- 6 -
provided that there would be an initial period of about 16 to 18
months during which DFA or CGA funds could alternatively be lent or
re-lent to other Brazilian persons and companies (the relending
period).6
The phase I restructuring agreements (which included a phase
I DFA that covered the scheduled debt payments due in 1983 on prior
outstanding Brazilian loans and a phase I CGA under which the
Central Bank would be lent up to an additional $4.4 billion) were
entered on February 25, 1983. The phase II restructuring
agreements (which included a phase II DFA that covered the
scheduled debt payments due in 1984 on prior outstanding Brazilian
loans and a phase II CGA under which the Central Bank would be lent
up to an additional $6.5 billion) were entered on January 27, 1984.
The phase III restructuring negotiations began around the
fall of 1984 and continued through July 1986. On July 25, 1986,
Brazil and its foreign lenders signed the phase III DFA. The phase
III DFA covered the scheduled Brazilian foreign debt payments due
in 1985 and 1986. Under the phase III DFA, any 1985 debt payments
would be available for relending to other Brazilian persons and
6 In connection with the phase III restructuring
negotiations, the relending period for the phase II DFA was
extended from June 30, 1985, to April 1986, and the relending
period for the phase II CGA was extended from June 30, 1985, to
March 1986.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011