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

To: Tony van Werkhooven who wrote (11544)	1/13/1999 12:36:00 PM
From: Steve Fancy	Respond to of 22640

Morgan Stanley lists Brazilian banks' dlr exposure Reuters, Wednesday, January 13, 1999 at 11:34 MEXICO CITY, Jan 13 (Reuters) - Morgan Stanley on Wednesday calculated that the dollar-denominated liabilities of three of Brazil's largest banks totalled some $17.4 billion. Brazil effectively devalued its real currency 7.5 percent and Central Bank President Gustavo Franco resigned, sending shockwaves through world markets. In a research report made available to Reuters in Mexico City, Morgan Stanley banking analysts Rafael Bello and Yovanka Bylander listed the following dollar exposures for Unibanco (SAO:UBBR4), Itau (SAO:ITAU4) and Bradesco (SAO:BBDC4): -- Unibanco has $4.4 billion in debt, all of it currency matched with assets in dollar-denominated loans and dollar-linked securities. Morgan Stanley calculated the risk at 40 percent, representing loans to companies that do not have dollar revenues. "In the extreme, UBB has $1.76 billion credit risk exposure (40 percent of $4.4 billion)," the analysts said. -- Itau has $7.9 billion in dollar-denominated liabilities and $10.9 billion in dollar-denominated assets. -- Bello and Bylander noted that only limited information was available about Bradesco but estimated the bank had $5.1 billion in dollar-denominated debt. They said they had no information on the value of dollar-denominated assets but that dollar-denominated debt represented 10 percent of total liabilities. mexicocity.newsroom@reuters.com)) Copyright 1999, Reuters News Service