NEW YORK — Creditor banks have warned Brazil that they would not take kindly to any proposal to delay 1988 interest payments until a medium-term financing package is reached, bankers said Wednesday.
Brazil, which has a foreign debt totaling $113 billion, resumed talks on a medium-term deal with its bank advisory committee here on Tuesday after a three-week break. The start of negotiations was not auspicious, bankers said.
The meetings began 1 1/2 hours late, and when central bank President Fernando Milliet did arrive, he spoke for 40 minutes and then said he would take questions for only 10 minutes because he had another appointment, bankers said.
"Milliet received a stern message. The committee feels that, if the mood is to improve, it would be a lot better if non-payment of interest was not used as a leverage point. The disposition of the committee would be a lot better," said one banker.