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

To: Mandinga who wrote (12068)	1/20/1999 2:21:00 PM
From: wl9839	Read Replies (1) \| Respond to of 22640

Brazil Govt, Allies Awaiting Larger Turnout Before Voting Dow Jones Newswires BRASILIA -- Government allies in Brazil's lower house of Congress will wait for 480 members to register their presence in the Chamber before going ahead with a key fiscal plan vote Wednesday, government coalition leader Arnaldo Madeira said. At 1840 GMT, amid protests and beefed-up security, 277 deputies, of the total 513 lower house members, had officially registered. Madeira said, however, that many more depututies were in the building but hadn't yet registered. The local Estado news agency reported that 453 deputies were present. The lower house is slated to vote on a controversial measure that increases social security taxes for civil servants and would require retired public workers also to contribute to the bankrupt pension system. The measure has failed four times in the past four years. Analysts have pointed to Wednesday's session as a make-or-break moment for Brazil following a week of market turmoil, during which the government has altered its foreign exchange policy and raised interest rates. Before the pension measure can be put to a vote, Congress will first need to approve a measure to fast track the measure. The fast track is potentially more problematic as it requires an absolute majority, or half plus one of all 513 members. The legislation itself only needs to be approved by a simple majority, or half plus one of all deputies present. Madeira told Dow Jones Newswires that he doesn't expect the final vote on the pension measure to take place until after local markets close at 2000 GMT. Deputy Antonio Kandir, a former planning minister and member of President Fernando Henrique Cardoso's Social Democrat Party (PSDB), said the vote is critical to restore the country's crippled credibility. "The significance of this proposal goes beyond the 4 billion (reals) ($1=BRR1.58) in savings," Kandir said. "It will show that Brazil is determined to push forward on fiscal reforms," he added, noting that he is confident the pension legislation will be approved. Brazil unveiled a wide-ranging fiscal plan last year aimed at saving BRR28 billion this year. The plan, 70% of which has already been approved by Congress, formed the backbone of an agreement with international lenders for $41 billion in aid. The government has undertaken a significant mobilization effort to ensure victory. Deputy Manoel Castro, of the government allied Liberal Front Party (PFL), said that various pro-government leaders and six government ministers met at the Social Security Ministry Wednesday to map out last-minute strategies. Last-minute arm twisting is still underway late Wednesday, sources said.