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To: Zeev Hed who wrote (3393)	1/7/1999 8:53:00 AM
From: Gersh Avery	Read Replies (1) \| Respond to of 99985

Zeev Re Brazil lockup Is that todays news? Gersh

To: Zeev Hed who wrote (3393)	1/7/1999 9:02:00 AM
From: Moominoid	Read Replies (1) \| Respond to of 99985

From CNN: Brazilian shares tumbled 3 percent in the first few minutes of trading Thursday after Minas Gerais state declared a moratorium on its debt with the central government, traders said. That's not so bad. Not even the biggest state (though not the smallest either). David

To: Zeev Hed who wrote (3393)	1/7/1999 9:22:00 AM
From: Tony van Werkhooven	Read Replies (1) \| Respond to of 99985

Zeev- I don't think your statement <Brazil folding, they have called a moratorium on debt> is correct. One of the states is playing chicken with the federal government, trying to renegotiate a deal that was already negotiated in a manner very favorably to the states (i.e. 6% over the inflation rate, which is currently negligible). This sure undoes the impact of the vote for tax increase in the special session yesterday. As long as the federal government takes a strong stance on the issue, i.e. takes the required payments from federal transfers to the states, it should not impact the federal government. However, it is certainly reflective of the wrenching changes that Cardosa is trying to implement. As I noted in another post this AM, Pinochet never had this much trouble implementing change in Chile. <BG>. Before anyone flames me for this statement, I also believe that whatever time Pinochet spends in jail, it is not enough.