INTERSTATE (I) CHIEF DOUBTFUL ON BRAZIL DEBT
First Interstate Bank Corp Chairman
Joseph Pinola said he was not optimistic about the prospects
for a resolution of the Brazilian debt situation during the
current year.
    "I am not as optimistic personally on a resolution as some
others are," Pinola told reporters after the company's annual
meeting.
    He said it did not seem likely that the Brazilian
government has the will to take the steps necessary to resolve
their domestic economic difficulties.
   
    In February, Brazil suspended interest payment on about 68
bln dlrs of its commercial debt. Many U.S. banks have placed
their Brazilian loans on non-accrual status as a result of this
action, but they also expressed confidence that Brazil and U.S.
lenders could resolve the situation before the end of the year.
 Reuter
