BRASILIA -- A majority of creditors have agreed to reconsider options on how to restructure Brazil's medium-term and long-term commercial bank debt, Citibank said.

The government of Brazil and Citibank, as closing agent, said they received enough responses to Brazil's request for a "rebalancing of options" to determine that the request had been met. The six options are part of Brazil's 1992 financing plan.

Brazil asked for the reconsideration after determining that previously selected options did not meet its financial needs, a Citibank spokesman said.

90% Agree to Request

In a joint press release with Brazil's finance minister, Fernando Henrique Cardoso, Citibank said creditors holding about 90% of Brazil's debt had responded to the request.

The distribution among the six options will be disclosed "once all creditors have responded and the amounts have been reconciled," the bank said.

Citibank also said creditors had agreed to Brazil's request to extend the completion date for the agreement to Nov. 30.

Discussion regarding final documentation will begin in New York City next week between the government of Brazil and its bank advisory committee.

Among the six options, creditors have agreed to provide $324 million in ew money, Citibank said.

Brazil has asked creditors to commit, in aggregate, no more than 40% of their eligible debt to par bonds and no less than 35% to discount bonds, the bank said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.