SECURITY PACIFIC <SPC> LOANS PUT ON NON-ACCRUAL
Security Pacific Corp said it is
placing medium and long-term loans to Brazil and Ecuador on a
non-accrual basis as of March 31, a move that will reduce first
quarter earnings by 7.2 mln dlrs, or nine cts per share, after
taxes.
    Despite the anticipated reduction to quarterly earnings,
Security Pacific said it still expects to report first quarter
earnings higher than the 88 mln dlrs, or 1.11 dlrs per share
reported for the first quarter of 1986.
    The bank holding company said the action affects 401 mln
dlrs of loans to Brazil and 73 mln of loans to Ecuador.
    Brazil suspended interest payments on its 68 billion dlrs
of medium- and long-term debt on February 20.
    Ecuador, which has foreign debt of roughly eight billion
dlrs, has not paid any interest to foreign banks since
February.
    In March Ecuador said it would suspend interest payments
for the rest of the year because of an earthquake which halted
the export of oil, which accounts for about 75 pct the
country's export revenues.
    In its announcement, Security Pacific said it will record
interest income only as it is received in cash.
    The company also said it believes that Brazil will reach an
agreement with its banks and that interest payments will resume
later in 1987.
    The Brazilian negotiations resume on Friday in New York
when Central Bank Governor Francisco Gros is expected to ask
banks for a 90-day roll-over of some 9.5 billion dlrs of term
debt that matures on April 15.
 Reuter
