FIRST INTERSTATE <I> ESTIMATES LOSS ON BRAZIL
First Interstate Bancorp Chairman
Joseph Pinola said the bank holding company would lose about 16
mln dlrs per year, after taxes, if it had to put its medium and
long-term debt on non-accrual status.
    In an interview, he said that could result in about a 4.5
pct decline in annual earnings per share.
    Pinola said First Interstate, like other banks, has not yet
decided to put the loans, which Brazil stopped paying interest
on last month, on non-accrual status.
    "None of us really wants to injure negotiations that might
be going on," he said.
    First Interstate reported to the Securities and Exchange
Commission last week that it has about 339 mln dlrs in
medium-to long-term loans to Brazil.
    It said on December 31, 1986 its nonperformind Brazilian
outstanding debt totaled about 4.1 mln dlrs.
    First Interstate also has about 168 mln dlrs in short-term
loans or trade lines to Brazil.
    Pinola said he believes the solution to the Brazilian debt
crisis will be more political than economic, which he said he
finds, "very disquieting and discomforting."
 Reuter
