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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (10638)	11/6/1998 4:42:00 PM
From: MythMan	Read Replies (3) \| Respond to of 86076

keep an eye on this over the weekend good for +150 on Monday...mark it down FOCUS-IMF-Brazil loan deal expected next week By Adam Entous WASHINGTON, Nov 6 (Reuters) - The International Monetary Fund said on Friday it expected to finalize a multibillion-dollar rescue package for Brazil early next week after talks with top government officials over the weekend. ''The expectations on both sides are for an announcement early next week,'' an IMF spokesman said of an expected $30 billion-plus package for Latin America's biggest economy. The deal will include big loans from the IMF, the World Bank and the Inter-American Development Bank. The United States, Japan and other industrial nations were expected to offer bilateral support as part of the package. Some analysts believe it will take at least $45 billion to guard Brazil against an Asia-style meltdown. Brazil needs international support to stave off fears of a devaluation of its currency, the real, and to reassure anxious foreign investors. A collapse of the real could cause financial havoc in the rest of Latin America. Negotiations with the IMF reached a final stage after the Brazilian 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 confidence and that the government will not need to draw on much of the international package. The IMF is expected to offer $15 billion to Brazil. The fund's contribution may incorporate a special credit line proposed by Group of Seven major industrial nations. The precautionary 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 is preparing a series of loans worth $4.5 billion. The Inter-American Development Bank stood ready with $3.4 billion. IMF and Brazilian negotiators had hoped to finalize a so-called letter of intent on Friday, laying out the country's policy commitments. The IMF said talks were going well, but that more time was needed to complete the papers. A final agreement was now expected on Monday or Tuesday, officials said. Brazilian Central Bank President Gustavo Franco arrived in Washington early on Friday for final-stage talks with the IMF. But he refused to comment on the state of negotiations. IMF officials said negotiators would work on Saturday and Sunday. No announcements were planned over the weekend. As part of the loan package, Group of Seven nations were expected to offer bilateral aid to the government, as well as export-import financing to keep trade flowing. The United States was expected to tap the Treasury Department's 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 past, because many lawmakers resent that Treasury Secretary Robert Rubin can tap into the fund without a green light from Congress. The U.S. Export-Import Bank plans to increase its financial support for Brazil by $2 billion, officials said.