Banks Brazil

Brazil's Central Bank president and other top economic officials resigned Thursday, a day after the economy minister quit under fire from business, labor and foreign creditors. Economy Minister Zelia Cardoso de Melo's resignation Wednesday followed a 14-month battle to control spiraling inflation and prop up declining industries. Her policies, which included a freeze on bank accounts, angered many Brazilians.

Gastao Eduardo de Bueno Vidigal, 82, chairman and the biggest shareholder of Banco Mercantil de Sao Paulo, died Tuesday in the Brazilian city. His death caused Mercantil's shares to soar on speculation that a possible sale to Citigroup Inc. may be accelerated. Vidigal, a lawyer, was the son of Gastao Vidigal, the founder of Banco Mercantil, Brazil's 22nd-largest bank in terms of assets. Consultants have said Vidigal was stalling the sale.

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.

Brazil's Central Bank president and other top economic officials resigned Thursday, a day after the economy minister quit under fire from business, labor and foreign creditors. Economy Minister Zelia Cardoso de Melo's resignation Wednesday followed a 14-month battle to control spiraling inflation and prop up declining industries. Her policies, which included a freeze on bank accounts, angered many Brazilians.

About 100 international banks committed themselves Tuesday to lend Brazil $3 billion one day after America's 13th-biggest bank acknowledged that the money it has already provided to developing nations will likely not be repaid. The $3 billion in private money, plus $1.5 billion from Brazil's central bank, is to be added to the estimated $116 billion that Brazil already owes foreigners.

BankAmerica said Wednesday it has placed $1.9 billion in loans to Brazil on non-accrual status, a move that will cut its first-quarter profit by $40 million and threatens to wipe out nearly all of its potential 1987 earnings. J. P. Morgan & Co., the New York-based parent of Morgan Guaranty Trust, the nation's fifth-largest bank, announced moments later that it was taking the same step on $1.3 billion in long- and medium-term loans to Brazil.

Gastao Eduardo de Bueno Vidigal, 82, chairman and the biggest shareholder of Banco Mercantil de Sao Paulo, died Tuesday in the Brazilian city. His death caused Mercantil's shares to soar on speculation that a possible sale to Citigroup Inc. may be accelerated. Vidigal, a lawyer, was the son of Gastao Vidigal, the founder of Banco Mercantil, Brazil's 22nd-largest bank in terms of assets. Consultants have said Vidigal was stalling the sale.

Brazil and a group of negotiators from 14 of its leading creditor banks have approved what one banking source called a "rough outline" of a plan to defer as much as $14 billion in payments on its foreign debt for up to seven years. The plan includes a renewal of $16 billion in short-term bank loans for the Latin American country, the largest debtor among Third World nations. The short-term loans had been due to expire last Friday.

Brazil on Tuesday made the first interest payments in 10 months on its debt to commercial banks but said it will not officially end its payment moratorium until it gets more concessions from the lenders.

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.

About 100 international banks committed themselves Tuesday to lend Brazil $3 billion one day after America's 13th-biggest bank acknowledged that the money it has already provided to developing nations will likely not be repaid. The $3 billion in private money, plus $1.5 billion from Brazil's central bank, is to be added to the estimated $116 billion that Brazil already owes foreigners.

BankAmerica said Wednesday it has placed $1.9 billion in loans to Brazil on non-accrual status, a move that will cut its first-quarter profit by $40 million and threatens to wipe out nearly all of its potential 1987 earnings. J. P. Morgan & Co., the New York-based parent of Morgan Guaranty Trust, the nation's fifth-largest bank, announced moments later that it was taking the same step on $1.3 billion in long- and medium-term loans to Brazil.

Brazil and a group of negotiators from 14 of its leading creditor banks have approved what one banking source called a "rough outline" of a plan to defer as much as $14 billion in payments on its foreign debt for up to seven years. The plan includes a renewal of $16 billion in short-term bank loans for the Latin American country, the largest debtor among Third World nations. The short-term loans had been due to expire last Friday.

Economist Luis Carlos Bresser Pereira was named Brazilian finance minister, succeeding Dilson Funaro, who resigned under fire over his failed anti-inflation policies. Bresser Pereira, 52, is the science and technology secretary for Sao Paulo, Brazil's most populous and wealthiest state, and also an economics teacher and author. He formerly headed a grocery chain.

The first major U.S. bank reporting fourth-quarter results, Chemical Banking Corp., said today its 1988 net income was lifted by Brazil's payments on almost two years' of interest on its loans. The No. 4 U.S. banking company's fourth-quarter net profit rose to $288.5 million, or $4.66 a share, from $229.6 million, or $3.83 a share, last year.