STOLTENBERG CALLS FOR NEW BRAZIL TALKS WITH BANKS
Finance Minister Gerhard Stoltenberg said
he will advise Brazil to take up discussions with its
commercial bank creditors when he is in Washington for the
International Monetary Fund (IMF) meeting next week.
    He told a news conference ahead of the IMF talks that
discussions about developing country debt problems would play
an important role on the agenda in Washington.
    Stoltenberg noted that Brazil had agreed in January to work
together with the banks but said this pledge had not yet been
fulfilled.
    After Brazil imposed a moratorium on interest payments on
68 billion dlrs worth of debt in February, Brazilian Finance
Minister Dilson Funaro sought to involve foreign governments in
rescheduling talks with banks.
    But British Chancellor of the Exchequer Nigel Lawson
rebuffed Funaro's bid and said commercial bank loans were a
matter for banks and not governments. West German bankers also
said then that Brazil should seek an understanding with the
IMF.
    Stoltenberg said in Bonn today that he had already told
Funaro that the unilateral moratorium was a mistake.
    Stoltenberg said that despite progress in some areas, the
debt problems of a whole range of countries had recently become
more difficult.
    He said flows from commercial banks had decreased markedly
and that the refusal of some highly indebted countries to
fulfil their commitments to private creditors or with the IMF
was one reason for this.
    He also said that when debtor countries came up with good,
confidence-inspiring policies, commercial banks should react
with more flexibility in interest structures, maturities and
rescheduling.    Many debtor countries had realised that it was not possible
to mobilise capital flows, and especially direct investments,
without such policies, Stoltenberg said.
 REUTER
