Announcement of the Sale of Five hundred forty nine thousand Dollars of Bonds of Corporacion de Fomento de la Producion of Chile to the National City Bank of New York

(£s,]~) :ROl,D FOB lmiFASE liOLD ·l'oR ·RELEASE INTERNATIONAL :BANK FOR RECONSTBUCTION AND DEVJ!!LOPMENT For Belease Tnesday .AM Newa~apere F·or The Press January 23, 1953. Tlle International. Bank for Reconstruction and Develo:,pment today an• nounced the sale of $549,000 of bonds of Oorporacion de lomento de la Prbduc- oion of Chile to the National City Bank of New York. The bonds had been reo~ived by the Intertiational Be:nt in connection with a loan of $2,500,000 made March 25, 1948 to Fomento for the pttr0h&se of agricultural equ1pmento They are guaranteed by the Chilean Government and b~·the International Barik. . . Under a recent regulation of the Chilean Superintendent of Banke, commercial banks in Chile may invest in bonds of this character delivered • to the International Bank under lqan agreements between the Interna-t:;ional Bank and any borrower in Chile. Purcllaae of the FOI11ento bonds by the National City Bank followed a decision by that bank to expand the capital. of its branch in Santiago. In Chile the amount of de~oeits a commercial bank may hold is related to the amount of the b~nk's capital. Eugene R. Black, President of the International Bank, exp~eesed grati- fication for Chile's cooperatio~ in permitttng commercial b~flke there to make purchases of Chile~ bonds issued to th~ InteJ;tnational Bank. The sale of the fomento bonds brings the total of obligations sold by the International Bank f~om its investment portfolio to $29 1 897,638. Fome:p.to, an inst~entallty of the Chilean government, was created to p;romote Chilean economic developmen,t. The bonds were sold to the National City :Sank :. at a premium. Th~y matu:ie as foUows: $241,000 Oil July l, 1951, $200,000 on January i, 1952, and $108 1 000 on July 1, 1952.