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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: MGV who wrote (7794)	9/10/1998 7:26:00 PM
From: Steve Fancy	Respond to of 22640

Brazil refuses bids, fails to sell LBCs at auction Reuters, Thursday, September 10, 1998 at 15:00 SAO PAULO, Sept 10 (Reuters) - Brazil's Central Bank on Thursday refused the bids and did not sell any of the four billion reais worth of 91-day, post-fixed Central Bank Letters (LBCs) at its weekly auction, dealers said. Dealers said that the Central Bank did not sell the floating interest rate papers because it was not ready to pay the premium wanted by banks due to global financial turmoil. The LBCs, which carry less risk for investors when compared to letters paying prefixed rates, pay rates that are set after they mature, and fluctuate based on the average overnight benchmark rate in the period. Thursday's auction would not impact the system's liquidity because there are no old papers maturing on Friday, dealers said. Copyright 1998, Reuters News Service

To: MGV who wrote (7794)	9/10/1998 7:29:00 PM
From: Steve Fancy	Respond to of 22640

IMF says Latam policies good, but 98 growth slowed *sf note: Anyone believe a guy named "Loser" in this market? Gimme a break here, will ya, get ridda the guy?* Reuters, Thursday, September 10, 1998 at 15:12 WASHINGTON, Sept 10 (Reuters) - Latin American countries are taking the correct steps to deal with global market turmoil, but the storm will hurt the region's growth this year and next, the IMF's top official for the region said on Thursday. International Monetary Fund Western Hemisphere director Claudio Loser said he expected volatility, set off by Russia's debt default, to continue in all markets for the next month or two. "I'm convinced that the policies the countries are pursuing are the right ones, that the fundamentals are the right ones and that the attacks that we see are not warranted given what the countries are doing," Loser told Reuters in an interview. Loser said Latin America growth will be somewhat under 3 percent this year and probably next year too. In April the IMF had already cut its growth projection for Latin America to 3.4 percent from 5.0 percent due to the Asian crisis. It originally estimated 1999 growth at 4.3 percent. The IMF still expects Brazil to grow about 1.5 percent this year as forecast. Loser said Brazil's current account was high, but was being reduced with the government's monetary and fiscal measures, and income from privatizations had helped. "The reserves have declined, but they remain high, and I don't think financing should be a problem for Brazil this year," Loser said. Venezuela has worked hard to contain spending and was depreciating its currency, while reserves in the oil-producing nation remain high, the IMF official said. He added, however: "There are questions about the level of the exchange rate, but I think that with the notion they have set in place of accelerating the depreciation over the last several weeks they can take care of the problem." Loser said Venezuela must still continue to take strong monetary and fiscal action. fax +1 202 898-8383, washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service