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

To: Steve Fancy who wrote (9497)	11/6/1998 11:15:00 AM
From: wendell morris	Respond to of 22640

tbr gets mentioned several times in this article this week. geocities.com

To: Steve Fancy who wrote (9497)	11/6/1998 12:00:00 PM
From: Steve Fancy	Respond to of 22640

IMF, Brazil hammer out rescue plan to dodge crisis Reuters, Friday, November 06, 1998 at 00:20 By Adam Entous WASHINGTON, Nov 5 (Reuters) - The International Monetary Fund and Brazilian negotiators on Thursday worked to complete a $30-billion-plus loan agreement to guard Latin America's biggest economy against an Asia-style meltdown. Brazilian Central Bank President Gustavo Franco was due to meet with IMF officials on Friday in hope of finishing a letter of intent underpinning the loan package. International monetary sources said an agreement could be announced after the talks or early next week. In a sign an accord was close, the Clinton administration has briefed some congressional staffers on negotiations. The United States is expected to contribute billions of dollars in bilateral aid by tapping into the U.S. Treasury Department's Exchange Stabilization Fund. Treasury Secretary Robert Rubin can tap into the fund without congressional approval, but he risks a backlash from lawmakers who want a say in its use. The IMF was expected to offer $15 billion to Brazil. The World Bank is preparing a series of loans worth $4.5 billion. Its executive board was briefed earlier this week by staff on the package. The Inter-American Development Bank stood ready with $3.4 billion. Brazil needs international support to stave off fears of a devaluation of its currency, the real, and to reassure anxious foreign investors. Collapse of the real could cause financial havoc in the rest of Latin America. Negotiations with the IMF reached a final stage after the government announced a tough austerity plan to save $84 billion over the next three years. Brazilian officials hope the austerity drive will go a long way to restoring investor confidence and that the government will not need to draw on much of the international package. In addition to upfront loans, the IMF was expected to offer Brazil a special credit line proposed by Group of Seven (G7) major industrial nations. The precautionary line of credit could be tapped at times of acute financial stress, ensuring the government pays its bills on time and has enough cash to defend its currency. The World Bank and the Inter-American Development Bank will also use new emergency loan facilities to help Brazil. The credits will be disbursed more quickly than normal loans, but under shorter repayment terms and at higher interest rates. To supplement these loans, G7 nations were expected to offer bilateral aid to the government, as well as export-import financing to keep trade flowing. The U.S. Export-Import Bank plans to increase its financial support for Brazil by $2 billion, officials said. The Treasury was expected to tap the Exchange Stabilization Fund, but it was unclear how much money Washington would offer. Use of the special Treasury fund has raised hackles in Congress in the pasta, and many lawmakers resent that Rubin can tap into the fund without a green light from Congress. Congress' Joint Economic Committee said in a statement that lawmakers should consider eliminating the ESF, or require greater oversight. The Treasury Department has briefed House Banking Committee staff on conditions in Brazil, along with others that have requested information about the upcoming package, congressional sources said. Japan's Finance Minister Kiichi Miyazawa said on Wednesday that Tokyo was also likely to provide aid to Brazil on a bilateral basis. No figures were given. Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9497)	11/6/1998 12:04:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil pact may be next week-IMF Fischer quoted Reuters, Friday, November 06, 1998 at 01:58 TOKYO, Nov 6 (Reuters) - Japan's Finance Minister Kiichi Miyazawa said on Friday that Stanley Fischer, the International Monetary Fund's (IMF) first deputy managing director, told him an agreement between the fund and Brazil over a loan agreement may come next week. Miyazawa, who met Fischer on Thursday, told a regular news conference that an agreement between the two parties was likely either this week or the next. But he added that Fischer had told him the accord may come next week. "He said it may be next week," Miyazawa said. International monetary sources said on Thursday that an agreement could be announced on Friday or early next week. tokyo.newsroom@reuters.com)) Copyright 1998, Reuters News Service

To: Steve Fancy who wrote (9497)	11/6/1998 12:05:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil shares soar ahead of much-awaited IMF deal Reuters, Friday, November 06, 1998 at 09:25 SAO PAULO, Nov 6 (Reuters) - Brazilian shares surged on early Friday as investors predicted the government would soon secure a special credit line from the International Monetary Fund (IMF), brightening the country's economic outlook. The blue chip Bovespa (INDEX:$BVSP.X) jumped 3.31 percent to 8,361 points after gaining 24 percent in the last four sessions mainly as optimism grew on the IMF deal. Traders pointed out that Brazil's Central Bank President Gustavo Franco traveled to Washington late on Thursday to review the final details of an international aid package being put together by the IMF. "That means very soon there would be some good news," said one chief trader at local Indusval brokerage. Bovespa's Friday rally was also helped by signs that foreign funds were trickling back into the local bourse after the government managed to approve the long-delayed pension reform bill in Congress late on Wednesday. Brazil gained a net $266 million in foreign exchange markets on Thursday, marking the first net daily inflow of the U.S. currency in more than two weeks. This also underpinned sentiment in the stock market, traders said. Among Sao Paulo's blue chips, Telebras preferred receipts (SAO:RCTB40) gained 3 percent to 106.40 reais, while Petrobras preferred (SAO:PETR4) rose 2.49 percent to 185.50 reais. Petrobras, Brazil's state oil giant, said on Friday it signed a $12.4 million oil exploration and production partnership deal with Argentina's Perez Companc SA (SAO:PER) and U.S.-based Kerr-McGee Corp. (NYSE:KMG). noriko.yamaguchi@reuters.com)) Copyright 1998, Reuters News Service