MANUFACTURERS <MHC> PUTS BRAZIL ON NON-ACCRUAL
Manufacturers Hanover Corp said it
placed 1.4 billion dlrs of medium- and long-term loans to
Brazilian borrowers on non-accrual as of yesterday, meaning
that income will be recorded only when actual cash payments are
received.
    As a result, net income for the first quarter will be
reduced by 18 mln dlrs.
    If Brazil, which suspended interest payments on its term
debt on February 20, continues to defer interest payments for
the rest of the year, net income for the whole of 1987 would be
reduced by a total of 72 mln dlrs.
    U.S. bank accounting guidelines do not require loans to be
placed on nonaccrual unless interest payments are past due 90
days or more.  However, Manufacturers Hanover said that, in
light of current circumstances, it was more appropriate to
record income on its Brazilian loans only when cash payments
were received.
    It added that it believes Brazil will reach agreement with
its banks on a debt restructuring and that all interest
payments will be received later in 1987.
    The company earned 102.1 mln dlrs in first-quarter 1986 and
410.7 mln dlrs for the whole of the year.
 Reuter
