BILL PROPOSED ON INTERNATIONAL DEBT FACILITY
Rep. John LaFalce, D-N.Y., has
introduced a bill to create an international debt adjustment
facility to deal with third world debt.
    He said in a statement the facility would purchase debt of
a debtor nation at a discount and then sell the loans to
private investors. LaFalce said the facility could use funds of
the World Bank and International Monetary Fund as collateral to
for the necessary financial banking to issue debt instruments.
    LaFalce, a member of the House Banking Committee, said the
facility was needed because most American banks were refusing
to fund more foreign debt and debtor countries were having
trouble paying the loans on schedule.
 Reuter
