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

To: MGV who wrote (8060)	9/15/1998 2:52:00 PM
From: djane	Read Replies (1) \| Respond to of 22640

Soros is fulfilling his function to scare the **** out of recalcitrant, "Know Nothing," isolationist US Congressional Republicans into providing the $18B for the IMF and US support for a possible bailout/safety net for Brazil/Latin America.

To: MGV who wrote (8060)	9/15/1998 2:57:00 PM
From: djane	Respond to of 22640

**Latam nations said in talks on special loan fund [$100B loan fund] Tuesday September 15, 2:41 pm Eastern Time BRASILIA, Sept 15 (Reuters) - Latin American countries are in talks with international lending agencies to create a special loan fund for the region, an official at Merrill Lynch in Brazil said Tuesday after meeting Finance Minister Pedro Malan. Latin America, in particular Brazil, has been battered by the global crisis in emerging markets and rumors were rife this week that the International Monetary Fund (IMF) would step in with cash to prevent a devaluation in the Brazilian currency, the real. But officials were negotiating a loan fund -- estimated by markets at $100 billion -- which would allow them to borrow without committing to an IMF economic austerity plan, said Merrill Lynch senior international consultant Marcilio Moreira. ''It would work like a kind of special credit,'' the former economic minister told reporters following a meeting between Malan and 30 market analysts. The fund would include resources from the IMF, the World Bank, the Inter-American Development Bank and the United States Federal Reserve, Moreira said. U.S. President Bill Clinton said Monday the IMF should stand ready to use $15 billion in emergency funds should the economic crises in Russia and Asia threaten to topple the economies of Latin America. But Brazilian government officials repeated they saw no need to ask the IMF for help at this stage. Brazil raised interest rates to around 50 percent from about 30 percent last week in an effort to contain a massive outflow of dollars which has drained foreign reserves to near three-year lows. The country needs to maintain a healthy pile of foreign cash to defend the real against speculative attack. Foreign currency reserves have dropped to around $50 billion from close to $70 billion at the beginning of August. Copyright c 1998 Reuters Limited. All rights reserved.