May 25, 1989 |
The International Monetary Fund announced Wednesday its first two loans based on Treasury Secretary Nicholas F. Brady's plan to slash Third World debt. The loans, $1.17 billion to the Philippines and $52 million to Costa Rica, were approved after IMF directors endorsed the Brady plan at a lengthy, contentious board meeting that ended late Tuesday. The fund's approval is a big step forward for the debt initiative, which has been criticized as inadequate and ill defined since Brady unveiled it March 10. "We have the first concrete outcome in terms of the resources that will be put into place at the IMF and the terms on which those will be made available," Treasury Undersecretary David Mulford told a House Banking subcommittee.
January 13, 1989 |
In what was called the largest private "debt-for-nature" swap to date, the government of Costa Rica has agreed to take new steps to save its vanishing tropical forests in exchange for a reduction in its foreign debt, it was disclosed Thursday. Under an agreement announced in Washington, Costa Rica will not have to repay a $5.6-million loan it owed the American Express Bank.