tK i: ERM128IlNTMTATIOUTAL BA.11S 7OR I12ECOiTSTRUCTICIT 1,1 D DEM IE7MT-

Economic Departmeiat

F hADIS ETJMIAL PUBLIC DEBT I'L-IORY

Foreign Investments

PREPARED BY: James J. Lynch ro,UW3D 11

I,. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ , I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CO1iSTZ-.TS

Surmar~y

I. History of the E,ternal Debt of Finiland

II. IIistory of the Publicly-offered Dollar Bonds

III. Purposes for Which the External Loans Were Issued

IV. Adjustment of the External Debt of Finland

V. Outstanding External Debt and ,'-ervice Charges

Appendix

The Republic of Finland had no defaults on its e:fternatl c1ebt fro.1917 until 1941, when default took place on its sterling issues. Later,on liovember 1, 1943, it defaulted on the Swedish exaternal issues. Pay-ments ona the sterling issues were resumned on FToveraber 1, 1945 andc .xrralre-ments for payment have been made on the 3iwedish issues.

Outstanding in Finland's financial his'tory has been the continuouspayment of its T.orld War I debts. It is the only cowutry with World WlarI debts outstanding whaich, since the 1931 ;;oratoritva, has consistentlypaid in full its required payments.

In 1930 Finland had outstanding some s200 million of externaldebt but, through a consistent policy of d'ebt retirement, it wras reclucedto about $12 rillior. by 1939. DuLe to conditions arising from I WTorld WlarII, the external debt of Tinlane'. has increased steadily. It is estimntatedthat, by early 19! . the outstniidinr external ciebt of Finland (excluGingRussian reparationsS wrill be in the anount of `339 million. Amorti2ationpayments in l149 will amzount to arotu-ci %`1l million and interest )aynentsto %6-1/2 million, a total of $%;17.4 million. Total service pay,-m7ents areexpecteC to increase to si21 million by- 1$50, stay at tLhat armount cdnurin-1951 and 1952, rise to $24 million in 1953 anid to about ';,37 million in1954, the peak payment year, therecfter declining gradually to .round10 million by 1973.

The major portion of the service paymaents is dlue to interestand aiortization payments oin- thie Export-Imnport 1,ank loans lwhich, it isestimated, will be outstanding in the aLount of a.bou Ot 140..U million boyearly in 194'9. Next in importance is the 572 million SweCisch 1:eonerdebt (U.v:. ;159 million), lhich calls for interest anad am.ortizationpa-micnts equivalent to U.S. '4,775,000 starting in 1950, increasin- toU.S. ',".2 nillion in 1954 wrhen -amortization paym.ients start. Of T-henine dollar bonds issued by the Republic, totaling '.97 imillion (includingrefuncding), all have beer retired e:-cept tw.o, iwhich were outstanCin-, asof the enc of 1947, to th-e extent of $9 million. These tw^ro issues 'havematurities of 1960 and 1961.

In addition to the sizeable ex-ternal debt paymcnts, t'here arethe reraaininr reparation pa7ylments to Russia. These paymr-aents, statedin terms of 1938 prices, which a: e to be made in -oods, represent -nay-raents of U.S. $j17.5 million in 19/,,;, 194c ead 1950, and tU.S. $21.1illion in 1951. It has becn stated by a Finnish souLirce thatu thlis totalpayment of $)73.6 million over the nex-t few years will be esuivalent,because of thae price increases silnce 1038, to a payaent of $180 million.

I. Hiso of the cternal Debt of Finland

The Republic of Finlanc. had an excellent record writh no defaultsfrom the time of its independence in 1917 until 1941, when default tookplace on its sterlinc external issues. 21 Payments on the sterling is-sues were resumed on ITovember 1, 1945 and have been miade regularly sincethat time.

After llorld U,ar I the amounts owed by Finlanld to the United StatesGovernment were settled. The settlemelnt called for interest at the rateof 3% for the first ten years and 3.5% for the remaining 52 y-ears, re-sulting in an average interest rate for the wlhole 62 years of 3.3a. TheamouLnt of principal agreed on was `9 million, and interest over tlhe wrhole62 year period would amount to 12,695,055, a total of 021,695,055.Finland paid its obligations to the U.S. Government in full throu-h iJune15, 1940. At that time it took advantage of an offer made by the U.S.A.to postpone payment of subsequent installments. On June 15, 1943 paymentswere resumred and have been continued as required to date.

