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To: Tunica Albuginea who wrote (42875)	10/13/1999 11:13:00 PM
From: Tunica Albuginea	Respond to of 116779

PAUL ROBERTSON: " CAN THE FED HOLD IT TOGETHER?" I don't know:How fast can they print 37 billion dollars? TA ------------------------------------------------------ telegraph.co.uk:80/et?ac=000626415357098&rtmo=aNHp3wsL&atmo=99999999&pg=/et/99/10/14/cnpak14.html IMF expresses fears over Pakistan debt By George Trefgarne, Financial Correspondent Official Government of Pakistan web site Pakistan News Service International Monetary Fund International: Pakistan's army chief 'wants to avoid martial law' FEARS that Pakistan may default on its $37 billion (œ22 billion) of debt were mounting last night after Michel Camdessus, managing director of the International Monetary Fund, indicated the fund could suspend loan payments as a result of Monday's military coup. Mr Camdessus's comments followed the daily meeting of the IMF's executive board yesterday, in which it is understood that the US was joined by EU representatives, including Stephen Pickford from Britain, in raising serious doubts about the wisdom of continuing to lend money to Pakistan now it is under the rule of General Pervaiz Musharraff. Speaking on a French Radio station, Mr Camdessus said the coup was a "real threat" and that he was "not certain" that aid could continue. Pakistan agreed a $1.5 billion rescue programme with the IMF in 1997 and, so far, has received $153m. A further tranche was due to be dispensed this month, but has been held up by disagreements between the Fund and the old civilian government of Nawaz Sharif. Last night, market sources said interest rates on some of the debt was approaching 30pc. If the IMF suspends payments, Pakistan may not be able to service other lenders. Just over half its debt is owed to international institution such as the World Bank and the Asian Development Bank. British banks are owed less than $400m. The eurobond market is especially worried about the fate of $150m 11.5pc issue maturing in December this year. It is underwritten by a Luxembourg bank. Sources at the IMF also indicated yesterday that it is especially worried about "moral hazard", whereby it inadvertently subsidises wrongdoing. However, a spokesman said: "Whatever the political issues, there were differences between the fund and the government." Mr Sharif was stalling over introducing a 12.5pc VAT to help balance Pakistan's budget. He had also fallen out with Fund and the World Bank by cancelling contracts with independent power companies funded by the World Bank. ================================== To: Tunica Albuginea who wrote (42829) From: PAUL ROBERTSON Wednesday, Oct 13 1999 2:48AM ET Reply # 42830 of 42925 Tunica, I completely agree. The whole thing is busting at the seams. The big question is, are they, the fed, going to be able to hold it together ? I sense their presence. Once europe opens, who knows ? Paul P.S. My tech work indicates a blast off to check out the highs once again. Bot more yesterday pm.