With new IMF loan in hand, Brazilians come calling on private banks for $4.4 billion

Now that the Brazilians have bossa-novaed their way past the International Monetary Fund (IMF) and the Bank for International Settlements, they are hoping the private banks will likewise dance with them.

In a meeting Monday afternoon attended by people from 110 banks representing 90 percent of the country's external debt, the Central Bank of Brazil asked for an additional $4.4 billion in loans for next year. According to Central Bank figures, this would swell the country's debt to $87.9 billion next year, an increase of 8 percent.

Borrowings would again grow in 1984, according to the bank estimates, with the total debt rising to $93.9 billion, an increase of 6.8 percent. By the end of this year, Brazil will owe $81.4 billion in both short- and long-term loans.

Last week Brazil signed an agreement with the IMF which will provide it with Settlements will provide the country with $1.2 billion to $1.5 billion.

Before receiving that money, Brazil will need some short-term financing and has asked the bankers to provide a ''bridge loan'' of $2 billion. An additional

In addition, the Brazilians asked US banks to roll over $4 billion in medium-term loans, due next year, to eight years. Brazil has asked for a 21/2 -year grace period to repay the loans. And it's asking the bankers to continue to provide $8.8 billion in short-term trade-related financing.

Furthermore, it wants the banks to reopen credit lines for the foreign branches of Brazilian banks to the level of last July. According to one banker, this would amount to an additional $10 billion. Brazil has asked the bankers to reply by Dec. 31.

The Brazilians told the bankers they intended to ''adjust to the world situation,'' and thus planned to make changes in their economy. This economic plan has already been approved by the IMF.

''The IMF has discussed the economic program and found it viable and consistent,'' Carlos Langoni, head of the Central Bank, said after the meeting with the bankers. Among the changes, he said, will be an acceleration in the rate at which Brazil devalues the cruzeiro to keep ahead of inflation; reduction in the public-sector deficit to 3.5 percent of gross domestic product; and readjustment of interest rates by elimating agricultural subsidies.

of 5 stories this month > Get unlimited stories
You've read 5 of 5 free stories

Only $1 for your first month.

Get unlimited Monitor journalism.