Summary of the external public debt of Chile

 No. E-l25 ON 7' \; .. ~.:•...:.. '~"'-'r .',," 67154 This report is not to be published nor may it be quoted as representing the Bank's views. INTERNA TIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SUMMARY OF THE EXTERNAL PUBLIC DEBT OF CHILE June 9, 1952 Economic Department Prepared by: James J. Lynch Reviewed by: Carel deBeaufort  Table of Contents I. Current External Debt and Service Payments I A. Zxternal Debt I B. Current and Projected Service Payments 3 II. Pledged Revenues or Assets 5 Table A-I: External Public Debt of Chile Table A-2 ~ Estimated Contractual Interest and Amortization Payments on the External Public Debt of Chile A...3: Background on External Debt Defaults and Debt Readjustments A-4: Pledged Revenues and Assets (This report was prepared by James J. Lynch, checked by Andrew C. Huang and reviewed by Carel deBeaufort.)  SmvIIiJ.ARY OF THE ZXTE.RNAL PU:aLIO DEBT OF OHILE I. Ourrent External Debt and Service parments A) External Debt As of December 31, 1951, the total external debt of Ohile authorized and outstanding was equal to approximately U3$315.6 million 11 of ,,,hleh US~291.2 million was outstanding and $24.5 million was unutilized. 1) Dollar Debt Of the U3$315.6 million total, dollar debts amounted to $233.3 million (74%) as follows: a) Privately~held governmental dollar bonds publicly issued in the ttwenties ~ outstanding in the amount of $113.8 million. b) Ored! ts from the E::timbank, as of December 31, 1951, amo'U.'1ting to $99.2 million, of which $84.5 million was outstanding &'1d ;14.7 million was undisbursed .. c) ~ loans totalling $16.) million t of which $6.5mi11ion ~~s outstanding and $9.8 million undisbursed as of December 31. 1951. d) A loan of U3$17.4 million fully disbursed from the Argentina Trade Promotion Institute. Ten million dollars of this loan is being paid off in U.3. dollars over a fiv~year period, of this portion of the loan the final $4 million outstanding as of December 31, 1951 will be paid during 1952. The remaining $7.4 million is being settled by exports to Argentina of Ohl1ee~ iro~ and steel ~~th ~4 mill~on of matorials still outstanding as of December 31.1951. Th0 :~4 million payable in u.s. dollers end the J4 millio~ payable in materi;ls are includ.ed in Tables A-I and 1\-2. 2) Non~ollar Debt The non-dollar debt equivalent to US$82~3 million, is made up as fOlloWS; a) sterling obligations (£20.4 millian)~ equivalent to US~57.2 million, of which ali but us~48,ooO (lBRD loan) is accounted for by sterling bonds originally issued between 188S and 1930 ~/. b) S~Tiss franc debt (90,2 million), equivalent to US";2l.l million, all of which represents old publicly-ia.sued external Swiss franc bonds y except for the Swiss francs equivalenv to US$184,000 (liL~ loan). c) French franc debt (10 million), equivalent to US$29.000, re- presenting in its entirety the French franc portion of the IBRD loan. d) Belgian franc debt (137.000), equi~alent to US~3,OOO. repre- senting in its entirety the Belgian franc portion of the I]PJD loan. e) Debt payable in materials,equlvalenv to U8$4 million, discussed in detail in Paragraph (d) above. Listed on the following page are the total amounts of external debts in each category. (For details of the loans ~ing up these totals see Table A-l) 11 The rates used in converting the various foreign currency debts into U.S. dollars were as follows: £1 = $2.80, ~~ fr 1 = $0.23048, fr 350 = $1.00. 6J For details of the unilateral 1935 and mutually agreed upon debt plan of 1,948 see Append.ix A-), and lBRD Economic Department Report dated April 19. 1949 - "External Debt of Chl1e. lt  - 2 - External Public Debt of Chile Debt outstanding Dec.31, 1951 In currency Expressed of payment in U.S.$ (in thousands) National and Govt. Guaranteed Debt DOLLtll1 DEBT Dollar bonds $ 113,848 113,848 IBRD loans 11; ,p 16,323 16,323 U.S. Governrnent loans ~ 99,193 99,193 Loans from other governments $ 4,000 4,000 Total dollar debt • • . • • • • • • • • · . ~ oW 233,364 233,364 STERLI!fG DEBT Sterling securities f, 20,407 57,140 Portion of lERD loan I:, 17 48 Total sterling debt • • ···· • • • · b 20,424 57,168 s~;rssFRANC DEBT Swiss franc securities SW fr 89,426 20,894 Portion of loRD loan Sw fr 790 184 Total Sydss franc debt • • • • • • • • Sw fr 90,216 21,078 FRENCH FRANC DEBT Portion of lBRD loan • • • • • • • • • fr 10,000 29 BELGIAN FRANC DEBT Portion of lBRD loan • • • ·• • • • • B fr 137 3 DZBT PAYABLE li~ I1AT:=IUALS 3,983 Total external public debt ••••••••••••••••••••••••••••••••••••• 315,645 Amount undisbursed •.••••••••••••••.•..••••..••••.•.•••••..•.••• 24,415  -3- B) Current and Projeoted Servioe Payments Total es~imated servioe payments for 1952 amount to the equivalent of US.:p27.2 million, of ".,hich US$9.2 million is interest and 00:;;18.1 million is amortization. The dollar component amounts to $20 million, of which interest is ~7.0 million and amortization $12.9 million. The non-dollar portion con- sists mainly of sterling payments equivalent to US~2.7 million and of Swiss franc payments equivalent to US$861 t OOO, and a payment in materials of ~3.7 million to Argentina. Total servioe payments decline to US$19.? million in 1953, rise to US$20.1 million for 1954, US$20.2 million in 1955, thereafter deolining to US$19.3 million by 1956. Payments amount to US$18.4 million and US$18.7 million in 1957 and 1958, respectively. In 1959 they fall to US$15.5 million and in 1960 to US$13.2 million, follo\<Ted by a gradual decline to US$11.1 million by 1970. In 1971 a drop of about 37% takes plaoe "Then service requirements fall to US$7 million. They remain at that level through 1976. Listed on the following page is a summary of the annual changes in the total debt, the required annual interest and amortization payments on this total, and a breakdo\m of service payments by ourrenoies. Additional details are sho\·m in Table A-2. ... / ...  - 4- Estimated Contractual Interest and Amortization Payments on the External Public Debt of Chile (expressed in thousands of u.s. dollars) Tot a 1 Service Eayments by currency Y Debt out- Payments durin~ year standing Amorti- U.S. Ster- Swiss Materi- Year ~an. 1Y zation Interest Total dollars ling francs als 1952 )15,644 18,059 9,162 27,221 19,955 2,746 861 ),659 195) 292,698 10,952 8,759 19,711 15,517 2,655 1,051 488 1954 276,235 10,992 9,110 20,102 17,347 1,992 76) 1955 262,670 11,578 8,652 20,230 17,475 1,992 763 1956 249,187 11,121 8,184 19,305 16,550 1,992 76) 1957 236,162 10,699 1,726 18,425 15,610 1,992 763 1958 223,)80 11,411 1,270 18,741 15,992 1,992 763 1959 209,696 8,664 6,814 15,478 12,723 1,992 763 1960 198,692 6,718 6,447 1),16, 10,409 1,993 763 1961 189,495 6,972 6,122 1),094 10,331 1,994 16) 1962 179,896 7,011 5,786 12,803 10,046 1,994 763 196) 170,095 7,320 5,444 12,164 10,008 1,993 16,3 1964 159,823 7,637 $,086 12,723 9,967 1,993 76,3 1965 149,056 7,735 4,715 12,450 9,694 1,993 76,3 1966 138,005 8,082 4,330 12,412 9,656 1,993 763 1967 126,406 8,448 ,3,930 12,378 9,623 1,992 763 1968 114,230 8,833 3,511 12,344 9,589 1,992 763 1969 101,446 8,090 ,3,083 11,17,3 8,422 1,988 763 1970 89,167 8,46,3 2,675 11,1)8 8,)87 1,988 76) 1971 76,264 4,707 2,287 6,994 4,243 1,988 76) 1972 66,850 4,988 2,006 6,994 4,243 1,988 76) 1973 56,874 5,288 1,706 6,994 4,243 1,988 763 1974 46,298 5,686 1,308 6,994 4,243 1,988 763 1975 35,026 5,945 1,049 6,994 4,243 1,988 763 1976 23,136 6,439 555 6,994 4,243 1,988 76) It was assumed that all bonds woiild assent to the 1948 plan. It was also assumed that bonds would be retired by purchases at an average price below 50% of par in 1952-3 and 50 thereafter. 3./ Includes amounts payable in French francs (fr 10,000,000 or $28,604) and Belgian francs (B fr 137,477 or $28,604) which are too small to be shown separately.  -5- II. Pledged Revenues or Assets The Bank does not have the original indentures on any of the external publicly-issued bonded securities; therefore definitive information on pledged revenues or assets is not now available. Secondary sources, however, (mainly [,loodyl s Governments and J.l1unicipals Eallual and the Stock Exchange Official Year- :Book), indicate that in general the bonds do not have pledged revenues or assets. In most oases they are direot or guaranteed obligations of the Republic of Chile, which undertook to secure these bonds pari- passu ,·!ith any :'ut'll'e 10[>.l.1.S whioh might be secured by liens or charges On any specific revenue or asset~ Following the default on the external debt in 1931, certain steps ,Jere taken to effect repayments of interest and amortization on the defa,ul ted bonds. A major step ,,;as taken in 1935, when a la11 (No.5580) was passed :r.>roviding uni- laterally for partial resumption of the service on the external debt. Under Provision (1) of this law certain revenues were pledged to an agency set up to service the external debt. (The details of this plan are shO\nl in A-4.) This unilateral debt plan continued in operation from 1935 to the early part of 1948~ In that year tbe Chilean Government llegotiated a permanent debt settlement "£1 th the Council of the Foreign :Bondholders. Under the 1948 plan bondholders who assented were required to give up their rights to the revenues assigned unde~ Law 5580, but the Chilean Government agreed that if any lien or charge should thereafter be created on any copper, iodine or nitrate revenues ~ to secure any external debt, the bonds assented to the 1948 offer ,,[ould 'ipso" facto I share in such lien or charge fpari passu f with any other creditors of the Republic. Sinee practioally all of the outstanding bonds subject to the 1948 otfer have acoepted the new bonds, the pledged revenues of the 1935 plan no longer are operative for the major por~ion of the external debt of Chile. The pertinent information affecting the external debt under various decrees from 1935 through 1946 are presented in A-4.  Table A-l: EXTERN.,u, PUBLIC DEBT OF CHILE National and Government Guaranteed Debt (In thousands) Page 1 Debt outstanding December 31, 1951 Identification DOLLAR DEB'£ Dollar securities Securities y 112,291 Y 112,297 Scrip certificates 1I 1,551 1,551 Total dollar bonds 113,848 ll3,848 I.B.R.D. loans Portion of S13,500,ooo loan to Corporacion de Fomento de 1a Produceion and Empresa Nacional de Electricidad, S.A. 4 1/2%, 1948-1968 (electric power) 11 $ 13,23121 13,237 Corporacion de Fomento de la Produccion 3 3/4%, 1948-1955 (Agricultural machinery) 11 $ 1,7 86 !/ 1,786 Corporacion de Fomento de la Produccion 4 3/8%, 1951-1961 (Rio Elqui Project) ~ 1,300 jJ 1,300 Total I.B.R.D. loans (:) <W 16,323 16,323 U.s. Government loans Export-Import Bank loans Corporacion de Fomento de la ?roduccion 3 1/2% and 4%, various maturities.