BRAZIL/BANK COMMITTEE AGREE ON CREDIT REQUEST
Brazil and its bank advisory committee
agreed to transmit a request for an extension of short-term
credit lines totalling 16 billion dlrs for 60 days until May
31, Brazilian Central Bank President Francisco Gros said.
    Speaking after talks with the committee here, Gros also
said he did not expect to make interest payment to the banks at
this moment.
    He added that "no one should expect any dramatic
developments before March 31."
    Brazil last month suspended interest payments on its 68
billion dlrs debt to commercial banks and froze short-term
trade and money market lines.
    Bankers said they would relay the Brazilian request for an
extension but declined to say whether they were specifically
endorsing it.
    Gros said the decision, which he called a "standstill"
arrangement, will be communicated to Brazil's 700 bank
creditors by telex tomorrow. Banks had been pressing Brazil to
make at least a token interest payment, but Gros said the
government was unable to comply for the moment.
    He stressed however that Brazil was willing to pay as soon
as it could, but added that a payment of interest was not
connected with the extension of the credit lines.
    "That would not be wise," he said.
    He said that the extension of the short-term lines would
not be carried out through "an official instrument" as there was
not time to complete the legal requirements.
    Gros said Brazil was likely to meet again with the 14-bank
advisory committee once Brazil had information to present on an
economic plan.
 REUTER
