercial debts in respect of imports from September 11, 1934, to Februaiy 11, 1935, are liquidated by the purchase of exchange on the free market. The Brazilian Government undertakes that this 40 per cent, shall be liquidated by the purchase of exchange on the free market without awaiting the settlement of the

balance of 60 per cent.