The external debt of Chile

 No. E 124 67047 ;I'..ftf§ report is not to be published nor may it be quoted as representing the Bank's views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT THE EXTERNAL DEBT OF CHILE December 1,1950 Economic Department Prepared by: James J. Lynch  THE EXTEBl'LUt DEBT OF CHILE Table of Contents Pa~e No. I. Current External Debt ~~d Service Payments. •• I A. External Debt I B. Current and Projected Service Payments 3 II. Background on Defaults and Readjustments 5 Table A-I: External Debt of Chile Table A-2~ Estimated Interest and Amortization Payments on the External Debt of Chile  THE FJCTERi.'l:U, DEBT OF CHILE I. Current External Debt and Service Pay@ents A. External Debt The total external debt of Chile outstanding in the last half of 1950 was equivalent to approximately $332 million, with the major portion .($229 million) oonsisting of obligations payable in U. S. dollars. The dollar debt includes private dollar bonds issued in the twenties which have been subjected to tivO major debt adjustment plans since; they are presently outstanding in the amount of $117 million. The second important segment of dollar obligations is made up of loans from the EX9ort-Import Bank amounting to $96.5 million, of which $85.4 million was outstanding on September 30, 1950 and $11 million was undisbursed. The rest of the total dollar debt consists of the equivalent of $16 million of loans from the IBRD. Of this amount US$77,OOO is in Belgian francs, and US$ll2,OOO in ~liss franos. The remainder of the $332 million total debt is made up of non- dollar obligations outstanding in the amount of US$lO) million, as follow·s: 1) sterling obligations equivalent to US$62.8 million, of which all but $47,000 (lBRn loan) is accounted for by sterling bonds "Thieh haq been originally issued between 1890 and 1930. 2) Swiss franc bonds equivalent to US$22.9 million. 3) A~ Argentina Trade Promotion Institution outstanding loan equivalent to US$l7.5 million. Full details are not available on the Argentine peso loan but it is understood that the equivalent of $22 million has been dra\1Il do\'lU, of which $17.) million was utilized in 1947 and $4.8 million in 1948. The payments on the loan amounted to $1.5 million in 1948 and $4.3 million in 1949. ... / . , ~  -.2- Listed below are the total amounts of external debts outstanding in each category, (for details of the loans making up these totals see Table A-I). External Debt of Chile (in thousands) Amount outstanding Currency ExPressed Date of nay't in-U.S.~ Dollar debt Total dollar bonds 6/30/50 116.516 Total Export-Import Bank loans 9/30/50 96,468 1I IBnD Loan 1. U.S. dollar portion 9/30/50 15,764 Total dollar debt • • .• . . . . . . . . . . . . . . . . . . . • • . 228.748 rERn Loan cont'd 2. Swiss franc portion 9/30150 Sw fr 482 112 3. Belgian franc portion 9/30/50 :B fr 3.866 77 4. Pounds sterling portion 9/30/50 b 16 47 Total IBRD loan other than dollar portion 236 Total IEED Loan (incl. dOllar portion. $15.764) . . . .. 16,000 Sterling debt 12/31/49 b 22,426 62.766 Total sterling debt (incl. sterling portion of IBRD,$47) 22,442 62.813 Swiss debt 12/31/49 SIJ, fr 97.722 22,741 Total &1iss franc debt (incl. Sw fr portion of IBRD,$112) 98,204 22,852 Credit from Argentine Trade Promotion Institute 17,500 TOTAL EXTEB1:idL DEBT . . • . . . . • . • . $331,913 1/ Includes $11 million undisbursed. Note: For footnotes and details refer to Table A-I. ... / ...  -) - B. Current and Projected Service PaYments Total estimated service payments for 1950 amount to the equivalent of US$17.1 million, of which $7.9 million is interest and $9.2 million amorti- zation. Dollar requirements are $14.5 million, of \'lhich interest is $6.2 million and amortization $8.) million. The non-dollar portion consists larGely of sterling payments equivalent to US$1.9 million ,rlth interest at $1.3 million and amortization $0.7 million, and Swiss francs equivalent to US$705,000. Total service ~9ayments in 1951 are estirrated at $18.9 million '"ith a final peak payment of c~19.6 million estimated for 1952. Payments continue close to that level through 1954 declining to $17.7 million by 1956, remaining at that level through 1958, dropping sharply to $15.2 million in 1959 and to $12.) million in 1960, remaining at that level tp~ough 1968 and gradually declining thereafter to ~7.3 million by 1971 and remaining at that level through 1974. It should be observed that these esti'Tates for payments exclude any payments on the Argentine peso loan previously noted. Due to the lack of detailed information on fut'kre interest and amortization payments, no amounts have been included in the discussions above or in the interest and amortization tables fo11m'ling or in Table ~t-2. In 1949 payments on the Argentine loan, according to the balance of payments statement, was equivalent to U8$4.3 million for amortization and '0'8$272 .297 for interest. Listed on the fo1lo,·1ing page are the total debts sho1tTing required interest and amortization payments along ,'li th payments by types of currency. For additional details see Table A-2. ... / ...  -4- ESTli1lA.TED HTTER1l)ST .UID AMORTIZATION PAYMEl'TTS ON THE ]1XTEliI:JAL DE3T OF CHILE (Exoressed in thousands of U.S. dollars) Tot a 1 1/ Service Payments by Currencies 11 Out- Pa;y:ments Swiss ,.,-- standing Amorti- Inter- Dollar Sterling Franc Year debt zation est Total debt debt debt 1950 267,350 9,207 7,886 17,093 14.460 1.928 705 1951 308,424 9.447 9.459 18.906 15,897 2.208 801 1952 295.961 10,496 9,055 19.551 16,590 2,175 786 1953 282,448 10,216 8.630 18,846 15.935 2,141 770 1954 269,215 10,373 9,096 19,469 16.368 2.295 806 1955 257.008 9,902 8,691 18,593 15,492 2,295 806 1956 244,929 9,461 8,291 17,732 14,6.31 2.295 806 1957 2.33,400 9.564 7,864 17,428 14.327 2,295 806 1958 221,643 10,245 7,443 17,688 14,587 2,295 806 1959 218,205 8,490 6,719 15.209 12,108 2,295 806 1960 198.1.39 5,972 6,.358 12.3.30 9.229 2,295 806 1961 189.556 6,242 6,061 12,303 9,202 2,295 806 1962 180,547 6,521 5.75.3 12.274 9,173 2,295 806 1963 171,09.3 6,825 5,427 12.252 9.151 2,295 806 1964 161,160 7,141 .5,085 12,226 9,125 2,295 806 1965 150,721 7.3 63 4,727 12,090 8,989 2,295 806 1966 139.864 7,599 4.3 60 11,959 8,858 2,295 806 1967 128,563 7,967 3,97ll· 11,941 8,840 2,295 806 1968 116.671 8,.354 3,570 11,924 8,823 2,295 806 1969 104.160 7,612 3,158 10,770 7.669 2,295 806 1970 92,134 8,003 2.765 10.768 7,667 2,295 806 1971 79,457 4,957 2.382 7,339 4,238 2,295 806 1972 69,544 5.253 2,086 7.339 4,2J8 2,295 806 1973 59,0.38 5,569 1,770 7.339 4,2J8 2,295 806 1974 47,900 5.902 1,437 7.339 4,238 2,295 806 11 Excluding required service payments on Argentine loan. Hegotiations are being carried on to find a way to amortize this debt. There is an agreement in nr;i..nci-p1e to the effect that approximately 50i~ of the ,,,rheat and oil' fuel of this debt ,.,ill be :;:>aid in C:lilean steel and the balance in dollars, the debt to be })8.1d by Dec.Jl. 1952. ~: For footnotes and details see Table A-2. ... / ...  -.5- II. EackgroUl}d on Defaults and Read,1ustments 1. after having met external obligations consistentl~ from a~out 1$34 to 1931, except fOr a periOd following the 1879-1883 ,.,ar in the Pacific, when amortization charges were temporarily suspended with the consent of the bond- holders, a ~~rtial moratorium on all foreign debt payments ¥ms declared on July 30, 1931. On AUgust 13. 1931 the government ordered a complete moratorium on all fOreign debts. 2. Upon default in 1931, Chile declared a two-year mOratorium On all foreign debt payments. This was subsequently extended until superseded by the Debt Adjustment Plan of 193.5. 3. Partial payments ,,,ere made in 1931 and 1932. No debt payments at all were made in 1933 and 1934. In 1935 payments were resumed at an overall rate of about one-tenth of the original contractual basis. 4. In that year, under La,·, l~o .5.580 the Public Debt J .l\morti~tion Insti tute. \vhich had been set up in 1932 for the puryose of servicing the ;.nternal debt, consolidating and establishing the service of the shOrt-term external debt and re-establishir~ the service of the consolidated external debt, was authorized to renew the service of the bonds Of the external ,ublic debt, direct and indirect, of the Republic of Chile and of the municipalities. The readjustment plan provided that, beginning January 1, 193.5. receiuts to the Chilean Government from its participation in the profits of the Chilean Nitrate and Iodine Sales Corporation (2.5% of gross prOfits). from income taxes on the copper companies. and. later, from d"ll.ths on petroleum imported for the nitrate and copper indUstries, would be set aside for the service of bonds of the external public debt. direct and indirect, of the states and the municipalities; .50% of such receipts were to be used for interest payments and the balance, less expenses. for the retirement of bonds by direct purchase belOW par in the market ! •• / , .",'  - 6 - or by dra. . Ting at par if the bonds were quoted at par or above. 5. The 1935 debt adjustment plan provided interest payments averaging around $13 per year on each $1.000 external publicly-issued bond, in place of the contractual $60 interest payment. The amounts ranged from $4.75 in 1935 to a high in 1938 of $20.93. gradually declining to $11.26 in 1944, rising to $14.15 in 19L~6 and declining again to around $10.30 for 1947 and $11.09 for 1948. The latest interest payment under this plan, in 1949. provided a return of $11.09. or only 1.04% of par. During the past,IO years interest payments averaged 1.5% annually. Total service, including the amounts actually spent for bond re- purchases, averaged 1.90%. 6. From the ince:Jtion of the debt adjustment plan on Je.nuary 31, 1935. through February 1. 1949. total receipts for use in servicing amounted to around $105 million, of vlhich $50 million ..TaS paid in interest. Approximately $25 million was used to retire bonds in the following estimated original principal amounts: U.S. issues $139 million, sterling issues $26.5 million, ~dss franc issues $3.2 million. An equivalent of approximately $168.7 million was retired for an expendit~re of $25 million. Had all assigned funds been used to retire bonds. total service would have been around 2.9% but part of the funds SO allocated were diverted to !JaY for earthquake damage. ... / ...  -7- Tabulated below are the results of the operations of the 1935 plan by years. Recei:gts Bds. Out 1 g tInt. Amort. Year Copper liitrate *Tota1 Dec·31 Paid Per Funds (in thousands of dollars) (Par Value) $1,000 Bd. Unspent ($1,000) 193.5 1936 ::\.,437 2,248 2,691 2,672 4,128 4.920 434,366 40.5.84.5 $4.75 6.06 .. .. '" 1937 3,12.5 2,982 6,107 288.963 7.88 1938 11,264 2,747 14,136 337,827 20·92.5 1939 6,347 2,980 9,4.56 310,.5.59 1.5.22.5 3,.534- 1940 .5,86.5 3,469 9,4.58 307,243 1.5 .39 3,776 1941 6,666 2,639 9,486 304.374 1.5 . .58 4,249 1942 7,306 2,661 10.136 301,638 16.80 4 •.519 1943 6,044 2,3.57 8.567 299,936 14.28 3,803 1944 4,713 1,729 6,62.5 294,227 11.26 2,14.5 194.5 . 4,.516 2,244 6,897 286,827 12.02 1, 86 3 1946 3,078 4,256 7,469 264,0.56 14.1.5 211 1947 1,.583 3,483 .5,213 253,113 10.296 141 1948 339 4,884 .5.387 242,329 11.09 N.A. 19.50 Dollar, sterling and &..,is8 bonds .... 202,023 19.50 Other debt (Export~rmport Bank, IBRD, Argentine) .............. " ..... 1 221 880 To tal ext ernal debt s ................ 331,91) * Includin& other receipts. f Paid on February 1 of follOwing year. Hate - For a seven-year period follo'l/ing the Chilean earthquake in 1939. amortization payments on the external debt were partially suspended and the fu.'Ilds \V'ere advanced to the government. Beginning in 1946. however, all of the required funds plus additio~~l amounts accrued from previous years -- $3.000,871 in 1946 and $47.5,.560 in 1947 -- were used to retire bonds. As can be seen from this tabulation the total par amount of the debt outstanding in 193.5 was eqUivalent to $434.366,000. By 1948, the 1935 plan had reduced the par amount to $242,)29.000, a reduction of $192 million. Since that time a further decline has taken place in the external bonded debt so that at the present time the total amount of this portion of the external debt is now equivalent to about $202 million, indicating a reduction in debt of about $40  - 8- million since the end of 1948. However, it should be pointed out that the major portion of this reduction has come about through the devaluation of sterling, which accounts for about $28 million of the $40 million reduction. As shown earlier. Chile has taken on additional external debts, equivalent to US$130 million, mainly from Export-Import Banl~ (~96.5 million), lBRO ($16 million) and an Argentine loan ($17.5 million). 7. The Permanent Debt AdjustmeAt Plan of 1948 - On December 7. 1948, holders of the external debt of Ohile were offered a perwanent debt adjustment plan retroactive to January I, 1948 with interest for that year set at l~, rising to 2% for 1949 and 1950, 2i~ for 1951-53 and 3~ for 1954 and thereafter. Through 1953 an annual sinking fund of US$2.5 million or about 1% will be applied proportionately to the dollar, sterling and S\1fiss franc issues. Beginning January 1, 1954 the total fixed service \<,ill be 410 of the then outstanding principal amount of the ne\1 dOllar bonds, which is broken dOl-m into 3% for interest and 1% for sinking fund. This debt plan has been put into operation and as of June 30, 1950 a total of $103 million in old dollar bond~ have been exchanged under the plan, leaving about $22 million unassented. In addition, sinking fund operations have reduced dollar bonds by about $6.2 million so that of the total dollar bonds outstanding at the time of the debt adjustment plan of 1948 ($131.2 million) $22 million remains unassented to the plan, or about 17% of the total dollar bonds. It is not known what portion of the sterling and S\dss franc bonds have been assented to the program at this time. This marked reduction in the total debt, as sho1:m abQve, has resulted from relatiVely rapid amortization due to large repurchases in the market at less than 30% of par, from funds made available by the heavy demand for copper and nitrates during end after World ''far II.  