New brazilian debt scheme

Abstract

The Federal Government of Brazil decreed a new four-year plan for the foreign debts of Brazilian Federal, State, and Municipal Governments, on February 5 th . The new plan, which recognizes the fact that full debt service is impossible under present financial conditions, runs from April 1ts, next, and provides that available foreign exchange shall be distributed in equitable proportions to the services of the three categories of loans mentioned. An annual service of about 8,000,000 is provided as compared with full or normal service which amounts to about 24,000,000.