B of A created a unit for problem foreign loans.

The special loan subsidiary will attempt to deal with the bank’s nearly $1.5 billion in non-performing and restructured loans to Third World countries. B of A has suffered substantial losses on its foreign loans and hopes to reduce future losses by creating a team of experts under the bank’s chief officer for Latin America, Bill Young. Last week, the bank announced that it had formed a similar unit to handle troubled domestic business and consumer loans.