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GOVERNMENT OF BRAZIL AND BANK ADVISORY COMMITTEE BEGIN SERIES OF INFORMATIONAL MEETINGS WITH CREDITORS ON DEBT FINANCING PLANS

 NEW YORK, Jan. 26 /PRNewswire/ -- The Government of Brazil and the Bank Advisory Committee kicked off today a series of informational meetings with creditors on the financing plans for Brazil's medium- and long-term debt. The plan covers foreign commercial bank debt and interest arrears for 1991, 1992, 1993 up to the date which the debt is exchanged for bonds.
 Nearly 300 persons attended the four-hour-long session at Citibank's corporate headquarters in New York. Other meetings are planned over the next two weeks in Tokyo, Frankfurt, Paris and London.
 Citibank Vice Chairman William R. Rhodes, who opened the meeting, said the session was very beneficial in terms of not only explaining the intricacies of the financing package, but also in updating the creditors on the state of economic reform in Brazil.
 "Keep in mind that this is the most complex of all the various debt restructuring packages that have been put forward to the international banking community since the debt crisis began in 1982," said Rhodes.
 Under the terms of the financing plan, creditors will have the opportunity to exchange their eligible debt for a combination of six options, one of which would provide new money to Brazil. Two of the options call for the issuance of instruments that will be fully secured with respect to principal and 12 months of interest. Collateral for the fully secured instruments will be phased in over a two-year period following the exchange date. The other options include a front-loaded interest reduction bond with an interest guaranty, a capitalization bond and a restructuring option.
 Rhodes also said Brazil's positive attitude toward this financing package has been evidenced by the fact that the government has strictly observed its commitments in this agreement, both in relation to the issuance of the bonds for the 1989/90 interest arrears, which occurred on Nov. 20, 1992, as well as to the interest payments scheduled under the new financing plan.
 At Tuesday's meeting at Citibank, the Brazilian Government was represented by Pedro Malan, senior debt negotiator; Murilo Portugal Filho, secretary of the treasury; Fernando Holanda Barbosa, secretary for economic policy; Emilio Garofalo, director of the international affairs of the Central Bank; and Sergio Ruffoni Guedes, director of external debt department of the Central Bank.
 Along with presentations by the Government and the Bank Advisory Committees, the creditors heard from Guatam Datta of the World Bank; Jose Fajgenbaum of the International Monetary Fund; and Ciro deFalco of the Inter-American Development Bank.
 Citibank chairs the Bank Advisory Committee; deputy chairmen are J.P. Morgan and Lloyds Bank Plc.
 The schedule for similar informational meetings is as follows: Tokyo, Jan. 29; Frankfurt, Feb. 1; Paris, Feb. 3; London, Feb. 5.
 -0- 1/26/93
 /CONTACT: John M. Anderson of Citibank, 212-559-2722/


CO: Citibank ST: New York IN: FIN SU:

TM -- NY121 -- 9366 01/26/93 19:38 EST
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Date:Jan 26, 1993
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