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

To: Steve Fancy who wrote (9035)	10/18/1998 1:44:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil's Cardoso: Europe Needs To Follow U.S., Cut Rates Dow Jones Newswires OPORTO, Portugal -- Brazilian President Fernando Henrique Cardoso said Saturday that the U.S. and Europe must pursue concerted policies to reactivate growth and that Latin America will do its part by adopting austerity measures. Speaking at a press conference during the eighth annual Ibero-American summit, Cardoso said that while Latin America understands such issues as reforming international financial architecture, the region is more worried about a looming global economic slowdown. "It's time to take wider ranging and more immediate measures. These are centered on access to markets and lower interest rates," Cardoso said. But at the same time, Cardoso said he's determined to implement additional belt-tightening measures in his own country. "I'm going to implement an austerity program," the president said, without providing further details. "In principle the presidents of the three countries (Brazil, Argentina and Mexico) are willing to act together to call on the U.S. and Europe to take more energetic measures...in the short term," he said. "What we are worried about is an eventual slowdown in economic activity," he said. To avoid that, Cardoso said it's essential that industrialized countries take "anti-cyclical" measures immediately. More specifically, he said, they must cut interest rates. "It's true that the Fed has already taken this position, but it's also true that some European countries haven't," Cardoso said. "There are other central banks that can and should act quickly." He said developed countries must allow greater access to their markets, and criticized the U.S. for continued problems over trade in Brazilian orange juice, steel, footwear and other products. In addition, commercial banks must continue to finance international trade "because by retreating they aggravate the crisis - not just ours, but the general crisis". The other thing countries should do is create a contingency fund for times of crisis, which would be available even to countries like Brazil, which has relatively beefy reserves, Cardoso said. "Because of the international situation, it would be good to have a contingency fund available to countries which...may need it," he said. He said the fund, which would be organized by the International Monetary Fund, could total as much as $90 billion. -By Michelle Wallin and Erik Burns; 351-931-265-020; mawallin@ap.org; eburns@ap.org

To: Steve Fancy who wrote (9035)	10/18/1998 1:45:00 PM
From: Steve Fancy	Respond to of 22640

IMF-Led Contingency Fund Could Total $90 Bln - Cardoso Dow Jones Newswires OPORTO, Portugal -- Brazilian President Fernando Henrique Cardoso said Saturday that an International Monetary Fund-led contingency fund under discussion for countries in crisis could total $90 billion. Speaking to reporters during a summit of Ibero-American leaders, Cardoso said the U.S. Congress' long-awaited approval Thursday of IMF funding paved the way for more financing. "The U.S. Congress has approved $18 billion and the total could reach $90 billion," Cardoso said of the fund. He said that $90 billion would be a "sufficiently massive amount of resources" to allow any country that's doing its economic homework to quickly access enough money to deal with sudden outflows. "A country that is doing what needs to be done must have the possibility of accessing this sort of special check if they need to use it," Cardoso said. He emphasized that the fund would be organized by the IMF, and would be available to any qualifying country, not just Brazil. Brazil, whose markets have been under siege since mid-August, is actively negotiating with the IMF the terms which would allow it to access such a fund. -By Michelle Wallin and Erik Burns; 351-931-265-020; mawallin@ap.org