BANKERS REPORT BREAKTHROUGH ON VENEZUELAN DEBT
Venezuela and its bank advisory
committee have agreed in principle on revisions to the terms of
a 21 billion dlr debt-rescheduling package signed last
February, bankers said.
    They declined to disclose details because two or three
representatives on the panel have still to obtain the approval
of their senior management for the new terms.
    The committee was meeting in New York this afternoon and
could put its final stamp of approval of the deal later today,
the bankers said.
    "A number of details have still to be finalized, but the
broad details of the new amortization schedules and interest
rates are in place," one senior banker said.
    The interest rate on the rescheduling was originally set at
1-1/8 pct over Eurodollar rates, but Venezuela requested easier
terms because of a 40 pct drop in oil income last year.
    It also asked for a reduction in the repayments it was due
to make in 1987, 1988 and 1989 - after an earlier request that
it make no amortizations at all in those years was rebuffed -
and sought a commitment from the banks to finance new
investment in Venezuela.
    The breakthrough in the Venezuelan talks, which have been
going on intermittently for several months, follows the
announcement earlier today of a 10.6 billion dlr debt
rescheduling pact between Chile and its bank advisory panel.
    And last night Citibank said Mexico's financing package,
including a 7.7 billion dlr loan, will be signed on March 20.
    While the sudden progress is to some extent coincidental,
bankers acknowledge a desire to chalk up some quick successes
after the shock of Brazil's unilateral interest suspension last
Friday. By striking swift deals, banks hope to reduce the
incentive for other debtors to emulate Brazil.
 Reuter
