International Outlook: GLOBAL WRAPUP
A trickle of foreign capital is flow ing back to Brazil, encouraged by new Economy Minister Marcilio Marques Moreira's steps to rebuild business confidence. In recent months, Brazilian blue-chip companies have been raising money abroad through Eurobonds and commercial paper. At the same time, foreign banks have agreed to take payment in cash and bonds for $8 billion in overdue interest on Brazil's $50 billion external bank debt. That paves the way for talks set for Aug. 21 to reschedule debt.
Marques Moreira, Brazil's former envoy to the U. S., is starting to return to Brazilians $26 billion in bank deposits that President Fernando Collor de Mello froze in 1990 in a drastic attempt to curb inflation. But the $2 billion monthly payout could give a new boost to prices, which rose 11% in July.EDITED BY JOHN PEARSON