Bankers Trust New York Corp said it hasplaced its approximately 540 mln dlrs of medium- and long-term
loans to Brazil on non-accrual status and that first-quarter
net income will be reduced by about seven mln dlrs as a result.
    Brazil suspended interest payments on its 68 billion dlrs
of medium- and long-term debt on February 22.
    U.S. banking regulations do not require banks to stop
accruing interest on loans until payments are 90 days overdue,
but Bankers Trust said it acted now because of "the high
potential of a continued suspension that would result in
reaching the 90-day limit in the second quarter of 1987."
    Assuming no cash payments at current interest rates are
received for the rest of 1987, Bankers Trust estimated that
full-year net income would be reduced by about 30 mln dlrs.
    Bankers Trust said it assumes that debt negotiations
between Brazil and its commercial bank lenders will lead to the
resumption of interest payments.
    The negotiations resume in New York on Friday when central
bank governor Francisco Gros is expected to ask banks for a
90-day rollover of some 9.5 billion dlrs of term debt that
matures on April 15.
 Reuter
