Brasília, October 30, 2002 (Agência Brasil - ABr) - The president of the Central Bank, Armínio Fraga, speaking at a hearing of the congressional Budget Committee, referring to first half losses at the bank totalling R$10.9 billion (US$2.85 billion), explained that the losses were due to a market adjustment of Brazilian debt bonds linked to the exchange rate.

Fraga declared that such losses would be reduced as the bonds neared their date of maturity. (AB)