~ (' 'if 94,166 §/ 94,166 Chilean State Railvvays 3 1/2%-1955 ~ (u, 'If 2,8GO 2,880 Chilean State Railways 4%, various rna turi ties 21 ~ 1,547 1,541 Total u.s. Government loans c· 'Ii' 99,,193 99,193 Loans from other governments Instituto de Promocion del Intercambio Argentino 4%-1952 18I 4,000 4,000 Total dollar debt 233,364 233,364 See footnotes at end of table.  Table A-l: EXTERHAL PUBLIC DEBT OF CHILE - Contd. National and Government Guaranteed Debt {In thousands} Page 2 Debt outstanding Identifica tion December 31, 1951 In currency Expressed in , I of paY!pent U.S. dollars STERLING DEBT Sterling securities 11 20,40 7 W 57,140 Portion of G13,500,OOO I.B.R.D. loan to Corpora cion de Fomento de la Produccion and Empresa Nacional de Electricidad, S.A. 4 1/2;&, 1948-.1968 (electric power) 1iI 1721 48 Total sterling debt 20,424 51,188 srass FR.'tUC DEBT Sydss franc securities 11 8w fr 89,426 W 20,894 Portion of ~13,500,ooo I.B.R.D. loan to Corporacion de Fomento de ls Produccion and Empresa Nacional de Electricidad, B.A. 4 1/2%, 1948-1968 (electric power) W 79021 184 Total Srdss franc debt Sw fr 90,216 21,078 FREHCH FRANC DEBT Portion of :,,,13,500,000 I.B.R.D. loan to Corporacion de Fomento de la Produce ion and Empresa Nacioppl de Electricidad, B.A. 4 1/2%, 1948-1968 (electric power) W fr 10,000 JI 29 BELGIAN FRANC DEBT Portion of ;,13.1500,000 I.B.R.n. loan to Corporacion de Fornento de la Produecion and Empresa Nacional de Electricidad, S.A. 4 1/2;~, 1948-1968 (electric power) 1iI Bfr 137 DEBT PAY1\BLE IN MA.TERIALS Instituto de ProI:1ocion del Intercambio Argentino 4%-1953 ~ 3,983 Total external public debt 315,645 See footnotes at end of table.  Table A-I: EXTERNAL PUBLIC DEBT OF CHILE - Contd. National and Government Guaranteed Debt ,. Page 3 Summar,{ by currency (Amounts expressed in thousands of U.S. dollars) Debt outstanding December 31, 1951 cI' Curreng Amount 10 U. S. dollars Disbursed and still outstanding 208:,889 66.18 Undisbursed 24,475 7.75 Total 233,364 73.93 Sterling 57 z188 18.12 Swiss francs 212 078 6.68 French francs 29 ·0.01 Belgian francs 3 Nate rials 32 983 1.26 Total 315,645 100.00 Exchange rates: ~ - $2.80; Sw fr 1 s:; ~O.233645. The rate used on the S1\'iSS franc is that used in the material furnished the Bank by the Chilean Government. The dollar equivalent 9f non-dollar I~B.R.D. loans is fixed by agreement 1Nith the Ban19 the amounts shmm in the II currency of paymentl1 column are the amounts payable. The e)~ernal bonds of Chile went into default in 1931. In 1935 bondholders were offered a plan whereby varying amounts would be paid annually out of the profits of the Chilean Nitrate & Iodine Sales Corp. and from taxes on the r~trate and copper industries. Payments have been made under this plan on dollar, sterling and S·,·Iiss franc bonds as fol101"rs: er :';'l.!OOO bond Sw fr l z 000 bond 1936 $ 4.75 9 s. 6 d. Sw fr 4.75 1937 6.05 12 s. 1.2 d. 6.05 1938 7.86 15 s. 8.64 d. 7.86 1939 20.925 41 s. 10.2 d. 20.925 1940 15.225 30 s. 5.4 d. 15.225 1941 15.39 30 s. 9.36 d! 15.39 1942 15.58 31 s. 1.92 d. 15.58 1:1 continued on page 4  Table A-1: EXTERNAL PUBLIC DEBT OF CHILE - Contd. National and Government Guaranteed Debt Page 4 y - Continued - Year 1943 ~)1, <;100 $ '16.80'" bond 33 s. 7.2 "d. Sw fr 1,000 bond US$ 3.948 E.! 1944 14.28 28 s. 6.7 d. 3.3558 Y. 1945 11.26 22 s. 6.24 d. 2.6461 Y. 1946 12.02 24 s. 0.48 d. 2.82471{ 1947 14.15 28 s. 3.6 d. 3.3 252 E! 1948 10.296 20 s. 7.104 d. 2.41956 E/ 1949 11.09 1.109% 1.109% . 1950 11.259 1.1259% 1".1259% 1951 13.33 1.333% .1.333% 1952 14.49 1.449% 1.449% 51 Payments on the South Longitudinal Railway 5% Annuities were sli1ht1y different, although on a similar scale. £( Convertible to Svuss francs at the free rate. :.! Convertible to S...-uss francs at ~~1 ::; Sw fr 4.20 by residents of Switzerland and Liechtenstein; and at free rate by others. In 1948 an offer "llvas made to dollar bondholders, and subsequently followed by a si.uilar offer to sterling and S11i65 franc bondholders, r.7le:reby they can ex- change their bonds for new bonds dated Janua~J 1, 1948 and maturing December 31, 1.993- These bonds pay interest at the rate of 1 1/2% in 1948, 2% in 1949- 19$0, 2 1/2~ in 1951-1953, and 3~ thereafter. DurinG tno years 1948-1953 bonds in nll three currencies shax:e in a general nOrJ..o.oCumulative sinldng fund of ~t2, ... 531,.000 (qhich represents lSO of the total-bonds of all-currencies outstanding on December 31, 1947). This sinking fund can be applied to retirement of bonds assented to the 1948 plan, as well as to bonds assented to the 1935 plan but not assented to the 1948 plan. Starting in 1954 there vvill be provided for each group of bonds a cumulative sinldng fund of 1% p.a. of the bonds out- standing on December 31, 1953. Both of these offers were made to bonds of the Republic of Chil.e, to the bonds guaranteed by the republic and to the non-guaranteed municipal bonds. In addition, bondholders who did not assent to the plan of 1935 'wi11 receive non-interest bearing scrip certificates equal to the amount of interest paid on bonds assented to the 1935 plan. Bondholders -¥ho assented late to the plan of 1935 will receive scrip certificates equal to the amount of interest under the 1935 plan which they did not receive as a result of delayed assent. 87% of these bonds are assented to the plan of 1948. Non-assented, non- guaranteed municipal bonds are included here since they are exchangeable for bonds of the republic.  