In the latter part of 1947 a resolution was proposed by elevenU.S. senators to set aside further paymiients on the Finnish war debt ina special fund for the eCucation of Finnish youth in the United States.As yet there has been no final action taken by th6 United States Senateor House on this proposal. On the original debt of approxinately `9million, Finland has paid back $7,969,072, of which 1,4859,174 was onprincipal and Q6,479,897 on interest. I/ It must be pointed out thatFinland is the only country which has consistently met its 2orld JTar Idebt obligations to the United otates.

Finland has borrowed in the forei[fln capi tal market for years.Tabulated in Table 1 are the amoun-ts and the pDeriods in ,rhich thefinancing tool place.

Table I

Amounts and Periods of Ex-tern Financing*

Amounts in Various CurrenciesIssued U.S. Pounds French wSedish . ITor.j Dollars Sterling Franics~jj~o ner C _rownsl189-19l3 - 759,000 148,58l,324i -1914-1919

-3 _68,200O01920-1929 i8120000 3,500,0000 4,778900i _1930-1939 i 8,000,000 2,000,000 - 113,490,0001940-1948 - -_ ;

* Excludes intergovernmental loans.

21 Also on November 1, 1943, Finland suspended the transfer to Swedenof interest and amortization on her financial coriai-tments. Througha joint agTeement all Swedish loans' principal and interest paymentswere postponed to January 1, 1954. (See page 4.)2/ Not including interest (about 06 million) accr-uing in the future.

Intergovernment loans 2/ and quasi-government-sponsored credits,promissory notes, et cetera, have been excluded from Table 1. Since 1940most of the credit received by Finland has been throuGh intergovernrmentloans, Sweden being the largest lender to Finland. Assistance was givento Finland by Sweden all during l!orld Wlar II, mainly for t1he procureme-tof copper, food and other necessities and during the reconstructionperiod. The estimated total aid is equivalent in U.S. dollars to around$)150 million. The U.S. also assisted materially in the 1900-48 perioclby loans from the Export-Import Bank in the magnitude of ;110 million.,the funds being used for various reconstruction and current proCluctionneeds. In addition, a small (about $1 million) maritime loan wasgranted for the acquisition of ships ancd a surplus property (Oc.:.Lc.)credit of around t$25 million. An acdditional liar -Asset loan (surplusproperty in U.S.) of $6 million was granted, maling a total of about$137 million from the United fItates. Further loans were sranted asfollowis: 1) $110 million by Brazil, 2) a coffee credit of ,)5 million byColombia, both payable in U.S. dollars, 3) two loans by Argentina, oneof 75 million pesos and one of U.S. i)l' million, and 4) some 370 millionfrancs by France in 1940.

II. History of Publicly-offered Dollar Bonds

The record of Finland with respect to its dollar bonds is a verygood one. All of the Republic's five loans, totalling $60 million(issued 1923-1936 wJith interest of 4 to 7W and maturities frolm 1939 to1958), wfere paid before the end of 1945, receiving full service untiltheir retirement. Three of the loans wrere paid off before their maturitydates. Of the three loans guaranteed by the Republic, totalling about,26 million (issued in 1924-128, with interest at 6 and 7, and maturi-ties from 1944 to 1961), two loans have been retired, one before itsdue date. On the third guaraLteeed issue onily i3,000,000 was outstandingat the end of 1947. All guaranteed issues have been fully serviced. Theone municipal issue, the City of Helsingfors of ,8 million (made in1939 at 6-1/2% interest and maturing in 19605 has been fully serviced.To summarize, of the nine dollar bonds issued, totalling $s97 million(includes refunding), all have been retired except two, on which therewas $9 million outstanding as of the end of 1947. These two issues havematurities of 1960 and 1961.

y/ This study does not include any charges with reference to lJorld VJarII reparation deliveries to the Soviet Union (accounts for one-fifthof total exports). The Soviet Union in June of 1948 cancelled halfof the remaining reparations due from Finland (about ;75 million),There still remained to be paid about U.S. $;73.5 million, payableat the rate of $17.5 million for 1948-1950 and $21.1 raillion in 1951.It has been estimated by Dr. Br. Suviranta("Finlandls liar Reparationsin a New Phase" by Dr. Br. Suviranta, Unit as ,uarterlv Review, No* 3,August 1948, p. 67) that the remaining payments, after adjusting forhigher prices, are equivalent to about U.S. $180 million.

