Yugoslav government officials have signed a package of credit agreements with a group of international banks providing $600 million in new credits and the rescheduling of $1.2 billion in debt that was to have fallen due this year.
The agreements, involving about 600 financial institutions, were signed Friday at the New York headquarters of Manufacturers Hanover Trust Co., which heads the creditor group.
Under terms of the agreement, the banks will extend about $600 million in new loans, maturing in six years, to allow Yugoslav companies to purchase raw materials and semifinished goods needed to make products sold for hard currency.
Those loans will be priced at 1 7/8 percent over the London interbank offered rate--the interest rate which banks in the European market charge each other on loans--or 1 3/4 percent over the U.S. prime rate.
Also, the banks agreed to refinance $1.2 billion of short- and medium-term loans falling due this year. Payments on that debt will be refinanced as a six-year credit, priced at 1 7/8 percent over the London interbank offered rate, or 1 3/4 percent over the U.S. prime rate. The package includes a three-year grace period.
Yugoslavia's total foreign debt is about $20 billion. While it has a Communist government, it is not a member of the Soviet bloc.
Representatives of six Central American countries will meet in Brussels this week to seek financing from European countries and other sources for long-range economic and social programs for their region.
Delegates of the six Central American countries and representatives from Western Europe, Japan, Israel, the United States, Canada and the Organization of Petroleum Exporting Countries (OPEC) will attend the meeting, to be held at European Economic Community (EEC) headquarters.
"These countries will be invited to participate in the effort and to supply funds for the development of programs in Central America," Antonio Ortiz Mena, president of the Inter-American Development Bank (IDB), said.
The IDB is coordinating the meeting at the request of the Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.
Ortiz Mena said the IDB, the World Bank and the International Monetary Fund (IMF) were responsible for the economic studies of the six Central American countries to be presented at the conference.
He described the economic situation of the six Central American countries as "delicate."
Recent agreements by international lending and financial institutions:
* The International Bank for Reconstruction has announced a public offering of 20 billion yen (approximately $82.3 million) of bonds. The offering, announced in Tokyo, is being made through a syndicate of securities firms headed by the Nikko Securities Co. Ltd. and in association with a group of commissioned companies headed by The Industrial Bank of Japan Ltd. The 7.90 percent, 12-year bonds are priced at 99.75. Their final maturity date will be Sept. 7, 1995. The yield to subscribing investors will be 7.93 percent.
International Finance Corporation
* The IFC has agreed to provide loan and equity funds for the construction of a $102 million cement plant to be located in Antioquia, Colombia. The IFC, with the help of Midland Bank (through MBI Project Finance Ltd.), Fondo de Inversiones Privadas of Colombia, and F.L. Smidth of Denmark, will finance the loan.
Organization of American States
* The OAS has made a grant of $250,000 to The Inter-American Commission of Women (CIM), for a project designed to bring technology to the women of Bolivia, Ecuador and eight other Central American and Andean regions. CIM is a specialized agency of the OAS.