Chile: the balanced view : a recopilation of articles about the Allende years and after

June July July August 7 August August 28 September 7 September 11 September· October 8 October 20 November 13. IBRO and Chilean Government agree that $8.3 miJl ion more should be issued on existing Bank loans for eleclric power and highways, lo capilalize interest payments on early slages. IBRO mission visits Chile to appraise condilions and prepare technical assislance loan proposa!. ENOESA officials visit IOB headquarters to determine conditions lor proceeding with analysis of their loan application. They indi– cate (1) agreement 01 Government of Chile to assume responsibi– litYlor adjusting ENOESA's tariff schedule according to IOB policy in such matters (Le.. pricing was to be above cosl, ralher than al subsidized loss as was ENOESA's procedure al lhal lime); (2) eslabl ishmenf 01 a means to ensure prompt local contribution lo the project financing; and (3) decision nol lo use supplier credit lor partial linancing. An IOB Bank Project Committee reports lavorably on the Antuco project on July 26, 1973. IBRO loan committee recommends to Board the $8.3 million amendments lo previous Bank loans lo Chile. Proposal is circula– ted among Executive Oirectors and scheduled for fulure Board consideration. IBRO and Chilean government agree on terms 01 lechnical assis– lance loan. Chilean governmenl requests increase in amount 01 Anluco loan. IBRO loan committee recommends lo Board lhe $5.25 million technical assistance loan to Chile. Proposal is circulated to Execu– tive Oirectors and scheduled lor luture Board consideration. Change 01 government in Chile. New government adopts new programs, including 1100% increase in electric utility rates, chan: ges in internal linance and devaluation of the escudo, alteration 01 local linancing mechanism lorbank projects, agrarian price struc– ture changed and Iree price system inlroduced in order to balance internal conditions through markel forces. IOB decid.es that recent Chilean changes require changes in An– tuco hydroelectric loan. Amortization period extended Irom 20 lo 25 years due lo shorHerm difficulties of local economy. Also, Bank reports no list 01 package bid s yet received from eligible bidders. Letter from president Chilean Central Bank expressing view !ha! hydroelectric project is 01 high 'priority to his government. Letter from Minister 01 FinanC8''01 Chile, expressing view that hy– droelectric project is of high priority to his government. IOB middle management determines that the Antuco hydroelectric loan (then lor $68 millian) is in condition to be considered by the Loan Committee and Ex~cutive Oirectors. (This proposal was sub- . 143