-3-

III. Purposes for Which the Lx,9ternal I i-sued Loans I_, 1: n:The national loans were issued for public works, incluf'ing hyOlro-electric elevelopment, railroad construction and harbor improve:ient, andfor agricultural credit anc redenption of a Scandinavian loan. Theguaranteed issues were for municipal purposes and mortrage loa.ns. T'heI'elsingfors issue was for city and port improve-merts and to pay off theentire floatin" debt of the city.

A large portion of the external debt, prior to the dollar issues,was contracted. for the ,urpose of raising funds for the construction ofrailroads, hydro-electric developments anc encouragement of the forestryindust.ry.

IV. AdJustment of the External Debt of Finland

The Republic of Finlancd had never defaulted on the principal orinterest of any direct obligation until WorldJ War II.At the ou.tbreak of World War I} the Grand Duchy of 2inland, anautonomous part of the Russian Impire, had outstalding bon(s of the fol-lowing loans: 3-1/2ts of U*69, 1895, 1901 and 1903, 3ts of 1898, and4-1/2's of 1909. These lo2ns were payable in various foreign currenciesas well as Finnish marks. At the tirme Finlancd. becaine a re;)ublic inDecember 1917, there were outstanding bonds of these loans in the ap-proxilate face amiount of 166 million pre-war Finnish marks (U.;. '.32million). There were also outstanding various isaues of the ilort-ageSociety of Finland, payable in various foreign currencies and g,uaranteedby the Grand Duchy of Finland. In December 1917 these were outELCinfdillL7in the amoult of 24 million pre-war Finnish mzar'%s (U.S. $5 nillion).

Payments on these bonds were made in Finrish mrdatrks ard othier c-Lur-rencies on the face amourt of the bonds and coupons, i,.-ithout allowancefor currency depreciations. Accordingly, the tendency- was to presentthese multiple-currency payment bonds in the country wi-h the least d.e-preciated currency, regardless of the natLonality of the owner. In manyinstances, the Finnish Governm:lent refused to make payments in the parti-cular currency demanded. On 1iay 27, 1921, the Finnish Government enacteda bill of which the second clause read as follows: "Bonds and their in-terest coupons issued before January 1, 1915, whlen they have been mladepayable both in Finnish and foreign currency, are, if the owner is aforeigner, to be redeemed according to the choice of the owner either inFinnish currency or in the currency of the country mentioned on the bondin which the bonds were held at the end of the 1914 period. If the owmerof the bond is or has been after the year 1914 a Finnish citizen the pre-sentor of the bond or interest coupon is obliged to receive the paymentin Finnish currency." As can be seen from this clause the Fi:rnish Covern-ment was violating the option offered to the bondholder regarding theexternal currency in whilichl the bonds were payable. Xotrever, certainbond issues continued to be paid in the external currencies called' forwithout regard to the date on wh1ich the bonds were acquired.In the case of sterling issues, the British Council of ForeignBondholders protested the action of the Finnish Goverinent and the Finnish

-4-

Government agreecl to pay maturing sterling bonds and interect cowpono ofthe 4-1/2% loan of S109 in pounds sterling in London, irrespective of thenationality of their owmers (unless the owners wrere of Finnish nationali-ty).

