BRAZIL CRITICISES ADVISORY COMMITTEE STRUCTURE
Brazil is not happy with the existing
structure of the 14-bank advisory committee which coordinates
its commercial bank debt, Finance Minister Dilson Funaro said.
    U.S. Banks have 50 pct representation on the committee
while holding only 35 pct of Brazil's debt to banks, he said,
adding "This is not fair with the European and Japanese banks."
The committee had played a useful role in 1982 and 1983,
however.
    Noting the often different reactions of U.S., Japanese and
European banks, Funaro told journalists that Brazil might adopt
an approach involving separate discussions with the regions.
    Since debtor nations' problems were normally treated on a
case-by-case basis, "Perhaps the same principle should apply to
creditors," central bank president Francisco Gros said.
    Brazil on February 20 suspended indefinitely interest
payments on 68 billion dlrs owed to commercial banks, followed
last week by a freeze on bank and trade credit lines deposited
by foreign banks and institutions, worth some 15 billion dlrs.
    Funaro and Gros spent two days at the end of last week in
Washington talking to government officials and international
agencies and will this week visit Britain, France, West
Germany, Switzerland and Italy for discussions with
governments.
    Funaro and Gros are today meeting British Chancellor of the
Exchequer Nigel Lawson, Foreign Secretary Geoffrey Howe and
Governor of the Bank of England Robin Leigh-Pemberton.
    Bankers have estimated that Brazil owes U.K. Banks around
8.5 billion dlrs in long and medium term loans, giving the U.K.
The third largest exposure after the U.S. And Japan.
    The crisis began when Brazil's trade surplus, its chief
means of servicing its foreign debt, started to decline sharply
and the problem was compounded by a renewed surge in the
country'rate of inflation.  Reserves were reported to have
dropped below four billion dlrs.
 Reuter
