Yugoslavia Reschedules $240 Million In Foreign Debt
BELGRADE, Yugoslavia (AP) _ The Yugoslav government has reached an agreement with western creditors to delay payments on $240 million of its foreign debt, the state news agency Tanjug reported Friday.
The agreement was reached after two days of negotiations in Belgrade with Fulvio Dobrich, senior president of the Manufacturers Hanover Trust Co. of New York, Tanjug said.
Of the rescheduled amount, $90 million fell due June 30, while $150 million was to be paid on July 15. The total sum was rescheduled for September of this year, the news agency said.
Government spokesman Aleksandar Stanic acknowledged for the first time Thursday that this Communist country was running into problems servicing its foreign debt, which exceeds $19 billion.
Tanjug said the shortage of funds was due to ″seasonal problems″ associated with reduced foreign currency inflow in the Spring. The difficulties would be resolved by income from exports and tourism, the news agency said.
Yugoslavia has paid $23.5 billion to foreign creditors in interest during the past six years without visibly reducing the principal.