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Around the World's Markets: Sao Paulo

Wednesday 10 February 1999 19:02 EST
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BRAZILIAN shares were trading modestly lower yesterday afternoon, with markets unmoved by federal government plans to help a rebel state with debt repayments.

The benchmark Bovespa was down 21.3 points at 8651.7 after the Brazilian government confirmed that it would step in to prevent the Minas Gerais state from defaulting on $108 million of Eurobond payments.

Minas Gerais' default last month on federal debt triggered the devaluation of the real.

Meanwhile, Brazil's Finance Ministry continued its reorganisation of the Central Bank with the appointment of five new directors, including three from the private sector.

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