Amadeusz Juskowiak

Uk says has no role in brazil moratorium talks

UK Chancellor of the Exchequer Nigel Lawson has told Brazils Finance Minister Dilson Funaro that negotiations on Brazils debt to commercial banks are a matter for the commercial banks themselves a Treasury spokesman said

The spokesman said the Chancellor had emphasised in talks this morning with Funaro the need for the Brazilian authorities to be able to present a convincing economic program to the countrys creditors He added an accord with the International Monetary Fund IMF could be a very helpful support

Brazil on February 20 suspended interest payments on 68 billion dlrs of its debts to commercial banks

Lawsons attitude was interpreted by banking sources as a clear rebuff to Brazilian hopes of obtaining official cooperation in resolving its external debt crisis

Funaro accompanied by central bank president Francisco Gros is on the first leg of a tour of European capitals in an attempt to explain to governments Brazils indefinite suspension of interest payments earlier this month

Brazil has in the past rejected a substantial role for the IMF in managing its economy arguing that an IMF austerity program by promoting exports and dampening domestic consumption would lead to recession and threaten democracy

Funaro and Gros last week visited Washington as part of their trip to enlist support from governments for its attempts to change the means by which developing countries finance growth

Funaro said on Saturday in Washington that Brazil would not have suspended payment on its debt if it had received more and faster financing from international agencies

He said earlier today that Brazil was first approaching governments before talking to the commercial banks themselves about the interest payment moratorium because the banks have some limits Its a political discussion from our point of view

Funaro said on Friday that his talks with US Officials had resulted in no new financial arrangement to help resolve Brazils debt crisis describing the meeting as an initial contact

He had earlier met Federal Reserve Board Chairman Paul Volcker and US Treasury Secretary James Baker

The Treasury spokesman pointed out that todays talks had been at Funaros request

After travelling this week to France Germany Switzerland and Italy Funaro hopes to visit Canada and Japan next week before starting negotiations with banks