Interstate (i) Chief Doubtful on Brazil Debt

First Interstate Bank Corp Chairman Joseph Pinola said he was not optimistic about the prospects for a resolution of the Brazilian debt situation during the current year.

“I am not as optimistic personally on a resolution as some others are,” Pinola told reporters after the company’s annual meeting.

He said it did not seem likely that the Brazilian government has the will to take the steps necessary to resolve their domestic economic difficulties.

In February, Brazil suspended interest payment on about 68 bln dlrs of its commercial debt. Many U.S. banks have placed their Brazilian loans on non-accrual status as a result of this action, but they also expressed confidence that Brazil and U.S. lenders could resolve the situation before the end of the year.