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

To: CuttotheCore who wrote (9502)	11/6/1998 3:47:00 PM
From: Steve Fancy	Respond to of 22640

Brazil Bailout Package Of Up To $40B May Be Announced Monday Dow Jones Newswires LONDON -- An international loan package for Brazil may be announced as early as Monday and could amount to as much as $40 billion, international monetary officials said Friday. In Philadelphia, International Monetary Fund Managing Director Michel Camdessus said the fund expects to announce a "strong, credible, solid program with Brazil" at the beginning of next week. His comments came during a speech before the World Affairs Council. After the speech, Camdessus declined to give further details about the package, telling reporters they would have to wait a few days. The package, according to tentative information provided by officials, could amount to as much as $20 billion of multilateral agency lending and up to $20 billion of credits extended by the Group of Ten developed countries. A letter of intent on the multilateral agency package could be signed early next week. The G-10 part could be announced on Monday when G-10 central bankers gather at the Bank for International Settlements for their regular monthly meeting, officials said. Brazilian central bank President Gustavo Franco is in Washington Friday for talks with IMF officials. He is scheduled to travel to Basel for meetings at the BIS over the weekend. A letter of intent between Brazil and the IMF would be a major step in mapping out the terms of an agreement. The matter would then go to the IMF's executive board for consideration, as well as to the World Bank and Inter-American Development Bank. Reports have placed the total bailout at around $30 billion, but officials suggested the amount could rise closer to $40 billion. Whatever the final amount, the loans would go to shore up Brazil's foreign-exchange reserves, and if necessary, to cover short-term liabilities. The multilateral facility could involve the General Arrangement to Borrow, from which Russia borrowed in August, and the New Arrangement to Borrow, officials said. The latter could kick in because the U.S. Congress recently approved additional funding for the IMF. Officials said Deutsche Bundesbank President Hans Tietmeyer, as chairman of the Group of Ten central bankers committee, would announce the G-10 loan package at around 1200 GMT on Monday, if details were wrapped up by then. Each G-10 central bank would then announce their own shares of the package. These funds would come from central banks of each G-10 country, guaranteed in some cases by the respective governments. Brazilian central bank President Gustavo Franco is in Washington Friday for talks with IMF officials. He is scheduled to travel to Basel for meetings at the BIS over the weekend. A letter of intent between Brazil and the IMF would be a major step in mapping out the terms of an agreement. The matter would then go to the IMF's executive board for consideration, as well as to the World Bank and Inter-American Development Bank. Reports have placed the total bailout at around $30 billion, but officials suggested the amount could rise closer to $40 billion. Whatever the final amount, the loans would go to shore up Brazil's foreign-exchange reserves, and if necessary, to cover short-term liabilities. The multilateral facility could involve the General Arrangement to Borrow, from which Russia borrowed in August, and the New Arrangement to Borrow, officials said. The latter could kick in because the U.S. Congress recently approved additional funding for the IMF. Officials said Deutsche Bundesbank President Hans Tietmeyer, as chairman of the Group of Ten central bankers committee, would announce the G-10 loan package at around 1200 GMT on Monday, if details were wrapped up by then. Each G-10 central bank would then announce their own shares of the package. These funds would come from central banks of each G-10 country, guaranteed in some cases by the respective governments. One official suggested that a drawback in wrapping up the package has been the domestic wrangling in Brazil over the government's fiscal reforms. "They have to come up with reforms that are agreeable to the IMF and politically feasible at home," said the official. The Brazilian Congress earlier in the week gave final approval to a social security reform bill after more than three years of legislative delays. But other aspects of a recently announced plan to shave 28 billion reals from the government budget deficit in 1999 are expected to encounter political opposition. Another source said "things are moving forward; they aren't being delayed." That official said an announcement could come "early next week." The IMF had no comment, other than to say no announcement would be made Friday.

To: CuttotheCore who wrote (9502)	11/6/1998 4:11:00 PM
From: Steve Fancy	Respond to of 22640

Stx, thanks for the update. I'm watching UBB also. Looks like it lost about a 1/2 point today. Although we may be up out of the gate on Monday, I'm holding off till then cause Brazil most often seems to start out slow. Could sell off after aid package...or maybe an up day then a sell off. This stock more often than not responds to good news just the opposite as most think it will. FWIW, Relatively heavy options activity on TBH today...90C across various months seemed to be the most popular. UBB had significant trading of the JAN 22.5 put and call. sf