Norwest Corporation and Subsidiaries - Page 34

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         These were called "blocked deposits".  Under the DFA's and the 1986          
         DFA, the payment terms of the deposits were also rescheduled.                
              Moreover, under the terms of these agreements, blocked deposits         
         relating to loans maturing in 1983, 1984, and 1985 could be re-lent          
         by the creditors to borrowers in Brazil.  Blocked deposits for loans         
         maturing in 1986 (such as the deposits at issue herein) could not            
         be re-lent but could be used for equity investments in Brazilian             
         companies. This type of transaction is called a "debt-equity                 
         conversion".  In a debt-equity conversion transaction, non-Brazilian         
         currency-denominated blocked deposits at the Central Bank are                
         exchanged for cruzados at the official exchange rate, and thereafter         
         the cruzados are used as payment for equity interests in Brazilian           
         companies, subject to Central Bank guidelines and pursuant to the            
         DFA's and the 1986 DFA. Such a transaction can take place only after         
         negotiations with and agreement by the Central Bank.                         
              Blocked deposits at the Central Bank were bought and sold on            
         a secondary market at a discount to their face amounts. This                 
         secondary market originally reflected rates at which banks exchanged         
         debt of one country against that of another, attempting to diversify         
         their portfolios.  Ultimately, the transactions on the secondary             
         market involved sales of all types of claims by banks wishing to             
         clear their portfolios of the specific loans.  Throughout most of            
         1986, Brazilian debt was trading in the secondary market at 75 cents         
         on the dollar, declining to 63 cents by April 14, 1987 (the date of          






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