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

To: djane who wrote (11494)	1/13/1999 6:40:00 AM
From: Z Analyzer	Respond to of 22640

<< It came to the conclusion the Brazil's net financing requirement will be $29.8 billion. Will it have the resources to cover that? Offitbank gives an emphatic yes. If you add the $37 billion which will become available under the IMF/G7 support program to the $25 billion of currency reserves which could be left after the current mini-panic subsides, it will mean that Brazil will still have double the amount of reserves necessary to cover its international payments in 1999. The real, then , will not be devalued.>> This guy is full of sh--. Are they then going to get another $30 or 40 mil from the IMF to get them through the year 2000. As the Morgan Stanly (I think) analyst said, the situation is untenable. He also made comments about private money flowing out and public money flowing in. Is it possible that IMF and World bank fund inflows are included in the figures which show $200 to 300 mil in daily outflows. If so this is a disaster and the sooner Brazilgets devaluation over with while they still have reserves to defend the currency, the better. Its bad enough that with all the funds in from asset sales, they still have net outflows.