SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Telebras (TBH) & Brazil
TBH 0.825-11.7%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Steve Fancy who wrote (11360)1/11/1999 10:46:00 AM
From: Steve Fancy  Read Replies (2) of 22640
 
Brazil Witholds Payment to Minas Gerais State in Debt Dispute
Brazil Witholds Payment to Minas Gerais State in Debt Dispute

Brasilia, Brazil, Jan. 11 (Bloomberg) -- Brazil's federal
government withheld a transfer payment to Minas Gerais state in
retaliation for the state's debt moratorium, as the government
tries to defuse a dispute that has sent stocks and bonds reeling.

The government said it withheld 11.7 million reais ($9.8
million) that would have been paid to the state this month, in
response to the state's move to suspend for 90 days payments on
its $15 billion debt to the government.

The move is permitted under Brazilian law, and indicates the
federal government is willing to stand up to the state
government.

The moratorium by Minas Gerais, and concerns that other
states may follow suit, has sent Brazilian stocks down 10 percent
in the last three sessions.

The debt debate underscores Brazil's fragile finances, as
the country is trying to slash almost in half its $64 billion
budget deficit this year, to protect the currency and meet its
obligations under a $41.5 billion aid package from the
International Monetary Fund and other lenders.

States want to renegotiate the terms of the debt accords
signed with the government last year, claiming they have no money
to pay. The state governors plan to meet in Minas Gerais with
finance ministry officials on Jan. 18 to discuss the debt.



--------------------------------------------------------------------------------

© Copyright 1998, Bloomberg L.P. All Rights Reserved.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News