11 MAY 1985, Page 19

Brazil nuts

GOOD news from the world's biggest doubtful debtor: 'The Brazilian plan for settling the foreign debt means, bluntly, that with fundings at £66, readjustments must be made in the Grade 5 bonds. Otherwise there will be no sinking fund at the usual contractual rate. There will be a sharp rise in the current interest rates, under option, of the 1931 bonds, and existing securities will have to be pooled, to avoid cash payment on a single uncon- solidated loan. That, briefly, is the posi- tion.' The only cloud over this luminous account is that Beachcomber wrote it, 50 years ago, doubtless under the combined influences of Charlie Suet and Doctor Strabismus (of Utrecht). As my headmas- ter always maintained, you cannot parody modern life.