Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: David Petty who wrote (11268)	1/6/1999 8:42:00 PM
From: Steve Fancy	Respond to of 22640

David, all part of the process of getting where they ultimately need to go. What's so tragic is that much if not all of the current gyrations would likely have been avoided if they had just approved the SS reforms completely last April-May. I'm confident they'll get it together sooner or later...just hope nothing happens to Cardoso in the meantime. We need more good news out of Congress to help offset this new problem. May hold UBB back more than the Telco's. sf

To: David Petty who wrote (11268)	1/6/1999 8:46:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

INTERVIEW-Brazil gov't poised for more budget cuts Reuters, Wednesday, January 06, 1999 at 18:19 BRASILIA, Jan 6 (Reuters) - Brazil's government will slash spending in January beyond the amount set forth in an earlier series of budget cuts to ensure it meets fiscal targets agreed with the International Monetary Fund, a senior official said Wednesday. A meeting of the government's Fiscal Management and Control Committee scheduled for Thursday will approve a proposal to restrict federal spending this month, Pedro Parente, the Finance Ministry's executive secretary, told Reuters. "We want to make it absolutely clear that we will honor the fiscal program as announced..." said Parente, who is also head of the committee. Rather than spend 8.25 percent of the annual federal budget in January -- a normal percentage -- the government would spend just 5 percent to compensate for delays in introducing new tax revenues, Parente said in an interview. "This is not a definitive cut, it is a temporary cut..." Parente said, explaining that spending later in the year might be increased to balance out the lean times in January. Brazil agreed to save or cut $23.5 billion in 1999 to narrow in return for a $41 billion package of loans put together by the International Monetary Fund in November. But delays in approving a controversial financial transaction tax, one of the package's most important items, plus other revenue-raising measures have caused concern in financial markets about the government's ability to meet its fiscal target. william.schomberg@reuters.com)) Copyright 1999, Reuters News Service