Table A-I: EXTERNAL DEBT OF CHlIE (In thousands) Page 1 Amount outstanding Date In currency Expressed in ________.__________________________ ~ __________ o~f~paJ~ent UGS~dollars nOLklll. IJEBT Dollar bonds (. 1 1/2 - 3%, 1947-1993 6/30/50 i;ll <, 94,448 94,448 Non-assented bonds 6/30/50 "p (. 22,068 22,068 Total dollar bonds ~ 116,516 116,$16 Export-Import Bank Outstanding 3 1/2 - 4%, 1970 9/30/50 (, w i 85,425 85,425 Undisbursed 9/30/50 'd 11,043 1l,9043 Total Export-Import Ba,.'11t loans $ 96,468 96,468 I.B.R.D. loans ,1;5 CH. - 4 1/2}b, 1948-1968 Y 9/30/50 (", .,p 2,990 2,990 outstanding 9/30/50 Bfr 3,866 77 9/30/50 Sw ,. fr 482 112 9/30/50 ... 16 47 3,226 undisbursed {:' oW (. 10,274 10,274 #6 CH - .3 3/4%, 194.8-1955 9/30/50 .;;> 2,500 2,500 Total I.B.RQD. loan 16,000 Total doLlar debt 228,748 STErlLIHG BOIIDS Y 12/31/49 ~ 22 .. 426 62,766 Total sterling debt (including I.B.R.D.) 22,442 62,81,3 SliISS FRli.HC Bonus Y 12/31/49 SVI fr 97,722 22,741 Total S1'1is8 franc debt (including I.B.R.D.) 9B! 204 22,852 Credit from Argentine Trade Promotion Institute 11 W 17,500 Total debt 331 ,913 Not included above are the follovdng non- guaranteed corporate bonds Chilean Nitrate & Iodine SiJ.les Corp. c 5%, 1933-68 12/31/49 v 8,439 8,4.39 Chilean Nitrate & Iodine Sales Corp. 5<' /CI, 1933-68 12/31/49 ~ 637 1,783 Tarapaca & imtofagasta Nitrate Co. 57;, 193.3-68 12/31/49 ~ 7,880 7,880 Tarapaca & Antofagasta Nitrate Co:~ non-interest bearing bonds 12/31/49 ;6 ( 8,832 24,719 'J' 729 729 Lautaro Nitrate Coo (incoporated in Enp'land) r", 1st mtge. income debenture stock 12/31/49 ;t. 270 756 1st mtge. (Antofagasta) income debenture stock 12/31/49 T Ii!!! (', :.279 781 1st mtge. income bonds 12/31/49 <W 9,686 9.686 $41 173 See footnotes on page 2.  Table A-I: FOOTNOTES ._ _ _ _P_a""'ge_.E.._ Disburselnent in currencies other than dollars have been included here because it is not known how much ,;;ill finally be disbursed in various currencies. It is not known how many of these have been converted to ney:." bonds" Total credit was the Argentine peso equivalent of ~~22,104,000 of 1':hich :"'l7~- 276,000 was utilized in 1947 and ;~4~828,000 in 1948. Repayments have been ~il,5L8~000 in 1948 and :.;4,.3.32,000 in 1949,. Ineutfieient information is available to establish a definite schedule of interest and principal payments due. However according to an agreement signed in February 1949, this credit is to be paid out of the transfer of funds held in Argentina by Chilean residents and of funds to be obtained by the sale of assets ovmed by Chilean residents in .Argentina" The debt wa.s to be J:iq1,li~ated by July .31., 1950. To effect these payments the Central Bank of Argentina shall sell. dollars to to the Central Bank of Chile at the rate prevailing on the Argentine free market, these dollars to be paid for out of the funds mentioned above. The dollars will be repurchased simultaneously by the Central Bank of Argentina at the rate of vl ::: 4.01 pesos. The equivalent in Argentine pesos derived from this operation vd.ll be used to amortize the'IAPI credit. Such amortization is not to amount to less than 1,000,000 pesosq Interest is at the current rates in the money market in Buenos Aires and to be paid in U.S. dollars o Interest has been duly paid up to date. According to tlLa Naci<l.'nn of November 10, 1950 nebotiations are being carried' on to find a way to amortize the debt. 