Riggs National Corporation & Subsidiaries (f.k.a. Riggs National Bank and Subsidiaries) - Page 23

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          banks involved in negotiating phase I of the Brazilian foreign debt         
          restructuring believed that Brazil's financial problems could be            
          resolved if Brazil were given some relatively short-term financial          
          assistance in overcoming its present shortage of foreign currency,          
          as Brazilian borrowers generally were continuing to make payments           
          in cruzeiros on their foreign loans.  In imposing the foreign debt          
          repayment moratorium, the Brazilian Government and the Central Bank         
          were blocking remission of these loan payments because Brazil               
          lacked sufficient foreign currency reserves with which  to                  
          effectuate the foreign loan payments.  This belief of the major             
          international banks proved to be erroneous, and Brazil continued to         
          require yet additional financial assistance from its foreign                
          lenders, including the later phase II and phase III of the                  
          Brazilian foreign debt restructuring.                                       
               Officials at the highest levels of the Brazilian Government            
          were concerned with and kept informed of the status of the phase I,         
          phase II, and phase III restructuring negotiations. Of the                  
          individuals representing the Brazilian Government and the Central           
          Bank during these negotiations (the Brazilians), the principal              
          negotiators were Finance Ministry officials and Central Bank                
          officials.                                                                  
          O.  Mechanics and Negotiations of the Brazilian Foreign Debt                
          Restructuring                                                               
               The Central Bank served as the borrower under certain                  
          agreements entered into in connection with phase I, phase II, and           





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