Table A-l: EXTERNAL PUBUC DEBT OF CHILE - Contd. National and Govel~ent Guaranteed Debt Pa~e 5 Certificates mature in equal amounts each June 30 in 1950, 1952, 1954~ 1956 and 1958. Commencing in 1949 the republic must pay the fiscal agent ~300,- 000 p.a. until all scrip certificates are retired. After December 31, 1950, no additional scrip certificates could be issued to bondholders 1'f110 assented late. W Guaranteed by the national government. 21 The status of this loan on December 31., 1951 and lvlarch 31, 1952 was as foll0vTs' December 31, 1951 1;Iarch 31,2 1952 In Expressed In .i:!AJ?re ssea Currency currency in U.S. currency in U.S. of payment dollars of payment dollars Disbursed and still outstanding ~\ U.S. dollars .;p 4,161,436 4,761,436 I· w 5,906,295 5,9 06,295 Sterling £ 11,134 47,971 £ 17;134 47,977 Swiss francs Sw fr 789,834 1.83; 789 SIr fr 910,,085 211,771 French francs fr 10,000,000 28,604 fr 10,000,000 28,604 Belgian francs Bfr 137,471 2;75q Bfr 154,255 3,085 Total disbursed and still outstanding 5"CZL.S56 6;197,732 , Undisbursed 8,475,444 7,302,268 Total 13,500,000 13,500,000 Out of the original loan of :.12, 50G, 000, the I.B.Ii.D. had sold ;". 791, 000 to outside parties as of December 31, 1951. Of this amount ~(241, 000 had been repaid up to December 31, 1951.. On January 2, 1952 an additional payment of ~,200, 000 of the original ~'791, 000 of notes sold were repaid. Also on January 2, 1952, the I.B.R.D. sold another :",200,000 of notes to outside parties. This makes a total of ~/99l,OOO notes sold of which ;",441,000 has been repaid. The anoill~t outstandin~ of ~1,786.ooo as of Dece~lber 31, 1 includ.es both the amount ol'fecl to I3?J) ancl others. 11 Completely undisbursed. §/ Of this amount :'1'14,700,000 was undisbursed as of Decembor 31, 1951. 21 The Chilean State F.ail'aays systen is owned and opera.ted by the Ferrocarri1es del Estado, an agency of the central government of Chile. For this reason it was included ,vith the obligations of the national goverrunent, even though this debt is not actua11~' guaranteed by the republic.  Table A-I: EXTERNAL PUBLIC DEBT OF CHILE - Contd. National and Government Guaranteed Debt Page 6 This was originally a credit of ~17,48.3,OOOof which ~10,OOOJOOO is payable in ~urreney and ~J7,48.3,OOO in steel and pig iron. An initial cash payment of ~2,OOO,OOO was made'one month after the signing of the agreement in 1950 and payments of t;2,000, 000 each were made on March .31, 1951 and July .31, 1951 respectively" leaving ~4,000,000 in currency to be paid in 1952. The payments in materials are to be made as follows: the equivalent of \1'1,500; 000 up to June .30, 1951 the equivalent of ~2" 000,000 bet1ffeen July 1 and December .31, 1951 the equivalent of ~.3,500,000 between Jan. 1" 1952 and December 31" 1952 the rer,lB.inder between January 1" 1953 and l{Jarch .31, 195.3. 111 Of the sterling bonds 96% are assented to the plan of 1948, ~ Of the Svdss franc bonds 90% are assented to the plan of 1948~ IBRD - Statistics Section April 21, 1952  Table A-2.t ESTIWiTED CONTRACTUAL INTEREST AIID .A1-iORTIZATIQH PAYMZHTS OlJ T13:D EXT:EruTAL PUBLIC DEBT OF CHILE (Expressed in thousands of U.S. dollars) :!:ai~ 1 Dollar securities II Dollar scri~ certificates gJ TQt~l dQll~ §~QYr1~1§2 Debt out- Pa~ments during zear Debt out- Pazments during year Debt out- Payments during ~ear Year standing Amort i- standing Amtn'ti- standing In- Total In- Total Amort i- In- Total Jan. 1 zation terest Jan. 1 zntion terest Jan. 1 zLtion terest 1952 112,297 886 2,807 3,693 1,551 300 300 113.848 1,186 2,807 3,993 1953 109.803 886 2,745 3,631 951 300 300 110,754 1,186 2,745 3,931 1954 106,084 1,061 3.182 4, 243 951 125 125 107;035 1,186 3,182 1+,368 19.5.5 103,963 1;124 3,119 4,243 103,963 1,124 3,119 4,243 1956 101.714 1,192 3.051 4.243 101,714 1,192 3,051 4,243 1957 99.330 1,263 2,980 4,243 99,330 1,263 2,980 4,243 1958 96.804 1,339 2,904 4,243 96,804 1.339 2,904 4,243 1959 94,126 1.419 2,824 4,243 94,126 1,419 2,824 l},243 1960 91,288 1,504 2,739 4,243 91,288 1,504 2,739 4, 243 1961 88,280 1;.595 2,648 4,243 88,280 1,595 2,648 4,243 1962 85,090 1,690 2,553 4,243 85,090 1,690 2~553 4,243 1963 81~710 1,792 2,451 4, 243 81,710 1,792 2,451 4;243 1964 78.126 1,899 2,344 4,24) 78,126 1,899 2,344 4~243 1965 74,328 2,013 2,230 4,243 74,328 2,013 2,230 4;243 1966 70,302 2,134 2,109 4,243 70,302 2,134 2,109 4,243 1967 66,034 2,262 1,981 4,243 66,034 2,262 1,981 4,243 1968 61.510 2,398 1.845 4,243 61,510 2,398 1.845 4,243 1969 56.714 2,.542 1,701 4,24) 56,714 2,542 1,701 Ly,243 1970 51,630 2,694 1,549 4,243 51,630 2,694 1,549 4, 243 1971 46,242 2,8.56 1.387 4,243 46,242 2,856 1,387 4,243 1972 40,530 3,027 1,216 Ir,24J 4oJ~?0 3,027 1.216 4,243 1973 34,476 3,209 1,034 4,243 34, 76 3,209 1,.034 4.243 1974 28,.058 3,482 761 4,243 28,058 3,482 761 4,243 1975 21.194 3;609 634 4,243 21,194 3,609 634 4.243 1976 13,976 3,963 280 4.2 43 1),976 3,963 280 4,243 See footnotes at end of table.  Table A-2: ESTHi.iI.TED COHTIUiCTUAL INTEREST MID AI-10RTIZATIOj:i PAYi,{3NTS O£J TIE.. EXTERNAL Pu13LIC DEJ3T OF CHILE - Contd. (Expressed in thousands of U.S. dollars) Page 2 I.B'.R.D'. loans - lj~:port-ImrJOrt :Bank Argentine loan dollar portion JJ Year Debt out- Payments during year Debt out- Payments during year Debt out- Payments during year standing Amort i- In- Ttl standing &~orti- In- ~ t 1 standing Amorti- In- T t'l Jllll. 1 zation_terest 0 a Jan. 1 ~atio~ terest _0 a .Ian. 1 zatio~t_er_est 0 d 1952 16,3.54 493 715 1,208 99,193 7,235 3,326 10,561 4,000 4,000 193 4,193 1953 15.833 626 697 1 .. 