Iran Fails to Reply
To Japanese Bank CallsIran has not replied to requests from the Export-Import Bank of Japan for an explanation of its failure to repay 1.5 billion yen ($9.8 million) in principal and interest to the bank due Aug. 10, a bank official said.
He said the bank may dispatch a delegation to Iran to discuss the issue.
When asked whether he thought the delay in payment was caused by an Iranian shortage of foreign currency, he said that pending a reply from the Iranian authorities the bank could not comment on possible reasons for the repayment failure.
It was the second time Iran has refused to pay Export-Import Bank loans and interest, following a similar failure to repay 1.5 billion yen in February, he said. The loans were extended by Japan to finance construction of a petrochemical project in Bandar Khomeini, southern Iran, from 1973.
Dai-Ichi Kangyo to Buy
Bank in Hong Kong
TOKYO - Dai-Ichi Kangyo Bank, Japan's largest city bank, revealed it will
purchase Chekiang First Bank of Hong Kong for about 10 billion yen ($65 million) in the first buyout of an Asian bank by a Japanese bank, Kyodo News Service reported.
Chekiang First Bank ranks 12th among Hong Kong's 33 banks. Dai-Ichi Bank, Dai-Ichi Kangyo Bank's forerunner, acquired a 33.3 percent equity share in the Hong Kong bank in 1962.
Dai-Ichi Kangyo officials said the acquisition is designed to expand the bank's foothold in Asian countries, including China, where it has representative offices in Peking and Shanghai.
Cathay Pacific Floats
D-Mark Bond Issue
HONG KONG - Cathay Pacific Airways launched a 250 million deutsche mark bond issue on the Eurobond market.
Chase Bank A.G. in Frankfurt was mandated to arrange the issue, which will have a coupon of 6.5 percent and an issue price of par.
The bonds, available on the Frankfurt Stock Exchange, will mature in 15 years.
Cathay Pacific said the proceeds would go toward the financing of two Boeing 747-300 aircraft to serve mainly European and North American routes. The new aircraft are due for delivery next month and in February 1987.
China's External Debt
Likely to Rise Sharply
TOKYO - China's external debt outstanding will reach about $49 billion by the end of 1990, or more than triple its $14.9 billion debt at the end of 1985, if the seventh five-year plan is realized on time, the Bank of Japan forecast.
It forecast even higher debt if prices of crude oil and oil products, which play a large part in China's exports, fall further.
The report said China must improve its financial systems and change its economic structure to an export-oriented one. The five-year plan calls for annual real economic growth of 7.5 percent, average annual export growth of 8.1 percent, and annual import growth of 6.4 percent. It also envisages foreign capital inflow of $40 billion over the five years.
Based on these figures, the Bank of Japan forecast a cumulative trade deficit of $67.6 billion.