BRAZIL CONFIRMS RENEWAL OF SHORT-TERM CREDIT LINES
Brazilian economic officials confirmed
a renewal of short-range credit lines by commercial creditors,
bringing optimism that renegotiation of the 109 billion dlrs
foreign debt is possible.
    Finance Ministry sources said a "large majority" of foreign
banks had accepted to extend Brazil's credit lines before the
midnight deadline of March 31 for payment of 15 billion dlrs
servicing expired.
    Finance Minister Dilson Funaro told reporters all short
range credit lines were renewed, "without exception."
    Central Bank sources, although incapable of confirming that
100 pct of the banks had renewed the credit lines, said that
there was a massive affirmative reply.
    The credit lines were extended in their majority by 30
days, but there were banks which renewed the deadline by 90
days and, sometimes, by 180 days, Funaro told reporters.
    Brazil is pledging for an extension of the deadlines for an
indefinite period, until its economic officials seek a global
renegotiation of the debt.
    Last week Brazil had suggested to creditors an extension of
the deadline for another two months, until May 31.
 REUTER