323 91 ,957 6,799 ),l.j,64 10,263 1954 15,207 1,198 665 1,863 85,158 7,919 ),197 11,116 1955 14.009 1,131 612 1.743 77,239 8,592 2,897 11,489 1956 12,878 898 568 1,466 68,647 8,257 2,584 10,8ll-1 1957 11; 980 931 527 1,458 60,390 7,684 2,285 9,969 1958 11,049 966 486 1,'+52 52,706 8,303 1,994 10,297 1959 10,083 1,001 441 1,442 44,403 5,3 2 2 1,716 7,0)8 1960 9,082 1,038 397 1,435 39,081 3,198 1,533 4,731 1961 8,044 1,074 349 1,423 35,883 3,266 1,405 lj,.671 1962 6.970 894 302 1,196 32,617 3,334 1.273 4,607 1963 6,076 926 263 1,189 29,283 3,437 1,139 4,576 1964 5,150 959 221 1,180 25,846 3,544 1,000 4,544 1965 4,191 993 178 1,171 22,302 3. 421 859 4,280 1966 3,198 1,029 132 1,161 IS, 3,532 720 4,252 1967 2,169 1,065 86 1,151 15,3lJ9 3,651 578 4,229 1968 1i 10 4 1,104 38 1,142 11;698 3,774 430 4,204 1969 7,924 3,901 278 4,179 1970 4.0 23 4,023 121 ll-t 144 1971 1972 1973 1974 1975 1976 See footnotes at end of ta.b1e.  .' Table .8.-2: ESTHIAT.F.J) CONTRACTUAL HlTEREST AND AiJfORTlZATIOlY PAYNENTS ON TIE EXTJRHAL PUBLIC DEBT OF CHILE - Contd. (Expressed in tbouso.nds of U.S. dollars) Pa~e J Total doll~ debt Sterlinf, sec1.U'ities rJ I.13.RID~ loan - 2ter1ing ~ort~Qn Year Debt out- PaYments during l~ar Debt out- ~alments during ~ear Debt out- P~Lments during ~ear standing .Amort i- In- standing Amorti- In- standing Amorti- In- Jt'.n. 1 zution terest Total Jan. 1 zution terest Total Jan .. 1 zution terest Total 1952 233,39.5 12,914 7,041 19.955 57,140 1,316 1,428 2,744 48 2 2 1953 218,544 8,611 6,906 15,517 53,421 1,316 1,336 2,652 48 1 2 3 19.54 207,400 10,303 7,044 17.347 49,102 497 1,491 1,988 47 2 2 4 1955 195,211 10,847 6,628 17,475 48,708 527 1,461 1,988 45 2 2 4 1956 183,239 10,347 6,203 16,550 47,604 558 1,430 1,988 42 2 2 4 1957 171,700 9,878 5,792 15.670 46,548 592 1,396 1,988 40 2 2 4 1958 160,559 10,608 5.384 15,992 45,364 627 1,361 1,988 37 2 2 4 1959 148.612 7,742 4,981 12,723 44,110 665 1,323 1 •.988 34 2 2 £.} 1960 139,451 5,740 4,669 10,.409 42,780 705 1,283 1,988 31 3 2 5 1961 132,207 5,935 4,402 lOt 337 41,370 747 1,241 1,988 28 4 2 6 1962 124,677 ,5,918 4,128 10,046 39,876 792 1,196 1,988 25 4 2 6 1963 117,069 6,155 3,853 10.008 38,292 839 1,149 1,988 22 4 1 5 1964 109,122 6,402 3,565 9,967 36,614 890 1,098 1,988 19 4 1 5 1965 100,821 6,427 3,267 9,694 34,834 943 I f 045 1,988 15 4 1 5 1966 92,381 6,695 2,961 9,656 32,948 1,000 988 1,988 12 4 1 5 1967 83,552 6,978 2,645 9,623 30,948 1,060 928 1,988 8 4 !3:J 4 1968 74,312 7,276 2,313 9,589 28,828 1,123 865 1,988 4 4 !3:J 4 1969 64,638 6,443 1,979 8.422 26,582 1,191 797 1,.988 1970 55,653 6.717 1,670 8,387 24,200 1,262 726 1,988 1971 46,242 2,856 1,387 4,243 21,676 1,338 650 1,988 1972 4o.~30 3,027 1,216 41'243 19,000 1,l1-18 570 1,988 1973 34 , 76 3,209 1,0.34 4,243 16,164 1,503 485 1.988 1974 28,058 .3,482 761 4,243 13,158 1,593 395 1.988 1975 21,194 3,609 634 4,243 9,972 1,689 299 1,988 1976 13.976 3,963 280 4,243 6,594 1,790 198 1,988 See footnotes /).t end of table.  Table A-2.: ESTIHATED CONTRAOTUAL INTEREST AlID Af.fORTlZATION PAYMENTS ON THE EXTEBNAL PUBLIC DEBT OF CHILE - Contd. (Expressed in thousands of U.S. dollars) ~ag:e 4 I.B.R.D •. loan - Total sterling debt Swiss franc securities 11 Swiss franc ~ortion Year Debt out- }:a.vments duri;gg: :fear Debt out- Pa;.y:ments during :fear Debt out- :e~nt s during lear standing Amort i- In- standing Amort i- In- standing Amorti- In- Jan. 1 zation terest Total Jan. 1 zation terest Total Jan. 1 zation terest Total 1952 57.188 1,316 1,430 2.746 20,894 329 522 851 184 10 10 1953 53.469 1,317 1,338 2,655 19,990 329 500 829 212 212 10 222 1954 49,749 499 1,493 1,992 19,086 190 573 763 1955 48,753 529 1,463 1,992 18,706 202 561 763 1956 47,646 560 1,432 1,992 18.302 214 549 763 1957 46,588 594- 1,398 1,992 17,874 227 536 76:; 1958 45,401 629 1,363 1.992 17,420 240 523 76:; 1959 44.144 667 1,325 1.992 16,940 255 508 763 1960 42,811 708 1,285 1,993 16,430 270 493 76:; 1961 41,396 751 1,243 1,994 15,890 286 477 763 1962 39,901 796 1,198 1,994 15.318 303 460 76:; 196:; 38.314 843 1,150 1,993 14.712 322 441 76:; 1964 36,633 894 1,099 1,993 14.068 341 422 76:; 196,5 34,849 947 1,046 1,993 13.:;86 361 402 763 1966 32,960 :L.o04 989 1,993 12,664 383 380 763 1967 30.956 1,064 928 1,992 11,898 406 357 763 1968 28.832 1,127 865 1,992 11,086 430 333 763 1969 26.582 1.191 797 1,988 10,226 456 307 763 1970 24,200 1,262 726 1,988 §.3 14 484 279 7~ 1971 21,676 l'l38 650 1,988 ,346 513 250 7 :; 1972 19,000 1, 18 570 1,988 7.320 543 220 763 1973 16,164 1,503 485 1.988 6,234 576 187 763 1974 13,158 1,593 395 1,988 5,082 611 152 763 1975 9,972 1,689 299 1,988 3,8bO 647 116 763 1976 6.594 1,790 198 1,988 2,566 686 77 76:; See footnotes at end of table.  ~. Table A-2: ESTIIvll\TED CONTRACTUAL INTEREST AND AMORTIZATION PAYMEl'lTS T~ EXT~'lAL PUBLIC DEBT OF CHILE - Contd. (Expressed in thousands of U.S. dollars) Pa.,ge _5 Total Swiss franc debt Debt payahle in materials Year Debt out- Payments during year Debt out- PaYments during year standing Amort 1- In- Ttl sta.nding Amorti- In- Ttl Jan.. 1 _ zationter.est__ ~ a.