Banks Cut Eurodollar Borrwings
U.S. banks repayed $902 million in Eurodallars they had borrowed from their overseas branches in the week ended April 14, the Federal Reserve said yesterday.</br></br>On April 9, the Treasury sold $1.5 billion of special certificates to overseas branches of American banks in an attempt to soak up some of the (flood of Eurodollars spilling into European money markets.</br></br>When credit conditions were tight here in 1968 and 1969, American banks borrowed about $15 billion in Eurodollars	from	their	foreign branches to lend domestically. As credit conditions loosened, the banks began to repay their foreign branches.</br></br>The outflow contributed to the heavy U.S. payments deficit and complicated the internal monetary problems of recipient countries.</br></br>"I think it is probably safe to say that the heavy repayments In that week are related to the April 9 certificate sale,Û a Treasury spokesman said.