The French bondholders of miultiple-currency Finnish bonds also ob-jected to the lawr of iiay 27, 1921 and, through various negotiations, finElagreement wras reached as to the terms on wIlich the Finnish Governmnentwould pay. Three French franc issues, in th-e amount of 7,717,00C frarcs(3ts of 189S, 3-1/2's of 1901 and 3-1/2's of 1903), were settled in 2S25for 1,000, 1,075 and 1,075 francs respectively per 500 French franc prin-cipa.l amount of the bonds. This settlement wras offerecl by Finland,through the French Goverrnment, to the Iational Association of FrenchSecurity Holcders and accepted by the French1 as reconciling the respectiverights and obligations of both the bondholders and the Finnish Governmeent.Finland paid interest and amiiortization on all its external obli-gations in accordance wiith the terms of the contracts of the bonds exceptfor the deviations noted above. This excellent record continued through,lay 1, 1941 when Finland defaultecd on its external sterling obligations.On A'August 1$, 1945, a two-year agreement, providing for the resuinntionof the sterling bond service and the liquidation of indebtedness betl:eenthe U.K. and Finland, was signed. Under the agreenent, a fund was setup for the payment of interest amd ariortization on the various externalsterling obligations of Finland. At that time, it wras estina.ed thatthe arrears of interest and amortization wrould be paid off in two years.This plan wras accepted by the Council of Foreign Bondholders and has beenduly carried out to date.

On Ilovember 1, 1943, Finland suspended the transfer to Sweden ofinterest and amortization on her financial coir itmentso Through a jointagreement, all payments of principal and interest on Swedish loans werepostponed to January 1, 1954. From then on, payments are to be m-lade inequal annuities, which include both principal and interest, FromJanuary 1, 1950 onward the interest rate is to be 3e. Principal paymentson the Swedish Government loains will be made over a 30-year period and onthe individual private debt over a 20-year period,

V. Outstandin- xtsernal Debt 7nd Service Charges

It is estimLated that by 1949 the outstanding external debt ofFinland will be in the amount cf ~;338,656s 0000 Amortization p,7aymentswill amount to around $10,871,000 and initerest paym;e1ts to 6, 519,000, atotal of 917,39O,000. Total service payments cre e-zpected to increaseto ;i21 million bya 1950, stay at that rate during 1951 Ead 1952, rise to$24 million in 1953 and to about `37 million in 1954, the peak paymentyear, thereafter declining gradually to around $10 million by 1973. Themajor portion of the service paym-aents is due to interest and amortizationpayments on the Export-Import Bank loans, wihich, it is estimated, wirll beoutstanding in the amount of approximately $129 million by 1949. Tlh-esecond category of debt is the estiiated 572 million VSwedish lroner debt(U.S. ,'159 million), hlich calls for interest payments of 17,160,000Swredish kcroner (U.S. $4,775,000) starting in 1950, increasinrg to 29,955,000Swredish hroner (U.S. $S,335,000) in 1954 when amortization paymments start.Tabulated belowr are the estimated outstanding principal, interest,

-5-

amortization and total payments for 194.9 through 1973, expressed in UT.S.dollars. In addition, a breaJh-down of these paytments, in the kinds ofcurrencies called for, is showm belowr. For details on the individualdebt, see Appendix I.

Table 2

Finhland's Total aternal Debt. Interestand Amortization Pa3ments

(in thousands of U.S. dollars)

- | Principal Amortization Interest TotalYear Outstanding Payments |PanMents .. lents1949 348,656 1o,871 6,869 17,7401950 355,951 ! 8,971 12,581 21,5521951 351,128 8,822 12,712 21,5341952 346,439 1 9,740 z12,505 , 2 "451953 336,364 13,805 12,059 252,641954 322,111 27,180 i 11,390 38,5701955 294,539 24,238 10,341 34,5791956 269,062 24,183 1 9,386 33,5691957 245,716 24,497 8,400 j 32,8971958 1 221,042 20,829 1 28,2281959 200,059 12,142 ' 6,534 j 10,6761960 187,834 12,397 5,880 18,2771961 175,362 10,120 5,285 1 15,4051962 ! 165,243 10,257 4,968 15,2251963 154,986 10,320 4,646 14,9671964 148,879 10,003 1 4,323 14,3261965 134,662 10o,110 4,010 14,1201966 124,544 6,260 1 3,692 9,9521967 118,291 6,422 3,507 ,9291968 111,869 6,584 3,322 9,9061969 105,286 6,752 3,130 9,8821970 98,734 6,926 2,932 9,8581971 91,608 ' 7,104 2,730 9,8341972 I 84,504 f 7,288 2,522 9,8101973 ! 77,216 7,478 2,309 9,787

l2ote: A small portion of the total debt is held by residerts ofFinland and, tlherefore, a small portion of the interest andi zaorti-zation payments will revert to Finland.

