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

To: Steve Fancy who wrote (11432)	1/12/1999 10:12:00 AM
From: Steve Fancy	Respond to of 22640

Itamar reaffirms Minas Gerais' moratorium São Paulo, 12 - Minas Gerais governor, Itamar Franco (PMDB), who signaled Monday he could meet with President Fernando Henrique Cardoso in an attempt to find a solution to the impasse caused by the state's default, criticized Cardoso once again, accusing him of being more worried about his re-election rather than about Brazil's reforms. Franco's criticism was a reaction to the federal government's decision to retain Minas Gerais' share in the States Participation Fund. Minas Gerais deputy governor, Newton Cardoso (PMDB), announced that the state would pay its Eurobond debt due next month. Last week, however, Franco suggested that perhaps the state would not pay the debt either. The first installment, which amounts US$107m, is due on February 10. (O Estado de S. Paulo/ Jornal da Tarde/ Folha de S.Paulo/Jornal do Brasil/ O Globo/ Correio Braziliense)

To: Steve Fancy who wrote (11432)	1/12/1999 10:12:00 AM
From: Steve Fancy	Respond to of 22640

Fiscal stabilization delays affect Brazil's image São Paulo, 12 - Brazil's difficulties to conduct the fiscal stabilization program (PEF) has damaged again the positive image the country had been trying to rebuild with the aid of the International Monetary Fund, coordinator of a US$41bn bailout package. Yesterday, an economist at a multinational with billions invested in Brazil said that the federal government "has no room left for further mistakes." That is, negative votes in Congress could further boost capital flight. "The money flowing out of Brazil is not that of institutional investors anymore, but rather that of Brazilian investors," the economist, who declined to be identified, explained

To: Steve Fancy who wrote (11432)	1/12/1999 10:14:00 AM
From: Steve Fancy	Respond to of 22640

Panic sell-off and rumors affect investors' confidence Local stock markets should continue depressed this Tuesday after a panic sell-off yesterday hit Brazil's C-Bond, the country's most liquid debt instrument, spreading panic among investors. Analysts consulted by Agência Estado also believe that trade should remain thin "as investors look for signs that recent political turmoil won't worsen", Dow Jones reported. Rumors that Central Bank's president, Gustavo Franco, as well as Finance minister, Pedro Malan, may step out of government, coupled with comments that the real is to be devalued are also contributing to hit investors' confidence. Although they are still rumors, enough fuss has been made, and investors claim they will be out of trade until at least the dust settles. (By Paulo R. Monteiro Dias)

To: Steve Fancy who wrote (11432)	1/12/1999 10:49:00 AM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil's Cardoso assures country will honor debt Reuters, Tuesday, January 12, 1999 at 10:29 RIO DE JANEIRO, Jan 12 (Reuters) - Brazilian President Fernando Henrique Cardoso said Tuesday that Brazil will honor its debts in a bid to calm investors after a leading state declared a moratorium last week on its debt with the central government. "The market can calm down, the government knows what it's doing, what it's going to do," Cardoso told reporters during a visit to Rio de Janeiro. "We will pay our debts, all will honor their debts." Itamar Franco, governor of Brazil's third-biggest state of Minas Gerais, said last week that he will cease to make payments over the next three months on the $13.4 billion the state owes the federal government. Cardoso told reporters Tuesday that state budget problems were due to bloated payrolls and pension systems and urged cash-strapped states to adjust their budgets. "States that have problems now have to adjust," Cardoso said. "Many states' problems are excess of personnel, often pensioners, that doesn't have anything to do with renegotiating debt with the federal government." Cardoso warned that the federal government already did its part by cutting interest rates on states' debt payments. He also said that Pedro Malan will remain as Finance Minister, squelching market speculation that Malan could be on his way out of the ministry. "Minister Malan is essential for Brazil," he said. "He has enormous skill." Copyright 1999, Reuters News Service