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...dubious honor, even for the most hard-line of Communist nations. But after months of negotiations, North Korea, the xenophobic workers' state run by Communist Leader Kim Il Sung, was publicly declared by capitalist bankers to be in default on its foreign debt. Reason: the Pyongyang government's failure to make payments on $770 million in obligations to two syndicates representing 140 banks. Other countries in the past have halted payment of debt but struck deals with foreign lenders, earning more favorable terms and fresh credits. In North Korea's case, says one European banker, "nobody in their right minds...

Author: /time Magazine | Title: Pulling The Plug: North Korea goes into default | 9/7/1987 | See Source »

...default came after nine months of talks in London finally fizzled. North Korea has owed most of the money, which it used mainly to buy grain and heavy equipment and to build bridges and roads, since the early 1970s. The country has never repaid any principal; indeed, on several occasions, it also suspended debt repayments, only to work out more favorable terms with Japanese and Western creditors. But for the past three years, Pyongyang has refused even to meet interest charges. For a time it looked as if the banks and the North Koreans might work out another agreement...

Author: /time Magazine | Title: Pulling The Plug: North Korea goes into default | 9/7/1987 | See Source »

...latest default could make life more austere in Kim's kingdom. Lawyers representing the creditor banks are already scouting for North Korean assets to seize, including reserves believed to be stashed in bank accounts in Switzerland, Austria, West Germany and elsewhere. There is speculation too that the creditors could try to intercept the shipments of gold, worth about $27 million each, that Pyongyang sells each month through the London bullion market. Juche, in other words, could encompass even harder times ahead...

Author: /time Magazine | Title: Pulling The Plug: North Korea goes into default | 9/7/1987 | See Source »

...lightened jobs, U. S. workers put in longer hours, with less absenteeism, than most of their counterparts around the world. But the main reason is often economic necessity. -- Former Treasury Secretary William Simon is building a financial empire out of ailing thrifts. -- Bankers declare North Korea to be in default on its foreign debt...

Author: /time Magazine | Title: Time Magazine Contents Page September 7, 1987 | 9/7/1987 | See Source »

...conventions of travel writing, the patterns of the philosophical essay and the strategies of fiction. The work is obviously based on fact and personal experience, although Chatwin declares that much of it is literary concoction. In short, The Songlines is a book whose resistance to definition places it, by default, into the increasingly liberal category of the novel...

Author: /time Magazine | Title: Books: The Man Who Writes with His Feet THE SONGLINES | 8/24/1987 | See Source »

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