The above debt statement includes all debt outstanding asof December 31, 1947 (June 30, 1940 on Export-Inport Bai:h Loans)and also all credits granted to Finland as of that cdate butstill unutilized. Thaerefore the service charr:es represent thoseon debt now outstandCing plus the additional service burden on theunutilized credits, assuming that they will be drawn down in tllefuture. Estiinated future payments on Finland's World liar I debtare included. World War II reparation payments, estimated atU.S. $S17.5 million in 1949 and 1950, and U.S. $21.1 million in1951, are excluded.

-6-

Table 3

Debt Service Recuirenents of Finlandin Various Currencies

(in thousands)

1 Total Paymiients PayPaymentsYear All Currencies Payments Payments in inZxpressed in in U.S. in Swedish ArgentineU.S. Dollars Dollars _SterlinL Kroner Pesos

1949 17,740 13,359 3,975 - 4061950 21,552 14,547 1 1,617 4t,775 6131951 21,534 14,590 i 1,556 4I775 6131952 22,245 1 15,403 1 1,455 4,775 6121953 25,864 1 15,549 1,459 4,775 42081.1954 38,570 24,863 1,411 8,335 3,9601955 34,579 21,866 1 541 8,335 3,8371956 33,569 21,310 t 209 8,335 3,7151957 32,897 202761 209 I 8,335 3,5921958 28,228 19,684 209 8,3351959 18,676 10,132 209 8,3351960 18,277 9,757 l,1£5 8,3351961 15,405 7,070 893351962 15,225 6,890 8,3351963 14,967 i 6,631 8,3351964 U4,326 5,991 1 8,3351965 14,120 5,785 | 8,3351966 9,952 1Y617 i 8,3351967 9,929 1,594 8,3351968 9,906 1,571 8,3351969 9,882 1,547 8,3351970 1 9,g858 1,523 8,3351971 1 9,834 1 1499 8,3351972 9,810 1,475 83351973 t 9,787 1 1,452 S,$335

Mote: A small portion of the total debt is held by residents of Finlandand, therefore, a small portion of the interest and amortization paymentswill revert to Finland.

APPEN-DIX I

Finlandls External Debt, Interest and Amortization Pnyments,(including scheduled payments on World War I debt)

(in thous.-nds of U.S. dollars)

Debt to United States __ Debt to United XingdomI/ Privately Held Debt ' Inter-,overnment (Payable in sterling)Prin- ! Prin- Inte- ' Pri- 'rin- Inte- F ria- Prin- Inte-cipal cipal rest Total | cipal cipal rest Total I cipal- cip-l rest TotalOut- ; Pay- I Pay- Pay- Out- i Pay- Pa,-, Pay- jt Out- P Payw- Pay--standing ments ments ments i standingj ments melits ments !,standing, ments ments ments1949 8,718 866 523 1,389 139,143 6,619 3,740 10,359 1! 12,432 3,386 f 589 3,9751950 7,675 924 465 1,389 138,638 6,898 3,790 110,6S8 Y 8,804 1,149 468 1,6171951 6,562 987 402 1,389 131,740 5,768 t 3,910 ! 9,678 7,417 395 1,5561952 5,374 862 336 1,198 125,972 6,701 3,754 o 10,455 !j 6,015 1,137 i 318 1,4551953 4,315 I 489 j 275 764 119,271 7,428 3,577 i11,005 L, 64o 1,213 j 246 1,4591954 3,724 I 527 237 764 111,843 13,376 3,321 16,697 It 3,181 1,246 165 1,4111955 3,090 568 1 96 764 98,468 10,935 2,933 j13,868 1 1,649 460 81 5411956 2,401o 612 152 764 86,534 10,939 I 2,622 13,561 1,072 157 j 52 ! 2091957 1,661 659 105 7614 76,595 10,943 2,290 13,233 879 165 44 2091958 864 436 1 54 490 65,653 10,723 1,957 !12,685 673 177 32 i 2091959 320 132 . 19 , 151 , 54,924 5,732 1,659 1 7,391 451 185 I 24 ! 2091960 154 124 9 133 49,192 5,737 1 194 7,231 1 218 1731 12 1851961

