Three years ago the bank sold all its Brazilian debt, about $15 million, at 60 cents on the dollar.

The renewed appetite for Brazilian debt reflects a less critical view of this country's markets in recent days.

Another purpose is to set up a benchmark for other Brazilian debt.

The announcement of the bond sale yesterday gave an immediate boost to Brazilian foreign debt, with many issues rallying.

They would then buy discounted Brazilian debt with a face value of, say, $8 billion.

Interest rates for Brazilian debt doubled, and the country began using up roughly $30 billion of its foreign-currency reserves.

International The price of Brazilian debt has fallen since a tough economic program took effect there.

Last week, Standard & Poor's downgraded Brazilian debt to negative status.

Over the next two months, some $80 billion in Brazilian debt will need to be rolled over.

But the news pushed down prices for Brazilian debt, which fell about a point, traders said.