Brazil Senate Committee To Decide Tues On Franco Testimony
Dow Jones Newswires
RIO DE JANEIRO -- The Brazilian Senate's Economic Affairs Committee (CAE) will meet Tuesday to decide if Minas Gerais state Governor Itamar Franco can explain to the committee his decision to suspend federal debt payments, a CAE spokeswoman confirmed Thursday.
"Nothing has been agreed yet, but he (Franco) will probably be invited to appear before the committee," she said, adding that the meeting will deal with opposition Senator Eduardo Suplicy's request in a plenary session Thursday that Franco be allowed to defend the moratorium.
As reported, Brazil's third wealthiest state, Minas Gerais, declared Wednesday it would stop its monthly $67 million federal debt payments for 90 days from Jan. 1, 1999, sending shock waves through Brazilian and global financial markets.
"If confirmed, Itamar Franco will appear before the CAE on Wednesday," the spokeswoman said.
Earlier Thursday, the Estado news agency reported Senate President Antonio Carlos Magalhaes as saying Franco would have to approach him personally, and not the CAE.
"If he wants to come to the Senate, like the educated man he is, he will have to ask the president of the Senate," Estado quoted Magalhaes as saying.
-By Jamie McGeever (5521) 580-9394; jmcgeever@ap.org
--------------------------------------------------------------------------------
|
