The coordinating committee representing Yugoslavia's 600 bank creditors agreed Friday to "explore the possibility" of multi-year refinancing for part of the country's $19.5 billion foreign debt.
The bank coordinating committee, headed by Manufacturers Hanover Trust, said the proposal would be considered, provided the multinational agencies, such as the International Monetary Fund and government creditors, "will be prepared to develop programs on a comparable basis."
Yugoslavia's request follows multi-year refinancing agreements by Mexico and Venezuela completed this month.
Mexico's creditors agreed to the deal because of the success of its International Monetary Fund readjustment program. Venezuela has no IMF program but the fund has approved the country's own internal measures.
Vladimir Klemencic, finance minister, led a Yugoslav delegation that met for two days with the committee in New York. "Further meetings remain to be scheduled following discussions between the Yugoslav delegation and their other creditors," an announcement said.
Yugoslavia has had two refinancing agreements with commercial banks. The first, in September 1983, was for $1.2 billion in short- and medium-term loans and included $600 million in new money.
In 1983 the country obtained a total of $4.2 billion from the IMF, the World Bank, the Bank for International Settlements and commercial banks.
In May, Yugoslavia signed another bank rescheduling agreement for $1.2 billion of 1984 maturities that included no new money requests.
Bankers said Yugoslavia has been in compliance with its IMF program and has made all interest payments on time.
Brazil has promised to cut food subsidies and tighten control of public spending in its latest letter of intent to the International Monetary Fund (IMF), which was published in Brazilian newspapers over the weekend.
The letter was delivered to the IMF in Washington Friday and was printed in full by Brazilian newspapers Saturday.
Brazil, the Third World's most indebted country with foreign borrowings close to $100 billion, is in the second year of a three-year funding program with the IMF. Late this month, the country is expected to begin talks with its commercial bank creditors on financing needs for 1985.
According to the newspaper reports, the government has undertaken to remove wheat subsidies by the end of the year.
The government also has promised to tighten state spending to generate a public sector surplus of 0.5 percent of gross domestic product (GDP) in 1984, compared with the 0.3 percent promised in a fifth letter signed in March.
Countries facing balance-of-payments problems have no alternative but to impose austerity measures and accept supervision from the International Monetary Fund, Portuguese Prime Minister Mario Soares said over the weekend.
The existing international system needs changing but, while it lasts, "there is no alternative to the fund and austerity," said Soares, who traveled to Brazil for a political meeting starting in Rio de Janeiro today.
Soares said Portugal had been forced to call in the IMF in 1978 and 1983.
In 1983, Portugal, which has foreign debts of some $11 billion, cut its balance of payments by half to $1.6 billion. But the price was an increased hardship for people whose standard of living was already low, he added.
Mozambique became the 148th member country of the World Bank during last week's 39th annual World Bank-IMF meeting.. At the same time, the African nation joined the bank's two affiliate organizations: the International Development Association, which makes concessionary loans, and the International Finance Corp., which makes loans to the private sector.
A former Portugese colony, Mozambique gained independence on June 25, 1975. It has a population of approximately 13.4 million people -- 95 percent of whom are black Africans -- and is growing at an annual rate of 2.6 percent. The World Bank estimates that the country's per capita gross domestic product about $230 a year.
Located on Africa's southeastern coast, Mozambique has a land area about the size of Spain and Italy combined. Its neighbors include South Africa to the south, Rhodesia to the west and Tanzania to the north.
The country's coastline -- about 1,600 miles along the Indian Ocean -- is interrupted by many rivers, making it one of the best potential developers of hydroelectricity in Africa, the bank reported. This power-producing capacity could ease expansion of the country's industries, as well as help supply nearby nations with electric power.
Mozambique's principal exports include cotton, sugar, cashew nuts, tea, copra and timber. It also derives revenue from handling the foreign trade of neighboring countries. Goods are shipped from these countries on rail lines that terminate at Mozambique's major ports.