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Chile Buys Back $299 Million in Debt for 56 Cents on Dollar

November 10, 1988

NEW YORK (AP) _ Chile said Wednesday it will repurchase about 1.5 percent of its estimated $21.5 billion in foreign debt for an average of 56 cents on the dollar.

Banco Central de Chile, the South American nation’s central bank, said it planned to buy back debt with a face value of $299 million for $168.4 million in cash.

The bank said it was accepting all bids for 57.5 cents on the dollar or less. Hernan Somerville, Chile’s negotiator in talks with its foreign creditors, said the average purchase price was 56.3 cents on the dollar.

Under the repurchase plan, which was announced in September, foreign banks submitted bids to sell back debt at a specified percentage of face value.

Wednesday’s announcement was issued through Manufacturers Hanover Trust Co., Chile’s agent for the purchase.

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