MANUFACTURERS &lt;MHC> PUTS BRAZIL ON NON-ACCRUAL

  Manufacturers Hanover Corp said it
  placed 1.4 billion dlrs of medium- and long-term loans to
  Brazilian borrowers on non-accrual as of yesterday, meaning
  that income will be recorded only when actual cash payments are
  received.
      As a result, net income for the first quarter will be
  reduced by 18 mln dlrs.
      If Brazil, which suspended interest payments on its term
  debt on February 20, continues to defer interest payments for
  the rest of the year, net income for the whole of 1987 would be
  reduced by a total of 72 mln dlrs.
      U.S. bank accounting guidelines do not require loans to be
  placed on nonaccrual unless interest payments are past due 90
  days or more.  However, Manufacturers Hanover said that, in
  light of current circumstances, it was more appropriate to
  record income on its Brazilian loans only when cash payments
  were received.
      It added that it believes Brazil will reach agreement with
  its banks on a debt restructuring and that all interest
  payments will be received later in 1987.
      The company earned 102.1 mln dlrs in first-quarter 1986 and
  410.7 mln dlrs for the whole of the year.
  

