Yugoslavia - New Financing Agreement (1988)

Article Index

Obligor: (Please refer to note1 below)
When the full redistribution of the former Yugoslav debt is agreed to, it is expected that the portions of the debt to be assumed by Slovenia and Croatia will be serviced in full.
Guarantor: (Please refer to note2 below)
Amount Outstanding: Yugoslavia made substantial repurchases of commercial bank debt in the secondary market in 1990 and 1991 and the current outstanding volume is unknown.
Maturity: July 18, 2006
Interest Rate: 3% fixed
Coupon Frequency: Semi-annual
Day Count: Actual/360
Restructuring Date: September 20, 1988
Amortization: Tranche A:..............26 equal semi-annual installments beginning April 18, 1994
Tranche B:..............26 equal semi-annual installments beginning June 25, 1994
Tranche C:..............26 equal semi-annual installments beginning February 25, 1994
Form of Instrument: Registered Loans
Denominations: $100,000; $10,000 and $1,000
Loan Agent: Chemical Bank (formerly Manufacturers Hanover)
Servicing Agents: Vneshekonombank (Bank for Foreign Economic Affairs)
Rosvneshtorgbank (Russian Foreign Trade Bank)
Credit Rating: Not rated
Principal Collateral: None
Interest Payment Collateral: None
Months in Arrears: Interest has not been paid in full since January 1, 1992
Note1 The original obligors of Yugoslav debt were both specific entities within the country as well as Federal organizations. Since the dissolution of the country, the successor States have assumed responsibility for those portions of the debt which are readily attributable to their respective countries.
At this time, no agreement has been reached on the re-distribution of former Federal debts; officially, the six Yugoslav republics are jointly responsible for former Federal debt.
Note2 In January 1992, the National Bank of Yugoslavia ceased servicing the portion of the foreign debt which it attributed to Slovenia and Croatia, all other payments ceased in June 1992 when United Nations sanctions against Serbia and Montenegro prevented foreign banks accepting payments.
In January 1994, the Bank of Slovenia opened an account with Dresdner Bank Luxembourg and has been paying into escrow debt servicing amounts which it calculates are owed by the Republic of Slovenia.