Show ITALIANS REACH I I DEBT AGREEMENT BOTH COMMISSIONS SIGN FINAL FINALI I AGREEMENT FOR LARGE WAR WARDE DE DEBT T FUNDING Interest Charges And Annual Payments Payments Payments Pay Pay- ments Will Be Operated On Upward Up Up- Upward ward Scale Both Sides Are Satisfied Washington The Washington The American and Italian debt commissions have signed an agreement for Cor the tho funding o of or Italy's war debt to the United States calculated for the settlements at 2 2 2 0 Terms of ot the funding arrangement agreed upon after ten days das of negotiation negotiation negotiation and accepted b by the Italian commission as a very generous treatment of the problem provide forthe for forthe forthe the usual year two amortization period In the formal announcement of the terms the American commission commis commis- commission sion slon said it feels they la lay as heavy a burden on the Italian people as weare wo we are justified in imposing and represents represents represents Italy'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 a gradually increasing scale to meet the debtor nations nation's capacity to pay Beginning at one-eighth one of 1 per percent percent percent cent for the first ten years ears of the Interest period the r interest rate increases increases increases in in- creases during successive year ten periods to a maximum of 2 per cent during the last seven years rears With the settlement if approved by congress and fun Hin to tn n n 0 v U from Juno 15 last for the first five years rears the annual payment would be approximately scaling from to during the sixth to the tho fifteenth years Inclusive and thence Increasing to a of oC to during the thelast thelast thelast last seven se years ears Besides a reduction of back interest interest interest inter inter- est charge in fixing the amount to tobe tobe tobe be paid off the American commission feels that It has bas made even greater concessions in the future Interest charges and the tho division of annual amortization payments In addition it not only agreed to allow a delay of two years in making a payment whenever Italy's financial condition warranted but gave permission permission permission sion to pay payoff off the postponed annuities annuities annuities ties in the third and fourth years after after after af af- af- af ter due with an Interest rate of 4 1 1 l-l per cent applying on delayed pay par ments In the tho British and other settlements settlements settlements set set- except the Belgian postponed postponed post post- payments must be liquidated inthe in inthe inthe the third year This concession to Italy was made when its delegates withdrew their demand for a t safeguard safeguard safeguard safe safe- guard clause against unexpected exchange exchange ex ex- exchange change fluctuations The American commissions commission's announcement announcement an an- of the settlement pointed to Italy's relative poverty in natural al resources and indicated the consideration consideration consideration con con- it had given that nations nation's future In the observation that this depends upon the development of ot other her Industry and the labor of or her people |