43,455 5,742 1 328 7,070 B1962 I ' i 37,714 5,748 1 1,142 6,8901963 1 l I 1 31,966 5,675 956 6,6311964 30,504 5,219 772 5,991 I1965 ! I X 21,071 5,183 ! 6o2 5,785 .1963

L3511966 . t. 15,880 1,185 L!32 1,617 j i1967 I I 14,703 1,192 402 1,594 I,1968

13,511 1,199 372 1 ,571,,1969 i 12.312 1,2o6 3L 1 1, 547 1 1970 11,106 ! 1,213 I 310 1,523 1I1971 9,893 11,220 279 1,499 I1972 1 i8,673 1,228 247 i 1,75 1

1973 ; , , i , 7,445 t, 1,236 , 216 ! 1 , 4 52 ij ' j 4I

2 *

t _ _ _ _ _ _. _ __!

APPENDIX I - Page

(in thousands of TU*.S dollars)Debt to Colombia and Brrazil Debt to Sweden __ Debt to Ar,entina(Payable in U.S. Dollars) L (PE.yable in Swedish Kroner) (P'ayable in Pesos & U.S. Dollars)Prin- ,Prin- Inte- I Prin- I Prin- Inte- flPrin- ;?rin- Inte-cioal cipal rest Tota|cipal,rest Total cipal cipal

!t ioa) cipal rest Totalioal cipal I o~~~~~a cipa res TotalI1~~~~ou Pay- Toal~

Out- Pay- Pay- Pay- , Out- Pay- Pry- Pay ut- Pay- Pstandingi ments inments mentst |standing n nents ments mstanding ments { ments I ments1$495 1j 5,000 $ - 1,bL5l 1 1,45111159,184 - 17 - 566 5661950 ' 15,000 - 2,150 t 2,150 159,184 - 4.775 4775 2 - i 933 933

1951 |{ 15,000 906 2,137 0 3,0 4 34l59l 8 h - 4,775 4.,77 5 jl 31,225 - I 1,093 1,0931952 14,094 1,040 2, 3o69' 59,184 _ LI,77 5 L , 7 7 5 ' 35,800 - 1,253 1,2531953 | 13,154 1,175 1,964 1 3,139SO159,184 - i4,775 4,775 35,800 3,500 1,222 4,7221954 ! 11,879 1,311 i 1,823 3,134 t159,184 3,560 4,775 8,335 l 32,300 7,160 1 ,068 8,2281955 1 10,568 1,449 1,645 3,094. i155,624 3,666 1 4,669 8,335 25,140 7,160 817 j 7,9771956 j 9,118 !1,538 1,435 2,973 t 1 51'957 1 3 4,558 8,335 , 17,980 7,160 567 7,727

57 i9

6 74762,7 11,5 377 ~ 5

1957 7,580 1,679 1,201 2,880oj148,181 3,890 4,445 8,3351 10,820 7,160 316 7,4761958

3 5,901 1,822 931 2,753 l14b,291 j t,oo6 4,329 8 3,660 o 3,660 96 3,756

1959 4,079 !1,966 624 2,590l,140,285 4,127 h,208 8,335 i1960 2,112 !2,112 281 2,393.i136,158 !i,251 i4,084 8,3351961 4j71962 1 ', I , 'i131,907 4,378 3,957 8,335 I 1962 11

: . 1t227,529 4,509 ;23,826 8,335 'ii ' ,.1963 1 1 ; , , 123,020 Li,645 3,690o 8,335k1964 I , |118,375 1 4,784 3,551 8,335 i1965

