Morgan Stanley lists Brazilian banks' dlr exposure
Reuters, Wednesday, January 13, 1999 at 11:34
MEXICO CITY, Jan 13 (Reuters) - Morgan Stanley on Wednesday
calculated that the dollar-denominated liabilities of three of
Brazil's largest banks totalled some $17.4 billion.
Brazil effectively devalued its real currency 7.5 percent
and Central Bank President Gustavo Franco resigned, sending
shockwaves through world markets.
In a research report made available to Reuters in Mexico
City, Morgan Stanley banking analysts Rafael Bello and Yovanka
Bylander listed the following dollar exposures for Unibanco
(SAO:UBBR4), Itau (SAO:ITAU4) and Bradesco (SAO:BBDC4):
-- Unibanco has $4.4 billion in debt, all of it currency
matched with assets in dollar-denominated loans and
dollar-linked securities. Morgan Stanley calculated the risk at
40 percent, representing loans to companies that do not have
dollar revenues.
"In the extreme, UBB has $1.76 billion credit risk exposure
(40 percent of $4.4 billion)," the analysts said.
-- Itau has $7.9 billion in dollar-denominated liabilities
and $10.9 billion in dollar-denominated assets.
-- Bello and Bylander noted that only limited information
was available about Bradesco but estimated the bank had $5.1
billion in dollar-denominated debt.
They said they had no information on the value of
dollar-denominated assets but that dollar-denominated debt
represented 10 percent of total liabilities.
mexicocity.newsroom@reuters.com))
Copyright 1999, Reuters News Service
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