RUMANIA’S DEBTS

Gisborne Times, Volume LXXXII, Issue 12476, 12 February 1935, Page 3

RUMANIA’S DEBTS

AGREEMENT WITH BRITAIN

• LIQUIDATION SCHEME.

(British Official Wireless.), RUGBY, Feb. 10

In the House of Commons, Mr Walter Runciman announced that an agreement on Ahglo-Rumanian trade debts had been signed. Conversations on this subject were recently resumed in London with the Rumanian Minister of Commerce, M. Strunga. Mr. Runciman said that the outstanding trade debts of Rumania from November 1 last totalled £2,500.000. It was proposed to liquidate those debts as follows: Firstly, the Rumanian Government undertakes to pay into a special account at the Bank of England, before November 28, £-100.--000 to be used without delay for tlio payment- in full of all trade debts not exceeding £2O, and of £2O, or 20 per cent., whichever is the greater, as the first instalment of debts above £2O: secondly, on the fifteenth of each month, beginning in April, £60,000 would be paid into the account, this being a basic figure, but subject to variations, upwards or downwards, in proportion to any substantial increase or decrease in Rumanian exports to the United Kingdom; and thirdly, facilities to be granted, under certain conditions, for the payment of debts by means of so-called compensation by exports, insofar as creditors desired to avail themselves of that procedure.

The agreement required ratification by the Rumanian Government. Subject to this, it would come into force on February 25.