113,591 4,927 3,408 8,335 !1966 . Il108,664 15,075 3,260 8,335 I

1967 103,588 5,230 3,105 8,3351968 , 1 98,358 5,385 2,950 B,3351969 ! 92,974 5,546 1 2,789 8,3351970 87,628 5,713 1 2,622 8,3351971 81,715 1 5,884 ' 2,451 , 8,3351972 't

i75,831 16,o60 2,275 ! 8,335 I" 1973 , 69,771 6,242 2,093 8,335 1j It was assumed that both dollar and sterling bonds would be bought in for sinking fund at an average price of 80.| It was assumed that all credits now authorized but unutilized would be drawn down before their expiration date.J No final agreement on Swedish debts will be made until 1949./ This credit was granted in July 1948 and terms are not available, so it was assumed that they would be similar

to the 75,000,000 peso credit dated March 1947.

APPEITDIX II

Outstandin- Debt of inland - Dec. 1 1947

HostRecent In- FinalMarket terest Ha-

Quotation Rate turitv Outstand]m g Tnviiz%.S. Debt

Dolar Bonds (publicly-issued): io

Republic of Finland Ext. S.F. quote * 6 1963 $1,530,000 -Finland Residential i-tge Bank 43-1/2* 5 196). 3,002,000Helsinki 57 * 6-1/2 1960 5,162,000

Inter-rovernment Debt: (1950,WForld liar I Debts 3 and (1964, 8Y12°3970

3-1/2 (1934'Export-Import Bank (as of 6/30/4v):250-251 3 1966 25,062, .',08387 2-1/2 1948 63,741387 2-1/2 1949 4,336,007391 3 1965 35,000,000414a 3-1/2 1954 6,0oo,ooo414b 3-1/2 1958 12,465,250416 3-1/2 1950 121,'60416 3-1/2 1951 495,952416 3-1/2 1951 200,000416 3-1/2 1950 999,297416 3-1/2 1951 499,921421 4 1953 345,000387 2-1/2 1950 2,?,163,993414b 3-1/2 1958 1,534,750416 3-1/2 1950 27,673,541421 4 1952 2,155,000445 3-1/2 1951 675,000Mew Loan 3-1/2 1959 10.000.000

86,098,036 19,207,284Maritime Cormission (as of 3/31/48) 3-1/2 1962 816,000 351,613O.F.L.C. (as of 3/31/48) 2-3/8 1976 18,401,575 5,9831,418liar Assets 1963 3.44.2755 2Total to U.S. $126, 51,336 $23,065,540

* New York 2toch a-change quotationls.

(continued)

lPPEITDIX II - PaEg2

.,ostRecent In- FinalIlarket terest Ma-

Quotation Rate turity Outstancling UnutilizedterIin' Debt

Residential litge. Bank 72 ** 5 1957 &l,09l, 600Industrial litge. Bank 72-1/2** 6 1955 1,000,800Helsinki 67 ** 4 1961 130,500Tampere 4-1/2 1950 17,900Osakeylbtio Ualdhof Aktiebolag 5-1/2 1950 6-,772Finland 70 * 5 1963 564,120War Loan of 1940 4 1949 LL5.861

Total Sterling Debt ;4,519,553

($18, 213,799)wedish Debt

Bonds 3 1973 Ia-.33,550,000Other Debt (mostly intergovermnental) 3 1973 524,640,000Helsinki 3 1973 8,030,000Turku 3 1973 .5850_000

Total Swedish Debt I r572,070,000($1>59,104,190)

razilian Debt - Intergovernnental(payable in U.S. dollars) 4 1960 $9,797,960 $202,040

;olombia.n Coffee Credit(payable in U.S. dollars) 3-1/2 1960 $1,006,723 -.$3,993,277

rgentine Debt

($6,604,358) ($13,663,642:Payable in pesos 3-1/2 1.957 P24.,438,861 P50,561,139Payable in dollars 3-1/2 1958 _____00.0_0

otal, excluding French Franc Loans(expressed in U.S. dollars)

$321,388,374 $64, 224,499rench Franc Loans

(, 741, 0184.)War Loan (1946) Fcs.374,000,000Central Bank for Coop. Credit Societies ($20,959)Fcs. 4,500,0O0

'otal including French Franc Debt(expressed in U.S. dollars)

$,;323.1512217 $64.224.499

'* London Stockc Exclhange quotations.