'l'here is an agreement,in principle, to the effect that approximately 50~~ of the Y;heat and oil debts be paid in Chilean steel and the balance in dollars, the debt to be paid by December 31, 1952\J Originally accordin::; to the agreement signed on December 18, 1946, the credit bore interest at 3 1/2 1() and was to be paid by Januar/ 21, 1950 (one year froI,l the last s:lipment which Tias on January 21, 1949). IIo":rever this was not done because of a shortage of Argentine currency in the Chilean marh:etc Suosequently this was modified. by the agreement of February 25, 1949 mentioned aboveu W The Argentine peso equivalent is not Imovm • •  Table A-2: ESTIMATED INTEREST .AND AMORTIZATION PAY1<iENTS ON TEE EXTERNAL DEBT OF CHILE (Expressed in thousands of U.S. dollars) Page 1 . Dollar bonds 1/- ...... -- Dollar debt Amount PaymeIl.ts . Exoort-·1mpor·c :Bank loans I.B.R.D. loans 2J Year out- Amort i- In-, lilllount payments Amount P~yments standing zation terestZl Total out·- Amorti- 1n- T t l out.- .Amort i- In- standinR. zation 0 a standing. zatiQn . terest Total 19.50 119} 547 1,313 2,948 4,261 56, 497Y 6t 736 2,949 9,685 5,798 !J:} 235 279 51451 1951 115 s 796 1.313 3,195 4,508 93:,l}l5 6,732 3,490 10~222 15[765 l~79 688 1;167 1952 112,513 1,313 3,113 4,426 86,684 7,767 3,234 11,001 15i 286 493 670 1,163 1953 109,230 1,313 3,031 4,344 78$917 7,141 2,959 lOp 100 14~793 839 652 1.491 1954 105,947 1,060 3,478 4,538 71,776 7,337 2,683 10,020 13,954 1,200 610 1,8lO 19.5.5 103,827 1~123 3, 415 4,538 64~439 6,987 2,437 9,424 12~754 971 559 1.530 1956 101,581 1,191 3,347 4,538 57,452 6~663 2,178 8,841 11,783 730 522 1,252 1957 99,199 1,262 3,276 4,538 50i/789 6,616 1,928 8,,544 11 p 053 756 489 1,245 1958 96,675 1~338 3,200 4,538 44,173 7,137 1,674 8,811 10,297 783 455 1,238 1959 94',019 1,417 2,821 4:,238 37,036 5~219 1,423 6,642 18,627 809 419 1,228 1960 91.185 1,502 2,736 4,238 31,816 2,522 1,247 3,769 8,705 839 383 1.,222 1961 88,18i 1,593 2,645 4,238 29,294 21'607 1,145 3,752 7~866 868 344 1,212 1962 84,995 1,688 2,550 4,238 26,688 2,692 1,041 3,733 6 7 998 898 304 1,202 1963 81',619 1,789 2,449 4,238 23,995 2~ 787 932 3,719 6,100 930 264 1,194 1964 78,041 1,897 2,341 4,238 21,208 2,882 820 3,702 5,170 963 222 1,185 1965 74 ,247 2,011 2,227 4,238 18,325 2~872 703 3,575 4,207 997 179 1,176 1966 70,225 2,131 2,107 4,238 15,453 2~864 590 3,454- 3,210 1,03:3 133 1,166 1967 65,963 2.259 1,979 4,238 12,589 2,973 474 3,447 2,1'77 1,069 86 1,155 1968 61,445 2,395 1,843 4,238 9,616 3,085 354 3,439 1,108 1,108 38 1,146 1969 56,655 2,538 1,700 4,238 6,534 3,202 229 3,431 1970 51,579 2,691 1,547 4,238 3,329 3,329 100 3,429 1971 46,197 2,852 1,386 4,238 1972 40,493 3,023 1,215 4,238 1973 34,447 3,.205 1,033 4,238 1974 28,037 3,39'1 841 4,238 See footnotes on page ~. .. Table A-2,: ESTIl4ATED IHT:::.R"";ST A11JD ,AivIORTIZATION PAYMENTS ON THE IlXTlilllXAL DEBT CHILE ~ COBtinued (Expressed in thousands of U.S. dollars) _.