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

To: DMaA who wrote (8418)	9/22/1998 5:10:00 PM
From: Steve Fancy	Respond to of 22640

No specific package imminent on Brazil-Summers Reuters, Tuesday, September 22, 1998 at 16:03 NEW YORK, Sept 22 (Reuters) - Deputy U.S. Treasury Secretary Lawrence Summers said on Tuesday Washington was watching developments in Brazil closely but added that no specific package was imminent for the crisis-torn country. "I do not foresee any imminent announcement of some package," Summers told a news briefing here. But he added: "We and the international community want to be in a position to be responsive to problems that might arise." Summers said economic officials from the Group of Seven industrial nations were in touch on Latin America's difficulties as they generally are on such serious issues. "We are watching the situation in Latin American around the world, in particular, in Brazil," Summers said. "There's certainly been conversations with the Brazilian authorities, with the (International Monetary Fund), with the G7, as we're always in touch on significant financial situations." Summers said that while the discussions have covered a range of issues, "there is certainly no specific proposal that is about to come out." washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: DMaA who wrote (8418)	9/22/1998 5:11:00 PM
From: Steve Fancy	Read Replies (6) \| Respond to of 22640

Brazil, IMF discuss policy options, not cash Reuters, Tuesday, September 22, 1998 at 16:38 WASHINGTON, Sept 22 (Reuters) - Brazil is discussing policy options with officials from the International Monetary Fund, but Latin America's largest economy has not asked the IMF for financial help, international monetary sources said on Tuesday. The sources, who asked not to be identified, said the two sides were in constant discussions about the Brazilian economy and about its economic policy. "It is part of the surveillance role of the IMF," said one source. "There has been no request for money," a second source said firmly. IMF officials have repeatedly said they are ready to help countries which ask for financial assistance and which adopt appropriate economic policies. They have said that they are in talks with the Brazilian authorities, but not about loans, and many Washington experts say privately that Brazil is unlikely to ask for cash before its Oct. 4 presidential election. Brazilian officials say they are discussing a "crisis prevention program" with the fund. But speculation has grown on financial markets that Brazil will need an international rescue package like those put together last year for the troubled economies of Thailand, Indonesia and South Korea. These rescue deals included large loans from the IMF, promises of bilateral help and credits from other international institutions like the World Bank. A World Bank source said the lending institution was ready to take part in any international rescue package for Brazil, but she declined further comment. "The World Bank stands ready to be a significant contributor in any international package of support agreed in support of Brazil," she said. The Inter-American Development Bank has already announced its intention to approve new money for Wednesday and it expects to approve a $1.1 billion loan on Wednesday, the largest loan it has ever issued. An IADB spokesman said Brazil's loan would support small business development, financial sector reform, and private sector projects in the health and education sectors. The Asian rescue packages have drained IMF resources to what the fund says is an uncomfortable level and fund experts say they now have just $5-9 billion available to lend from normal reserves. This means that any rescue deal for Brazil or any broader package for Latin America would have to tap the emergency resources of the General Arrangements to Borrow, a fund to be used when financial problems threaten the world economic system. washington.economic.newsroom@reuters.com)) Copyright 1998, Reuters News Service