GOVERNMENT-GUARANTEED CREDITS PROVIDE SOME SAVINGS TO EASTERN EUROPE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R000200420004-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: July 13, 2007
• Sequence Number: 4
• Content Type: REPORT

Approved For Release 2007/07/13: CIA-RDP84B00049R000200420004-5
,- Government-guaranteed credits provide some savings to Eastern
A very rough estimate of the Western interest subsidy to
Eastern Europe (excluding Yugoslavia and Poland) in 1981
is $500-600 million, equal to roughly 2 percent of the
region's earnings from exports to the West.
This estimate excludes Poland because Warsaw's
substantial arrearages in interest payments on its debt
make the question of interest subsidies not relevant.
The principal beneficiary is East Germany because it has
a comparatively large debt on official and officially-
backed credits ($2.9 billion) and because it has access
to as much as $375 million in interest-free credit from
West Germany (the "Swing" credit).
Hungary benefits little since officially-backed debt
accounts for only about 5 percent of its liabilities.
The cost to Western governments rescheduling 1981 Polish
official debt was $2 billion.
Approved For Release 2007/07/13: CIA-RDP84B00049R000200420004-5
 ATTACHMENT A Approved For Release 2007/07/13: CIA-RDP84B00049R000200420004-5 25X1
Eastern Europe: Debt Held by Major Western Lenders
in 1981
(Million US $)
Poland
Romania
East Germany
Hungary
Czechoslovakia
Bulgaria
US
Total 3199
837
979
1145
181
254.
Official 2041
Private 1158
407
430
--
979
15
1130
181
254
r UK
Total 2167
888
1800
325
440
420
Official 1,11 1150
254
100
40
70
15
Private iy ,S 1017
634
1700
785
370
405
West Germany
j,5
Total
4291
790
1650
735
545
520
Official
3,.3 2137
290
900
10
120
70
Private
5 2154
500
750
825
425
450
.France
Total
2582_
1780
1882
713
301
8f1
Official
1700
380
529
60
60
34
Private
882
1400
1353
653
241
46
Italy
Total
1088
353
350
165
102
60
Official
1,3 750
240
200
20
60
60
Private
338
113
150
145
42
negl.
Japan
Total
1063
420
625
575
155
220
Official
1~1 357
210
250
20
80
100
Private
706
210
375
525
15
120
Approved For Release 2007/07/13: CIA-RDP84B00049R000200420004-5
 Approved For Release 2007/07/13: CIA-RDP84B00049R000200420004-5
Eastern Europe: Debt Held by Major Western Lenders
in 1981 (Continued)
(Million US $)
Poland Romania East Germany Hungary Czechoslovakia Bulgaria
Canada
Total 989 190 30 75 325 10
Official 666 40 0 0 200 0
Private 323 150 30 75 125 10
Austria
Total 1817 140 1300 780 530 130
Official 1509 78 300 275 270 70
Private 308 62 500 505 260 60
Total
Official
Private
623
2V2
361
275
65
210
590
80
510
260
10
250
115
40
75
160
30
130
r SECRTTI 25X1
Approved For Release 2007/07/13: CIA-RDP84B00049R000200420004-5