~an----l__. zation terest__ 0 a 1952 21,078 329 532 861 3,983 3.500 159 3.659 1953 20,202 .541 510 1,051 48:; 48:; 5 488 1954 19,086 190 57:; 76,3 1955 18,706 202 561 76:; 1956 18.302 214 549 76:; 1957 17,874 227 5:;6 763 1958 17,420 240 52,3 76:; 1959 16.940 255 508 763 1960 16,430 270 493 763 1961 15.890 286 477 763 1962 15,318 303 460 763 1963 14,712 322 441 76,3 1964 14.068 341 422 763 1965 13,386 361 402 763 1966 12,664 383 380 763 1967 11,898 406 357 76:; 1968 11,086 430 333 763 1969 10,226 456 307 763 1970 9,314 484 279 763 1971 8,,346 513 250 76,3 1972 7,320 543 220 763 197~ 6,234 576 187 76:; 197 5,082 611 152 763 1975 3,860 647 116 76.3 1976 2,566 686 77 76:; See footnotes at end of table. Table A-2: ESTIMATED COI'ITRACTUAL INTllU.:ST AND Al.fORTIZATION PAYMENTS Ol~ Tm; EXTI:RNAL PUl3LIC DEBT OF CHILE - Contd. (Expressed in thousands of U.S. dollars) Page 6 Total debt Service ~ayments b~ currenc~ Year Debt out- l&l!!nts durin~ ~ear standing Amorti- In- U.S. Swiss Jan. 1 zation terest Total Sterling Materials dollars francs 1952 315,644 18,059 9.162 27,221 19.955 2,746 861 3,659 1953 292,698 10,952 8,759 19.711 15,517 2,655 1,051 488 1954 276,235 10,992 9,110 20,102 17,]47 1.992 763 1955 262,670 11,578 8,652 20,230 17,475 1,992 763 1956 249,187 11,121 8,184 19.305 16,550 1,992 763 1957 236,162 10,699 7,726 18,425 15,670 1,992 763 1958 223,380 11,477 7,270 18,747 15.992 1,992 763 1959 209,696 8,664 6,814 15,478 12,723 1,.992 763 1960 198,692 6,718 6,447 13,165 10,409 1,993 763 1961 189,495 6,972 6,122 13,094 10,337 1,994 763 1962 179,896 7,017 5.786 12,803 10,046 1,994 763 1963 170,095 7,320 5,444 12,764 10,008 1.993 763 1964 159 t 823 7,637 5,086 12,723 9,967 1,993 763 1965 149,056 7,735 4,715 12,450 9,694 1,993 763 1966 138,005 8,082 4,330 12,412 9,656 1,993 763 1967 126,406 8,448 3,930 12,378 9,623 1,992 763 1968 114,230 8,833 3,511 12,344 9.589 1.992 763 1969 101,446 8,090 ], 08 3 11.173 8,422 1,988 763 1970 89,167 8,463 2.675 11,136 8,387 1,988 763 1971 76,264 4,707 2,287 6.994 4,243 1,.988 763 1972 66,850 4,988 2,006 6,994 4,243 1,988 763 1973 56,874 5,288 1,706 6,994 4,243 1.988 763 1974 46,298 5,686 1,308 6,994 4,243 1,988 763 1975 35,026 5,945 1,049 6,994 4~243 1,988 763 1976 23,136 6,439 555 6,994 4,243 1,988 763 See footnotes on page 7.  Table A-2, ESTUiATED CONTRACTUAL INTEREST AND AMORTIZATIOn PAYM8NTS ON THE EXTEmrAL PUBLIC Di1BT OF CHILE - Contd. ____ ______ _ ___~___ _____ p_age--.7_ !I !he amortisation schedules for the dollar. sterling and Swiss franc securities were furnished by the Chilean Government. They state that they made the fo1lo\-ting assumptions: fa) that the equivalent $2,531,000 ltlOuld be spent on amortization in the years 1952 and 1953t ~b) that the following emounts \vould be retired in each of those years2 $2,494.000 in dollar securities, .;>3.719,428 in sterling securities and $904,463 in SWiss franc securities; (c) that starting in 19.54 securities would be retired at .50% of their par value. U It \tas assumed that scrip certificates would be retired at 50~6 of their par value. JI Includes amounts p~able in French francs (fr 10,000,000 or $28,604) and Belgian francs (Bfr 137,477 or $28,604) which are too small to be shown separately-. !±/ Less than $500. IBED - Statistics Section April 29, 19.52 Back~ound on.ZXternal Debt. Defaults and Debt ~eadjustments ~ternal obligations were met consistently from about 1834 to 1931, except for a period dur~ng 1880-1883, War of The Pacific, when amortization cr~rges were temporarily suspended with the consent of the bondholders. A partial moratorium on all fore!gn debt payments was declared on July 30, 1931. No debt payments were made in 1932 and 1934. In 1935 under Law No.5S80 a unilateral adjustment of the foreign debt was offered to the bondholders. Under its provision a Public Debt Amortization Institute was authorized to renew the service on the external public debt bonds, direct and indirect, of the Republic of Ohile and of the municipalities. The law provided that beginning January 1, 1935 the amount of service paid on the external public debt bonds_ direct and indirect, of the states and the municipalities NOuld be paid from receipts accruing to the Chilean Government from nitrates (consisting of 2.5% of gross profits) of the Chilean nitrate and Iodine Sales Corporatlon,from income taxes paid by the copper companies, (co:porate tax of 3;%), ~d from duties on petroleum imported for the nitrate and copper ~ndustries. Half of these receipts were to be used for interest payments and the balance. less expenses, for the retirement of bonds by direct purchase bela;,., par in the market or by drawing at par if the bonds ,..ere quoted at par or above. The 193.5 arrangement, to ',rhich the several protective bondholders counCils did no~ agree, provided interest payments averaging aro~ ~13 per year or 1.)% On each .$1,000 external publicly-issued bond, in place of the contract~ $60 interest paynent. Total service, including the amounts actu- ally spent for bond repurchases, averaged 1.90%. From the inception of the debt adj~stment plan on January 31. 1935 through February 1, 1949, total receipts for use in servicing the foreign debt amounted to around $105 million, of which $50 million was used to ~y interest. Approximately $25 million was used to retire bonds originally valued at $168. 7 million~ These ~.rere~ U.s. issues, $139 million; sterling issues, $26 •.5 million; S~Jiss franc issues, $3.2 million. Had all the assigned funds been used to retire bonds. total service \'1ould have been a.round 2.9Jb per annum, but part of the funds so allocated under Law Ho.5580 were diverted to pay for earthquake da.mage. Tabulated on the following page are the results of the operations of the 1935 plan by years. .... / ,,"..  -2- Receipts Bonds + Interest Amortization Outstanding Paid per Funds Year - Copper . Nitrate *Total (in thousands of dollars) DeceIIjber 31 (Par Valu r) ;;>1,000 30nd Uns')ent ( $1-,000) 193.5 1 .. 437 2,248 2,69l 4,128 434.366 $ 4.75 ., ... ,. :1.936 2.• 672 4.920 405,845 6.05 1937 1938 3,125 ll,264 2,982 2.747 6,107 14,136 288.963 337,827 7.86 20.925 • , • f" , ••••• ... ~ 1939 6,347 2.980 9,456 310,559 15,225 3,534 1940 5,86,5 3.469 9,4:58 307,243 15,,39 3,776 1941 6,666 2,639 9,456 304.374 1S·.58 4,249 1942 7.306 2.661 10,136 301,638 16.80 4,5 19 1943 6,044 2',357 8.567 299,936 14.28 3,803 1944 4.713 1~729 6,625 294,227 11.26 2,145 1945 4,516 2,244 6,897 286.827 12.02 1,863 1946 3,078 4',256 7,469 264,056 14.,15 2ll 1947 1,,583 3, 483 5,213 253. 113 10.296 141 ],948 339 4~884 5.387 242,329 11.09 :;r. A. 1949 229 4.287 4,659 205,110 11.2,59 1950 13 5;139 5,286 196,456 13·33 * IncluAing other receipts. + Paid on February 1 of following year. ~; For a seven.""'Iyear period follo"Ting the Ohilean earthouake in 1939, arnort;i.- zation payments on the external debt 'IIfere partially suspended and the funds 'vere advanced to the government. Beginning in 1946 , ho\"ever, all of the re- quired funds plus additional amounts accrued from previous years -- $3,000,871 in 1946 and $475,560 in 1947 -. were used to retire bonds. q T ~otal par amount of the debt outstanding in 1935 was equivalent to ::;;4)4,- 366,000, By 1948, th~ 1935 plan had reduced the par amou.'1.t to $242,329,000, a reduction of ~192 million. Since that time a further decline has taken place in the external bonded debt so that on December 31, 19.51, the total amOiL71t of this portion of the external debt was equivalent to about US$190 million, indi- cating a reduction in debt of about US$52.) million since the end of 1948 • . 'i'lever, it should be pointed out that the major 'Portion of this reduction has come about through the devaluation of sterling, i:Thich accounts for about $28 million of the US$52.3 million reduction. . During the period when the debt reduction, noted above, took place, but mainly in the 1a9t half of the fforties, Chile has t!"tken on additional external debts as can be seen from Table A-l It:2Jcternal Public Debts of Chile." As "'ill be noted therefrom U.S. Government loans, all from the :Zximbank, ,.,ere authorized. and/or outstanding in the amount of $99.2 million as of December 31, 1951. In addition lBRD bas made loans to Chile eqUivalent to $16.5 million and Ohile has a $8 million payment to be made on the Argentine loan" Together these three major categories of ne~r debts amount to approximately US$124 million as of December 31, 1951. The Permanent Debt Adjustment ,Plan of 1948 December 7, 1948, the Chilean Government by Law No.8962 of July 20, 1948, fo110~negotiations with the Foreign Bondholders protective Council, Inc •• offered a new plan of payment$ to holders of the outstanding dollar bonds,  -3- assented or unassented to the 1935 Plan. of the Republic of Chile, Nortgage Bank of ChUe t lvater Company of Valpa.raiso, Chilean Consolidated Municipal Loa.n, and the City of Santia.go. December 21, 1948, the Republic of Chile made an offer on substantially similar terms to Sterling bondholders (£23,979,422 par value) and in AugUst 1949 a Similar offer was made to holders of Swiss franc bonds (Sw fr 106,565,500)~ The new a~eement replaced the readjustment plan of 1935 (prescribed by La1fT 5580) discussed above, and provided that these direct and indirect obligations of the government issued in U.S. dollars be exchanged for an equal prinCipal amount of ne", dollar bonds, dated January 1, 1948, and maturing December 31, 1993. \-,hich would be the direct obligation of the Republic. Obligations issuable under the plan would bear fixed rates of interest and be general credit obligations, whereas, lxnder the plan of 1935, interest returns depended solely upon income from Chilean copper and nitrate industries,. Compensation for Interest-Losses ~ Republic offered to bondholders compen- sation in the form of non-interest bearing scrip certificates for any loss of interest \'rhich they might have suffered o1.V'ing to non-assent or late assent to La.., 5580 under which external funded debt "las serviced slnce 1935. In case of outstanding dollar bonds not assented to Law 5580, Scrip Certificates w'Ould be issued to holders \'1ho exchange such bonds under the new offer. In case of bonds assented late to La;-[ 5580 (after August 10, 1940 J in the case of bonds of the Chilean Consolidated Municipal loan and the C1 ty of Santiago loans. and later January 12" 1940, in the case of bonds of the Republic. the lcIortgage ::Ss.nk of Chile and the i'later Co. of Valparaiso), Scrip Certificates \'{ould be issued upon presentation of a letter of claim to the ~lscal Agent. In the case of non- assented bonds, total payments per bond made under the 1935 Plan were $164.58. of which $10.296 \~S in cash and the remainder in Scrip Certificates. The latter ''Iere to be delivered in groups of five Certificates, in approximately equal principal amounts and maturing successively on June 30 in 1950, 1952, 1954 and 19S8~ As a service fund for the Scrip Certificates, the Republic would pay to the Fiscal Agency annually commenCing in 1949, as long as any Scrip remains outstanding, a sum equal to $300,000, which was to be applied to the payment at maturing or redemption of Scrip Certificates. The