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The Third World's largest debtor country asked its international bank creditors for a new 180-day deferral of principal payments on about $70 billion in debt while it negotiates a new accord with the International Monetary Fund.
The government decided to reimburse foreign banks for 25% of the losses that they suffered when three Brazilian banks failed last month.
Brazil, the world's largest coffee producer, has threatened to pull out of the International Coffee Agreement if its export quotas are reduced.
Finance Minister Dilson Funaro signaled Brazil's creditors Tuesday that his country intends to limit its annual payments on foreign debt to 2.5% of its gross national product.
"Brazil"; (b) producer of rock's Pink Floyd and Roger Waters albums; (c) a Juilliard-trained oboist; (d) a ballet composer.
Vasco da Gama of Brazil swept past Club America of Mexico, 5-0, before an estimated crowd of 40,000 at the Coliseum.
Hundreds of Brazilians armed with hammers and clubs stormed a prison in the southern state of Parana and killed three alleged murderers, police reported.
Events move fast in Brazil.
Citicorp said today it might have to designate $3.9 billion in loans to Brazil as delinquent, which
Cardinal Avelar Brandao Vilela, head of the Roman Catholic Church in Brazil and archbishop of the
Brazilian President Jose Sarney's dramatic announcement in late February that interest payments would be suspended on his country's $108-billion foreign debt once again focused attention in the United States, as well as in the rest of the West, on the Latin American debt crisis.
With major budget cuts and a proposal to modernize Brazil's constitution, President Jose Sarney made good last week on all the reforms promised by Tancredo Neves, the fallen leader of Brazil's democratic restoration.
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