BRAZIL ASKS 60-DAY EXTENSION SHORT-TERM CREDIT
Brazil today suggested to its foreign
bank creditors an extension of short-term credit lines for 60
days until May 31, a spokesman for the Central Bank said.
    He said that with the move, called a "standstill"
arrangement, Brazil was only trying to avoid difficulties to
pay its 109 billion dlrs debt in the future.
    The spokesman told Reuters that Brazil's suggestion will be
communicated by telex to Brazil's 700 bank creditors.
    The spokesman declined to give details of what was included
in the statement, but said Central Bank president Francisco
Gros was seeking a 60-day extension of the short-term credit
lines from its commercial bank creditors.
    The amount of these credit lines totals 15 billion dollars,
and deadline for payment is set for March 31.
    Finance Minister Dilson Funaro said in a television
interview it was "absolutely important" for Brazil and its
creditors to renew the short-term credit lines, as Brazil must
finance its exports.
    "If these credit lines were cut, we would face difficulties
to honour our foreign debt in the future," Funaro said.
    "There is evidently a common interest in the matter," he said.
    Funaro said, however, he was told creditors understand
Brazil's position and do not wish to turn the negotiation for
the renewal of the credit lines more difficult.
    Brazil last month suspended interest payments on its 68-
billion dlrs debt to commercial banks and froze short-term
trade and money market lines.
    He said Brazil's suggestion is part of its demands "before
the need to renew the mechanisms of loans in the world."
    Funaro said currently debt negotiations are "very complex
and complicated," mentioning cases of countries which had to
wait some 10 months before getting a reply from creditors.
    "We are not interested in confrontation, but we would like
the loan mechanisms to show that the crisis belongs to both
sides," Funaro said.
    Funaro denied rumours that he had offered his resignation
to President Jose Sarney.
    "Who decides whether to keep or dismiss his ministers is the
president. Everything else is nothing but speculation," he said.
 Reuter
