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

To: Steve Fancy who wrote (9365)	11/3/1998 5:15:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Fiscal Measures Face First Major Test Wednesday Dow Jones Newswires BRASILIA -- The Brazilian government will receive the first indication of how difficult it will be to push through its fiscal austerity plans when Congress meets Wednesday to vote on a long-delayed reform measure. Brazil's lower house of Congress is scheduled to begin voting on three outstanding points in a landmark social security reform bill that could save the government over 4 billion reals (BRR) ($1=BRR1.19) next year. But the importance of the vote goes beyond that amount. "Voting in favor of the three items represents more than the approval of the social security bill," said Congressman Jose Carlos Aleluia. "It will demonstrate that we are willing and able to approve the fiscal austerity measures." The government last week unveiled a broad fiscal plan aimed at saving the government BRR28 billion next year. Most of the measures will require Congressional approval. Wednesday's vote could go a long way towards proving that Brazil's independent-minded Congress is serious about cutting the country's ballooning budget deficit - of around 7% of gross domestic product. Analysts cited optimism about Wednesday's session as a key factor in the sharp upswing in local equities Tuesday. The Sao Paulo Stock Exchange's Bovespa Index spent the entire session in positive territory and ended 6.6% higher. But doubts remain as to whether the government will get the support it needs on Wednesday. "It's very difficult to predict what will happen given Congress's past performance," said Antonio Augusto de Queiroz, a Congressional analyst for Brasilia-based research group GIAP. "I would say there's only a 40% chance the bill will be approved in its totality Wednesday."

To: Steve Fancy who wrote (9365)	11/3/1998 5:18:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Regarding the previous story, I believe what's important is at least one amendment is approved Wednesday and none fail...they go back at it Thursday and the rest are approved THIS week. If it's a done deal by this weekend, should be pretty big. Probably too good to be true, but the easier they make this look, the more impact it's gonna have. If, any of these amendments fail, I hate to think about it. I believe credit line news will follow within days of a successful SS reform vote. sf