__... P_age 2 Total do'lar deht _ _ _ Sterling bonds 11 Amount Pa;yments Amount pa;yments Year Amorti- out- In·- aut- Amorti- In- Total Total standing zati9A terest stang,ing zatiQl! terest flI 1950 181,842 8,284 6,176 14,460 62,766 672 1,256 1,928 1951 224~976 8~524 7~373 15~897 61 p 422 672 1,536 208 1952 214~483 9.573 7p 017 16,590 60,079 672 1,503 2,175 1953 202,940 9,293 6,642 15,935 58,736 672 1,469 2,141 1954 191~677 9,597 6,771 16 9 368 57,392 574 1,721 2,295 1955 181 r 020 9~081 6,411 15,492 56,245 607 1,688 2,295 1956 170.816 8, ,584 6,047 14,631 55 p 030 644 1,651 2,295 1957 161,041 8,634 5,693 14,327 53,743 683 1~612 2,295 1958 151,145 9,2.58 5,329 JJ}~587 .52,377 725 1,570 2,295 1959 149,682 7, Ll45 4,663 12,108 50~927 767 1,528 2~295 1960 131,706 4~863 4,366 9,229 49\1393 814 1~481 2,295 1961 125,)41 5,068 4,134 9,202 4?l;764 862 1,433 2,295 1962 118,681 5,278 3,895 9,173 46 p 040 912 1,383 2,295 1963 111,714 5t 506 3,645 9$151 44,215 968 1,327 2,295 1964 104,419 5,742 3,383 9,125 4211279 1,027 1,268 2,295 1965 96,779 5,880 3,109 8,989 40,224 It 089 1,206 2,295 1966 88,888 6~028 830 8,858 38 9 04'1 1,153 1,142 2,29.5 1967 80,729 6,301 2,539 8,840 35~741 1,223 1,072 2,295 1968 72,169 6,.588 2,235 8,823 33~295 1,296 999 2,295 1969 63,189 .5,740 1,929 7 w669 30 5 703 1,374 921 2,295 1970 54,908 6,020 1,647 7,667 27,954 1,455 84,0 2,295 1971 46,197 2,852 1,386 4,238 25,044 1,54.5 750 2,295 1972 40,493 3,023 1,215 4,238 21,954 1,637 658 2,29.5 1973 34,447 3,205 1,033 4,238 18)679 1,735 560 2,295 1974 28,037 3,397 841 4,238 15,209 1,839 456 2,295 See footnotes on page 4.  Table A-2: FOOTNOTES pa?::e 4 v It was assumed that bonds ,,,auld be bought in the open marlcet at the follo''ling prices: 35 in 1950, 40 in 1951-53 and 50 in 1954. y Outstanding as of the beginning of 1950. pn;yments have been computed on the basis of amounts out- standing ($76~410~96l) and undisbursed ($20$243,107) as of 6/30/500 Ji Includes amounts disbursed in S\1iss frp,ncs, Belgi3n francs and sterling. They have been included under dollar debt because loan #50H has not been completely disbursed and it is not knO\.,rn how much \vill finally be disbursed in various currencies. (See Table A-I). BJ outst~nding as of 9/30/50 0 E Inc:J.udes interest payments as follo\'Is: $307 .. 54 in sterling and $42.97 in S\,riss francs" Excludes Argentine peso loan '3quivalent of ,104,000 of uhich $17,276,000 ,,,as utilized in 1947 and fi;4,828,000 in 1948. Repayment to have been $1,548,000 in 1948 and $4,332,000 in 1949. Amount outstanding at end of 1949 was equivalent to US~ 17.500,000" (See Table A-l for further details). 1/ Interest payments include prOVision for back: interest due on. $5~682,000 of bonds \'I"hich did not assent to the 1935 plano This amounts to a cash payment (~10.29 cash settlement plus 1 1/2% for 1948 and 2% for 1949) of approximately $257,000 in 1950. payments also include provision for retirement of scrip certificates. Ohile is required to pay the fiscal agent $300~000 a year from 1949 until all certificates are retired~ Since 1958 is the last maturity for scrip, we have in- cluded $300~OOO in the interest payments in each year 1950-1958. It could be less depending on hO\1 many certificates are issued o §j Does not include cash payments to bondholders \'1ho have not assented to the 1935 plan. They are entitled to all payments uhich they missed by late-assent or nOll<-aflsent. It is impossible to estimate the figure since ';Je have no information as to the amount of non-assented bonds (1935 plan) or the dates of assento