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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (5529)	11/7/1998 3:46:00 PM
From: LakesideTrader	Read Replies (1) \| Respond to of 7247

Thanks, Tim, and glad to hear from you. Do you have any recommendations on quick ways to evaluate when you have to move fast? Sometimes feel that I jump without looking!

To: Tim Luke who wrote (5529)	11/8/1998 11:58:00 AM
From: Tim Luke	Respond to of 7247

Sunday November 8, 10:19 am Eastern Time Brazil braces for crucial IMF loan deal this week By Noriko Yamaguchi SAO PAULO, Nov 8 (Reuters) - Investors across Brazil were awaiting a crucial announcement from the International Monetary Fund (IMF) this week of a multibillion-dollar aid package that could save Latin America's economic giant from a meltdown. The sorely needed aid, which would save the world's eighth biggest economy from a devastating currency devaluation, is due to see the light after Central Bank president Gustavo Franco worked over the weekend in Washington to finalize talks begun in September. IMF Managing Director Michel Camdessus said on Friday that officials would probably be ready to announce at the beginning of this week ''a very strong, credible, solid program with Brazil which has the potential to avoid a major crisis in this country and put it potentially on a sustainable track of recovery.'' ''We need a volume of funds that would dissipate any sort of doubt that is currently put against Brazil, although we may not need to use the money,'' Pedro Parente, executive secretary at Brazil's Finance Ministry told an interview published on O Globo newspaper on Sunday. Estimates on the total rescue package, which would not only prevent an economic disaster in the region but could also save the world from a full-blown recession, run from $30 billion to $45 billion. The IMF is expected to come up with at least $15 billion while the World Bank and the Inter-American Development Bank (IADB) were seen preparing a series of loans totaling $4.5 billion and $3.4 billion each. Local newspapers speculated over the weekend that the Bank of International Settlements (BIS) would fill in a large part of the rest of the package. The United States, Japan and other Group of Seven countries are also expected to offer credit following the IMF announcement. Brazil's financial markets staged a greeting rally for the aid last week, hoping the pool of funds would put an end to a relentless capital flight that forced the country lose more than $30 billion just through foreign exchange deals since Russia's mid-August devaluation. Stock prices rose more than 25 percent in the last five sessions as foreigners tiptoed back to the local market, while dollar inflows steadily outpaced outflows in the currency markets -- a phenomenon not seen in the last three months. ''There's no doubt progress with the IMF-led package, which could total $40 billion to $45 billion, has been the golden key in recent market performances,'' Alberto Tamer, a London-based columnist for O Estado de Sao Paulo daily wrote on Sunday. Three major Brazilian banks managed to raise funds in overseas markets last week, an event considered impossible only a week ago, Tamer pointed out. But economists said most investors were not ready to cheer with all hands up as the government still faced the gruesome task of backing up the IMF credit with a fiscal savings plan totaling $84 billion. The government is due to propose to congress on Monday the first batch of those cuts, or a reduced version of the 1999 budget which would allow it to save 8.7 billion reais ($7.4 billion) in federal costs. --------------------------------------------------------------------------------