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

To: Steve Fancy who wrote (11735)	1/15/1999 1:56:00 AM
From: Steve Fancy	Respond to of 22640

Financial markets wrong on Brazil, IADB says Reuters, Thursday, January 14, 1999 at 19:11 WASHINGTON, Jan 14 (Reuters) - The Inter-American Development Bank said on Thursday that financial markets were acting irrationally in bailing out of Brazilian investments as the country's government was pursuing a strong reform plan. Responding to Wednesday's decision by Brazil to devalue its currency, IADB President Enrique Iglesias said the country was putting the necessary reforms through its Congress to address problems in its budget and social security system. "I'm very surprised that markets have not appreciated the immense efforts Brazil is undertaking on fiscal reform," Iglesias told reporters in Washington. In an earlier statement Iglesias said financial markets were irrational in that they had misunderstood that Brazil's reforms had to be implemented through a political process which by definition entailed delays. But he noted that confidence in Brazil's economy had been undermined by the matter of debts owed by local to central government, in a reference to a debt moratorium declared last week by a major state. "It is not our place to comment on an internal issue, but we note that this problem is increasing market volatility," he said in his statement. Copyright 1999, Reuters News Service