61 STAT.] ITALY-FINANCIAL AND ECONOMIC RELATIONS-AUG. 14,1947 3983 The entire debt service on such bonds will be guaranteed by the Government of Italy. 2. Semi-annual interest payments on the three issues of bonds will accrue from January 1, 1947. Interest will be paid in 1947, 1948 and 1949 at the rate of 1% per annum; in 1950 and 1951 at the rate of 2% per annum; and in 1952 and subsequent years at the rate of 3% per annum. Upon exchange of old bonds for new bonds, a cash pay- ment will be made for interest accrued from January 1, 1947 to July 1, 1947, at the rate of 1% per annum. 3. Interest in arrears on the various bond issues will be computed at the rates stated in the bonds from the date of the last coupon pay- ment to January 1, 1947 and additional (a) Government of Italy Bonds, or (b) Italian Credit Consortium for Public Works Bonds, or (c) Italian Public Utility Credit Institute Bonds, as the case may be, will be issued in settlement thereof, except that no bonds will be issued in principal amounts of less than $100. Any balance which may be due on account of accrued interest over and above a multiple of $100 will be discharged by an equal face amount of non-interest bearing scrip exchangeable for Government of Italy bonds or Italian Credit Consortium for Public Works bonds or Italian Public Utility Credit Institute bonds, as the case may be, in aggregate amounts of $100 or any multiple thereof. 4. Commencing January 1, 1952, the three issues of bonds will be entitled to a cumulative sinking fund, calculated on the nominal amount of bonds to be outstanding initially, at the following rates: 1952 to 1956 inclusive 1% per annum 1957 and subsequent years 2% per annum such sinking fund to be applied semi-annually to the purchase of bonds at or below par or to the extent not so obtainable in redemption at par of bonds to be selected by drawings. 5. The Government of Italy is prepared to agree to set aside monthly in a segregated account with the Bank of Italy foreign exchange equivalent to Y, of the semi-annual service requirement for the three issues of bonds. The respective approximate principal amount of the three proposed 3% thirty year bonds to be outstanding (including bonds issued in settlement of all arrears of interest to January 1, 1947) are shown in the attached tabulation, which also sets forth a schedule of the relative interest and amortization payments. No provision is being made at this time for the outstanding bonds rB n a ,o naI of the General Italian Edison Electric Company, all of which bonds coprmy are owned by the International Power Securities Corporation, because of negotiations presently being conducted by General Italian Edison Electric Company with the International Power Securities Corpora- tion looking toward the exchange of such bonds for stocks of the General Italian Edison Electric Company.
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