Republic reserved the right to purchase Scrip Certificates for retirement. The above plan '<las a. mutually agreed upon plan 'ltlorked out bet,"een the Foreign :Bondholders Protective Council, Inc. and an au~horized representative of the Chilean G:)vernment. The Council considers that the ne", offer provides material improvements including a service on the bonds greater than was current- ly being offered or otherwise in prospect. The Council recommends acceptance of the Offer. Pled~ed Revenues and Assets "Law No.5580 of 31 Jan.1935. This law provides for the partial re- su.,"rrp tion of the servioe of the external debt and enaots (inter alia) as follows;- (i) ~ne revenues aocruing to the state from participation in profits of Chilean liitrate &: Iodine Sales Corpn. (q.v.) and from companies exploiting or.--;-- profiting from copper minerals in the country shall as from 1 Jan.1935 be allo-- cated to the Caja Autonoma de Amortizaoion de la Deuda Publica for the service of the external debt of the state and municipalities; and no other revenues ellall be ap~)lied to the debt service .. (il) Of the revenues indicated 50% shall be applied to pa.yment of interest on the debt, payments in nO case to exceed the rate of interest corresponding to each loan, and the balance after dedl1ction of expenses shall be applied to amorti. sation by purchase belo\.! par or by drat-lings at par. AriS interest pla.ced at the disposal of bondholders and not claimed by them may also be a~p~opriated for amortisation .. (iii) The acceptance by bondholders of pa~rment of a coupon under this Law shall cancel the original contractual rights and bring the bond to which it belongs under the terms of the present Law. Decree TIo.3? of 4 Jan.1936. This decree ~overns the application of Lat" Eo.5580 (see above) anc~ provides (inter alia) as --fo110\.r5:- (a) The Caja Autonoma de Amortizacion de la Deuda Publica must publish ,,,1 thtn the f:i.rst 15 days of Jan. each year a s~1.ter,lent of the revenues collected in the preceding year which are assi~led by the Law to the external debt service. (b) This income is to be divided into tvlO eCFlB.l parts, one to form '3.. fund for payment of interest and the other to form a fund for redemption or amorti- sation, any eXJ~enses being deducted from the latter. (c) Funds al):)licable to interest payment ':rill in theory be converted into a single currency and be diVided by the total nominal value of the external bonds outsta..l1ding at the previous 31 Dec •• the value of bonds being converted into the sa.Be one currency at the current rate on the first Stock Bxc~1ange w·orking day in the second '!,..reek in Jan. This operation "till fj.;:t the ;Jercentage of interest to be paid on external bonds ,,:hose holders agl"'ee to the settlement. On the percentfl.ge being fixed the conversion of funds ',1J111 be effected so a.s to make available in the respective curre~cies the s~~s allocated to each group of loans. (d) Article 6. Any sums applicable to interest on bonds whose holders do not accept the terms of Law lTo.5580 ,·rill be a!,propriated to redemption or amorti- sation of bonds 12 months after the date on which the amount declared for payment of interest in one year reaches for the first time 2% of the nominal value of the bonds . . . . . . . . . , . • . . . . . . . . . . . . . . .. •. . 1t ttDecree i'To.1730 of 17 Hay 1938.. This decree provided that the regula- tions to be issued at expiration of the period governed by Decree lTo.37 (on 31 Dec.1938) "lOuld embody the follot..ing provisions, of ,·;hich the first, third and fifth would be effective per~~ently:- (:i,.) La\1 5580 in no '!.'lay affects or mod:i.fies the original obligation so far as the capital is concerned. .·.1··.  -2- (ii) The Law only establishes a service plan in substitution for the original plan. (iii) The Government becomes the sole debtor of the bonds issued by the 1,Iortgage Bank, the municipalities, the Chllian Transandine Ral1',my Co. Ld .. and the Valparaiso 1vater :Soard, "'hleh assent to the provisions of the Law; and all these bonds to be considered as though issued by the Government. (iv) As regards assented bonds not redeemed by the maturity date expressed thereon, such roa turi ty is considered to be extended for such time as may be neces- sary under the amortisation plan of the La,'!. (v) In all other respects, except the foregoing substitutions, the origi~ bonds remain unmodified. If ttDecree No.3753 of Dec.l940. - This decree provided for the temporary assignment of up to $6,000.000 of the revenues referred to in Article 1 of Law No.5580 to the purposes established in Law No.6334 of 28 Apr.l9J9 (which author- ised inter alia (a) the raising of loans in foreign currency up to an aggregate amount equal to Ch. Pes. 2,000,000,000 for reconstruction and relief purposes and (b) the using of the revenues referred to in Article 1 of Law lifo .5.580, subject to reimbursement "Then such loans in foreign currency are contracted). Decree l'Jo.130 of 7 Mar.J.946. - Under this decree funds allocated to the external debt service are no longer to be used for reconstruction purposes and all receipts from Law ~S80 are to be exclusively applied to interest and amorti- sation of the external debt~ The decree authorised a loan of $1,000,000 as a first restitution of the amortisation funds appropriated under Law 6334." 11 1/ Source: The stock Exchange Official Year-Book, Vol.l, 1950.