The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-11-13
ITALIAN DEBT
AGREEMENT IS
MADE PUBLIC
Italian Commission Accept )
Funding Terms. Considers
Them "Vcry Generous"
g. YEARS TIME GIVEN
Private Loan 10 Italian Gov.
ernmCat Ii Now Looked
for by l.. s. Bankers
G2 YEARS TIME GIVEN

Washing ca. Nr'. -. Ap) -. Tn,
Ahr"rcan 1hi Italian debt commits.
S!"!S t"M0rroW VIII sirn an agree.
nov: Cor the funding of Italy's wa,
debt to the United States. calculate,
FOR the ScttleMrI; at S2,Ol2 900 600.
Terms of the funding arrangement
agreed upon aite" 10 Gays of negoIi.
atlon and accepted by the Italian com.
MISSION Is a very generous" treat.
mcnt of the problem, provide for the
usual 62-ycar amortization period. n
the formal announcement Of the term,
late yesterday the American commits.
sion said it feels they clay as heavy
a burden on the Italian people As W,
arc justified in imposing, and renrc.
scnts ltaly's capacity to pay"
Both the interest charges, which
do not begin until the sixth year. and
the annual payments on principal are
fixed on gradually increasing scale
to meet the debtor nations capac,ty
to pay.
Beginning at one-eighth o. ora Ncr
cent for the first 10 years of the in
terest period. the interest rate in
creaseS during successive lO-yea!
periods 30 Il maximum Of per cent
during the last seven years. With
the settlement, if approved by con-
gress and the Italian government
dated as OF June -, last. for the first
five years thc annual payments would
he approximately $J.000,ouO sealing
from $4,000, 900 to $4,000 900 durinr
the sixth to the 10Th years. inclusive
and thence increasing to !; maximum
of S73,0O0,000 to $50,O000O0 during
thc last seven years.
Concessions Are .Ladc
Besides Il reduction of back in
terest charge in fixing the amount to
be paid, the American commission
feels that it has made even greater
concessions in the future intere st
charges and the division Of annual
amortization payments
It not only agreed to allow a de-
lay of two years in making pay
ment whenever Italy's financial con-
dition warranted, but gave permits
sion to pay off the postponed annui-
ties in the third and fourth years af-
ter due, with an interest rate Of four
and one-quartcr per cent APPLYING.
on delayed payments. In the British
and other settlements, except Inc
belgian, postponed payments must b.
liquidated in the third year. This
to Italy was made when
its delegates withdrew their demand
for Il safeguard clause against unex-
pected exchange fluctuations.
While the congressional members
Of the commission believe ratif ica-
ton by congress is likely. some mem
bcrs of congress were less optimistic
as to the fate there either Of the Ital-
ian agreement or that with Belgium.
Loan To Italy Anticipated
With the way cleared by the agree
ment on its war debt to the American
bankers now expect an
early private loan Of $5O,000,00O or
: 100000 to the Italian government
and at least $50, 100000 Of Italian in
dustrial bond issues to be placed on
the American market shortly after.
With the Italian debt problem out
Of the way. the American commission
concentrated its attention today on
the Rumanian debt, which treasury
figures place at more than $46,5OO, 900.
Although the meeting scheduled to-
day with the Rumanian mission was
the second since its arrival, the ne
gotiations have been held in allegiance
during those with the Italian delega-
ton.