The bonds might be used in the privatization programme and other debt conversion programmes yet to be created.

Troubled banks that did not go along with the debt conversion plans might find themselves forced irretrievably into the red.

Almost $500 million worth of fresh-money investments were made last year, about half the amount invested through debt conversions.

The rules are much stricter than the regulations governing foreign investments with fresh funds - those not obtained from debt conversions.

It made available 1.5 billion marks for farmers to make debt conversion and lowered local taxes and freight rates.

Others Express Interest At the end of the conference, Mozambique announced that it was beginning a debt conversion plan.

Mr. Buknor was speaking after a three-day seminar of debt conversion attended here by senior finance officials from 11 African countries.

Of these applications, Nigeria's debt conversion committee has approved converting $618 million into Nigerian naira for investment in Nigeria.

During the quarter, the company charged $46 million against earnings to reduce goodwill and charged $5.7 million against earnings for debt conversion.

One of the most heavily attended seminars was delivered by Roberto Toso, a representative of Chile's central bank who next month will direct Chile's debt conversion program.

These include creation of an international agency to deal with the problem and the issuing of special bonds guaranteed by the World Bank as well as various forms of debt conversion.

The officials said the debt conversion proposal, which would now operate on a voluntary basis, would form part of an extensive debt restructuring package that will also include a request for $7.2 billion in new credits.

Investors must apply to the Central Bank and then find a bank abroad that it is willing to sell debt at the discounted value, said Cesar Barros, a Chilean broker specializing in debt conversions.

In addition, the conversion of debt into exit bonds will require the consent of the creditors, and debt conversion should not impose penalties on the debtors that would prevent them from gaining access to new capital from abroad.

Largely through debt conversion, Chile in the last two years has attracted investments of $200 million from Australia, $250 million from South Korea, $250 million from Taiwan and $600 million from New Zealand.

Introduction Export insurance Financial help for exporters Supplier credit financing facility Overseas investment Debt conversion and countertrading Services and training in international trade Is Export Credit Insurance right for me?

In this process, much debt was repurchased and converted into local currency by the sovereign country issuers in official debt conversion programs designed to attract investment and in severely indebted countries through World Bank funded buy-backs.

'There Is a Lot of Interest' "The Nigerian example shows there is a lot of interest in debt conversion in Africa," J. Kofi Buknor, a deputy treasury director of the bank, said today.

If Mr. Rathnam is correct, this could mean debt conversion bonds in countries like Argentina and Brazil could offer an opportunity for high yield and strong capital gains if debt agreements like that for Venezuela are reached.

Towards the end of his time as Solicitor-General, Garran's work included the preparation of the Debt Conversion Agreement between the Government of Australia and the governments of the states, which involved the federal government taking over and managing the debts of the individual states, following the 1928 referendum.